Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

August 17, 2007 06:00 ET

Airborne Survey Shows a Significant Uranium Zone at Gold Canyon's Bear Head Uranium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2007) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce an update to our overall exploration development plans at the Bear Head Uranium Project. Preliminary radiometric data has just been received from Terraquest Ltd. The final Report and Maps has been delayed, but is now expected within a month. Gold Canyon's exploration team interprets the preliminary data as showing a 4 km long by up to 2 km wide uranium anomaly generally measuring over 100 counts per second total raw uranium, the maximum colour value presented on the preliminary map. Although preliminary in nature, management is excited by the magnitude of the anomaly and can now finalize follow-up field activities.

Our exploration team previously discovered significant uranium mineralization (Press Release Oct. 31, 2006) 3 kilometers west of any historic occurrences reported along the main Bear Head Fault Zone (BHFZ). A significant length of the interpreted uranium zone is under marshy ground that does not respond well to airborne radiometrics surveys. We are, therefore, very encouraged by the magnitude of the uranium anomalies found so far on dry land and remain excited to report that there is the potential to discover uranium mineralization over significant widths anywhere along the 23 kilometer target zone. Field surveys will explore the potential of the airborne anomalies shortly.

The main uranium trend is associated with the BHFZ, a major structural deformation zone of intense shearing striking N70 degrees W with dips varying from 60 degrees to 90 degrees to the south. It has been postulated that movement along this zone focused hydrothermal solutions derived from a deep-seated magma with assimilated sediments to deposit uraninite in en-echelon shears. These en-echelon, concordant shears host numerous zones of pegmatite lenses comprising quartz, feldspar and biotite with minor amounts of molybdenite, chalcopyrite, pyrite, magnetite and uraninite. The new discovery and airborne anomaly are believed to be hosted in thick, biotite-rich sills rather than the narrow pegmatite dykes targeted by previous workers.

Gold Canyon's exploration efforts in Canada are currently centered around the Red Lake Mining Camp in north-west Ontario. The Springpole - Horseshoe Island Project is 70 miles to the east, and the Favourable Lake and Bear Head Projects are 120 miles to the north of Red Lake.

Mr. Garry K. Smith, P.Geo., is the Company's Vice President of Exploration and acts as the qualified person on the Springpole-Horseshoe Island and Bear Head Projects as defined by National Instrument 43-101. This news release has been reviewed by Mr. Smith.

About Gold Canyon Resources Inc.:

Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties. The Company controls a 100% interest in the Springpole Gold - Horseshoe Island Gold, Platinum, Palladium Project and the Bear Head Uranium Project which is adjacent to their Favourable Lake Poly-metallic property currently under option to Shoreham Resources Inc. pursuant to an option and joint venture agreement entered into in December 2005.

Through its wholly owned U.S. subsidiary, Gold Canyon Resources USA Inc., the Company controls a 100% interest in the Cordero Gallium Project situated in Humboldt County, Nevada, U.S.A.

Additional information can be found on the Company's website:

Akiko Levinson, President & Director

Certain statements contained in this news release using the terms "may", "expects to", "projects", "estimates", "plans", and other terms denoting future possibilities, are forward-looking statements in respect to various issues including upcoming events based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. The future conduct of the Company's business and the feasibility of its mineral exploration properties are dependent upon a number of factors and there can be no assurance that the Company will be able to conduct its operations as contemplate and the accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company's disclosure documents and its annual, quarterly and current reports; the fact that exploration activities seldom result in the discovery of a commercially viable mineral resource and are also significant amounts of capital to undertake and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gold Canyon Resources Inc.
    Vic Weckerle
    Investor Relations
    (604) 682-3234 or Toll Free: 1-888-242-3234
    (604) 682-0537 (FAX)