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

Gold Canyon Resources Inc.

April 14, 2011 08:31 ET

Springpole Gold Project Produces Long Gold and Silver Intercepts for Gold Canyon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 14, 2011) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce assays from five new holes from the 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 132 meters at 1.37 grams per tonne gold (433 feet at 0.040 oz per ton gold) in hole SP11-049, a vertical infill hole testing the southeast part of the Portage Zone. Silver assays have returned for twelve holes, whose gold assays were previously announced in press releases in February and March 2011. These assays confirm that gold mineralization is accompanied by appreciable silver at Springpole.

"The Winter 2011 Diamond Drill Program came to a close on April 8," comments Dr. Quinton Hennigh, a technical advisor to and a director of Gold Canyon. "We are very pleased to have accomplished nearly 8,500 meters of drilling in 33 holes this winter, just under our planned 9,000 meters of drilling. Overall, 18,909 meters in 61 drill holes have been drilled in the first three phases of a planned 20,000 meter program. Our first deep drill test of the Portage Zone has now commenced as we have completed our drilling on the ice. We expect this hole to be completed by mid-May."

"Holes SP11-047, -049, -051 and -052 are all vertical infill holes drilled in the southeast part of the Portage Zone," continues Hennigh. "These holes are some of the first near-surface tests in this area, and in each hole, gold mineralization starts at the top of bedrock and all the holes ended in mineralization. Hole SP11-046 was a step-out hole collared approximately 150 meters south of SP11-036. Although this hole encountered several significant intervals of gold mineralization, we believe that it did not intersect the core of the Portage Zone as hoped, but instead passed over the top. We believe that mineralization may be deeper and that it is plunging at a shallow angle to the southeast. We plan to step back to the northeast approximately 150 meters and retest this area at deeper levels during the upcoming summer drill program."

Summary of Results from the Portage Zone
HoleFrom
(meters)
To
(meters)
Length
(meters)
Gold
(grams
per
tonne)
Length
(feet)
Gold
(oz
per
ton)
SP11-04634.063.029.00.57950.017
96.0109.013.00.40430.012
176.0186.010.00.31330.009
200.0212.012.00.32390.009
*238.0306.568.50.822250.024
333.5353.019.50.43640.013
359.0367.08.00.44260.013
* includes an interval of no core recovery from 294.5-296 meters
SP11-04722.7177.0154.30.995060.029
SP11-04920.0152.0132.01.374330.040
includes82.0127.045.02.501480.073
includes93.098.05.08.64160.252
SP11-05114.0164.0150.01.154920.034
includes100.0114.014.03.01460.088
SP11-05219.0158.0139.01.044560.030
Weighted averages were used to calculate all reported intervals.
Zone of no core recovery was 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 Gold (previously announced) and Silver Results from the 2011 Winter Drill Program
HoleFrom
(meters)
To
(meters)
Length
(meters)
Gold
(grams
per
tonne)
Silver
(grams
per
tonne)
Length
(
feet)
Gold
(oz
per
ton)
Silver
(oz
per
ton)
Silver
to
Gold
Ratio
SP11-03014.073.059.02.511.981940.0730.0580.79
includes25.066.041.03.322.701340.0970.0790.81
includes30.041.011.07.286.79360.2130.1980.93
includes34.037.03.012.699.93100.3710.2900.78
SP11-0315.491.085.61.090.772810.0320.0220.71
includes23.053.030.01.451.08980.0420.0320.74
includes65.091.026.01.381.19850.0400.0350.86
includes82.087.05.03.122.12160.0910.0620.68
SP11-03213.070.057.00.544.391870.0160.1288.13
SP11-03313.0315.0302.01.397.169910.0410.2095.15
includes13.0278.0265.01.527.848690.0440.2295.16
includes200.0208.08.02.2925.48260.0670.74411.13
includes228.0278.050.05.4526.191640.1590.7654.81
includes228.0253.025.08.8146.90820.2571.3695.32
includes230.0233.03.053.8845.93101.5731.3410.85
includes230.0231.01.0126.5161.5033.6941.7960.49
includes274.0275.51.514.4025.9550.4200.7581.80
Intervals of no core recovery were encountered at 146.5-148.0, 203.5-205.0, 235.0-236.5, 239.5-244.0 and 302.5-304.0 m.
SP11-03437.0110.573.51.186.182410.0340.1805.24
includes76.0109.533.51.564.471100.0460.1312.87
162.0331.0169.01.086.295540.0320.1845.82
includes246.0297.051.02.2011.911670.0640.3485.41
includes246.0249.03.018.51252.60100.5407.37613.65
Intervals of no core recovery were encountered at 249.0-256.5, 258.0-259.5, 261.0-265.5, 270.0-271.5, 277.5-279.0, 285.0-286.5 and 298.5-300.0 m.
SP11-03516.020.04.00.310.58130.0090.0171.87
37.068.031.01.013.601020.0290.1053.56
includes41.045.04.04.1416.28130.1210.4753.93
89.096.07.00.350.60230.0100.0181.71
105.0200.595.51.223.263130.0360.0952.67
includes126.0144.018.01.532.96590.0450.0861.93
includes150.0170.020.01.583.47660.0460.1012.20
includes178.5200.522.01.614.38720.0470.1282.72
SP11-03650.058.08.00.340.96260.0100.0282.82
66.073.07.00.341.45230.0100.0424.26
87.0110.023.00.681.65750.0200.0482.43
138.0163.025.00.541.59820.0160.0462.94
204.0394.5190.50.903.966250.0260.1164.40
includes235.0373.5138.51.135.074540.0330.1484.49
includes276.0303.027.02.098.89890.0610.2604.25
SP11-03721.036.015.00.471.27490.0140.0372.70
54.0316.5262.50.924.678610.0270.1365.08
includes165.0169.04.06.783.23130.1980.0940.48
includes296.0314.018.03.224.59590.0940.1341.43
includes312.0313.01.027.777.0030.8110.2040.25
SP11-03861.079.018.00.894.62590.0260.1355.19
121.0202.081.01.217.122660.0350.2085.88
includes169.0202.033.02.198.031080.0640.2343.67
Intervals of no core recovery were encountered at 148-160 and 166-169 m.
SP11-03960.0117.057.00.403.071870.0120.0907.68
132.0165.033.00.534.721080.0150.1388.91
SP-04051.0151.5100.57.238.833300.2110.2581.22
includes55.5135.079.59.019.872610.2630.2881.10
includes57.085.528.519.7320.00930.5760.5841.01
includes58.560.01.5167.6622.2254.8960.6490.13
SP11-041161.0237.076.01.505.602490.0440.1643.73
211.5214.53.011.564.90100.3380.1430.42
225.0237.012.02.0516.15390.0600.4727.88
An interval of no core recovery was encountered from 231-232.5 m.
All gold values were previously released in press releases dated Feb. 16, Mar. 1, Mar. 15, and Mar. 29, 2011.
Weighted averages were used to calculate all reported interval.
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 -
1 meter = 3.28 feet

