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

Gold Canyon Resources Inc.

October 08, 2010 08:31 ET

Gold Canyon Intersects 305 Meters at 1.03 Grams Per Tonne Gold at Its Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2010) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce it has intercepted 305 meters at 1.03 grams per tonne gold (1,000 feet at 0.030 oz per ton gold) including 174 meters at 1.35 grams per tonne gold (571 feet at 0.039 oz per ton gold) in hole SP10-016 at its 100% controlled Springpole Gold Project, located in the Red Lake Mining District of Ontario, Canada.

- Hole SP10-016 was collared 50 meters (164 feet) southeast and drilled parallel to hole SP10-008 (see August 16, 2010 news release) at an azimuth of 220 degrees true north and inclination of -45 degrees. In terms of grade-thickness, SP10-016 is one of the best holes drilled in the Property's history. This intercept is the southeastern-most test across the Portage Zone suggesting that the gold system is open for expansion in that direction. The true width represented by this intercept is believed to be approximately 150 meters (492 feet); the structure hosting economic gold mineralization in the Portage Zone is interpreted to dip between 75 degrees southwest to vertical, and striking northwest to southeast; further drilling will test this hypothesis. Hole SP10-016 ended in mineralization when the depth capacity of the drill was reached at 511 meters (1,676 feet), thus, the true width may be greater. The width of the Portage Zone generally ranges from about 50-150 meters along strike to the northwest. Therefore, the intercept in SP10-016 suggests that the zone is widening to the southeast. Hole SP10-016 indicates the Portage Zone persists to depths of at least 375 meters (1,230 feet) and remains open at depth.

- Hole SP10-012 was collared from the same location as SP10-008 and was drilled at an azimuth of 235 degrees true north and inclination of -45 degrees. Because of its somewhat oblique orientation to the Portage Zone and the fact that the hole deviated while drilling, this hole appears to have only tested the northeastern margin of the Portage Zone rather than its full width. Due to bad ground conditions, this hole had to be reduced from HQ to smaller, NQ diameter core, resulting in poorer core recoveries which also affected overall results. Nonetheless, this hole intercepted a long interval of gold mineralization, 133 meters at 0.79 grams per tonne gold (436 feet at 0.023 oz per ton gold).

- Silver assays have been received for holes SP10-007, -008, -009 and -011. Intervals through the Portage Zone appear to indicate a silver to gold ratio of around 3:1 to 6:1 in this part of the system. Locally, this ratio varies from less than 1:1 to 27:1. These results suggest silver could be a significant complement to gold in this system. High silver assays set Springpole apart from most other gold deposits in the Canadian Shield.

Holes SP10-013, -014, -015 and -017 targeted open areas around the East Extension Zone which lies approximately 500 meters (1,640 feet) northeast of the Portage Zone. All of these holes encountered zones of gold mineralization suggesting that this shallow zone expands along strike and at depth. Mineralization in the East Extension Zone is associated with a complex network of veins in contrast to the Portage Zone which is a disseminated, porphyry-hosted deposit.

- Because of the recent financing (see September 23, 2010 news release), Gold Canyon has extended the summer drill program through mid-October. The extended program includes drilling of additional holes in the Portage Zone. The Company expects to complete 23 drill holes by the end of the Summer 2010 Diamond Drill Program, for a total of 29 holes drilled in 2010. Twelve holes remain to be reported over the next two months. Approximately 10,300 meters have been drilled so far this year. Although there will be a two month break in drilling, the Company is planning an aggressive drill campaign from the ice beginning the first week of January 2011.

