Gold Canyon Resources Inc.
TSX VENTURE : GCU

Gold Canyon Resources Inc.

November 06, 2006 09:00 ET

Gold Canyon Announces High Grade Drill Results From Cordero Gallium Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 6, 2006) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce further results from the Company's 2006 exploration development plans. These drill results are from the resource conversion program in progress at the Company's Cordero gallium project located in Humboldt County, Nevada, USA. Cordero is recognized as the largest known primary gallium occurrence in North America.

The Company is presently conducting a reverse circulation drilling program with holes at nominal 100 feet intervals to further define and convert indicated and inferred category resources to a measured category. The Company initially reported indicated resources containing 337,360 kilograms of gallium and inferred resources containing 384,640 kilograms of gallium in an independent technical report titled "NI 43-101 Technical Report and Resource Estimation for the Cordero Gallium Project Humboldt County, Nevada, USA" dated April 16, 2006, which was prepared by reserva INTERNATIONAL LLC of Reno, Nevada.

To date 50 drill holes totaling some 10,000 ft of drilling are complete. The management is pleased and encouraged that the results to date support and validate the mineralization model developed in the previous drilling campaigns of 2001 and 2002. Analytical results for 17 drill holes completed in the SW Extension and Corderito Areas have been received and are summarized in the table below.



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Intercept Gallium
DH From To (feet) (g/t)
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C-81 155 320 165 45.8
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Including
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225 245 20 69.3
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C-82 185 295 110 40.5
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Including
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205 220 15 72.0
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C-83 145 335 190 57.5
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Including
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195 210 15 115.7
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230 245 15 96.7
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C-84 145 240 95 53.1
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Including
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170 185 15 84.7
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C-85 140 285 145 34.5
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C-86 165 210 45 126.2
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Including
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170 190 20 184.0
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C-87 230 255 25 53.4
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C-88 No significant values
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C-89 190 230 40 52.0
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C-90 175 270 95 38.2
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C-91 140 155 15 64.3
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160 225 65 52.8
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C-92 95 140 45 51.8
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C-93 120 215 95 76.7
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Including
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120 130 10 120.0
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145 155 10 102.5
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C-94 75 160 85 80.3
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Including
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100 120 20 120.3
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C-95 155 190 35 69.9
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C-96 125 145 20 88.5
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Including
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130 135 5 171.0
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C-97 135 205 70 71.6
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Drilling has expanded the gallium mineralization in these two areas and indicates excellent continuity in the high grade zones. The higher grade mineralized zones (defined by a minimum threshold value of 50 g/t gallium) are still open to the northwest, southwest and south with a significant amount of the area still untested. Based on results from its 2001 and 2002 drill campaigns, Gold Canyon determined 30 g/t gallium as the minimum threshold that defines the mineralized zone at Cordero and 50 g/t as the minimum threshold of significant mineralization. For comparison, the published average crustal abundance of gallium in intermediate rocks is 20 g/t (Krauskop, 1979), the average grade of gallium in bauxite deposits (primary world source of gallium) is 50 g/t (U.S. Geological Survey). Previous drilling also indicates high grade zones of greater than 100g/t gallium (roughly twice the average grade gallium in bauxite deposits) within the 50 g/t envelopes. Drill holes C-83 and C-86 in the SW Extension area and drill hole C-94 in the Corderito area confirms this interpretation and expands the known high grade gallium zones in each area (Please refer to the drill hole location maps located on our website www.goldcanyon.ca under "Latest News").

Drilling continues in the C-15 Zone and the NE Bradley Pits Area (See Drill Target location map), analytical results for the remaining drill holes are pending.

This ongoing drill program is being conducted under the supervision of our consulting geologist Samuel Nunnemaker. Mr. Nunnemaker is a Registered Geologist and Qualified Person under the NI 43-101. All samples were analyzed by Inspectorate Laboratories of Reno, Nevada.

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 Project, the Favourable Lake Poly-metallic Project and Bear Head Uranium Project 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.

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

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.

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