Gold Canyon Resources Inc.
TSX VENTURE : GCU
PINKSHEETS : GDCRF

Gold Canyon Resources Inc.

July 24, 2012 06:30 ET

Gold Canyon's Step-out Drilling and Infill Program Continues to Yield Solid Results: 361 Meters at 1.08 Grams per Tonne Gold at the Springpole Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 24, 2012) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce continuing positive assay results from its 2012 barge drilling program at its 100% controlled Springpole Gold Project located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Included in recent results is an intercept of 361 meters at 1.08 grams per tonne gold from hole SP12-160 (1,184 feet at 0.032 oz per ton gold).

To view the Plan Map, please visit: http://media3.marketwire.com/docs/gcu724_PlanMap.pdf.

"Step-out drilling by barge early this summer indicated the Portage Zone continues to the 0-250 meter section," comments Dr. Quinton Hennigh, technical advisor to, and director of, Gold Canyon. "Given this encouragement, we decided to quickly infill drill this southeastern part of the deposit with the goal of adding ounces to our upcoming National Instrument 43-101 ("NI 43-101") compliant resource update. Results from recent drill holes in this area continue to provide strong encouragement that we can quickly grow the deposit."

  • Four drills mounted on barges continue to operate at Springpole. To date, nearly 31,500 meters of diamond core drilling have been completed. Results from recent infill holes from the southeastern part of the deposit listed in the table below are vertical holes.
  • Three exploration holes, SP12-144, SP12-150 and SP12-152 tested areas approximately 500 meters southeast of the Portage Zone. Hole SP12-152 encountered three significant gold intercepts. Further drilling is planned near this hole to test for the extension of the Portage Zone in this area.
  • Due to recent exploration success along strike of the Portage Zone in the southeastern part of the deposit, the Company has decided to undertake aggressive infill drilling in this area in preparation for a NI 43-101 compliant resource update to be completed in Q4, 2012. This resource update will encompass nearly 30,000 meters more drilling since the last resource update which encompassed drilling through the end of 2011.
  • Work on a preliminary economic assessment ("PEA") of the Springpole deposit by SRK Consultants (Vancouver), is on-going with a scheduled completion in Q1 or Q2, 2013. The anticipated completion date for this report has been pushed back from its originally scheduled completion in Q4, 2012 so that it can be based on the NI 43-101 compliant resource number that we are planning to update. In preparation for the PEA, extensive metallurgical test work is being conducted by SGS Lakefield with a scheduled completion in Q3, 2012.
  • Environmental baseline work by DST Engineering and other consultants is on-going.
  • Engagement with stakeholders is on-going with regular meetings scheduled for the remainder of 2012.
  • Gold Canyon is currently working towards permitting an access road to site.
Summary of Drill Results from the Portage Zone
Section Hole From
(meters)
To
(meters)
Length
(meters)
Gold
(grams
per
tonne)
Length
(feet)
Gold (oz
per ton)
0+150 meter; SW flank SP12-147 120.4 122.4 2.0 1.26 7 0.037
