Gold Canyon Resources Inc.
TSX VENTURE : GCU

Gold Canyon Resources Inc.

July 20, 2005 12:58 ET

Gold Canyon Intersects High Grade Gold on 600 Foot Stepout; Additional New Zones Identified

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 20, 2005) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce the following results from its Springpole Lake Gold Project located near Red Lake, Ontario. Drilling has identified a series of "ladder like" gold bearing structures which individually appear to strike nearly east - west, known as gash veins. These gash veins are aligned like rungs of a ladder between two larger northwest trending master faults, are highly predictable in nature, and control most of the high grade gold at Springpole. Drilling also successfully tested gold bearing structures in the large, outlying, Southwest Target Area identifying additional gold mineralization.



The table below summarizes these results as discussed below.

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Mineralized
Intercept Grade Area or
Depth From To Length Ounces Au Target
Hole (feet) (feet) (feet) (feet) per ton Tested
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BL05- 335 1667 1491.7 1570.8 79.1 220 ppb Southwest Target
Zone
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BL05- 336 649.6 550.2 575.0 24.8 0.059 295-296 zone
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Includes 569.8 572.7 2.9 0.409
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BL05-337 649.6 341.5 347.3 5.8 0.135
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BL05- 338 659.5 44.0 116.9 72.9 0.037 MMI / gravity
anomaly south of
East Extension
Zone, partial
results only
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291.5 294.0 2.5 0.246
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BL05- 339 1274 26.5 83.0 56.5 +200 ppb Southwest Target
Area
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BL05- 341 502 No Significant Intercepts MMI near East
Extension Zone
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BL05- 342 502 No Significant Intercepts MMI near East
Extension Zone
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BL05- 345 413.4 229.9 311.9 82.0 0.057 East Extension
Zone down dip
from 340, partial
results
--------------------------------------------------------------------
Includes 258.0 261.7 3.7 0.517
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BL05- 346 600.4 49.2 51.5 2.3 0.435 600 foot
projection of
East Extension
Zone
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BL05- 347 196.8 80.0 116.0 36.0 0.053 125 foot
westerly offset
from 340 East
Extension Zone
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BL05- 348 101.4 44.0 55.0 11.0 0.178 100 foot
westerly offset
340
--------------------------------------------------------------------
Includes 44.0 47.0 3.0 0.393
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BL05-348A 295.2 148.1 160.0 11.9 0.059 100 foot
westerly offset
340
--------------------------------------------------------------------
BL05-350 206.4 79.9 107.5 27.6 0.042
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BL05-351 446.2 17.5 37.1 19.6 0.083 East Extension
Zone 100' north
of 340
--------------------------------------------------------------------
Includes 30.0 34.0 4.0 0.267
--------------------------------------------------------------------


Southwest Target Area

Drill holes BL05-335 and BL05-339, both drilled in the Southwest Target Area, which is situated over 1.5 miles southwest of the East Extension Zone, encountered large, highly anomalous intervals of gold mineralization within major structural zones. Ongoing mapping activities in this area suggests that these structures extend to the northwest into claims recently acquired by the Company from a prominent prospector, Perry English, as announced in the Company's news release of May 10, 2005.

East Extension Zone

Holes BL05-345, 346, 347, 348, 348A, 351 were drilled based on projections of the Company's modelling indicating "gash vein" style structural control to gold mineralization in this area of the property. Intercepts in these holes are consistent with, and support the Company's geologic model, indicating high potential to locate additional similar gold bearing structures with predictable periodicity along this major northwest trending mineral trend controlled by northwest trending "master faults" which commonly develop ladder like extensional structures known as "gash veins". With these results, the East Extension Zone is known to have at least 870 feet of mineralized strike length, and remains open both to the east and west with potential to develop more than 2500 feet of strike length, and remains largely open at depth.

295 Zone

This new zone was originally identified during the 2004 winter drilling program. This zone is located 500 feet southerly from, and parallel with, the East Extension Zone and forms a separate parallel zone of mineralization. Hole BL05-336 drilled this winter/spring, intersected 24.8 feet averaging 0.059 ounces of gold per ton ("opt Au"), which contained 2.9 feet from 569.8 to 572.7 which assayed 0.409 opt Au. Part of the same large northwest trending zone as the East Extension, this zone also strikes nearly east - west, and mineralization is open in all directions.

338 Zone

Hole BL05-338 tests a coincident MMI, geophysical, and topographic anomaly. Located roughly 1000 feet south-southeast of, this zone is also parallel with, the East Extension zone, and related to the same large northwest trending master faults. This hole intersected two distinct mineral zones. The first zone averaged 0.037 opt Au over the 72.9 feet from 44.0 to 116.9 feet, while the second zone from 291.5 to 294 feet assayed 0.246 opt Au over 2.5 feet. This zone, related to and part of the larger mineral trend which also controls the East Extension and the 295 Zones, is consistent with, and supports the Company's model of large "gash vein" style mineralization that controls this area.

Holes 341 and 342, drilled off trend, and southeast of the East Extension tested a modest MMI anomaly, in an area with no supporting geophysical or topographic anomaly. These holes intersected zones of moderately anomalous gold, but did not intersect significant mineralization.

The Company personnel are currently conducting mapping, outcrop stripping and rock and soil sampling programs focused on lands recently acquired by the Company.

Sampling, assaying and quality control

Core from both holes was split using diamond saws, with one half sent to SGS Laboratories in Red Lake for preparation. The remaining split core is stored at the site. Assaying procedure follows fire assay with atomic absorption finish. Samples assaying greater than 2000 ppb Au receive fire assay with gravimetric finish. Quality control programs include the use of duplicates, standards and internal and external check assaying. Certified sample standards provided by Ore Research & Exploration Pty Ltd., were submitted with the normal sample stream sent to the laboratory and ten percent of the samples are being sent to Chemex Laboratories for external check assay.

Robert G. Carrington, Registered Professional Geologist, of Carrington Consultants is the Company's qualified person on the Springpole project as defined by National Instrument 43-101. The drilling program was conducted under Mr. Carrington's supervision. The results reported herein were reviewed and verified by Mr. Carrington.

Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties and currently owns and operates the Springpole Gold Project in the Red Lake Mining District of Ontario, Canada and its Cordero Gallium Project in Humboldt County, Nevada, U.S.A. Additional information can be found on the Company's website: http://www.goldcanyon.ca.

Robert Carrington, Chief Executive Officer & Director

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gold Canyon Resources Inc.
    Ron Schmitz
    Director
    (604) 682-3234
    (604) 682-0537 (FAX)
    or
    Gold Canyon Resources Inc.
    Ken Faulkner
    Investor Communications, Corporate Development
    (250) 862-0724
    www.goldcanyon.ca