Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

November 23, 2010 08:31 ET

Gold Canyon Intercepts 225 Meters at 1.48 Grams Per Tonne Gold at Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 23, 2010) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce that hole SP10-024 has intersected 225 meters at 1.48 grams per tonne gold including 47 meters at 3.47 grams per tonne gold at Springpole Gold Project. Several zones of broken ground were encountered below this interval resulting in no core recovery in places. However, several shorter intercepts of mineralization encountered below this long interval (see table below) suggest the true width of the Portage Zone remains approximately 140 meters; similar to that observed fifty meters to the northwest in hole SP10-019 (see news release dated November 2, 2010). Hole SP10-024, which twinned hole SP10-022 (223 meters at 1.45 grams per tonne gold; see news release dated November 17, 2010), is one of the two southeast-most holes drilled across the Portage Zone by Gold Canyon (to see attached map please click on: Springpole Gold Project is 100% controlled by the Company and is located in the Red Lake Mining District of Ontario, Canada.

  • Hole SP10-024, 225 meters at 1.48 grams per tonne gold (738 feet at 0.043 oz per ton gold) including 47 meters at 3.47 grams per tonne gold (154 feet at 0.101 oz per ton gold), was collared 10 meters northeast from SP10-022 after that hole was lost in broken ground before testing the full width of the target. Both SP10-022 and -024 lie approximately 50 meters southeast of SP10-019 (307 meters at 1.44 grams per tonne gold announced in news release dated November 2, 2010). Hole SP10-024 was drilled at an azimuth of 220 degrees true north and inclination of -45 degrees, parallel to holes SP10-019 and -022.

  • Aside from intervals of no core recovery at 391-412, 427-430 and 454-457 meters, SP10-024 encountered a continuous zone of mineralization from 166-476 meters, a core length of 310 meters. Because this hole was drilled at a 45 degree inclination to the southwest and the Portage Zone appears to dip approximately 75 degrees southwest, the true width represented by this interval is believed to be, at minimum, 140 meters.

  • Mineralization in the Portage Zone consists of intensely potassic (biotite) altered trachytic porphyry cut by abundant calcite-quartz-pyrite-gold veinlets, which due to carbonate dissolution makes it highly friable. Where badly broken, poor to no core recovery is experienced. The Company is working with drill contractors to develop techniques for maximizing future core recovery.

  • The strike length of the northwesterly striking Portage Zone presently stands at approximately 950 meters. Hole SP10-024 demonstrates mineralization persists to depths of approximately 380 meters below surface in the southeast. Drilling planned for Winter 2011 will test the near surface portion of this zone. Interestingly, the bottom of SP10-024 entered another mineralized zone. It is believed this new zone is related to similar mineralization encountered in several historic drill holes situated southwest of SP10-024.

  • Results from the remaining six holes from this summer's drill program are due back from the lab by mid-December. Holes SP10-026 and -29 test the Portage Zone in areas below holes SP10-007, -009 and -011 (see August 16, 2010 and August 30, 2010 news releases) at the northwest end of the Portage Zone. Hole SP10-028 tests the mid portion of the zone. Three other holes, SP10-021, -023 and -025, test other targets on the property. 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 has drilled approximately 10,300 meters of diamond core at Springpole in 2010.

  • The Company is planning an aggressive drill program, funded by the recently completed $6,000,000 financing (see news release dated October 29, 2010), 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 making conditions favourable for building up ice on the lake in preparation for winter drilling.

"Hole SP10-024 helps demonstrate uniform widths of mineralization in the southeast part of the Portage Zone," comments Dr. Quinton Hennigh, technical advisor to Gold Canyon. "All holes in this area, including SP10-016, SP10-019 and now, SP10-024, indicate a minimum true width of 140 meters. These holes also demonstrate continuity of mineralization to depths in excess of 350 meters. We are looking forward to testing shallower parts of this system this winter."

"Although we have experienced poor or no core recovery in places due to the soft and broken nature of the mineralization, we have seen far better recoveries drilling large diameter HQ core and drilling slowly," continues Hennigh. "Historic drilling was exclusively small diameter NQ core or smaller, and experienced very poor recoveries over long intervals making the Portage Zone difficult to evaluate. Although this rock requires patient drilling, we feel that the upside is it will have a very low work factor when it comes time to look at milling."

Summary of intervals from hole SP10-024 – Portage Zone
Hole From (meters) To (meters) Length (meters) Gold (grams per tonne) Length (feet) Gold (oz per ton)
SP10-024 166 391 225 1.48 738 0.043
includes 179 226 47 3.47 154 0.101
includes 184 187 3 11.51 10 0.336
includes 218 220 2 13.07 7 0.382
  391 412 No Recovery      
  412 427 15 0.78 49 0.023
  427 430 No Recovery      
  430 454 24 0.45 79 0.013
  454 457 No Recovery      
  457 476 19 0.55 62 0.016
  502 505 3 0.62 10 0.018
Intervals of no core recovery were encountered at 205-208 m and 210.6-211 m.
Zones of no recovery were given 0 gold grade in the weighted calculations above.
Reported intervals apply a 0.3 gram per tonne gold (0.009 oz per ton gold) cutoff.
Internal dilution within reported intervals does not exceed core lengths of 11 meters.
Weighted averages were used to calculate all reported intervals.
1 troy ounce = 31.103 grams
Conversion factor - grams per tonne to troy ounces per short ton: g/t divided 34.2857 or g/t multiply by 0.0292
1 meter = 3.28 feet

The Summer 2010 Diamond Drill Program, now complete, 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 calculating a revised 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:

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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