Gold Canyon Resources Inc.
TSX VENTURE : GCU
PINK SHEETS : GDCRF

Gold Canyon Resources Inc.

May 11, 2011 08:30 ET

Drilling at Gold Canyon's Springpole Gold Project Produces More Long Gold and Silver Intercepts

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2011) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce assays from six new holes from its Winter 2011 Diamond Drill Program at its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Results include 110.6 meters at 2.48 grams per tonne gold and 4.56 grams per tonne silver (363 feet at 0.072 oz per ton gold and 0.133 oz per ton silver) in hole SP11-058, a vertical infill hole testing the southeast part of the Portage Zone. Also included is 194 meters at 1.11 grams per tonne gold and 13.79 grams per tonne silver (636 feet at 0.032 oz per ton gold and 0.403 oz per ton silver) in hole SP11-048, an inclined infill hole.

"The last nine meters of hole SP11-058 assay 18.33 grams per tonne gold, similar grades to those seen in hole SP11-040 approximately 50 meters northwest," comments Dr. Quinton Hennigh, Technical Advisor and Director of Gold Canyon Resources. "We are now feeling more confident that a near-surface, high-grade core is beginning to hang together in this area. In addition, recent infill drilling has revealed unusually high silver assays in the mid-section of the Portage Zone. Holes SP11-048, -054 and -056 all intersected long intervals grading in excess of ten grams per tonne silver."

Summary of New Gold and Silver Results from the Portage Zone

Gold
(grams per
tonne)
Silver
(grams per
tonne)

Length
(feet)
Gold
(oz per
ton)
Silver
(oz per
ton)

Silver-to-
Gold Ratio
From
(meters)
To
(meters)
Length
(meters)
Hole
SP11-048121.0315.0194.01.1113.796360.0320.40312.4
includes205.5239.033.51.706.961100.0500.2034.1
includes276.0294.018.04.0020.19590.1170.5905.0
includes291.0292.51.511.3168.9050.3302.0126.1
An interval of no core recovery was encountered from 153-156 meters
SP11-050139.0247.0108.00.543.303540.0160.0966.1
304.0328.024.00.633.96790.0180.1166.3
Interval of no core recovery was encountered from 244.5-246 and 282-283.5 meters
SP11-05311.421.09.62.9513.32310.0860.3894.5
130.0321.0191.01.085.306260.0320.1554.9
340.0351.011.01.191.87360.0350.0551.6
Interval of no core recovery was encountered from 217.5-220.5 and 237-240 meters
SP11-05423.0165.0142.00.8117.634660.0240.51521.8
An interval of no core recovery was encountered from 30-31.5 meters
SP11-05655.5228.0172.50.9321.385660.0270.62423.0
includes133.0153.020.02.2643.19660.0661.26119.1
Interval of no core recovery was encountered from 166.5-168, 172.5-174, 193.5-195 and 208.5-210 meters
SP11-05848.4159.0110.62.484.563630.0720.1331.8
includes150.0159.09.018.337.25300.5350.2120.4

Weighted averages were used to calculate all reported intervals

Zones of no core recovery were given a gold grade of 0 in the weighted average calculations above

Reported intervals apply a 0.2 gram per tonne gold (0.006 oz per ton gold) lower cutoff

Internal dilution within reported intervals does not exceed core lengths of 8 meters.

1 troy oz = 31.103 grams

Conversion factor - grams per tonne to troy oz per short ton; g/t divided by 34.2857 or g/t multiplied by 0.0292 1 meter = 3.28 feet

Summary of Gold and Silver Results from the Portage Zone (Gold assays previously released)



Hole

From
(meters)

To
(meters)

Length
(meters)
Gold
(grams per
tonne)
Silver
(grams per
tonne)

Length
(feet)
Gold
(oz per
ton)
Silver
(oz per
ton)

Silver-to-
Gold Ratio
SP11-04342.0153.0111.02.037.003640.0590.2043.4
includes112.5117.04.536.214.83151.0570.1410.1
includes112.5114.01.592.576.3052.7030.1840.1
An interval of no core recovery was encountered from 42.5-45 meters
SP11-044132.0351.0219.00.7111.807180.0210.34516.6
includes132.0313.5181.50.8412.855950.0250.37515.3
includes132.0213.081.01.0714.652660.0310.42813.7
includes135.0136.01.014.7410.8030.4300.3150.7
includes199.5213.013.52.2057.41440.0641.67626.1
SP11-04536.090.054.02.1519.131770.0630.5598.9
includes66.090.024.03.1722.75790.0930.6647.2
An interval of no core recovery was encountered from 42-43.5 meters
SP11-045A63.0213.0150.02.5612.484920.0750.3644.9
includes76.5106.530.05.6917.99980.1660.5253.2
includes93.0103.010.011.1121.97330.3240.6422.0
includes99.0100.01.053.8341.0031.5721.1970.8
includes210.0213.03.09.5093.03100.2772.7169.8
includes212.0213.01.023.31234.0030.6816.83310.0
SP11-04634.063.029.00.575.46950.0170.1599.6
96.0109.013.00.400.42430.0120.0121.1
176.0186.010.00.311.30330.0090.0384.2
200.0212.012.00.321.07390.0090.0313.3
238.0306.568.50.826.742250.0240.1978.2
333.5353.019.50.433.70640.0130.1088.6
359.0367.08.00.442.14260.0130.0624.9
An interval of no core recovery was encountered from 294.5-296 meters
SP11-04722.7177.0154.30.998.695060.0290.2548.8
SP11-04920.0152.0132.01.377.594330.0400.2225.5
includes82.0127.045.02.5016.641480.0730.4866.7
includes93.098.05.08.6460.90160.2521.7787.0
SP11-05114.0164.0150.01.153.924920.0340.1143.4
includes100.0114.014.03.011.26460.0880.0370.4
SP11-05219.0158.0139.01.0410.834560.0300.31610.4

Weighted averages were used to calculate all reported intervals

Zones of no core recovery were given a gold grade of 0 in the weighted average calculations above

Reported intervals apply a 0.2 gram per tonne gold (0.006 oz per ton gold) lower cutoff

Internal dilution within reported intervals does not exceed core lengths of 12 meters.

