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

Gold Canyon Resources Inc.

December 15, 2010 08:31 ET

Gold Canyon Intercepts 353 Meters at 1.17 Grams per Tonne Gold at Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2010) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce that hole SP10-026 has intersected 353 meters at 1.17 grams per tonne gold including 66 meters at 2.38 grams per tonne gold in the Portage Zone. Another hole, SP10-025, intersected 3 meters at 16.08 grams per tonne gold and 1 meter at 45.00 grams per tonne gold in the Main Zone (please see attached map: http://media3.marketwire.com/docs/GCUDrillMap.jpg). The Springpole Gold Project is 100% controlled by the Company and is located in the Red Lake Mining District of Ontario, Canada.

  • Hole SP10-026, 353 meters at 1.17 grams per tonne gold (1,158 feet at 0.034 oz per ton gold) including 66 meters at 2.38 grams per tonne gold (216 feet at 0.069 oz per ton gold), was collared approximately 60 meters northeast of SP10-007 (217 meters at 1.57 grams per tonne gold announced in news release dated August 16, 2010) at an azimuth of 220 degrees true north and inclination of -45 degrees, parallel to and on section with hole SP10-007. This long interval confirms continuity of the Portage Zone to depths of 300 meters at its northwest end. Hole SP10-026 tested the full width of the Portage Zone which is nearly vertical in this area, and the true width represented by this intercept is believed to be approximately 250 meters. Elsewhere, the Portage Zone displays a true width ranging from about 90-150 meters.
  • Hole SP10-025, drilled at an azimuth of 220 degrees true north and inclination of -45 degrees, tested a gap in drilling between the northwest end of the Portage Zone and the vein-style Main Zone. This hole encountered two high grade veins, 3 meters at 16.08 grams per tonne gold (10 feet at 0.47 oz per ton gold) and 1 meter at 45.00 grams per tonne gold (3 feet at 1.314 oz per ton gold), hosted in greenstone country rock at shallow depth. Deeper in the hole, a narrow Portage-style porphyry intercept of 38 meters at 1.53 grams per tonne gold (125 feet at 0.045 oz per ton gold) was encountered. This is the furthest northwest intercept of this style of mineralization and may indicate the Portage Zone plunges underneath the Main Zone in this direction. More drilling is needed below this intercept to confirm this possibility.
  • The strike length of the northwesterly-striking Portage Zone presently 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 hole SP10-026 indicates it locally widens to as much as 250 meters. Drilling planned for Winter 2011 will test shallow portions of the Portage Zone to confirm its continuity to surface.
  • All outstanding gold assays from the Summer 2010 Diamond Drill Program have returned from the laboratory, but the Company is still waiting upon return of many outstanding silver assays. 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 drilled approximately 10,300 meters of diamond drill core at Springpole during the Summer 2010 Diamond Drill Program.
  • The Company is planning an aggressive Winter 2011 Diamond Drill Program 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. Two rigs will drill infill holes in the Portage Zone and a third rig will drill step-out holes to the southeast where the Company believes the Portage Zone can be expanded. Cold weather continues in the Springpole area and personnel are building up ice on the lake where ice thicknesses are now uniformly in excess of six inches.

"Hole SP10-026 indicates the Portage Zone widens dramatically at its northwest end at depth," comments Dr. Quinton Hennigh, technical advisor to Gold Canyon. "The interval of porphyry-style mineralization encountered in hole SP10-025 further adds intrigue and suggests that the Portage Zone may be plunging underneath the Main Zone where there is little historic drilling. We are giving careful consideration to this possibility and may plan one or two holes to test for buried extensions of the Portage Zone underneath the Main Zone."

Summary of Significant Intervals from Portage Zone
  From To Length Gold (grams Length Gold (oz per
Hole (meters) (meters) (meters) per tonne) (feet) ton)
SP10-026 54 407 353 1.17 1158 0.034
includes 82 86 4 8.31 13 0.243
includes 270 280 10 2.82 33 0.082
includes 304 370 66 2.38 216 0.069
Reported intervals apply a 0.2 gram per tonne gold (0.01 oz per ton gold) 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 ounce = 31.103 grams
Conversion factor – grams per tonne to troy ounces per short ton; g/t divided by 34.2857 or g/t multiplied by 0.0292
1 meter = 3.28 feet
 
Summary of Significant Intervals from Main Zone
  From To Length Gold (grams Length Gold (oz per
Hole (meters) (meters) (meters) per tonne) (feet) ton)
SP10-025 7 9 2 0.88 7 0.026
  14 23 9 6.36 30 0.186
includes 14 17 3 16.08 10 0.470
  35 36 1 45.00 3 1.314
  114 116 2 0.91 7 0.027
  215 253 38 1.53 125 0.045
includes 228 237 9 4.21 30 0.123
  281 284 3 0.92 10 0.027
Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold) cutoff.
Weighted averages were used to calculate all reported intervals.
Internal dilution within reported intervals does not exceed core lengths of 8 meters.
1 troy ounce = 31.103 grams
Conversion factor – grams per tonne to troy ounces per short ton; g/t divided by 34.2857 or g/t multiplied by 0.0292
1 meter = 3.28 feet

The Summer 2010 Diamond Drill Program completed in October 2010 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 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 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: 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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