Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

November 16, 2011 08:30 ET

Gold Canyon Intersects 310 Meters at 1.87 Grams per Tonne Gold Including 129 Meters at 3.30 Grams at Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2011) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce that hole SP11-091 has intersected 310 meters at 1.87 grams per tonne gold (1,017 feet at 0.055 oz per ton gold) including 129 meters at 3.30 grams per tonne gold (423 feet at 0.096 oz per ton gold) demonstrating excellent continuity within the higher-grade core of the Portage Zone. The Company's highly successful barge drilling program has come to a close for the season. Since July, nearly 13,500 meters have been drilled at Springpole, over 10% more meters than planned.

To view a map of the Springpole Project please visit the following link:

"We continue to be very pleased with the long gold intercepts from Springpole," states Dr. Quinton Hennigh, Technical Advisor to and Director of Gold Canyon. "Our barge drill program was remarkable in producing much needed infill drilling for our upcoming NI 43-101 compliant resource estimate. Gold Canyon wishes to acknowledge appreciation to our technical team and drillers for successfully completing this challenging undertaking."

  • Diamond drill hole SP11-091 is a vertical infill hole drilled from a barge on the 0+600 m section line and intersected 310 meters at 1.87 grams per tonne gold (1,017 feet at 0.055 oz per ton gold) including 129 meters at 3.30 grams per tonne gold (423 feet at 0.096 oz per ton gold). Due to soft ground conditions, casing was set unusually deep, and therefore, the first core recovered came from 66 meters. This intercept demonstrates good continuity of the higher-grade core of the Portage Zone to a depth of 376 meters.
  • Diamond drill hole SP11-079, situated on the 0+600 m section line and drilled at an azimuth of 220 degrees true north and inclination of -60 degrees, intersected 174.5 meters at 0.56 grams per tonne gold (572 feet at 0.016 oz per ton gold) starting at the top of bedrock. This mineralization, albeit low grade, confirms the presence of a near-surface bridge of mineralization between the Portage and East Extension Zones.
  • Diamond drill holes SP11-080 (0+200 m), -081 (0+800 m), -083 and -083A (0+650 m), -084 (0+150 m) and -087 (0+000 m) are all vertical infill holes drilled from barges that test the margins of the Portage Zone. All encountered significant intervals of gold mineralization.
  • Diamond drill hole SP11-088, situated on the 0+000 m section line and drilled at an azimuth of 220 degrees true north and inclination of -60 degrees, is a step-back hole collared approximately 70 meters behind hole SP11-071 (286 meters at 1.03 grams per tonne gold announced August 30, 2011). Highly altered and decomposed rock was encountered from 300-364 meters, thus resulting in poor core recoveries. None-the-less, this hole intersected multiple intervals of gold mineralization. Of particular note, from the top of bedrock at 7 meters to a depth of 36 meters, an intercept of 29 meters at 0.62 grams per tonne gold (95 feet at 0.018 oz per ton gold) was encountered. This interval of mineralization was unexpected and may represent a new, near-surface mineralized zone.
  • Diamond drill hole SP11-082, situated on the 0-100 m section line and drilled at an azimuth of 220 degrees true north and inclination of -60 degrees, intersected two pronounced gold intervals including 86 meters at 1.07 grams per tonne gold (282 feet at 0.031 oz per ton gold) beginning at 85 meters and 141 meters at 0.72 grams per tonne gold (462 feet at 0.021 oz per ton gold) beginning at 262 meters. These two intercepts suggest the Portage Zone bifurcates in this area. Further drilling is needed to fully evaluate why the zone appears to split in this area.
  • Diamond drill hole SP11-090, situated on the 0+1000 m section line and drilled at an azimuth of 220 degrees true north and inclination of -60 degrees, was drilled in part of the Main Zone and will be used for metallurgical testing. This hole intersected an interval of 18 meters at 1.72 grams per tonne gold (59 feet at 0.050 oz per ton gold).