Summary:

  • Diamond drill hole SP11-046 was collared approximately 150 meters south of hole SP11-036 (see press release dated March 1, 2011) and drilled at an azimuth of 220 degrees true north and inclination of -45 degrees and was designed to test the strike extension of the Portage Zone. Several intervals of mineralization were encountered, but of generally lower grade than nearby holes further northeast. The Company believes this hole was positioned too far to the southwest and tested the zone at too shallow a depth and is planning to drill another hole on the same section, positioned further northeast, to retest this area during the Summer 2011 Diamond Drill Program.

  • Holes SP11-047, -049, -051 and -052 are all vertical holes testing near surface mineralization in the southeast part of the Portage Zone. All of these holes encountered gold mineralization beginning at the bedrock interface and continuing to the bottom of the hole.

  • Silver assays continue to indicate that gold mineralization at Springpole is accompanied by appreciable silver. Silver-to-gold ratios in recent assays vary from 0.13:1 to 13.65:1. Notable silver intervals include 25 meters at 46.9 grams per tonne silver (82 feet at 1.369 oz per ton silver) in hole SP11-033.

  • The Winter 2011 Diamond Drill Program came to an end on April 8, 2011, due to deteriorating ice conditions. Nearly 8,500 meters of drilling in 33 holes was accomplished. Holes awaiting assays include SP11-048, -050 and SP11-053 through -060. Hole SP11-061, the final hole drilled, will be used in its entirety for metallurgical test work and will not be assayed with other remaining holes. Remaining assays are expected back over the next 3-4 weeks.

  • Hole SP11-062, the first of a series of deep drill holes, was collared immediately following completion of drilling on the ice. This deep hole is collared on the southwest shore of the bay on the 0+00 section. It is oriented with an azimuth of 40 degrees true north and an inclination of -45 degrees, and is designed to test the Portage Zone at vertical depths of approximately 500-600 meters. Completion of this hole is expected by mid-May 2011.

  • Drilling from a pair of barges is expected to begin once the lake is ice free, likely by 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 from a pair of 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.

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.

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.

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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