Gold Canyon Resources Inc.
TSX VENTURE : GCU
PINK SHEETS : GDCRF

Gold Canyon Resources Inc.

March 29, 2011 08:30 ET

Springpole Gold Project Continues to Produce Long Gold Intercepts for Gold Canyon; Including 150 Meters at 2.56 Grams Per Tonne Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce assays from six new holes from its Winter 2011 Diamond Drill Program at its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Results include 150 meters at 2.56 grams per tonne gold (492 feet at 0.075 oz per ton gold) in hole SP11-045A, a vertical infill hole testing the southeast part of the Portage Zone. Included in this interval are 30 meters at 5.69 grams per tonne gold (98 feet at 0.166 oz per ton gold), including 10 meters at 11.11 grams per tonne gold (33 feet at 0.324 oz per ton gold) of similar character to the high grade encountered in hole SP11-040 (100.5 meters at 7.23 grams per tonne reported in a news release dated March 15, 2011) (to see attached map please click on: http://media3.marketwire.com/docs/gcu329i.pdf).

"These six holes are infill, and they tell us a lot," comments Dr. Quinton Hennigh, a technical advisor to and a director of Gold Canyon. "First, we can now confidently say that mineralization starts at surface down the entire length of the Portage Zone. Second, we now see intervals of high-grade mineralization in drill holes along 300 meters strike along the mid-section of the Portage Zone. Third, we encountered the widest intercept yet across the Portage Zone, a true width of at least 280 meters in hole SP11-042 situated in the far southeast. Lastly, all six holes bottom in mineralization suggesting there is more going on at depth."

Summary of Drill Intercepts from Portage Zone
 
Hole From
(meters)
To
(meters)
Length
(meters)
Gold
(grams
per
tonne)
Gold
(grams per
tonne) - top
cut to 34.25
gpt
Length
(feet)
Gold
(oz per
ton)
Gold
(oz per ton)
- top cut to
1 opt
SP11-041 161.00 237.00 76.00 1.50 1.50 249 0.044 0.044
                 
includes 211.50 214.50 3.00 11.56 11.56 10 0.338 0.338
                 
includes 225.00 237.00 12.00 2.05 2.05 39 0.060 0.060
 
An interval of no core recovery was encountered from 231-232.5 meters.
Hole ends in mineralization at 237 meters.
                 
SP11-042 9.00 411.00 402.00 0.76 0.76 1319 0.022 0.022
                 
includes 17.00 24.00 7.00 1.67 1.67 23 0.049 0.049
                 
includes 57.00 411.00 354.00 0.80 0.80 1161 0.023 0.023
                 
includes 157.00 158.00 1.00 17.83 17.83 3 0.521 0.521
                 
includes 259.00 266.00 7.00 2.04 2.04 23 0.060 0.060
                 
includes 273.00 319.00 46.00 1.54 1.54 151 0.045 0.045
                 
includes 348.00 391.50 43.50 1.52 1.52 143 0.044 0.044
 
Intervals of no core recovery were encountered from 383.5-385.5, 388.5-390, 402-403.5 and 405-406.5 meters.
Hole ends in mineralization at 411 meters.
                 
SP11-043 42.00 153.00 111.00 2.03 1.24 364 0.059 0.036
                 
includes 112.50 117.00 4.50 36.21 16.77 15 1.057 0.490
                 
includes 112.50 114.00 1.50 92.57 34.25 5 2.703 1.000
 
An interval of no core recovery was encountered from 42.5-45 meters.
Hole ends in mineralization at 153 meters.
                 
SP11-044 132.00 351.00 219.00 0.71 0.71 718 0.021 0.021
                 
includes 132.00 313.50 181.50 0.84 0.84 595 0.025 0.025
                 
includes 132.00 213.00 81.00 1.07 1.07 266 0.031 0.031
                 
includes 135.00 136.00 1.00 14.74 14.74 3 0.430 0.430
                 
includes 199.50 213.00 13.50 2.20 2.20 44 0.064 0.064
           
Hole ends in mineralization at 351 meters.
           
SP11-045 36.00 90.00 54.00 2.15 2.15 177 0.063 0.063
                 
includes 66.00 90.00 24.00 3.17 3.17 79 0.093 0.093
 
An interval of no core recovery was encountered from 42-43.5 meters.
Hole ends in mineralization at 90 meters.
                 
