Gold Canyon Resources Inc.

Gold Canyon Resources Inc.

June 19, 2012 06:30 ET

Gold Canyon: Step-Out Drilling Continues to Expand the Portage Zone at Springpole Hole SP 12-146-343 Meters at 1.50 Grams Per Tonne Gold Including 108 Meters at 3.44 Grams Per Tonne Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 19, 2012) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce the first assay results from its barge drilling program at its 100% controlled Springpole Gold Project located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada.

To view the Plan Map, please visit the following link:

SP12-146 on the 0-100 meter section - 343 meters at 1.50 grams per tonne gold including 108 meters at 3.44 grams per tonne gold
SP12-145 on the 0-250 meter section - 210 meters at 0.63 grams per tonne gold
SP12-143 on the 0-150 meter section - 116.9 meters at 0.80 grams per tonne gold
SP12-142 on the 0+200 meter section - 323.5 meters at 0.97 grams per tonne gold
SP12-141 on the 0-250 meter section - 213 meters at 0.53 grams per tonne gold

"Our first results from step-out barge drilling are very encouraging," comments Dr. Quinton Hennigh, technical advisor to, and director of, Gold Canyon. "Recent results clearly indicate the Portage Zone extends to the 0-250 meter section. In addition, hole SP12-146 is the first hole to demonstrate higher grades persist into this area. Over the remainder of this year, we plan to pursue step-out and infill drilling to expand the southeastern extension of the Portage Zone."

  • Vertical diamond drill hole SP12-146 was drilled on the 0-100 meter section line along the northeastern margin of the Portage Zone (please refer to attached maps). This hole encountered 343 meters at 1.50 grams per tonne gold (1,125 feet at 0.044 oz per ton gold) beginning at lake bottom. A near-surface, higher grade zone, 108 meters at 3.44 grams per tonne gold (354 feet at 0.100 oz per ton gold), started at 11 meters. Between 153-189 meters, a low grade interval grading 0.11 grams per tonne gold was encountered and is included in the longer reported interval. It is believed that this near-surface higher grade interval may represent the upper part of a higher grade shoot evident in some drill holes on the 000 meter section 100 meters to the northwest.

  • Vertical diamond drill hole SP12-142 was drilled on the 0+200 meter section line and tests the southwest margin of the Portage Zone. This hole encountered 323.5 meters at 0.97 grams per tonne gold (1,061 feet at 0.028 oz per ton gold) beginning a few meters below lake bottom. Given the positive results from this hole, additional drilling is needed in this area to definitively determine the southwest margin of the Portage Zone.

  • Vertical diamond drill holes SP12-141 and SP12-145 were both drilled on the 0-250 meter section line and tested the strike continuation of the Portage Zone. Hole SP12-141 encountered 213 meters at 0.53 grams per tonne gold (699 feet at 0.015 oz per ton gold) and SP12-145, 210 meters at 0.63 grams per tonne gold (689 feet at 0.018 oz per ton gold). These intercepts start approximately 65 meters below lake bottom indicating mineralization does not reach surface in this area. Further drilling is being undertaken on the 0-250 meter section to fully assess the grade and geometry of the Portage Zone here.

  • Vertical diamond drill hole SP12-143 was drilled on the 0-150 meter section line along the northeast margin of the Portage Zone and encountered multiple intervals of gold mineralization, the longest of which is 116.9 meters at 0.80 grams per tonne gold (383 feet at 0.023 oz per ton gold). This hole lies approximately 50 meters southeast of hole SP12-146 and is believed to lie beyond the higher grade shoot discussed above.

  • Diamond drill hole SP12-139, situated on the 0+1,000 meter section and oriented at an azimuth of 220 degrees true north with an inclination of -45 degrees tested deeper parts of the Main Zone. Multiple intervals of gold mineralization were encountered including 2 meters at 31.99 grams per tonne gold (7 feet at 0.934 oz per ton gold). Diamond drill hole SP12-140, collared near the East Extension Zone on the 0+800 meter section, was drilled at an azimuth of 220 degrees true north with an inclination of -45 degrees. This hole encountered two short intervals of mineralization at depth.

