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

Gold Canyon Resources Inc.

December 09, 2010 08:31 ET

Gold Canyon Announces Additional Long Gold Intercepts at Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2010) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce that hole SP10-029 has intersected 132 meters at 2.30 grams per tonne gold including 42 meters at 5.28 grams per tonne gold. Another hole, SP10-028, intersected 108 meters at 1.75 grams per tonne gold including 12 meters at 6.11 grams per tonne gold. Hole SP10-028 ended in mineralization when the hole was terminated due to difficult drilling conditions. Both holes, SP10-028 and -029, test parts of the Portage Zone (to see the attached map please click on: http://media3.marketwire.com/docs/gcu1209.jpg). The Springpole Gold Project is 100% controlled by the Company and is located in the Red Lake Mining District of Ontario, Canada.

  • Hole SP10-029, 132 meters at 2.30 grams per tonne gold (433 feet at 0.067 oz per ton gold) including 42 meters at 5.28 grams per tonne gold (138 feet at 0.154 oz per ton gold), was collared approximately 70 meters east of SP10-011 (94 meters at 2.51 grams per tonne gold announced in news release dated August 30, 2010) at an azimuth of 220 degrees true north and inclination of -45 degrees, parallel to hole SP10-011 and below, and on section with, hole SP10-005 (55.0 meters at 2.21 grams per tonne gold announced in news release dated May 4, 2010). This long interval of gold mineralization, in the northwest part of the Portage Zone, is the deepest intercept drilled to date during the current staged drilling program, and confirms mineralization to depths in excess of 300 meters. It also reaffirms shallower, on section mineralization intercepted in drill hole SP10-005, which ended in mineralized rock. The true width represented by this intercept is approximately 90 meters. Shallow zones of gold mineralization were also encountered in this hole (see table on page 3: Summary of Significant Intervals from Portage Zone).

  • Hole SP10-028, 108 meters at 1.75 grams per tonne gold (354 feet at 0.051 oz per ton gold) including 12 meters at 6.11 grams per tonne gold (39 feet at 0.178 oz per ton gold), was collared a few meters from SP10-008 (123 meters at 1.45 grams per tonne gold announced in news release dated August 16, 2010) at an azimuth of 245 degrees true north and inclination of -45 degrees. This hole targeted a 100 meter wide gap with no previous drill holes in the Portage Zone. Due to difficult drilling conditions, the hole was terminated in mineralized rock before penetrating the full width of the Portage Zone. This intercept demonstrates continuity of mineralization to vertical depths of at least 350 meters in this part of the Portage Zone (see table on page 3: Summary of Significant Intervals from Portage Zone).

  • The strike length of the northwesterly striking Portage Zone presently stands at approximately 950 metres Hole SP10-028 and -029 continue to confirm that the Portage Zone persists beyond 300 meters depth along its entire length. True widths of the zone range from 90 to 150 meters. Drilling planned for Winter 2011 will test shallow portions of this zone to confirm continuity to surface.

  • Hole SP10-021 tested an area between the Portage Zone and East Extension Zone and encountered 4 meters at 6.17 grams per tonne gold (13 feet at 0.180 oz per ton gold) from 299-303 meters down hole depth in a vein more typical of the East Extension Zone. Hole SP10-023 encountered 38 meters at 0.68 grams per tonne gold (125 feet at 0.020 oz per ton gold) from 40-78 meters down hole depth along the eastern margin of the Main Zone (see table on page 3: Summary of Significant Intervals from Other Targets [Not in Portage Zone]).

  • Results from the remaining two holes from this summer's drill program are due back from the lab by mid-December. Hole SP10-026 tests the Portage Zone below hole SP10-007 at its northwest end. Hole SP10-025, tests the gap between the Main and Portage Zones. Hole SP10-027 was terminated at 115 meters when the drill hole deviated off course and thus was unable to reach its intended target zone and was not sampled. In total, the Company drilled approximately 10,300 meters of diamond drill core at Springpole during the Summer 2010 Diamond Drill Program.

  • The Company is planning an aggressive Winter 2011 Diamond Drill Program to further evaluate the size of the Portage Zone. Up to 10,000 meters of drilling are planned utilizing three diamond core rigs beginning in early January 2011, weather permitting. Cold weather has recently settled in the Springpole area and personnel are building up ice on the lake in preparation for winter drilling. Two rigs will drill infill holes in the Portage Zone and a third rig will drill step-out holes to the southeast where the Company believes the Portage Zone can be expanded.

