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Gold Canyon Resources Inc. (TSX-V:GCU - News)(PINK SHEETS:GDCRF - News) ("Gold
Canyon" or "the Company") is pleased to announce that hole
SP10-029 has intersected 132 meters at 2.30 grams per tonne gold including 42
meters at 5.28 grams per tonne gold. Another hole, SP10-028, intersected 108
meters at 1.75 grams per tonne gold including 12 meters at 6.11 grams per
tonne gold. Hole SP10-028 ended in mineralization
when the hole was terminated due to difficult drilling conditions. Both
holes, SP10-028 and -029, test parts of the Portage Zone (to see the attached
map please click on: http://media3.marketwire.com/docs/gcu1209.jpg).
The Springpole Gold Project is 100% controlled by the Company and is located
in the Red Lake Mining District of Ontario, Canada.
-- Hole SP10-029, 132 meters at 2.30 grams per tonne gold (433 feet at
0.067 oz per ton gold) including 42 meters at 5.28 grams per tonne gold
(138 feet at 0.154 oz per ton gold), was collared approximately 70
meters east of SP10-011 (94 meters at 2.51 grams per tonne gold
announced in news release dated August 30, 2010) at an azimuth of 220
degrees true north and inclination of -45 degrees, parallel to hole
SP10-011 and below, and on section with, hole SP10-005 (55.0 meters at
2.21 grams per tonne gold announced in news release dated May 4, 2010).
This long interval of gold mineralization, in the northwest part of the
Portage Zone, is the deepest intercept drilled to date during the
current staged drilling program, and confirms mineralization to depths
in excess of 300 meters. It also reaffirms shallower, on section
mineralization intercepted in drill hole SP10-005, which ended in
mineralized rock. The true width represented by this intercept is
approximately 90 meters. Shallow zones of gold mineralization were also
encountered in this hole (see table on page 3: Summary of Significant
Intervals from Portage Zone).
-- Hole SP10-028, 108 meters at 1.75 grams per tonne gold (354 feet at
0.051 oz per ton gold) including 12 meters at 6.11 grams per tonne gold
(39 feet at 0.178 oz per ton gold), was collared a few meters from SP10-
008 (123 meters at 1.45 grams per tonne gold announced in news release
dated August 16, 2010) at an azimuth of 245 degrees true north and
inclination of -45 degrees. This hole targeted a 100 meter wide gap with
no previous drill holes in the Portage Zone. Due to difficult drilling
conditions, the hole was terminated in mineralized rock before
penetrating the full width of the Portage Zone. This intercept
demonstrates continuity of mineralization to vertical depths of at least
350 meters in this part of the Portage Zone (see table on page 3:
Summary of Significant Intervals from Portage Zone).
-- The strike length of the northwesterly striking Portage Zone presently
stands at approximately 950 metres Hole SP10-028 and -029 continue to
confirm that the Portage Zone persists beyond 300 meters depth along its
entire length. True widths of the zone range from 90 to 150 meters.
Drilling planned for Winter 2011 will test shallow portions of this zone
to confirm continuity to surface.
-- Hole SP10-021 tested an area between the Portage Zone and East Extension
Zone and encountered 4 meters at 6.17 grams per tonne gold (13 feet at
0.180 oz per ton gold) from 299-303 meters down hole depth in a vein
more typical of the East Extension Zone. Hole SP10-023 encountered 38
meters at 0.68 grams per tonne gold (125 feet at 0.020 oz per ton gold)
from 40-78 meters down hole depth along the eastern margin of the Main
Zone (see table on page 3: Summary of Significant Intervals from Other
Targets (Not in Portage Zone)).
-- Results from the remaining two holes from this summer's drill program
are due back from the lab by mid-December. Hole SP10-026 tests the
Portage Zone below hole SP10-007 at its northwest end. Hole SP10-025,
tests the gap between the Main and Portage Zones. Hole SP10-027 was
terminated at 115 meters when the drill hole deviated off course and
thus was unable to reach its intended target zone and was not sampled.
In total, the Company drilled approximately 10,300 meters of diamond
drill core at Springpole during the Summer 2010 Diamond Drill Program.
-- The Company is planning an aggressive Winter 2011 Diamond Drill Program
to further evaluate the size of the Portage Zone. Up to 10,000 meters of
drilling are planned utilizing three diamond core rigs beginning in
early January 2011, weather permitting. Cold weather has recently
settled in the Springpole area and personnel are building up ice on the
lake in preparation for winter drilling. Two rigs will drill infill
holes in the Portage Zone and a third rig will drill step-out holes to
the southeast where the Company believes the Portage Zone can be
expanded.