Summary of Drill Results from the Portage Zone
Hole From
Gold (grams
per tonne)
Gold (oz
per ton)
SP12-141 77.0 290.0 213.0 0.53 699 0.015
SP12-142 38.0 361.5 323.5 0.97 1061 0.028
includes 170.0 206.0 36.0 2.41 118 0.070
includes 330.0 340.0 10.0 2.87 33 0.084
SP12-143 108.0 128.0 20.0 0.48 66 0.014
173.1 290.0 116.9 0.80 383 0.023
312.0 320.0 8.0 0.73 26 0.021
328.0 340.0 12.0 0.54 39 0.016
SP12-144 awaiting assays
SP12-145 71.0 281.0 210.0 0.63 689 0.018
includes 201.0 233.0 32.0 1.24 105 0.036
SP12-146* 6.0 349.0 343.0 1.50 1125 0.044
includes 11.0 119.0 108.0 3.44 354 0.100
includes 25.0 55.0 30.0 5.17 98 0.151
includes 33.0 35.0 2.0 15.22 7 0.444
includes 77.0 91.0 14.0 5.03 46 0.147
includes 77.0 79.0 2.0 13.38 7 0.391
includes 111.0 119.0 8.0 4.36 26 0.127
* Longest reported interval includes a low grade mineralization assaying below cut-off grade from 153-189 meters.
Summary of Drill Results from the Main Zone and between the Main and East Extension Zones; Holes SP12-139 and SP12-140
Hole From
Gold (grams
per tonne)
Gold (oz
per ton)
SP12-139 68.0 72.0 4.0 0.87 13 0.025
116.0 126.0 10.0 0.47 33 0.014
180.0 188.0 8.0 1.33 26 0.039
197.0 205.0 8.0 9.88 26 0.288
includes 197.0 199.0 2.0 31.99 7 0.934
245.0 251.0 6.0 0.63 20 0.018
269.0 275.0 6.0 0.57 20 0.017
SP12-140 317.0 327.0 10.0 0.61 33 0.018
345.0 359.0 14.0 0.87 46 0.025
Weighted averages were used to calculate all reported intervals
Reported intervals apply a 0.2 gram per tonne gold (0.006 oz per ton gold) lower cutoff
Internal dilution within reported intervals does not exceed core lengths of 12 meters except where noted
Intervals of no recovery were given a gold grade of 0 in the weighted average calculations above
1 troy oz = 31.103 grams
Conversion factor grams per tonne to troy oz per short ton; g/t divided by 34.2857 or g/t multiplied by 0.0292
1 meter = 3.28 feet

Core was logged then split using diamond saws with one half sent for analyses and the other half stored for future reference. Quality control programs include the use of field and laboratory duplicates, standards, blanks, and internal and external check assaying. Certified sample standards were submitted with the normal sample stream. Gold and silver assays were completed by SGS Canada Inc. in Red Lake and Toronto, Ontario using a 30 gram charge, fire assay, with an ICP finish. For over limit assay results, initial assays in excess of 10.0 grams per tonne Au, a gravimetric finish is utilized.

Update on 2012 Diamond Drill Program

Four barge drills are operating at Springpole drilling step-out and infill holes in the southeastern part of the Portage Zone. To date, approximately 25,000 meters of drilling have been completed at Springpole in 2012. A steady stream of drill results is expected by the Company over the remainder of 2012.

About Springpole

Springpole is an alkaline intrusion hosting a gold system that represents a potentially new style of Canadian Archean Shield gold deposit. The Portage Zone is hosted by a trachytic porphyry intrusion displaying polyphase autolithic breccias that host gold mineralization. Other zones, including the East Extension and Main, consist of high-grade veins and pods hosted in diatreme breccias composed of intrusive and country rock fragments. These breccias surround the northwest and northern margins of the Portage Zone. The known mineralized zones underlie a total known area of about 4 square kilometers representing only about 15 percent of the greater alkaline intrusive complex which remains yet to be explored.

On February 27, 2012, Gold Canyon announced an updated NI 43-101 compliant resource estimate for Springpole, effective February 27, 2012, which included an indicated mineral resource of 1.22 million ounces gold and 4.82 million ounces silver and an inferred mineral resource of 2.45 million ounces gold and 11.58 million ounces silver (cut-off grade of 0.4 grams per tonne gold). Tonnage and grades were reported as 30.0 million metric tonnes at 1.26 grams per tonne gold and 5.0 grams per tonne silver for the indicated category, and 60.0 million metric tonnes at 1.27 grams per tonne gold and 6.0 grams per tonne silver for the inferred category. A technical report detailing this resource was filed by the Company on April 10, 2012 and is available through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at

Quinton Hennigh, Ph.D., P.Geo. is the Qualified Person pursuant to National Instrument 43-101 responsible for, and has reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical adviser to, and a director of, Gold Canyon.

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 Favourable Lake Poly-metallic property currently under option to Guyana Frontier Mining Corp. pursuant to an option and joint venture agreement entered into in December 2005 - all in the Red Lake Mining District of Ontario, Canada.

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.

Gold Canyon entered into a REE Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.

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

Akiko Levinson, President & Director

Cautionary Note Regarding Mineral Resources

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred resources in any estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

Cautionary Note to U.S. Readers Regarding Estimates of Measured, Indicated and Inferred Resources

This news release uses the term "inferred resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, it is not recognized by the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. The term "contained gold ounces" used in this news release is not permitted under the rules of the SEC. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.

Cautionary Note Regarding Forward Looking Statements

This news release contains statements that constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 or "forward looking information" within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "would", "should", "could", or "might" occur or be achieved and other similar expressions. Forward-looking statements in this news release include statements regarding the timing and nature of permitting studies, the timing and nature of infrastructure developments and construction, projections of future optimization, production timeline targets, the timing of negotiations with third parties, and the timing and nature of future exploration programs which are dependent on projections which may change as drilling continues, or if unexpected ground conditions are encountered. In addition, areas of exploration potential are identified which will require substantial drilling to determine whether or not they contain similar mineralization to areas which have been explored in more detail. The description of the extent of mineralized zones is not intended to imply that any economically mineable estimate of reserves or resources exists on any of Gold Canyon's projects.

The forward-looking statements that are contained in this news release are based on various assumptions and estimates by Gold Canyon and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Gold Canyon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, unanticipated difficulties or costs in any rehabilitation which may be necessary, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Gold Canyon and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. Although Gold Canyon has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this news release and Gold Canyon disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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