Portage Zone Results
Hole From (meters) To (meters) Length (meters) Gold (grams per tonne)   Length (feet) Gold (oz
per ton)
SP10-016 181.0 187.0 6.0 0.94   20 0.027
  206.0 511.0 305.0 1.03   1000 0.030
includes 289.0 463.0 174.0 1.35   571 0.039
includes 289.0 292.0 3.0 7.30   10 0.213
includes 312.0 322.0 10.0 2.94   33 0.086
includes 387.0 397.0 10.0 2.08   33 0.061
Hole ends in mineralization
Short intervals of no core recovery were encountered at 247-250 m and 445-448 m
Zones of no recovery were given 0 gold grade in the weighted calculations above
 
SP10-012 275.0 408.0 133.0 0.79   436 0.023
includes 275.0 284.0 9.0 2.54   30 0.074
includes 359.0 362.0 3.0 8.76   10 0.256
This hole deviated, and as a result, did not test the full width of the targeted zone
Short intervals of no core recovery were encountered at 314-317 m, 329-332 m and 362-365 m
Zones of no recovery were given 0 gold grade in the weighted calculations above
 
SP10-010 Hole was lost in bad ground before reaching target
Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold) cutoff.
Internal dilution within reported intervals does not exceed core lengths of 8 meters.
All reported assay intervals are weighted.
1 troy ounce = 31.103 grams
Conversion factor - grams per tonne to troy ounces per short ton: g/t divided 34.2857 or g/t multiply by 0.0292
1 meter = 3.28 feet

"We are very encouraged by results from hole SP10-016," states Alan Roberts, Senior Geologist and Project Manager at Springpole. "To date, drill hole SP10-008 had been the only test of the southeastern portion of the Portage Zone; hole SP10-016 confirms that mineralization is continuous, open at depth and open along strike to the southeast. The fact that the hole ended in mineralization also tells us that we still have a lot of work to do to establish the Portage Zone's full potential. We are looking forward not only to infill drilling this winter, but now, to chasing the Portage Zone further along strike to the southeast which remains essentially untested."

"Mineralization in the Portage Zone is proving to be very consistent in terms of grade-thickness," comments Dr. Quinton Hennigh, technical advisor to Gold Canyon. "Holes we have drilled this summer have all been inclined at -45 degrees and drilled more or less perpendicular to strike of the zone. Therefore, we can compare the aggregate grade-thickness of all reported intervals in these holes. At the northwest end of the Portage Zone, gold intervals from SP10-007 have an aggregate grade-thickness of 341 gram-meters, SP10-009, 314 gram-meters and SP10-011, 339 gram-meters. In the southeast, we have hole SP10-008 with an aggregate grade-thickness of 247 gram-meters, and now SP10-016 with 320 gram-meters. Seeing such uniformity is very encouraging and may indicate the system will persist along strike to the southeast."

The Summer 2010 Diamond Drill Program is part on an ongoing program of drilling and remodelling of the Springpole deposit to move it towards prefeasibility. Subject to the Company's ability to obtain necessary funding, 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 intrusive 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 that are composed of intrusive and country rocks. The diatreme breccias surround the northwest and northern margins of the Portage Zone. These mineralized zones underlie a total known area of about 4 square kilometres.

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.

East Extension Zone Results
Hole From (meters) To (meters) Length (meters) Gold (grams
per tonne)
  Length (feet) Gold (oz
per ton)
SP10-013 9.0 26.0 17.0 0.50   56 0.015
  39.0 41.0 2.0 1.28   7 0.037
  54.0 60.0 6.0 0.45   20 0.013
  74.0 78.0 4.0 1.65   13 0.048
  101.0 109.0 8.0 0.72   26 0.021
  122.0 124.0 2.0 3.45   7 0.101
 
SP10-014 0.0 27.0 27.0 0.35   89 0.010
  43.0 52.0 9.0 0.61   30 0.018
  66.0 120.0 54.0 0.64   177 0.019
includes 66.0 69.0 3.0 1.72   10 0.050
  208.0 222.0 14.0 0.99   46 0.029
includes 219.0 221.0 2.0 4.47   7 0.131
 
