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

Gold Canyon Resources Inc.

March 13, 2012 08:30 ET

Gold Canyon Intersects 283 Meters at 1.83 Grams per Tonne Gold and 121 Meters at 2.03 Grams per Tonne Gold at its Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 13, 2012) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce assays from infill drilling at its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Hole SP11-065, a hole drilled for metallurgical testing, intersected 283 meters at 1.83 grams per tonne gold (928 feet at 0.053 oz per ton gold) including 99.6 meters at 3.57 grams per tonne gold (327 feet at 0.104 oz per ton gold), and hole SP12-108 intersected 121 meters at 2.03 grams per tonne gold (397 feet at 0.059 oz per ton gold) including 41 meters at 4.01 grams per tonne gold (134 feet at 0.117 oz per ton gold).

To view the Updated Drill Map, please visit this link: http://media3.marketwire.com/docs/gcu313_Fig1.pdf.

  • Diamond drill hole SP11-065 was drilled in 2011 on the 0+700 m section line at an azimuth of 220 degrees true north and an inclination of -45 degrees. This hole twinned an earlier hole, SP10-007 (217 meters at 1.57 grams per tonne gold announced in a press release dated August 16, 2010), that failed to drill across the full width of the Portage Zone. In contrast, hole SP11-065 tested the full width of the Portage Zone intersecting 283 meters at 1.83 grams per tonne gold (928 feet at 0.053 oz per ton gold) including 99.6 meters at 3.57 grams per tonne gold (327 feet at 0.104 oz per ton gold). The latter higher grade interval is similar to that intersected in hole SP11-106 (127.5 meters at 3.51 grams per tonne gold announced in a press release dated January 26, 2012) situated on the 0+500 m section line 200 meters further southeast. Core from hole SP11-065 is presently undergoing metallurgical testing.

  • Diamond drill hole SP12-108, situated on the 0+550 m section line and drilled at an azimuth of 220 degrees true north and an inclination of -45 degrees, tested deeper parts of the mid section of the Portage Zone. Hole SP12-108 intersected 121 meters at 2.03 grams per tonne gold (397 feet at 0.059 oz per ton gold) including 41 meters at 4.01 grams per tonne gold (134 feet at 0.117 oz per ton gold). The latter higher grade interval is similar to that intersected in hole SP11-106 situated on the 0+500 m section line 50 meters further southeast. Mineralization remains open at depth on the 0+550 m section line.

  • Diamond drill hole SP12-109, situated on the 0+450 m section line and drilled at an azimuth of 220 degrees true north and an inclination of -45 degrees, tested deep parts of the mid section of the Portage Zone. Although this hole encountered several intervals of gold mineralization, it ended in mineralization before testing the full width of the target. Similarly, diamond drill hole SP12-111, situated on the 0+200 m section line and drilled at an azimuth of 220 degrees true north and an inclination of -45 degrees, attempted to test deep parts of the Portage Zone. This hole ended short of testing the full width of the target due to poor ground conditions. The bottom six meters of this hole intersected highly altered porphyry grading 1.06 grams per tonne gold.

  • Diamond drill hole SP12-110 was a vertical hole drilled from ice on the 0+850 m section line and infills an area where the Main Zone is stacked on top of the Portage Zone. This hole intersected 51 meters at 0.80 grams per tonne gold (167 feet at 0.023 oz per ton gold) in the Main Zone near surface and a deeper intercept of 50 meters at 0.98 grams per tonne gold (164 feet at 0.029 oz per ton gold) in the Portage Zone. Diamond drill hole SP12-112 was a vertical hole drilled from ice on the 0+550 m section line and infills part of the Bridge Zone, a near-surface zone of mineralization that extends from the Portage Zone to the East Extension Zone. This hole encountered three significant intervals of gold mineralization.

"We are pleased to see our initial results from 2012 further demonstrate good continuity of mineralization at Springpole," comments Dr. Quinton Hennigh, technical advisor to, and director of, Gold Canyon. "None of the holes in this news release were included in our recently released 43-101 compliant resource estimate but will be used in a revised estimate scheduled to be released later in 2012. Assays from these holes are a good start to our aggressive 2012 drill program already underway."

Summary of Results from Holes SP11-065 and SP12-108 through SP12-112
Hole From
(meters)
To
(meters)
Length
(meters)
Gold (grams
per tonne)
Length
(feet)
Gold (oz
per tonne)
SP11-065 34.0 317.0 283.0 1.83 928 0.053
includes 36.9 49.5 12.6 4.34 41 0.127
includes 136.4 236.0 99.6 3.57 327 0.104
includes 136.4 146.0 9.6 10.12 31 0.296
includes 173.0 186.0 13.0 5.17 43 0.151
SP12-108 44.0 54.0 10.0 1.08 33 0.032
66.0 72.0 6.0 0.57 20 0.017
80.0 85.0 5.0 0.44 16 0.013
339.0 460.0 121.0 2.03 397 0.059
includes 382.0 423.0 41.0 4.01 134 0.117
SP12-109 8.0 14.0 6.0 1.34 20 0.039
48.0 55.0 7.0 0.51 23 0.015
118.0 121.0 3.0 1.33 10 0.039
386.0 400.0 14.0 0.80 46 0.023
509.5 540.0 30.5 1.09 100 0.032
* 595.0 600.0 5.0 0.91 16 0.027
* Hole ends in mineralization
SP12-110 13.0 64.0 51.0 0.80 167 0.023
117.0 119.0 2.0 1.90 7 0.055
138.0 144.0 6.0 0.71 20 0.021
150.0 156.0 6.0 1.62 20 0.047
181.0 231.0 50.0 0.98 164 0.029
SP12-111 475.0 491.0 16.0 0.49 52 0.014
* 526.0 568.0 42.0 0.38 138 0.011
includes 562.0 568.0 6.0 1.06 20 0.031
* Hole ends in mineralization; last 42 meters includes several intervals of no recovery
SP12-112 30.0 63.0 33.0 0.59 108 0.017
90.0 96.0 6.0 0.74 20 0.022
112.0 119.0 7.0 1.14 23 0.033
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.
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 Winter Diamond Drill Program

Three core rigs are currently operating from the ice at Springpole and have completed approximately 5,400 meters of drilling. Due to unseasonably warm conditions, the period from which holes could be drilled from the ice has lasted only about five weeks. Expecting an early break-up, the Company plans an aggressive drill program utilizing its four barges on site. 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 the resource.

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 copy of the news release and further details regarding the updated mineral resource estimate is available through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. The Company will be filing a technical report for in connection with the updated mineral resource estimate on SEDAR on or before April 12, 2012.

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.

Contact Information