  • Diamond drill holes SP11-086 and -089 are all condemnation holes drilled approximately 500 meters northwest of the Portage Zone and are being evaluated for site development including a potential airstrip. No significant mineralization was encountered in either hole. SP11-085, also a condemnation hole, has not yet been assayed.
Summary of Results from Portage Zone
From To Length Gold (grams Length Gold (oz
Hole (meters ) (meters ) (meters ) per tonne ) (feet ) per ton )
SP11-079 3.0 177.5 174.5 0.56 572 0.016
includes 3.0 32.0 29.0 1.41 95 0.041
312.0 416.0 104.0 0.59 341 0.017
An interval of no core recovery was encountered from 137-138.5 meters
SP11-080 15.0 21.0 6.0 0.35 20 0.010
48.0 124.0 76.0 0.62 249 0.018
213.0 232.0 19.0 0.41 62 0.012
286.0 316.0 30.0 0.41 98 0.012
339.0 360.0 21.0 0.46 69 0.013
398.0 400.0 2.0 2.08 7 0.061
SP11-081 71.0 74.0 3.0 0.98 10 0.029
92.0 321.0 229.0 0.82 751 0.024
includes 92.0 114.0 22.0 3.09 72 0.090
includes 299.0 305.0 6.0 1.90 20 0.055
SP11-082 85.0 171.0 86.0 1.07 282 0.031
includes 145.0 164.5 19.5 2.36 64 0.069
includes 160.0 161.0 1.0 10.86 3 0.317
197.0 204.0 7.0 0.82 23 0.024
262.0 403.0 141.0 0.72 462 0.021
406.0 425.0 19.0 0.36 62 0.011
SP11-083 24.0 155.0 131.0 0.77 430 0.022
includes 40.5 60.0 19.5 2.52 64 0.074
SP11-083A 21.4 144.0 122.6 0.82 402 0.024
includes 30.0 53.0 23.0 2.09 75 0.061
SP11-084 15.0 349.5 334.5 0.83 1097 0.024
includes 69.0 76.5 7.5 2.06 25 0.060
includes 293.0 302.0 9.0 7.53 30 0.220
includes 295.5 298.0 2.5 15.75 8 0.460
SP11-087 67.0 86.0 19.0 0.45 62 0.013
107.0 111.0 4.0 0.58 13 0.017
120.0 122.0 2.0 0.91 7 0.027
159.0 353.0 194.0 0.96 636 0.028
includes 186.0 199.0 13.0 1.94 43 0.057
includes 243.0 252.0 9.0 2.52 30 0.074
SP11-088 7.0 36.0 29.0 0.62 95 0.018
70.0 87.0 17.0 0.52 56 0.015
100.0 125.0 25.0 0.45 82 0.013
156.0 161.0 5.0 0.41 16 0.012
184.0 190.0 6.0 0.34 20 0.010
250.0 254.0 4.0 1.38 13 0.040
* 300.0 346.0 46.0 0.58 151 0.017
No core recovery from 346-364 meters
364.0 441.0 77.0 0.72 253 0.021
450.0 461.0 11.0 0.52 36 0.015
* Mineralized intercept is highly decomposed; as a result, no core was recovered from 310-311.5, 314.5-316, 323.5-325, 331-332.5 and 334-338.5 meters
SP11-091 66.0 376.0 310.0 1.87 1017 0.055
includes 120.0 249.0 129.0 3.30 423 0.096
includes 137.0 139.0 2.0 9.73 7 0.284
includes 174.0 177.0 3.0 9.08 10 0.265
includes 184.0 192.0 8.0 8.73 26 0.255
includes 273.0 281.0 8.0 2.55 26 0.074
Weighted averages were used to calculate all reported intervals
Intervals of no core recovery were given a gold grade of 0 gpt in the weighted averages above 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.
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
Summary of Results from SP11-090, a metallurgical hole drilled in Main Zone
From To Length Gold (grams Length Gold (oz
Hole (meters ) (meters ) (meters ) per tonne ) (feet ) per ton )
SP11-090 10.0 28.0 18.0 1.72 59 0.050
includes 18.0 19.0 1.0 13.37 3 0.390
118.0 124.0 6.0 2.15 20 0.063
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
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.

Operational Update

The two barge-based drills, active since summer, have ceased operating in anticipation of freeze-up. Two land-based drills will continue drilling through freeze-up, till Christmas break. In spite of complications from nearby forest fires earlier in the year and a late start to barge drilling, the Company has completed approximately 13,500 meters of drilling since July, well in excess of the 12,000 meters that was originally planned. Holes drilled this summer are expected to allow the Company to revise the NI 43-101 compliant resource estimate for the deposit sometime late in 2011, providing there is a timely return of final assays.

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:

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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