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

Gold Canyon Resources Inc.

June 05, 2012 08:30 ET

Gold Canyon Intersects 262 Meters at 1.42 Grams per Tonne Gold and 2 Meters at 134.35 Grams per Tonne Gold at its Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2012) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce additional drill results from its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Diamond drill hole SP12-134 intersected 262 meters at 1.42 grams per tonne gold (859 feet at 0.041 oz per ton gold). This hole is situated on the 0+050 meter section and is a 50-meter step-back from previously announced drill hole SP12-128 (319 meters at 1.02 grams per tonne gold announced in a news release dated May 24, 2012).

To view the Plan Map, please visit the following link: http://media3.marketwire.com/docs/gcu65i.pdf.

Diamond drill hole SP12-136, testing areas under the Main Zone, encountered 8 meters at 34.19 grams per tonne gold (26 feet at 0.998 oz per ton gold) including 2 meters at 134.35 grams per tonne gold (7 feet at 3.923 oz per ton gold). A second diamond drill hole from under the Main Zone, SP12-137, located 50 meters northeast of SP12-136, intersected 2 meters at 33.10 grams per tonne gold (7 feet at 0.967 oz per ton gold).

"Solid results keep coming from Springpole," comments Dr. Quinton Hennigh, technical advisor to, and director of, Gold Canyon. "We are very pleased to receive consistent, strong gold intercepts from the southeast part of the Portage Zone where we continue to see lots of room for growth. High-grade results from under the Main Zone are both encouraging and intriguing. Although the geometry of this mineralization is not fully understood, these are some of the highest grade intercepts seen on the property and may prove to be an important part of this very large gold system."

