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

Gold Canyon Resources Inc.

January 26, 2012 08:30 ET

Gold Canyon Intersects 127.5 Meters at 3.51 Grams per Tonne Gold Including 50 Meters at 7.73 Grams per Tonne Gold at its Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 26, 2012) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce it has received assays for two holes drilled in the Portage Zone in December 2011. Hole SP11-106 intersected 127.5 meters at 3.51 grams per tonne gold (418 feet at 0.102 oz per ton gold) including 50.0 meters at 7.73 grams per tonne gold (164 feet at 0.226 oz per ton gold) and hole SP11-107 intersected 130 meters at 0.72 grams per tonne gold (426 feet at 0.021 oz per ton gold).

To view the Updated Drill Map, please visit the following link: http://media3.marketwire.com/docs/nr26ja12_GCU-Springpole_Map_8x11-JPG.jpg

To view the Section Illustrating Hole SP11-106, please visit the following link: http://media3.marketwire.com/docs/nr26ja12_GCU-Section%20illustrating%20hole%20SP11_106.jpg

  • Diamond drill hole SP11-106 was drilled on the 0+500 m section line at an azimuth of 220 degrees true north and an inclination of -45 degrees. This hole tested deeper parts of the mid section of the Portage Zone and intersected 127.5 meters at 3.51 grams per tonne gold (418 feet at 0.102 oz per ton gold) including 50.0 meters at 7.73 grams per tonne gold (164 feet at 0.226 oz per ton gold). The former intercept above represents an estimated true width of approximately 95-100 meters, and the latter, an estimated true width of approximately 37-39 meters. Although hole SP11-106 is positioned just 50 meters further northwest from hole SP11-104 (148 meters at 1.66 grams per tonne gold released December 14, 2011), its grades are significantly higher suggesting there is a higher grade chute present in this area. It should be noted that the high-grade intercept in hole SP11-106 falls approximately 170 meters beneath the area where a near-surface vertical hole, hole SP11-040 (0+450 m section), intersected high grades (100.5 meters at 7.23 grams per tonne gold released March 15, 2011). This newly recognized high grade chute remains open at depth as does the entire Portage Zone.

  • Diamond drill hole SP11-107 was drilled on the 0+850 m section line at an azimuth of 220 degrees true north and an inclination of -45 degrees. This hole tested an area where the Portage Zone appears to be plunging underneath Main Zone. This hole intersected multiple gold intervals including 130 meters at 0.72 grams per tonne gold (426 feet at 0.021 oz per ton gold). This hole provides further evidence that the Portage Zone extends under this area. Additional step-out holes are planned in 2012 to evaluate this extension.

Summary of Results from Holes SP11-106 and -107
Hole From
(meters)
To
(meters)
Length
(meters)
Gold
(grams
per
tonne)
Length
(feet)
Gold
(oz per
ton)
SP11-106 34.0 45.0 11.0 0.60 36 0.018
198.0 215.0 17.0 0.30 56 0.009
256.0 269.0 13.0 0.77 43 0.022
344.5 472.0 127.5 3.51 418 0.102
includes 385.0 469.0 84.0 5.17 276 0.151
includes 388.0 438.0 50.0 7.73 164 0.226
SP11-107 155.0 165.0 10.0 0.71 33 0.021
191.0 234.0 43.0 0.81 141 0.024
247.0 377.0 130.0 0.72 426 0.021
includes 305.0 335.0 30.0 1.57 98 0.046
includes 319.0 322.0 3.0 7.48 10 0.218
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 8 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

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.

Update on Resource Estimate

Gold Canyon has recently been advised by the Company's independent resource estimate consultant, retained to provide an updated National Instrument (NI) 43-101 compliant resource estimate for the Springpole Gold Project, that delivery of the updated resource estimate will be delayed.

Due to this unexpected delay, sufficient time is available to incorporate assays from the two new holes described above into the database used for the upcoming resource estimate.

2012 Winter Diamond Drill Program Commences

Drilling resumed at Springpole on January 20, 2012. Two rigs are currently drilling holes testing deeper parts of the Portage Zone from the northeast shore of Portage Bay. Additional drill rigs will begin drilling from ice once sufficient ice thickness has been built up over the target area. Unseasonably warm conditions earlier this winter have made ice build-up slower than anticipated.

Gold Canyon has 50,000 meters of infill and exploration diamond drilling planned at Springpole in 2012. Approximately 80% of this drilling will be directed at infill and step-out holes in and around the Portage Zone with the goal of continuing to build resource. Additional drilling will test new targets identified by recent geophysical surveys conducted on the property. In particular, a Z-TEM survey, conducted in October 2011, has highlighted several new targets displaying characteristics similar to those observed at the Portage Zone.

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.

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 Senior Exploration Geologist 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 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

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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