Gold Canyon Resources Inc.
TSX VENTURE : GCU

Gold Canyon Resources Inc.

June 09, 2005 13:54 ET

Gold Canyon Resources Inc.: East Extension Bonanza Hole BL 340 Expands to 15.2 Feet of 1.261 opt Gold; New Zone Found in Southwest Target Area

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 9, 2005) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce that additional and check analyses of hole BL05-340, expanded the bonanza grade drill intercept in that hole to 15.2 feet with an average grade of 1.261 ounces of gold per ton ("opt Au").

On May 24, 2005, the Company announced results for hole BL05-340 and BL05-344. In that release, and based upon results received to that date, the Company published results for BL05-340 for the interval from 115.9 to 121.4 assaying 1.668 opt Au. Due to a typing error the core length for the interval from 115.9 to 121.4 was reported as 7.5 feet, the correct core length for that interval is 5.5 feet. Subsequent and expanded samples received by the Company from SGS Laboratories have resulted in a significant increase in the width of the high-grade intercept. As stated in that release, this hole is a 100 foot westerly offset from hole BL04-319, which contained 19.6 feet with an average grade of 3.172 opt Au. As further discussed in the May 24, 2005 release, the results stated for BL05-340 were one assay ton (29.17 gram pulps), fire assays with gravimetric finish provided by the Red Lake SGS Laboratory. Subsequently, SGS Laboratories in Toronto has conducted more extensive analysis on larger samples (50 gram pulps), with multiple internal checks, the results of which are reported herein. In accordance with the Company's ongoing protocol, at least 10% of its sample stream is submitted to Chemex Laboratories for external check analysis, in addition to submitting certified blind standards in its normal sample stream to SGS.

Partial results for hole BL05-329, in the large Southwest Target Area, intersected 10 feet grading 0.198 opt Au, which included 5 feet assaying 0.271 opt Au in a mineralized breccia zone.

The following Table 1 summarizes the results to data presented in this release.



Table 1
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Mineralized
Intercept
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Hole Depth From To Length Grade Ounces Area
(feet) (feet) (feet) (feet) Au per Ton Tested

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BL05-340 502.0 83.5 87.9 4.4 0.209 East Extension

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95.7 98.3 2.6 0.466 East Extension

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115.9 131.1 15.2 1.261 East Extension

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Including 115.9 121.4 5.5 3.405 East Extension

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As announced
May 24, 2005 115.9 121.4 5.5 1.668 East Extension

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Including 117.1 120.1 3.0 5.534 East Extension

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BL05-329 1310 187.0 197.0 10.0 0.198 Southwest
Target Area

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Including 187.0 192.0 5.0 0.271 Southwest
Target Area

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Discussion

East Extension

Holes BL05-340 and BL05-344 drilled in the East Extension Zone are on a drill section more than 100 feet west of, and on trend with projections of mineralization encountered in holes BL04-319 and others. Hole BL05-344 is a 50-foot plus up dip test of the mineralization encountered in BL05-340. In opinion of management, it is very significant that the width, grade and geometry of this shallow, sub-horizontal, high-grade chute remains consistent along strike, and that mineralization appears to remain open.

The geometry of this chute is consistent with the geometry indicated in the Company's recent remodeling, and suggests excellent potential to develop additional similar, high-grade chutes on trend within the major mineral zone. This highly mineralized chute appears to have a strike length of at least 400 feet and remains open on strike to the east and west, as well as to depth. Within the main chute, high-grade gold mineralization is found over widths up to 19.6 feet. At depth, high-grade gold mineralization is seen to distinct structurally controlled gold in zones from 3 to 5 feet in width. The High Grade Chute is localized at the intersection of two east-west striking, gold bearing structures with differing dips.

Southwest Target Area

This drill intercept corresponds well with strong coincident Airmag, Airborne Radiometric, and MMI anomalies in the Southwest Target Area. The intercept is located in an area where there was no visible surface indication of mineralization, and where no previous exploration had occurred. This intercept is the most western area in the Southwest Target Area for which drill results have been received to date, and is located slightly over one mile southwest of the Portage / Camp Zones. Geophysical surveys suggest that the intercept is part of a large structure with more than 2 miles of strike length, and like other major targets in the Southwest Target Area, is parallel to the Portage - Camp Zones of mineralization. Gold occurrences are known in the northwest portion of this apparent structure.

Sampling, assaying and quality control

Core is logged, and then split using diamond saws, with one half sent to SGS Laboratories in Red Lake for preparation. The pulps were shipped to the SGS Toronto Laboratory for analyses. 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. All intercepts are actual drilled core length and may not represent true width intercepts.

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: 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