SP11-045A 63.00 213.00 150.00 2.56 2.43 492 0.075 0.071
                 
includes 76.50 106.50 30.00 5.69 5.03 98 0.166 0.147
                 
includes 93.00 103.00 10.00 11.11 9.15 33 0.324 0.267
                 
includes 99.00 100.00 1.00 53.83 34.25 3 1.572 1.000
                 
includes 210.00 213.00 3.00 9.50 9.50 10 0.277 0.277
                 
includes 212.00 213.00 1.00 23.31 23.31 3 0.681 0.681
           
Hole ends in mineralization at 213 meters.
           
Weighted averages were used to calculate all reported intervals.
Zones of no core recovery were given a gold grade of 0 in the weighted average calculations above.
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.
 
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 results:

  • Diamond drill hole SP11-045A is a vertical infill hole testing the southeast part of the Portage Zone in a shallow area in which no modern or historic drilling was previously undertaken. This hole intersected 150 meters at 2.56 grams per tonne gold (492 feet at 0.075 oz per ton gold) including 30 meters at 5.69 grams per tonne gold (98 feet at 0.166 oz per ton gold) and 10 meters at 11.11 grams per tonne gold (33 feet at 0.324 oz per ton gold). The nature of this high-grade mineralization is very similar in character to that encountered in hole SP11-040 situated 200 meters northwest. The final meter of this hole assayed 23.31 grams per tonne gold (3 feet at 0.681 oz per ton gold).

  • Diamond drill hole SP11-045 is a vertical infill hole drilled a few meters from SP11-045A. This hole intercepted 54 meters at 2.15 grams per tonne gold (177 feet at 0.063 oz per ton gold) beginning at the top of bedrock at 36 meters. This hole was abandoned at 90 meters when its casing became dislodged. Hole SP11-045A was collared and drilled a few meters away to complete the shallow test of this area.

  • Diamond drill hole SP11-041 was drilled with an azimuth of 220 degrees true north and an inclination of -45 degrees and tested intermediate depths of the Portage Zone in its mid-section. This hole intersected 76 meters at 1.50 grams per tonne gold (249 feet at 0.044 oz per ton gold) before ending prematurely due to technical problems.

  • Diamond drill hole SP11-042 was drilled with an azimuth of 220 degrees true north and an inclination of -45 degrees and tested intermediate depths of the Portage Zone at its southeast end. This hole intercepted 402 meters at 0.76 grams per tonne gold (1,319 feet at 0.022 oz per ton gold) beginning at the top of bedrock and continuing to the bottom of the hole where it stopped in mineralization. This hole lies approximately 100 meters above hole SP10-024 (225 meters at 1.48 grams per ton gold reported in a news release dated November 23, 2010). The Portage Zone appears to be nearly vertical here, and this intercept represents a true width of at least 280 meters.

  • Diamond drill hole SP11-043 is a vertical infill hole testing shallow parts of the mid-section of the Portage Zone. This hole intersected 111 meters at 2.03 grams per tonne gold (364 feet at 0.059 oz per ton gold) including a high-grade interval of 4.5 meters at 36.21 grams per tonne gold (15 feet at 1.057 oz per ton gold) of similar character to hole SP11-040 located 100 meters northwest.

  • Diamond drill hole SP11-044 was drilled with an azimuth of 220 degrees true north and an inclination of -45 degrees and tested intermediate depths of the Portage Zone in its mid-section. This hole intersected 219 meters at 0.71 grams per tonne gold (718 feet at 0.021 oz per ton gold) and ended in mineralization.

Conditions are beginning to warm at site where three diamond drills continue to operate. Two drills are drilling infill holes in the Portage Zone while one rig continues to drill step-out holes to the southeast. At present, 7,300 meters of drilling in 27 holes have been completed since January 10th. The Company believes drilling on the ice may continue till the first week in April. A deep-capacity rig will begin testing the down-dip continuation of the Portage Zone to depths of up to 700 vertical meters below surface starting in early April. Drilling from a pair of barges will begin in late May or early June.

The Winter 2011 Diamond Drill Program is part of an ongoing program of drilling and remodeling of the Springpole Gold deposit to move it towards prefeasibility. Holes drilled this winter and off the barges in summer are expected to allow the Company to revise the resource estimate for the deposit sometime in the second half of 2011.

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, Camp 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.

Quinton Hennigh, Ph.D., P.Geo. and Alan Roberts, M.Sc., P.Geo. are the Qualified Persons pursuant to National Instrument 43-101 responsible for, and have reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical adviser to and director of Gold Canyon and Alan Roberts is the Senior Geologist of Alaska Earth Sciences, Inc. and Project Manager at Springpole.

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 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 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

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

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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