1 troy oz = 31.103 grams

Conversion factor - grams per tonne to troy oz per short ton; g/t divided by 34.2857 or g/t multiplied by 0.0292 1 meter = 3.28 feet

Summary:

  • Diamond drill holes SP11-048 and -053, both oriented with an azimuth of 220 degrees true north and an inclination of -45 degrees, test the mid-section of the Portage Zone at depths of about 150-250 meters. Each of these holes intersected over 190 meters of down hole length of mineralization through the Portage Zone indicating its true width is approximately 135 meters in this area. In addition, hole SP11-053 encountered an unexpected near-surface intercept of 9.6 meters at 2.95 grams per tonne gold and 13.32 grams per tonne silver (31 feet at 0.086 oz per ton gold and 0.389 oz per ton silver).
  • Diamond drill holes SP11-054, -056 and -058, are all vertical holes testing the mid-section of the Portage Zone. They all confirm that gold mineralization starts at surface, at the bedrock interface beneath lake bottom sediments. Of particular note, the last 9 meters of hole SP11-058 assay 18.33 grams per tonne gold (30 feet at 0.535 oz per ton gold), similar to grades observed in hole SP11-040 approximately 50 meters northwest (see press release dated March 15, 2011).
  • Silver assays prove to be appreciably higher in the mid-section of the Portage Zone. Holes SP11-048, -054 and -056 all intersected long intervals grading in excess of 10 grams per tonne silver. Silver-to-gold ratios are higher in this area, too, commonly exceeding 10-to-1. Individual assays from the three holes report up to 284 grams per tonne silver.
  • Diamond drill hole SP11-050 was collared approximately 150 meters southeast of hole SP11-046 (see press release dated April 14, 2011) with an azimuth of 220 degrees true north and an inclination of -45 degrees. Like SP11-046, SP11-050 intersected long intervals of altered rock containing low-grade mineralization; these intervals are believed to lie on the margins of the southwest extension of the Portage Zone ore body; drilling this summer will target the core of this mineralization.
  • The Winter 2011 Diamond Drill Program came to an end on April 8, 2011. Nearly 8,500 meters of drilling in 33 holes was accomplished. Holes awaiting assays include SP11-055, -057, -059 and -060. Hole SP11-061, the final hole drilled, will be used in its entirety for metallurgical test work and will not be assayed. Remaining assays are expected back over the next two weeks.
  • Hole SP11-062, the first of a series of deep drill holes, was collared on the southwest shore of the bay on the 0+00 section, with an azimuth of 40 degrees true north and an inclination of -45 degrees. At 467 meters, the hole was lost in bad ground (sand composed of biotite, sericite, decomposed feldspar and pyrite). While disappointing, the drill hole still displays the intense style of alteration similar to that seen in most holes drilled to date within the Portage Zone. Assays are expected back within 3-4 weeks. Hole SP11-063, the second attempt to drill this hole, was collared a few meters away and is currently in progress at a depth of approximately 400 meters. It is designed to reach its targeted depth of 1,000 meters in late May.
  • Drilling from a pair of barges is expected to begin once the lake is ice free, likely by early to mid-June.

The ongoing diamond drill program is part of an effort to move the Springpole Gold deposit towards prefeasibility. Holes drilled this winter and from a pair of barges in summer are expected to allow the Company to revise the 43-101 compliant resource estimate for the deposit sometime in the second half of 2011.

Springpole is an alkaline intrusion hosting a gold system that represents a potentially new style of Canadian Archean Shield gold deposit. The Portage zone is hosted by a trachytic porphyry intrusion displaying polyphase autolithic breccias that host gold mineralization. Other zones including the East Extension, Camp and Main, consist of high-grade veins and pods hosted in diatreme breccias composed of intrusive and country rock fragments. These breccias surround the northwest and northern margins of the Portage Zone. The known mineralized zones underlie a total known area of about 4 square kilometers representing only about 15 percent of the greater alkaline intrusive complex which is yet to be comprehensively explored.

Core was logged then split using diamond saws with one half sent for analyses and the other half stored for future reference. Quality control programs include the use of field and laboratory duplicates, standards, blanks, and internal and external check assaying. Certified sample standards were submitted with the normal sample stream. Gold and silver assays were completed by SGS Canada Inc. in Red Lake and Toronto, Ontario using a 30 gram charge, fire assay, with an ICP finish. For over limit assay results, initial assays in excess of 10.0 grams per tonne Au, a gravimetric finish is utilized.

Quinton Hennigh, Ph.D., P.Geo. and Alan Roberts, M.Sc., P.Geo. are the Qualified Persons pursuant to National Instrument 43-101 responsible for, and have reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical adviser to Gold Canyon and Alan Roberts is the Senior Geologist of Alaska Earth Sciences, Inc. and Project Manager at Springpole.

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 Favourable Lake Poly-metallic property currently under option to Guyana Frontier Mining Corp. pursuant to an option and joint venture agreement entered into in December 2005 - all in the Red Lake Mining District of Ontario, Canada.

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.

Gold Canyon entered into a Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.

Additional information can be found on the Company's website: www.goldcanyon.ca

Akiko Levinson, President & Director

Certain statements contained in this news release using the terms "may", "expects to", "project", "estimate", "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 contemplated 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.

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