Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

July 26, 2005 13:42 ET

Gold Canyon Reports Greater Than 90% Recovery of Gallium at Cordero

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 26, 2005) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to report that ChelaTech, Inc., of Alameda, California, has submitted interim progress and summary reports which document recoveries in excess of 90% of the contained gallium from mineralized rock at the Company's Cordero gallium project located in north-central Nevada. Actual recovery ranges from 91.6 to 96.8% of the total gallium contained in mineralization at Cordero. In addition the leach solutions have been found to contain a number of other metals which may constitute valuable future by-products.

The process developed is a multi-step, acid leach process utilizing commonly available acids and reagents. ChelaTech states "The solutions resulting from the combined extraction processes contain from 92-97% of the total gallium values in the ore" and that ChelaTech is recovering 90 to 100% of the gallium from these solutions. It is likely that further refining of the process may incrementally increase these recoveries.

The Cordero process is similar to the acid leach process long utilized to treat copper oxide ores throughout the world. Work to date indicates the ores will be treated in a conventional mill circuit, most likely a Counter Current Decantation (CCD) type mill, as is common in many gold, silver and copper milling operations.

For those unfamiliar with this project and gallium, Cordero is the largest known primary gallium deposit in North America. The property covers more than 1800 acres in north-central Nevada, and is 100% controlled by the Company. Eighty (80) Reverse Circulation drill holes, with an average depth of 247 feet trace a northeast trending mineralized zone more than 6,000 feet (1.1 miles) long, and up to 1000 feet wide. Numerous outcrops and drill intercepts exceed 200 grams per metric tonne. Mineralization remains open at depth and along strike, and rockchip geochemistry indicates potential for a second parallel zone of mineralization. Gallium is a critical metal used extensively in cellular telephones, satellites, data storage, aeronautical communications and guidance, and wide spread critical military applications. The United States, second only to Japan in consumption of raw metallic gallium, is 100% dependent upon imports for its supply. Large potential markets exist for the growth of gallium consumption in energy efficient lighting, electrical generation, automotive radar, biomedical applications, particularly in treatments for cancer, Osteoporosis, and other diseases.

Presently 100% of the global gallium supply is derived as by-product production, mostly from aluminium. The processes currently used to recover gallium are inefficient and expensive. The US Geological Survey states that "Most gallium is produced as a by-product of treating bauxite, and the remainder is produced from zinc processing residues. Only a part of the gallium present in bauxite ores is recoverable...". World wide, the average, direct cost of production, using current technologies from these sources averages between $500 and $600 (US) per kilo, with some individual producers experiencing costs up to $1,000 per kilo.

The Company's management is highly encouraged with these strong, positive, metallurgical results, and plans to aggressively move the gallium project forward. The Company has engaged the services of the well known metallurgical firm of Kappes Cassidy and Associates of Reno, Nevada to conduct independent confirmation of the processes, and assist with scale-up, and plant design. The Company also wishes announce it has engaged prominent local consulting geologist Samuel G. Nunnemaker. Mr. Nunnemaker will focus on the Cordero project with the objective of completing an updated National Instrument 43-101 compliant technical report, then moving rapidly into Pre-feasibility and Feasibility studies.

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:

Robert Carrington, Chief Executive Officer & Director

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Cautionary Note to United States Investors Concerning Forward Looking Statements - 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. Certain statements contained in this release using the terms "may", "expects to", "projects", "estimates", "plans", and other terms denoting future possibilities, are forward-looking statements in accordance with the Private Securities Litigation Reform Act of 1995. 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; and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability.

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

Contact Information

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