"Hole SP10-029 is anomalous for the
Portage Zone which typically displays true widths of 100-150 meters and
grades of around 1.3-1.5 grams per tonne gold," comments Dr. Quinton
Hennigh, technical advisor to Gold Canyon. "The true width of the
Portage Zone represented by the intercept in SP10-029 is about 90 meters, yet
the grade is significantly higher at 2.23 grams per tonne gold. This
intercept may indicate that the zone narrows but increases in grade with
depth."
"Hole SP10-028 tested a 100 meter
gap in drilling in the southeast part of the Portage Zone," continues
Hennigh. "Although we were disappointed the hole did not penetrate the
full width of the Portage Zone, we are very pleased to see it return good
gold grades in this critical gap."
Summary of Significant Intervals from Portage Zone
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Gold
(grams
From To Length per Length Gold (oz
Hole (meters) (meters) (meters) tonne) (feet) per ton)
SP10-028 83 85 2 1.55 7 0.045
162 166 4 1.12 13 0.033
217 226 9 0.44 30 0.013
267 283 16 0.61 52 0.018
361 469 108 1.75 354 0.051
includes 412 460 48 3.18 157 0.093
includes 427 439 12 6.11 39 0.178
Hole ends in mineralization; terminated due to difficult drilling
conditions.
Intervals of no core recovery were encountered at 394-400 m and 439-445 m.
Zones of no recovery were given 0 gold grade in the weighted calculations
above.
SP10-029 3 41 38 0.54 125 0.016
80 98 18 0.55 59 0.016
193 228 35 0.34 115 0.010
241 263 22 0.52 72 0.015
301 433 132 2.30 433 0.067
includes 340 382 42 5.28 138 0.154
includes 340 346 6 11.07 20 0.323
Intervals of no core recovery were encountered at 337-340 m, 364-370 m and
418-421 m.
Zones of no recovery were given 0 gold grade in the weighted calculations
above.
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Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold)
cutoff.
Weighted averages were used to calculate all reported intervals.
Internal dilution within reported intervals does not exceed core lengths of
8 meters.
1 troy ounce = 31.103 grams
Conversion factor - grams per tonne to troy ounces per short ton; g/t
divided by 34.2857 or g/t multiplied by 0.0292
1 meter = 3.28 feet
Summary of Significant Intervals from Other Targets (Not in Portage Zone)
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Gold
(grams
From To Length per Length Gold (oz
Hole (meters) (meters) (meters) tonne) (feet) per ton)
SP10-021 93 96 3 1.22 10 0.036
299 303 4 6.17 13 0.180
includes 301 302 1 15.77 3 0.460
SP10-023 40 78 38 0.68 125 0.020
134 137 3 0.94 10 0.027
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Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold)
cutoff.
Weighted averages were used to calculate all reported intervals.
Internal dilution within reported intervals does not exceed core lengths of
8 meters.
1 troy ounce = 31.103 grams
Conversion factor - grams per tonne to troy ounces per short ton; g/t
divided by 34.2857 or g/t multiplied by 0.0292
1 meter = 3.28 feet
The Summer 2010 Diamond Drill Program
completed in October, 2010 is part of an ongoing program of drilling and
remodelling of the Springpole deposit to move it towards prefeasibility.
Drilling is planned to continue through
April 2011, at which time work will begin on revising the resource estimate
for the deposit.
Springpole is an alkaline intrusion
hosting a gold system that represents a potentially new style of Canadian
Archean Shield gold deposit. Springpole shares many similarities with
deposits such as the Cripple Creek Gold deposit in Colorado. The Portage Zone
is hosted by a trachytic porphyry intrusion displaying polyphase autolithic
breccias that contain gold mineralization of remarkably uniform grade. Other
zones, including East Extension, Camp and Main, consist of high grade veins
and pods hosted in diatreme breccias composed of intrusive and country rocks.
These diatreme breccias surround the northwest and northern margins of the
Portage Zone. The known mineralized zones underlie a total known area of
about 4 square kilometres representing only about 15 percent of the greater
alkaline intrusive complex which yet remains 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 duplicates,
standards 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 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 Shoreham Resources Inc. 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.
Contact:
Contacts:
Gold Canyon Resources Inc.
(604) 682-3234 or Toll Free: 1-888-242-3234
(604) 682-0537 (FAX)
info@goldcanyon.ca
www.goldcanyon.ca
Gold Canyon Resources Inc.
Leo Karabelas
Investor Relations
(416) 543-3120
leo@frontlineir.com
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