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Gold Canyon Comments on Recent Share Price and Trading Volume Concerns
Published : February 06, 2013
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Keywords :   Canada | Gallium |

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 6, 2013) - In response to enquiries, Gold Canyon Resources Inc. (News - Market indicators)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") wishes to comment on the Company's recent share price weakness and higher than normal trading volume, which over the past several months has raised concerns amongst its investors. Volatile stock market conditions, particularly for junior mining issuers, and continued concern for the global economy have no doubt contributed to the decline. However, Gold Canyon management is unaware of any specific reason, other than these continuing general market conditions and market trading influences unrelated to Gold Canyon's business discussed below, for the recent weakness in Gold Canyon's common share price as there have been no particular events or material changes in the affairs of the Company to support the decline.

In fact, the Company continues to move forward with its flagship property, the Springpole Gold Project in northwest Ontario, Canada, as well as develop its rare earth interests in Malawi, Africa pursuant to the existing REE Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC). Gold Canyon has cash reserves of more than (Cdn)$10 million, considered to be sufficient to fund current operations through the short to medium term without the immediate need to raise more capital. In the circumstances, management believes that Gold Canyon's current share price significantly undervalues the Company, and with the support of Gold Canyon's board of directors, is currently examining various initiatives and strategic options to remedy this situation.

Management has recently engaged in significant consultation with Gold Canyon shareholders, investment brokers, analysts, institutional traders and investment bankers regarding potential contributing factors to the Company's share price weakness and large trading volumes and believes the following may be attributed, at least in part, to the recent downward pressure and larger trading volumes in the market for Gold Canyon shares:

  • Market participants have indicated that, due to investor fatigue with the mining sector, both retail and institutional, and prolonged mining sector weakness, resource money managers are experiencing higher than normal redemption challenges in their funds and managed accounts, causing them to sell shares to raise the cash needed to make redemption payments. With respect to Gold Canyon's shares in particular, the continued recent demand has resulted in bids to buy at reasonable valuation levels, providing the sellers with better liquidity than is the case with many other mining issuers, and indeed than had historically been the case with Gold Canyon until very recently.
  • Gold Canyon had historically issued a large number of "flow-through" common shares which, because of the associated tax treatment in Canada for qualified flow-through mining expenditures undertaken by the Company, carry a much lower cost base than regular shares. The lower cost base allows resource money managers to sell these shares at prices that, despite declining market prices generally, are still profitable, providing more attractive optics than selling at a loss.

Gold Canyon management believes there is reason for optimism. Redemptions are typically a late cycle phenomenon and should start to moderate as the market attempts to develop a bottom, removing one of the primary selling catalysts while higher volumes may indicate that "smart money" buyers are stepping in to take advantage of these current attractive valuations in Gold Canyon shares. Also, the holdings of "spent flow-through" shares is now somewhat reduced, which could eliminate the benefit to investors of selling low cost base shares that are still in a profit position.

More generally, market analysts have suggested there have been hints at a potential turnaround in mid to late 2013. Notwithstanding potential improvements in the outlook for the global economy generally, and potential related benefits to the mining sector in particular, Gold Canyon continues to pursue various initiatives with a view to enhancing shareholder value including:

  • The announcement of an updated resource estimate for the Springpole Gold Project, effective September 19, 2012 (see the Company's news releases dated October 17, 2012), which included an updated indicated mineral resource of 128.2 million metric tonnes at an average grade of 1.07 grams gold and 5.7 grams silver per tonne for 4.41 million ounces of gold and 23.8 million ounces of silver and an updated inferred mineral resource of 25.7 million metric tonnes at an average grade of 0.83 grams gold and 3.2 grams silver per tonne for 0.69 million ounces of gold and 2.7 million ounces of silver (see the independent technical report dated November 30, 2012 available through the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at
  • Anticipated completion of a Preliminary Economic Study of the Springpole Gold Project by SRK Consultants (Vancouver) in or about the first or second quarter of 2013, which Gold Canyon management believes to be a major milestone that will allow investors to better assess the true value of the Company's assets and be a catalyst for unlocking shareholder value.
  • Continued advancement of the Company's Springpole Gold Project through the first or second quarter of 2013 including geotechnical drilling; continued efforts with respect to advancing environmental assessments, facilitating an access road and securing a connection to the Hydro One grid; and ongoing consultation with First Nation communities of Cat Lake, Slate Falls, Lac Seul and Wabauskang, as well as the Métis Nation of Ontario.
  • Anticipated completion of a mineral resource calculation and the assembling of financial data by Mitsui Mineral Development Engineering Co., Ltd (MINDECO) of Japan, the contract operator of the program, in or about March 2013 with respect to the Company's Chambe Basin rare earth elements (REE) joint venture project in Malawi, Africa. Gold Canyon management believes this milestone will demonstrate that Gold Canyon's REE interests have potential value which may provide future opportunities to monetize these non-core interests in order to raise non-dilutive capital for continued advancement of the Springpole Gold Project.
  • The recent hiring of Richard Moritz as Vice President of Corporate Communications. Richard will focus on raising awareness of the Company, its projects and the attractive valuation opportunity Gold Canyon represents to both existing and potential new shareholders, particularly at the institutional level with the goal of increasing market participation, new buyers with cash reserves to match with sellers and creating a more positive pricing dynamic.
  • The recent mandate given by the Company's board of directors to review and evaluate a full range of alternatives to provide better transaction and trading value and efficiencies for Gold Canyon's US and European investors, as well as increase awareness of Gold Canyon and its projects throughout these existing, and other potential markets.
  • The recent mandate given by the Company's board of directors to identify and retain a lead investment bank to assist management with its communications with retail and institutional investors, advise on future financing opportunities and review and evaluate alternatives available to the Company to enhance shareholder value.

