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Gold Canyon Resources Inc. (TSX VENTURE:GCU - News; PINK SHEETS:GDCRF - News; "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
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Gold
(grams
per
Gold
tonne)
(oz per
Gold - top
ton)
(grams cut to
Gold - top
From To Length per 34.25 Length (oz per cut to
Hole
(meters) (meters) (meters)
tonne) gpt (feet) ton) 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.
Contact:
(604) 682-3234 or Toll free:
1-(888)-242-3234
Gold Canyon Resources Inc.
(604) 682-0537 (FAX)
info@goldcanyon.ca
Leo Karabelas
Gold Canyon Resources Inc.
Investor Relations
(416) 543-3120
leo@frontlineir.com
www.goldcanyon.ca
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