Gold Canyon Resources Inc.
TSX VENTURE : GCU
PINKSHEETS : GDCRF

Gold Canyon Resources Inc.

August 21, 2012 06:30 ET

Gold Canyon Encounters 367.4 Meters at 1.47 Grams Per Tonne Gold at Its Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2012) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce it has received all assay results from diamond drill holes that will be included in its upcoming resource update. The holes are part of the 2012 barge drilling program at its 100% controlled Springpole Gold Project located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Included in these results is an intercept of 367.4 meters at 1.47 grams per tonne gold (1,205 feet at 0.043 oz per ton gold) from hole SP12-162B and another of 330 meters at 1.40 grams per tonne gold (1,082 feet at 0.041 oz per ton gold) in hole SP12-173.

To view a Plan Map, please visit the following link: http://media3.marketwire.com/docs/gcu821map.jpg.

"We are very pleased with the assays results from recent drill holes that will be used to update our National Instrument 43-101 ("NI 43-101") compliant resource," comments Dr. Quinton Hennigh, technical advisor to, and director of Gold Canyon. "The Portage Zone continues to produce exceptional grade thickness intervals, confirming one of its many attributes. Now that we have results in hand, we expect to receive an updated resource from our independent qualified person by early Q4 of this year."

Four drills mounted on barges continue to operate at Springpole. Year-to-date, nearly 36,500 meters of diamond core drilling have been completed. Results from recent infill holes that will be used to update Springpole's NI 43-101 compliant resource are listed in the table below. All holes were drilled from barges and are vertical.

  • The upcoming NI 43-101 compliant resource update will include approximately 30,000 meters of additional drilling completed in 2012 at Springpole. The last published resource included all drill holes completed through the end of 2011. Most recent drilling has been in the southeastern part of the deposit where recent exploration expanded the length of the Portage Zone to the 0-250 meter section line.
  • Work on a preliminary economic assessment (PEA) of the Springpole deposit by SRK Consultants (Vancouver) will utilize the updated NI 43-101 compliant resource as its basis. The anticipated completion date for the PEA is Q1, 2013.
  • Continued drilling at Springpole will now focus on geotechnical aspects surrounding the deposit.
  • Environmental baseline work by DST Engineering and other consultants will continue into the fall, and engagement with stakeholders is on-going with regular meetings scheduled for the remainder of 2012.
Summary of Drill Results from the Portage Zone
Section Hole From
(meters)
To
(meters)
Length
(meters)
Gold
(grams
per
tonne)
Length
(feet)
Gold
(oz
per
ton)
0+050 meter; middle SP12-162 13.5 29.0 15.5 1.59 51 0.046
hole lost in broken ground at 29 meters
0+050 meter; middle SP12-162B 13.6 381.0 367.4 1.47 1205 0.043
includes 13.6 307.0 293.4 1.67 962 0.049
includes 84.0 92.0 8.0 4.71 26 0.138
includes 138.0 160.0 22.0 5.91 72 0.173
includes 269.0 277.0 8.0 6.64 26 0.194
includes 373.0 375.0 2.0 8.49 7 0.248
SP12-163 Announced in a previous news release
0-100 meter; middle SP12-164 17.0 23.0 6.0 0.87 20 0.025
91.0 101.0 10.0 1.41 33 0.041
175.0 350.0 175.0 0.71 574 0.021
0-200 meter; SW flank SP12-165 72.0 76.0 4.0 0.77 13 0.022
144.0 148.0 4.0 0.76 13 0.022
168.0 210.0 42.0 0.79 138 0.023
244.0 257.0 13.0 0.66 43 0.019
283.0 305.0 22.0 0.46 72 0.013
0-200 meter; middle SP12-166 104.0 112.0 8.0 0.59 26 0.017
124.0 140.0 16.0 0.47 52 0.014
154.0 160.0 6.0 1.50 20 0.044
180.0 304.0 124.0 0.93 407 0.027
includes 279.0 283.4 4.4 5.10 14 0.149
0-050 meter; SW flank SP12-167 153.0 349.0 196.0 0.75 643 0.022
0-200 meter; NE flank SP12-168 88.0 102.0 14.0 0.87 46 0.025
includes 94.3 96.6 2.3 3.68 8 0.107
122.0 162.0 40.0 0.40 131 0.012
173.0 268.0 95.0 1.23 312 0.036
includes 208.0 245.0 37.0 2.25 121 0.066
includes 220.0 222.0 2.0 15.93 7 0.465
417.0 419.0 2.0 4.82 7 0.141
0-200 meter; SW flank SP12-169 148.0 230.0 82.0 0.59 269 0.017
251.0 301.0 50.0 0.83 164 0.024
includes 260.0 264.0 4.0 3.38 13 0.099
0+150 meter; SW flank SP12-170 51.0 56.0 5.0 0.99 16 0.029
212.0 255.0 43.0 0.58 141 0.017
hole lost in broken ground at 257 meters
0+150 meter; SW flank twin of SP12-170 SP12-170A 209.0 215.0 6.0 0.54 20 0.016
228.0 262.0 34.0 0.77 112 0.022
282.0 339.0 57.0 0.83 187 0.024
351.0 354.0 3.0 1.05 10 0.031
380.0 408.0 28.0 0.45 92 0.013
0-050 meter; middle SP12-171 28.0 34.0 6.0 0.47 20 0.014
92.1 104.0 11.9 0.53 39 0.015
159.0 173.0 14.0 0.69 46 0.020
195.0 366.0 171.0 0.92 561 0.027
0-150 meter; middle SP12-172 71.0 83.0 12.0 0.72 39 0.021
91.0 99.0 8.0 0.59 26 0.017
162.0 262.0 100.0 0.52 328 0.015
273.0 294.0 21.0 0.59 69 0.017
300.0 312.0 12.0 0.46 39 0.013
321.0 339.0 18.0 0.55 59 0.016
395.0 404.0 9.0 0.56 30 0.016
000 meter; middle SP12-173 8.2 12.0 3.8 0.89 12 0.026
38.0 368.0 330.0 1.40 1082 0.041
includes 59.0 63.0 4.0 6.47 13 0.189
includes 123.0 368.0 245.0 1.63 804 0.048
includes 139.0 164.0 25.0 3.73 82 0.109
includes 224.0 257.0 33.0 3.97 108 0.116
0+200 meter; far SW SP12-174 363.0 378.0 15.0 0.45 49 0.013
390.0 416.0 26.0 0.43 85 0.013
Weighted averages were used to calculate all reported intervals
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
Intervals of no recovery were given a gold grade of 0 in the weighted average calculations above
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