SP10-015 77.0 97.0 20.0 0.60   66 0.018
includes 90.0 91.0 1.0 4.44   3 0.130
 
SP10-017 90.0 107.0 17.0 0.78   56 0.023
includes 92.0 94.0 2.0 3.39   7 0.099
Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold) cutoff.
Internal dilution within reported intervals does not exceed core lengths of 8 meters.
All reported assay intervals are weighted.
1 troy ounce = 31.103 grams
Conversion factor - grams per tonne to troy ounces per short ton: g/t divided 34.2857 or g/t multiply by 0.0292
1 meter = 3.28 feet
 
Gold and Silver Assays from holes SP10-007, -008, -009 and -011
Hole From (meters) To (meters) Length (meters) Previously
Announced
Gold
(grams
per tonne)
Silver (grams per tonne)   Length (feet) Previously
Announced
Gold (oz
per ton)
Silver (oz per ton) Silver to gold ratio
SP10-007 33.0 250.0 217.0 1.57 7.44   712 0.046 0.217 4.74
includes 46.0 57.0 11.0 3.47 5.12   36 0.101 0.150 1.48
includes 76.0 79.0 3.0 3.83 2.93   10 0.112 0.086 0.77
includes 101.0 102.0 1.0 8.15 4.20   3 0.238 0.123 0.52
includes 124.0 143.5 19.5 2.92 12.16   64 0.085 0.355 4.16
includes 172.0 181.0 9.0 4.01 9.98   30 0.117 0.291 2.49
includes 187.0 204.0 17.0 2.22 22.71   56 0.065 0.663 10.23
includes 209.0 221.0 12.0 3.23 26.00   39 0.094 0.759 8.05
 
SP10-008 141.0 160.0 19.0 0.53 0.58   62 0.015 0.017 1.09
  257.0 316.0 59.0 0.98 4.86   194 0.029 0.142 4.96
includes 280.0 282.0 2.0 11.26 4.20   7 0.329 0.123 0.37
No recovery from 316-328 meters due to broken ground
  328.0 451.0 123.0 1.45 9.71   403 0.042 0.284 6.70
includes 350.5 360.0 9.5 2.40 10.81   31 0.070 0.316 4.50
includes 376.0 391.0 15.0 3.69 40.94   49 0.108 1.195 11.09
 
SP10-009 0-3 meters is overburden
  3.0 167.0 164.0 1.02 2.68   538 0.030 0.078 2.63
includes 40.0 43.0 3.0 3.85 2.20   10 0.112 0.064 0.57
includes 56.0 71.0 15.0 3.81 6.37   49 0.111 0.186 1.67
includes 59.0 65.0 6.0 5.92 6.55   20 0.173 0.191 1.11
includes 121.0 124.0 3.0 2.80 1.57   10 0.082 0.046 0.56
includes 149.0 151.0 2.0 3.87 7.30   7 0.113 0.213 1.89
includes 164.5 167.0 2.5 3.17 36.72   8 0.093 1.072 11.58
  214.0 226.0 12.0 1.08 29.35   39 0.032 0.857 27.18
No recovery from 238-244 meters due to broken ground
  244.0 321.0 77.0 1.74 6.53   253 0.051 0.191 3.75
includes 254.5 296.5 42.0 2.49 10.30   138 0.073 0.301 4.14
 
SP10-011 0.0 36.0 36.0 1.58 6.26   118 0.046 0.183 3.96
includes 24.0 32.5 8.5 3.16 17.21   28 0.092 0.503 5.45
  73.0 128.0 55.0 0.50 4.44   180 0.015 0.130 8.88
  140.5 155.0 14.5 0.70 0.43   48 0.020 0.013 0.61
  169.0 187.0 18.0 0.46 0.75   59 0.013 0.022 1.63
  229.0 323.0 94.0 2.51 10.69   308 0.073 0.312 4.26
includes 242.5 295.0 52.5 3.83 17.22   172 0.112 0.503 4.50
includes 258.0 261.0 3.0 15.69 42.43   10 0.458 1.239 2.70

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 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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