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

Gold Canyon Resources Inc.

April 24, 2012 13:19 ET

Gold Canyon Intersects 188 Meters at 1.93 Grams Per Tonne Gold and 3 Meters at 41.37 Grams Per Tonne Gold at its Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2012) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce assays from its 2012 winter drill program at its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Hole SP12-118, a hole testing deeper parts of the Portage Zone, intersected 188.3 meters at 1.93 grams per tonne gold (618 feet at 0.056 oz per ton gold) including 71 meters at 3.80 grams per tonne gold (233 feet at 0.111 oz per ton gold). Another hole, SP12-119A intersected 3 meters at 41.37 grams per tonne gold (10 feet at 1.208 oz per ton gold) in a new high-grade structural zone.

Drill Collar Map: http://media3.marketwire.com/docs/gc423m.pdf

  • Diamond drill hole SP12-118 was drilled on the 0+450 meter section line at an azimuth of 220 degrees true north and an inclination of -45 degrees. This hole tested deeper parts of the Portage Zone in this area and intersected 188.3 meters at 1.93 grams per tonne gold (618 feet at 0.056 oz per ton gold) including 71 meters at 3.80 grams per tonne gold (233 feet at 0.111 oz per ton gold). These results are very similar to those encountered in hole SP11-106 (127.5 meters at 3.51 grams per tonne gold announced in a news release date January 27, 2012) drilled on the 0+500 meter section line 50 meters to the northwest. This higher grade shoot remains open at depth.
  • Diamond drill hole SP12-119A, a vertical hole situated on the 0+600 meter section line, intersected 3 meters at 41.37 grams per tonne gold (10 feet at 1.208 oz per ton gold) in a previously unrecognized high grade structural zone between the Portage and East Extension zones. The exact orientation and width of this high-grade structure is uncertain at this time.
  • Diamond drill holes SP12-113 and SP12-117A, both situated on the 0+300 meter section line and drilled at an azimuth of 220 degrees true north and an inclination of -45 degrees, tested peripheral parts of the Portage Zone. Both holes intersected long intervals of gold mineralization (please refer to table) in areas approximately 50 meters beneath the National Instrument 43-101 ("NI 43-101) compliant resource model, which was announced on February 27, 2012.
  • Diamond drill hole SP12-114 was drilled on the 0+250 meter section line at an azimuth of 220 degrees true north and an inclination of -45 degrees and tested deep extensions of the Portage Zone in this area. Although this hole failed to test the full width of the Portage Zone, it encountered 115.6 meters at 1.11 grams per tonne gold (379 feet at 0.032 oz per ton gold) before ending in mineralization at 569.6 meters. This represents a true depth of approximately 400 meters below surface, is one of the deepest intercepts yet drilled in the Portage Zone, and extends approximately 80 m below the NI 43-101 compliant resource model.
  • Two vertical diamond drill holes, SP12-115 and SP12-116, and hole SP12-121, drilled at an azimuth of 220 degrees true north and an inclination of -45 degrees, all fall on the 0+850 meter section line and test deeper extensions of mineralization in this area. All three holes encountered multiple mineralized intervals (please refer to table) typical of this transitional area between the Portage and Main zones. Of particular note, the deepest intercept in hole SP12-116 falls approximately 120 meters beneath the NI 43-101 resource model.
  • Diamond drill hole SP12-120 was drilled on the 0-250 meter section line at an azimuth of 220 degrees true north and an inclination of -45 degrees and tested the strike extension of the Portage Zone. Although this hole was terminated early due to deteriorating ice conditions, it intersected a very long interval of gold mineralization, 202 meters at 0.51 grams per tonne gold (663 feet at 0.015 oz per ton gold) before ending in mineralization. It is believed that this hole cuts across the lower grade upper margin of the Portage Zone and that the higher grade core of the system plunges beneath this intercept. Two vertical holes drilled from barges will further test this area once the ice has cleared from the lake.