"Hole SP10-029 is anomalous for the Portage Zone which typically displays true widths of 100-150 meters and grades of around 1.3-1.5 grams per tonne gold," comments Dr. Quinton Hennigh, technical advisor to Gold Canyon. "The true width of the Portage Zone represented by the intercept in SP10-029 is about 90 meters, yet the grade is significantly higher at 2.23 grams per tonne gold. This intercept may indicate that the zone narrows but increases in grade with depth."

"Hole SP10-028 tested a 100 meter gap in drilling in the southeast part of the Portage Zone," continues Hennigh. "Although we were disappointed the hole did not penetrate the full width of the Portage Zone, we are very pleased to see it return good gold grades in this critical gap."

Summary of Significant Intervals from Portage Zone
Hole From (meters) To (meters) Length (meters) Gold (grams per tonne) Length (feet) Gold (oz per ton)
SP10-028 83 85 2 1.55 7 0.045
  162 166 4 1.12 13 0.033
  217 226 9 0.44 30 0.013
  267 283 16 0.61 52 0.018
  361 469 108 1.75 354 0.051
includes 412 460 48 3.18 157 0.093
includes 427 439 12 6.11 39 0.178
Hole ends in mineralization; terminated due to difficult drilling conditions.
Intervals of no core recovery were encountered at 394-400 m and 439-445 m.
Zones of no recovery were given 0 gold grade in the weighted calculations above.
 
SP10-029 3 41 38 0.54 125 0.016
  80 98 18 0.55 59 0.016
  193 228 35 0.34 115 0.010
  241 263 22 0.52 72 0.015
  301 433 132 2.30 433 0.067
includes 340 382 42 5.28 138 0.154
includes 340 346 6 11.07 20 0.323
Intervals of no core recovery were encountered at 337-340 m, 364-370 m and 418-421 m.
Zones of no recovery were given 0 gold grade in the weighted calculations above.
Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold) cutoff.
Weighted averages were used to calculate all reported intervals.
Internal dilution within reported intervals does not exceed core lengths of 8 meters.
1 troy ounce = 31.103 grams
Conversion factor – grams per tonne to troy ounces per short ton; g/t divided by 34.2857 or g/t multiplied by 0.0292
1 meter = 3.28 feet
 
 
Summary of Significant Intervals from Other Targets [Not in Portage Zone]
Hole From (meters) To (meters) Length (meters) Gold (grams per tonne) Length (feet) Gold (oz per ton)
SP10-021 93 96 3 1.22 10 0.036
  299 303 4 6.17 13 0.180
includes 301 302 1 15.77 3 0.460
 
SP10-023 40 78 38 0.68 125 0.020
  134 137 3 0.94 10 0.027
Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold) cutoff.
Weighted averages were used to calculate all reported intervals.
Internal dilution within reported intervals does not exceed core lengths of 8 meters.
1 troy ounce = 31.103 grams
Conversion factor – grams per tonne to troy ounces per short ton; g/t divided by 34.2857 or g/t multiplied by 0.0292
1 meter = 3.28 feet

The Summer 2010 Diamond Drill Program completed in October, 2010 is part of an ongoing program of drilling and remodelling of the Springpole deposit to move it towards prefeasibility.

Drilling is planned to continue through April 2011, at which time work will begin on revising the resource estimate for the deposit.

Springpole is an alkaline intrusion hosting a gold system that represents a potentially new style of Canadian Archean Shield gold deposit. Springpole shares many similarities with deposits such as the Cripple Creek Gold deposit in Colorado. The Portage Zone is hosted by a trachytic porphyry intrusion displaying polyphase autolithic breccias that contain gold mineralization of remarkably uniform grade. Other zones, including East Extension, Camp and Main, consist of high grade veins and pods hosted in diatreme breccias composed of intrusive and country rocks. These diatreme breccias surround the northwest and northern margins of the Portage Zone. The known mineralized zones underlie a total known area of about 4 square kilometres representing only about 15 percent of the greater alkaline intrusive complex which yet remains to be 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 duplicates, standards 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 Shoreham Resources Inc. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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