Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

March 03, 2008 14:02 ET

Gold Canyon Starts Winter Drill Program 2008 at Springpole

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) (PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce that it has started the Winter Drill Program 2008 at the Company's Springpole Gold Project located in the Red Lake Mining District of Ontario, Canada.

The Company's crews have been in camp for roughly two weeks making preparations for the winter drilling campaign. The planned program will consist of a minimum of 2,000 meters (6,562 feet) of diamond drilling on the new sediment hosted gold zone discovered at the end of the 2007 winter drill program.

Gold Canyon's 2008 drill program is designed to drill outside of the Core Area Resource and along the new NW Extension Zone sedimentary-hosted semi-massive sulphide discovery made at the end of last winter's drill program. Drill hole BL07-383 returned an intersection of 0.25 opt gold over 14 feet (8.4 g/t over 4.26m) and is believed to represent a new and geologically significant style of mineralization that has not been previously known at Springpole.

In addition to the NW Extension Zone, there is a proximal carbonatite (Fluorite Zone) known to strike for at least 2 km's hosting significant levels of Rare Earth Elements (REEs) and rare metals. Preliminary results from the first test channel samples returned significant values for Cerium (Ce), Cesium (Cs), Lanthanum (La), Rubidium (Rb) and Scandium (Sc). While some assays are still pending, we believe there exists sufficient reason to drill test this zone as soon as possible after the NW Extension Zone program is completed.

On November 7, 2006, the Company released the first NI 43-101 resource estimate for the Springpole Gold Project (as prepared by P&E Mining Consultants Inc.) of 242,600 ounces of gold in all categories:

Classification Tonnes Au g/t Contained Au Oz
Measured 35,000 6.27 7,100
Indicated 214,000 5.56 38,400
Measured & Indicated 249,000 5.66 45,500

Inferred 1,353,000 4.53 197,100

Total all categories 1,602,000 242,600

A preliminary budget of CDN$ 1,000,000 is anticipated to drill test the new gold discovery, followed by a modest program at the Fluorite Zone. Major Drilling International was awarded the drilling contract for the current program.

Mr. Garry K. Smith, P.Geo., is the Company's Vice President of Exploration and acts as the qualified person on the Springpole Gold Project as defined by National Instrument 43-101. This news release has been reviewed by Mr. Smith.

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 Poly-metallic 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 contemplate 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)