"We are pleased to see many of these recent drill holes demonstrate good continuity of mineralization beneath the current NI 43-101 compliant resource," comments Dr. Quinton Hennigh, technical advisor to, and director of, Gold Canyon. "We are also intrigued by the new high-grade zone discovered between the Portage and East Extension zones. Hole SP12-120 provides our first strong evidence for the extension of the Portage Zone to the southeast. We have aggressive plans to follow up on all of these results once our barge-based drill campaign begins in a couple weeks."

Summary of Drill Results from Holes SP12-113 through SP12-121

Hole
From
(meters)
To
(meters)
Length
(meters)
Gold
(grams
per
tonne)
Length
(feet)
Gold
(oz per ton)
SP12-113 232.0 237.0 5.0 1.07 16 0.031
242.0 267.0 25.0 0.44 82 0.013
275.0 278.0 3.0 0.63 10 0.018
285.5 290.0 4.5 0.40 15 0.012
332.0 413.0 81.0 0.72 266 0.021
450.0 474.0 24.0 1.30 79 0.038
SP12-114 27.0 34.0 7.0 0.73 23 0.021
71.0 75.0 4.0 1.46 13 0.043
223.0 227.0 4.0 3.07 13 0.090
383.0 394.0 11.0 0.43 36 0.013
454.0 569.6 115.6 1.11 379 0.032
Hole ends at 569.6 meters in badly broken, mineralized rock
SP12-115 230.0 265.0 35.0 0.64 115 0.019
331.0 335.0 4.0 1.18 13 0.034
349.0 354.0 5.0 1.42 16 0.041
377.0 380.6 3.6 2.55 12 0.074
508.0 512.0 4.0 0.86 13 0.025
SP12-116 108.0 112.0 4.0 0.74 13 0.022
124.0 202.0 78.0 1.11 256 0.032
214.0 218.0 4.0 2.08 13 0.061
233.0 241.0 8.0 3.25 26 0.095
includes 238.0 239.0 1.0 15.61 3 0.456
255.0 315.0 60.0 0.62 197 0.018
342.0 364.0 22.0 0.67 72 0.020
SP12-117 Hole lost at 75.2 meters
SP12-117A 177.1 181.0 3.9 0.63 13 0.018
210.0 214.0 4.0 0.61 13 0.018
221.0 231.5 10.5 0.66 34 0.019
239.0 248.0 9.0 0.59 30 0.017
279.3 395.0 115.7 0.77 379 0.022
SP12-118 78.0 124.0 46.0 0.66 151 0.019
160.5 348.8 188.3 1.93 618 0.056
includes 276.0 347.0 71.0 3.80 233 0.111
includes 276.0 279.0 3.0 18.17 10 0.531
includes 295.0 297.0 2.0 14.74 7 0.430
includes 326.0 329.0 3.0 12.00 10 0.350
SP12-119 Hole lost at 21.0 meters
SP12-119A 66.0 79.5 13.5 0.41 44 0.012
87.0 97.5 10.5 0.42 34 0.012
117.0 126.0 9.0 0.58 30 0.017
160.0 165.0 5.0 1.77 16 0.052
240.0 247.0 7.0 18.02 23 0.526
includes 240.0 243.0 3.0 41.37 10 1.208
256.0 261.0 5.0 3.01 16 0.088
includes 257.0 258.0 1.0 13.03 3 0.380
303.0 306.0 3.0 1.38 10 0.040
SP12-120 16.0 26.0 10.0 0.60 33 0.018
125.0 327.0 202.0 0.51 663 0.015
Hole ends at 327.0 meters in mineralized rock
SP12-121 244.0 263.5 19.5 1.54 64 0.045
397.0 410.0 13.0 0.50 43 0.015
442.0 450.0 8.0 0.66 26 0.019
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 10 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.

Update on 2012 Diamond Drill Program

Four core rigs are currently operating on land at Springpole. Drilling from four barges is expected to begin within two weeks once the ice melts from the lake. To date, approximately 14,000 meters of drilling have been completed at Springpole in 2012. The Company plans to aggressively target areas for growth with the aim of revising the Springpole resource in early 2013.

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 Persons 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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