Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

April 21, 2008 06:00 ET

Gold Canyon Reports Progress on Favourable Lake Polymetallic Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2008) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce developments in the Winter 2008 program at the Favourable Lake Polymetallic Property ("Property") located in the Red Lake Mining District of Ontario, Canada. Gold Canyon entered into a mineral property option agreement with Shoreham Resources Ltd. ("Shoreham") on December 22, 2005.

Further to a press release made Wednesday, April 16, 2008 by Project Operator (Shoreham), David Bending, M.Sc., P. Geo., and Dr. G.H. Cameron, M.Sc., Ph.D., Aus IMM, qualified persons pursuant to NI 43-101, are responsible for the planning, completion and interpretation of the results disclosed in this release.

As per news released by Shoreham relating to the Borland Lake silver target on the Property, "Shoreham's field team had collected 11, one-metre diamond saw cut samples (4 outcrops represent a cumulative width of 10 meters, but the sampling is not continuous and the mineralized material continues beyond the sampled intervals). Of the 11 samples previously submitted to the lab for assay, 5 were returned as over limit silver values exceeding the analytical limits of 300 grams per tonne. We are pleased to be able to report these re-assays in the table below.

Sample Width Meters Au ppb Ag grams/T Pb% Zn%
BLG001 1 1,030 less than 0.3 1.09 0.17
BLG002 1 2,400 1,100.0 1.33 1.96
BLG003 1 1,740 621.0 0.29 1.42
BLG004 1 644 426.0 0.54 0.99
BLG005 1 114 30.5 0.04 0.08
BLG006 1 1,700 130.0 0.14 0.05
BLG007 1 1,150 442.0 0.57 1.60
BLG008 1 113 31.4 0.09 0.12
BLG009 1 6 4.7 0.09 0.12
BLG010 1 608 627.0 0.22 0.16
BLG011 1 910 144.0 0.04 0.03

As can be seen, results include one-meter intervals ranging in silver concentration from less than 0.3 grams/tonne to 1,100 grams/tonne; gold values range from 6 ppb to 2,400 ppb; lead concentrations from 0.04% to 1.09%; and zinc concentrations from 0.3% to 1.96%. SGS Laboratory in Red Lake, Ontario, assayed these samples.

Shoreham contracted Quantec Geoscience Ltd. to complete a Titan 24 DCIP and MT survey to aid in the evaluation and exploration of the Borland Lake Silver Mineralized Zone. This survey was completed March 15, 2008 and the results are being processed at this time. The program was designed to confirm and define the geometry of the known mineralized shoots and expand the targets. The camp, fuel and supplies for Shoreham's drilling program were mobilized to a centralized location using the winter roads but mobilization of the drilling program was delayed pending talks with the Sandy Lake First Nation.

The company plans to test the targets using air supported drilling when the land use protocols have been finalized with the First Nation. David Bending, President and CEO of Shoreham Resources Ltd., reports; "The Borland Lake Silver target was the main attraction for Shoreham in the Favourable Lake option agreement, and we are excited by the opportunity to proceed with the exploration work in an attempt to validate and expand this important target.""

Gold Canyon's exploration efforts in Canada are currently centred around the Red Lake Mining Camp in north-west Ontario. The Springpole - Horseshoe Island Project is 70 miles to the east, and the Favourable Lake and Bear Head Projects are 120 miles to the north of Red Lake.

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 the Bear Head Uranium Project which is adjacent to their Favourable Lake Polymetallic property currently under option to Shoreham Resources Inc. pursuant to an option and joint venture agreement entered into in December 2005.

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.

Additional information can be found on the Company's website:

Akiko Levinson, President & Director

Certain statements contained in this news release using the terms "may", "expects to", "projects", "estimates", "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.

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

Contact Information

  • Gold Canyon Resources Inc.
    Vic Weckerle
    Investor Relations
    (604) 682-3234 or Toll Free: 1-888-242-3234
    (604) 682-0537 (FAX)