139.5 141.5 2.0 1.19 7 0.035
185.5 189.5 4.0 0.93 13 0.027
233.5 239.5 6.0 0.58 20 0.017
247.5 253.5 6.0 0.69 20 0.020
298.0 368.0 70.0 0.64 230 0.019
397.0 419.0 22.0 0.61 72 0.018
0-100 meter; central SP12-148 23.0 42.0 19.0 0.92 62 0.027
79.0 87.0 8.0 1.26 26 0.037
173.0 351.0 178.0 0.79 584 0.023
0-250 meter; SW flank SP12-149 61.0 71.0 10.0 0.72 33 0.021
108.0 116.0 8.0 1.07 26 0.031
134.0 182.0 48.0 0.81 157 0.024
including 158.0 160.0 2.0 5.93 7 0.173
209.0 243.0 34.0 0.51 112 0.015
255.0 280.0 25.0 0.46 82 0.013
353.8 356.0 2.2 5.29 7 0.154
0-250 meter; SW flank SP12-151 86.5 90.5 4.0 0.66 13 0.019
106.5 112.5 6.0 0.91 20 0.027
124.5 193.0 68.5 0.82 225 0.024
225.0 233.0 8.0 0.42 26 0.012
272.0 293.0 21.0 0.83 69 0.024
0+150 meter; SW flank SP12-153 144.0 148.0 4.0 1.00 13 0.029
290.0 294.0 4.0 0.71 13 0.021
327.0 420.0 93.0 0.56 305 0.016
0-150 meter; central SP12-154 10.5 26.0 15.5 0.48 51 0.014
78.0 88.0 10.0 0.60 33 0.018
156.0 168.0 12.0 0.73 39 0.021
188.0 290.0 102.0 0.71 335 0.021
including 275.0 280.0 5.0 3.81 16 0.111
300.0 316.0 16.0 0.63 52 0.018
340.0 344.0 4.0 1.36 13 0.040
000 meter; SW flank SP12-155 227.0 313.0 86.0 0.70 282 0.020
319.0 333.0 14.0 0.58 46 0.017
0-250 meter; SW flank SP12-156 132.0 185.0 53.0 0.83 174 0.024
237.0 283.0 46.0 0.59 151 0.017
0+100 meter; NE flank SP12-157 21.0 31.0 10.0 0.60 33 0.018
50.0 193.5 143.5 0.85 471 0.025
219.0 283.5 64.5 0.44 212 0.013
316.0 360.4 44.4 0.50 146 0.015
000 meter; central SP12-158 16.7 60.2 43.5 1.81 143 0.053
including 16.7 32.0 15.3 3.11 50 0.091
68.0 70.0 2.0 1.17 7 0.034
76.0 92.0 16.0 0.55 52 0.016
108.1 122.0 13.9 0.43 46 0.013
156.0 355.0 199.0 0.81 653 0.024
0-100 meter; SW flank SP12-159A 42.5 51.0 8.5 0.49 28 0.014
131.0 135.0 4.0 0.80 13 0.023
157.0 185.0 28.0 2.60 92 0.076
including 177.0 179.0 2.0 29.91 7 0.873
211.5 273.0 61.5 0.94 202 0.027
including 239.0 243.0 4.0 4.02 13 0.117
294.0 322.0 28.0 0.67 92 0.020
330.0 335.5 5.5 0.71 18 0.021
0+100 meter; central SP12-160 23.0 384.0 361.0 1.08 1184 0.032
including 117.2 137.0 19.8 2.92 65 0.085
including 219.0 228.0 9.0 2.55 30 0.074
including 251.0 281.0 30.0 1.97 98 0.058
0-050 meter; NE flank SP12-161 62.0 80.0 18.0 0.54 59 0.016
136.0 354.0 218.0 1.09 715 0.032
including 220.5 223.5 3.0 6.03 10 0.176
including 265.5 290.0 24.5 2.22 80 0.065
0+050; NE flank SP12-162B Awaiting Assays
0-050 meter; NE flank SP12-163 67.0 76.0 9.0 0.72 30 0.021
114.2 120.0 5.8 0.58 19 0.017
130.9 265.0 134.1 0.91 440 0.027
including 252.0 256.0 4.0 3.82 13 0.112
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
Summary of Exploration Drill Results
Hole From
(meters)
To
(meters)
Length
(meters)
Gold (grams
per tonne)
Length
(feet)
Gold (oz
per ton)
SP12-144 No significant values
SP12-150 22.0 26.5 4.5 0.45 15 0.013
84.0 86.0 2.0 3.19 7 0.093
420.0 428.0 8.0 0.64 26 0.019
531.3 543.0 11.7 0.63 38 0.018
SP12-152 45.0 61.0 16.0 0.67 52 0.020
313.0 317.0 4.0 0.63 13 0.018
386.0 430.0 44.0 0.58 144 0.017

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.

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 www.sedar.com.

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: www.goldcanyon.ca

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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