Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

August 20, 2007 13:35 ET

Gold Canyon Intercepts 25 Feet of 245 Grams Gallium at Cordero Gallium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2007) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce analytical results from the last phase of the Stage 1 drilling program 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 has received analytical results for 8 of 10 drill holes designed to test the area between the Corderito and SW Extension Areas (Refer to the map: "Cordero Gallium Project 2007 In-Fill Drill Holes", accompanying this release on our website). A summary of the gallium intercepts are shown in Table 1 below. This drilling has provided valuable information for the development of a structurally controlled mineralization model at Cordero.

The intercept of 25 feet grading 245.2 grams/tonne gallium (g/t Ga) in drill hole C-151 is consistent with structurally controlled high grade mineralization within lower-grade halo mineralization (greater than 30 g/t Ga). The overall geometry of the drilling results supports a newly developed interpretation of NW trending cross structures controlling the emplacement of the higher grade mineralization. The Company is very encouraged to see this geometry of mineralization repeated between the Corderito and SW Extension areas as it supports the newly developed structural model and indicates continuity between the two higher grade areas.

With the integration of the new data and previous drilling, the Company believes it has now developed a gallium mineralization model sufficient to identify additional higher-grade exploration targets beneath the shallow pediment cover on the Cordero property. To this end, the Company is planning orientation geochemical surveys to be followed by surveys of select target areas. It is anticipated this work will begin in early September 2007.

Gold Canyon has now completed an additional 18,260 feet (5,565.7 m) of reverse circulation (RC) drilling in 81 drill holes (Stage 1 program) since the NI 43-101 resource estimate prepared by reserva INTERNATIONAL LLC as reported in our News Release dated April 20, 2006. This brings the total drilling to 38,120 feet (11,619 m) in 161 RC drill holes. The reserva estimate reported indicated resources containing 337,360 kilograms of gallium and inferred resources containing 384,640 kilograms of gallium. The Company is presently integrating this latest data into the mineralization model in preparation for an update of the gallium resource. The NI 43-101 compliant resource update will be commissioned when all of the pending data has been received and analyzed.

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

Intercept Wt Average
Drill Hole From To (ft) (g/t)
C151 145 300 155 94.8
65 190 25 245.2
C152 0 85 85 46.6
65 85 20 54.8
160 195 35 68.1
C153 40 145 105 54.1
40 70 30 79.3
165 280 115 50.8
220 240 20 69.0
C154 205 230 25 48.0
C155 No Significant
C156 45 65 20 49.8
165 190 25 38.6
C157 165 190 25 34.6
220 260 40 35.3
C158 175 215 40 41.5

Table 1: Cordero Drilling - Gallium Intercepts

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 the Bear Head Uranium Project which is adjacent to their 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.

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", "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.

Contact Information

  • Gold Canyon Resources Inc.
    Vic Weckerle
    Investor Relations
    (604) 682-3234 or Toll Free: 1-888-242-3234
    (604) 682-0537 (FAX)