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

Gold Canyon Resources Inc.

January 18, 2011 08:31 ET

Gold Canyon Announces Remaining Silver Assays From 2010 Drilling at Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce the remaining silver assays from the Summer 2010 Diamond Drill Program at its 100% controlled Springpole Gold Project, 110 kilometres northeast of the Red Lake Mining Camp, Ontario, Canada. Silver assays from holes SP10-019, -022, -024, -025, -026, -028 and -029, all of which drilled across various parts of the Portage Zone, continue to demonstrate that appreciable silver accompanies gold in this large porphyry system.

  • A summary of results includes:

  • SP10-019: 307 meters at 1.44 grams per tonne gold and 5.48 grams per tonne silver 
    SP10-022: 223 meters at 1.45 grams per tonne gold and 5.03 grams per tonne silver
    SP10-024: 225 meters at 1.48 grams per tonne gold and 4.73 grams per tonne silver
    SP10-025: 38 meters at 1.53 grams per tonne gold and 2.55 grams per tonne silver
    SP10-026: 353 meters at 1.17 grams per tonne gold and 3.86 grams per tonne silver
    SP10-028: 108 meters at 1.75 grams per tonne gold and 9.30 grams per tonne silver
    SP10-029: 132 meters at 2.30 grams per tonne gold and 10.80 grams per tonne silver

  • All intercepts drilled across various parts of the Portage Zone display appreciable silver with gold (see table below). Silver-to-gold ratios range from 1.1 : 1 to 10.8 : 1 and average about 4.4 : 1. Consistent gold and silver values in the Portage Zone reflect the disseminated and stockwork nature of mineralization in this large porphyry body, and although gold and silver values vary somewhat from place to place, no clear metal zonation has yet been recognized within the porphyry.

  • Interestingly, silver values appear to be much lower in veins that are part of the Main Zone (note two intercepts from hole SP10-025 in table below) and situated peripheral to the porphyry body. For example, a one meter vein intercept that assayed 45 grams per tonne gold bears less than 0.3 grams per tonne silver. It is believed that this contrast, significant silver in the porphyry and little in adjacent veins, reflects either 1) a primary zonation associated with the original porphyry mineralizing event, or 2) that adjoining gold veins formed through late remobilization and deposition of gold during deformation and alteration but the fluids responsible did not carry appreciable silver.

  • The table below summarizes drill intercepts from the Portage Zone from the 2010 Diamond Drill Program. Note that this table includes newly reported intervals from some earlier reported holes using a lower cut-off grade of 0.2 grams per tonne gold and internal dilution not exceeding core lengths of 12 meters. 

  • Presently, the strike length of the northwesterly-striking Portage Zone stands at approximately 950 meters. This zone remains open at depths in excess of 300 meters along its entire length. True widths of the zone generally range from 90 to 150 meters, but locally widen to as much as 250 meters. The zone remains open at depth, to the southeast and northwest where it appears to plunge underneath the Main Zone.

  • The winter drill program is in progress. Two diamond core rigs are operating and a third is expected to start within a few days. Two holes testing shallow portions of the Portage Zone have been completed. Cold weather has settled in making conditions favourable for building up ice and making drill pads on the lake.

"In 2010, we drilled eighteen holes testing various parts along the strike of the Portage Zone," comments Dr. Quinton Hennigh, technical advisor to Gold Canyon. "We now feel more confident about our understanding of this large gold-silver system. For example, we usually see gold and silver values gradually rise, peak, then gradually diminish as we drill across this zone. Seldom do we see values above 10 grams per tonne gold within the porphyry, so the intervals we report are not "carried" by a few high assays. The weighted average grade of Portage Zone intercepts from the eighteen holes drilled in 2010 is 1.36 grams per tonne gold and 5.95 grams per tonne silver, a silver-to-gold ratio of 4.4 : 1. The Portage Zone bifurcates in places, perhaps reflecting late structural displacement. Although we have a lot more work to do, our picture of the Portage Zone is quickly becoming clearer." 

The Winter 2011 Diamond Drill Program, now underway, is part on an ongoing program of drilling and remodelling of the Springpole deposit to move it towards prefeasibility. Drilling is planned through early 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 kilometers representing only about 15 percent of the greater alkaline intrusive complex which remains yet 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.

To view the table associated with this release, please visit: http://media3.marketwire.com/docs/gcu-tabl.pdf.

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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