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

Gold Canyon Resources Inc.

March 15, 2011 08:31 ET

Gold Canyon Discovers Shallow High-Grade at Springpole Gold Project: Hole SP11-040 Intersects 100.5 Meters at 7.23 Grams per Tonne Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2011) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce assay results for two new drill 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 100.5 meters at 7.23 grams per tonne gold (330 feet at 0.211 oz per ton gold) in hole SP11-040, a vertical infill hole testing the mid-section of the Portage Zone.

  • Diamond drill hole SP11-040 is a vertical hole collared on the 0+450 m section in a near surface area in which no modern or historic drilling was previously undertaken. This hole intersected 100.5 meters at 7.23 grams per tonne gold (330 feet at 0.211 oz per ton gold) including 28.5 meters at 19.73 grams per tonne gold (93 feet at 0.576 oz per ton gold) beginning at the overburden – bedrock interface, 51 meters down hole. It is believed that this drill hole has encountered a previously unrecognized high-grade zone of alteration and mineralization within the Portage Zone. The true width of this high-grade zone cannot be estimated at this time. SP11-040 was intended as an infill hole, reaching a targeted depth of 151.5 meters and ending in mineralization.

  • Diamond drill hole SP11-039 is a vertical hole testing near-surface mineralization in the Portage Zone on the 0+550 m section. This hole encountered low-grade mineralization beginning at the overburden – bedrock interface 60 meters down hole, and continuing down to its target depth at 165 meters. The hole ended in mineralization.

  • Gravel deposits up to 35 meters thick were encountered by both holes suggesting abnormally thick overburden underlies this area. Elsewhere along the Portage Zone, lake sediments seldom exceed a few meters thick.

"We are very excited to see shallow high-grade in the Portage Zone," comments Dr. Quinton Hennigh, a technical advisor to and director of Gold Canyon Resources. "Earlier this winter, we had our first indications of high-grade in hole SP11-033, but the long intercept encountered by hole SP11-040 was completely unexpected. This hole demonstrates that we continue to see lots of potential upside in the Portage Zone, even in areas where we are infill drilling."

Infill Drill Holes - Portage Zone
             
Hole From (meters) To (meters) Length (meters) Gold
(grams per tonne)
Gold
(grams per tonne) - top cut to 34.25 gpt
Length (feet) Gold
(oz per ton)
Gold
(oz per ton) - top cut to 1 opt
SP11-039 60.0 117.0 57.0 0.40 0.40 187 0.012 0.012
  117.0 132.0 no core recovery    
  132.0 165.0 33.0 0.53 0.53 108 0.015 0.015
                 
SP11-040 51.0 151.5 100.5 7.23 5.23 330 0.211 0.153
includes 55.5 135.0 79.5 9.01 6.48 261 0.263 0.189
includes 57.0 85.5 28.5 19.73 12.66 93 0.576 0.370
includes 58.5 60.0 1.5 167.66 34.25 5 4.896 1.000
 
Reported intervals apply a 0.2 gram per tonne gold (0.006 oz per ton gold) lower cutoff.  
Weighted averages were used to calculate all reported intervals.    
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        

Conditions remain cold at site where three diamond drills continue to operate. Two drills are drilling infill holes in the Portage Zone while one rig continues to drill step-out holes to the southeast. At present, 5,551 meters of drilling in 22 holes have been completed since January 10th. The Company remains hopeful it may be able to continue the Winter 2011 Diamond Drill Program until the end of March.

In preparation for the summer drill season, two barges have been mobilized to site allowing infill and exploration drilling to resume following break-up; one is assembled and on site and the other is at the staging area awaiting mobilization to site. A fourth diamond drill with capacity to drill HQ core to 1,000 meters is also now on site. This rig, to be positioned on shore, will begin testing the down-dip continuation of the Portage Zone to depths of up to 700 vertical meters below surface. This phase of the drill program is planned to begin operating during break-up with helicopter support.

The Winter 2011 Diamond Drill Program is part of an ongoing program of drilling and remodeling of the Springpole Gold deposit to move it towards prefeasibility. Holes drilled this winter and off barge in summer are expected to allow the Company to revise the 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 remains yet to be explored.

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 a technical advisor to and director of Gold Canyon and Alan Roberts is a Senior Geologist to Alaska Earth Sciences, Inc. and Project Manager at Springpole.

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.

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. 

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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