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 Springpole

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 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.

On February 27, 2012, Gold Canyon announced an updated NI 43-101 compliant resource estimate for Springpole, effective February 27, 2012, which included an indicated mineral resource of 1.22 million ounces gold and 4.82 million ounces silver and an inferred mineral resource of 2.45 million ounces gold and 11.58 million ounces silver (cut-off grade of 0.4 grams per tonne gold). Tonnage and grades were reported as 30.0 million metric tonnes at 1.26 grams per tonne gold and 5.0 grams per tonne silver for the indicated category, and 60.0 million metric tonnes at 1.27 grams per tonne gold and 6.0 grams per tonne silver for the inferred category. A technical report detailing this resource was filed by the Company on April 10, 2012 and is available through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

Quinton Hennigh, Ph.D., P.Geo. is the Qualified Person pursuant to National Instrument 43-101 responsible for, and has reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical adviser to, and a director of, Gold Canyon.

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 REE 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

Cautionary Note Regarding Mineral Resources

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred resources in any estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

Cautionary Note to U.S. Readers Regarding Estimates of Measured, Indicated and Inferred Resources

This news release uses the term "inferred resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, it is not recognized by the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. The term "contained gold ounces" used in this news release is not permitted under the rules of the SEC. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.

Cautionary Note Regarding Forward Looking Statements

This news release contains statements that constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 or "forward looking information" within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "would", "should", "could", or "might" occur or be achieved and other similar expressions. Forward-looking statements in this news release include statements regarding the timing and nature of permitting studies, the timing and nature of infrastructure developments and construction, projections of future optimization, production timeline targets, the timing of negotiations with third parties, and the timing and nature of future exploration programs which are dependent on projections which may change as drilling continues, or if unexpected ground conditions are encountered. In addition, areas of exploration potential are identified which will require substantial drilling to determine whether or not they contain similar mineralization to areas which have been explored in more detail. The description of the extent of mineralized zones is not intended to imply that any economically mineable estimate of reserves or resources exists on any of Gold Canyon's projects.

The forward-looking statements that are contained in this news release are based on various assumptions and estimates by Gold Canyon and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Gold Canyon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, unanticipated difficulties or costs in any rehabilitation which may be necessary, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Gold Canyon and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. Although Gold Canyon has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this news release and Gold Canyon disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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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