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Re: News Release - Tuesday, August 30, 2011
Gold Canyon Intercepts 286 Meters at 1.03 Grams per Tonne Gold
Confirming Northeast Dip of Portage Zone at Springpole Gold
Project
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Gold Canyon Resources Inc. (GCU: TSX-V) ("Gold Canyon" or "the
Company") is pleased to announce hole SP11-071 intersected 286 meters
at 1.03 gram per tonne gold (938 feet at 0.030 oz per ton gold)
including 197 meters at 1.30 grams per tonne gold (646 feet at 0.038 oz
per ton) at its 100% controlled Springpole Gold Project, located 110
kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. The
intercept encountered in this hole indicates that the Portage Zone dips
northeast at approximately -70 degrees and remains open at depth.
−
Diamond drill hole SP11-071 intersected 286 meters at 1.03 gram per
tonne gold (938 feet at 0.030 oz per ton gold) including 197 meters at
1.30 grams per tonne gold (646 feet at 0.038 oz per ton). This hole,
situated on the 0+00 meter section, is oriented at 220 degrees true
north with an inclination of -60 degrees. The drill hole undercuts
previous drilling on this section including hole SP10-024 (225 meters
at 1.48 grams per tonne gold announced in a news release dated November
23, 2010). The intercept encountered in SP11-071 indicates that the
Portage Zone dips northeast at approximately -70 degrees and remains
open at depth.
− Previous to drilling hole SP11-071, the Portage Zone was believed to
dip at approximately -75 degrees southwest with a true width estimated
at about 140 meters. The newly interpreted geometry results in a true
thickness of approximately 220 meters in this area.
− The Company has plans to step back and drill under hole SP11-071 to
further evaluate the continuation of the Portage Zone at depth.
Drilling is underway along strike from this intercept to the southeast
where it is believed mineralization should continue.
"Earlier this year, we tested the depth extension of the Portage Zone
by drilling hole SP11-063 from the southwest shore to the northeast,"
states Dr. Quinton Hennigh, Technical Advisor to and Director of Gold
Canyon Resources. "As it turns out, that hole drilled down the
southwest margin of the deposit encountering its low grade fringe. Hole
SP11-071 clearly indicates the deposit dips northeast, is wider than
previously thought, and remains open at depth."
Table has been removed, News Release truncated; please view entire
News Release at: http://www.goldcanyon.ca/i/pdf/2011-08-30_NR.pdf
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.
Operational Update
The numerous forest fires in the area that caused delays earlier this
summer have diminished. Two barge-based and two land-based drills are
currently operating on site and will continue through freeze-up, likely
in early November. Approximately 4,000 meters of core have been drilled
so far this summer, and it is expected that the drills should produce
around 10,000 meters of core, somewhat less than the 12,000 meters that
was originally planned. Holes drilled this summer are expected to allow
the Company to revise the 43-101 compliant resource estimate for the
deposit sometime late in the second half of 2011.
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, 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 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
For further information, please contact:
Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604)
682-0537 info@goldcanyon.ca
Investor Relations: Leo Karabelas, Tel: (416) 543-3120 Email:
leo@frontlineir.com
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.
Associated File:
http://www.goldcanyon.ca/i/pdf/2011-08-30_NR.pdf
69 KB in size, approx. 14 seconds to download at 56.6Kbps
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Copyright (c) 2011 GOLD CANYON RESOURCES INC. (GCU) All rights
reserved. For more information visit our website at
http://www.goldcanyon.ca/ or send mailto:info@goldcanyon.ca
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