  • Diamond drill hole SP12-134 was drilled on the 0+050 meter section line at an azimuth of 220 degrees true north and an inclination of -45 degrees. This hole is a 50-meter step-back from previously announced drill hole SP12-128 and tested deeper parts of the Portage Zone intersecting 262 meters at 1.42 grams per tonne gold (859 feet at 0.041 oz per ton gold). This hole deflected upward as it was being drilled and terminated above the end of hole SP12-128. A higher grade core, 24 meters at 4.95 grams per tonne gold (79 feet at 0.145 oz per ton gold), was intersected in hole SP12-134, something not encountered in hole SP12-128.
  • Diamond drill hole SP12-131 was drilled on the 0+150 meter section line at an azimuth of 220 degrees true north and an inclination of -45 degrees. This hole encountered 244.7 meters at 0.80 grams per tonne gold (803 feet at 0.023 oz per ton gold) across deeper parts of the Portage Zone. This intercept represents a true width of approximately 173 meters.
  • Diamond drill hole SP12-133 was drilled on the 0+600 meter section line at an azimuth of 220 degrees true north and an inclination of -45 degrees. This hole was collared near the East Extension Zone and encountered numerous short intercepts of gold mineralization (see table below) making up the Bridge Zone, a diffuse, near-surface zone of mineralization situated between the Portage and East Extension zones. At depth, this hole encountered 68 meters at 0.96 grams per tonne gold (223 feet at 0.028 oz per ton gold) across deep parts of the Portage Zone.
  • Six diamond drill holes, SP12-130, SP12-132, SP12-135, SP12-136, SP12-137 and SP12-138, tested deeper parts of the Main Zone. All of these were drilled at an azimuth of 220 degrees true north and an inclination of -45 degrees and are situated on the 0+850 meter through 0+1,100 meter sections (see attached map). Each hole encountered one or more intervals of gold mineralization (see second table below). Of particular note, hole SP12-136 encountered 8 meters at 34.19 grams per tonne gold (26 feet at 0.998 oz per ton gold) including 2 meters at 134.35 grams per tonne gold (7 feet at 3.923 oz per ton gold). Fifty meters further northeast, a second diamond drill hole, SP12-137, intersected 2 meters at 33.10 grams per tonne gold (7 feet at 0.967 oz per ton gold). Although further drilling is needed to adequately evaluate these high-grade intercepts and their geometry, they may represent a high-grade root, or feeder, to the Main Zone.
Summary of Drill Results from the Portage Zone; Holes SP12-131, SP12-133 and SP12-134
Hole From
(meters)
To
(meters)
Length
(meters)
Gold (grams
per tonne)
Length
(feet)
Gold (oz per
ton)
SP12-131 41.0 49.0 8.0 0.47 26 0.014
301.3 546.0 244.7 0.80 803 0.023
includes 475.0 489.0 14.0 2.57 46 0.075
579.0 609.0 30.0 0.70 98 0.020
SP12-133 5.0 18.0 13.0 0.56 43 0.016
56.0 75.4 19.4 0.50 64 0.015
99.0 103.0 4.0 0.81 13 0.024
109.0 115.0 6.0 1.29 20 0.038
135.0 141.0 6.0 0.86 20 0.025
163.0 171.0 8.0 0.45 26 0.013
189.0 193.0 4.0 0.70 13 0.020
203.0 207.0 4.0 0.67 13 0.020
227.0 235.0 8.0 0.48 26 0.014
406.0 474.0 68.0 0.96 223 0.028
SP12-134 204.1 210.0 5.9 1.60 19 0.047
290.7 296.0 5.3 0.72 17 0.021
339.0 601.0 262.0 1.42 859 0.041
includes 397.0 421.0 24.0 4.95 79 0.145
includes 412.0 421.0 9.0 8.49 30 0.248
includes 454.0 469.0 15.0 2.03 49 0.059
includes 532.0 541.0 9.0 2.80 30 0.082
Summary of Drill Results from the Main Zone; Holes SP12-130, SP12-132, SP12-135, SP12-136, SP12-137 and SP12-138
Hole From
(meters)
To
(meters)
Length
(meters)
Gold (grams
per tonne)
Length
(feet)
Gold (oz per
ton)
SP12-130 272.0 276.0 4.0 0.84 13 0.025
292.0 294.0 2.0 3.53 7 0.103
367.0 418.0 51.0 0.73 167 0.021
491.0 493.0 2.0 2.61 7 0.076
515.2 544.0 28.8 0.56 94 0.016
SP12-132 120.0 128.0 8.0 0.51 26 0.015
SP12-135 23.0 53.0 30.0 0.51 98 0.015
63.3 77.0 13.7 0.77 45 0.022
118.7 128.7 10.0 0.81 33 0.024
182.4 188.0 5.6 0.94 18 0.027
216.0 220.0 4.0 6.79 13 0.198
SP12-136 76.0 80.0 4.0 0.97 13 0.028
190.0 194.0 4.0 1.10 13 0.032
220.0 228.0 8.0 34.19 26 0.998
includes 224.0 226.0 2.0 134.35 7 3.923
SP12-137 151.0 155.0 4.0 1.46 13 0.043
215.0 219.0 4.0 1.01 13 0.029
233.0 241.0 8.0 2.96 26 0.086
263.0 275.0 12.0 5.74 39 0.168
includes 263.0 265.0 2.0 33.10 7 0.967
SP12-138 109.0 113.0 4.0 3.23 13 0.094
227.0 233.0 6.0 1.19 20 0.035
273.0 281.0 8.0 0.67 26 0.020
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 barge drills are operating at Springpole. Several holes have recently been drilled on each of the 0-100 meter, 0-250 meter and 0-650 meter sections exploring the strike continuation of the Portage Zone. Infill holes have also been drilled on the 0+200 meter section. To date, approximately 21,500 meters of drilling have been completed at Springpole in 2012. The Company expects a steady stream of drill results over the remainder of 2012 and to be able to update the National Instrument 43-101 ("NI 43-101") compliant resource by 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 Person pursuant to NI 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 together with other risks and uncertainties disclosed in the section entitled "Risk Factors" in Gold Canyon's Annual Information Form dated April 23, 2012 other information filed with the applicable Canadian securities commissions by or on behalf of Gold Canyon. 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 qualified in its entirety by this cautionary statement, and Gold Canyon disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. 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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