Mr. Troy Fierro, Chief Executive Officer of Gold Canyon, added, "The strategic objective of the Company remains unchanged and that is to advance Springpole towards production. We believe completion of the Preliminary Economic Assessment for the Springpole Gold Project, scheduled for Q1/Q2, will unlock value for our shareholders. In the meantime, the Company will continue its efforts to de-risk the Springpole Gold Project, seek value in and from its non-core assets, and broaden the shareholder base of the Company. Gold Canyon remains sufficiently capitalized so there is no immediate need for financing. When markets improve, the Company will have the ability to apply financial resources towards expanding the mineral resource and exploring other targets within the 80,000 acres currently under control at Springpole and will be well positioned to recover value lost during this difficult period."

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 a minority interest in the 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 REE 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:

Troy J. Fierro, CEO & Director

Cautionary Note Regarding Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "would", "should", "could", or "might" occur or be achieved and other similar expressions. Forward-looking statements in this news release include statements regarding the timing and nature of permitting studies, the timing and nature of infrastructure developments and construction, projections of future optimization, production timeline targets, the timing of negotiations with third parties, and the timing and nature of future exploration programs which are dependent on projections which may change as drilling continues, or if unexpected ground conditions are encountered. In addition, areas of exploration potential are identified which will require substantial drilling to determine whether or not they contain similar mineralization to areas which have been explored in more detail. The description of the extent of mineralized zones is not intended to imply that any economically mineable estimate of reserves or resources exists on any of Gold Canyon's projects.

The forward-looking statements that are contained in this news release are based on various assumptions and estimates by Gold Canyon and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Gold Canyon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, unanticipated difficulties or costs in any rehabilitation which may be necessary, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Gold Canyon and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner together with other risks and uncertainties disclosed in the section entitled "Risk Factors" in Gold Canyon's Annual Information Form dated April 23, 2012 other information filed with the applicable Canadian securities commissions by or on behalf of Gold Canyon. Although Gold Canyon has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this news release qualified in its entirety by this cautionary statement, and Gold Canyon disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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.

Gold Canyon Resources Inc.
Richard Moritz
VP Corporate Communications
604-682-3234 or Toll Free: 1-888-242-3234
604-682-0537 (FAX) or
Data and Statistics for these countries : Canada | Japan | Malawi | All
Gold and Silver Prices for these countries : Canada | Japan | Malawi | All

Gold Canyon Resources Inc

ISIN : CA38055D1050
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Gold Canyon Res. is an exploration gold company based in Canada.

Gold Canyon Res. holds various exploration projects in Canada.

Its main exploration properties are FAVOURABLE LAKE, SPRINGPOLE, CORDERO and KRATZ SPRING in Canada.

Gold Canyon Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 54.8 millions as of today (US$ 41.2 millions, € 38.5 millions).

Its stock quote reached its lowest recent point on December 05, 2008 at CA$ 0.02, and its highest recent level on April 08, 2011 at CA$ 4.22.

Gold Canyon Res. has 161 200 000 shares outstanding.

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Corporate Presentations of Gold Canyon Resources Inc
3/12/2008boosts Cordero gallium resource
1/15/2006Corporate presentation
In the News and Medias of Gold Canyon Resources Inc
8/8/2007Big rare-earth potential in Nevada
4/11/2006Jay Taylor's analysis
3/8/2006Drilling starts at Springpole Lake
Annual reports of Gold Canyon Resources Inc
2008 Annual Report
2007 Annual Report
Financings of Gold Canyon Resources Inc
1/30/2015Announces Non-Brokered Private Placement
8/19/2013Closes $995,200 Non-Brokered Private Placement
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10/19/2011Announces $10 Million Bought Deal Private Placement
5/12/2011Closes Bought Deal Private Placement for Gross Proceeds of $...
4/21/2011Announces $10 Million Bought Deal Private Placement
2/8/2010Completes Private Placement for $360,000
11/26/2007 INCREASES PRIVATE PLACEMENT FROM $1,000,000 TO $3,000,000 F...
6/1/2007Closes Private Placement for $330,000
5/24/2007 Completes private Placement
5/23/2007Completes Private Placement for $400,000 With MineralFields ...
Option Grants of Gold Canyon Resources Inc
3/11/2015Corporate Update and New Investor Relations Agreement
10/5/2009Grant of incentive stock options
6/13/2009' Latest News Release: Grant of Incentive Stock Options
2/16/2009Grant of Incentive Stock Options
Nominations of Gold Canyon Resources Inc
9/27/2012Appoints Troy J. Fierro as Chief Executive Officer
4/26/2011Appoints Independent Chairman Of The Board Of Directors
3/29/2011Quinton Hennigh, Ph.D., P.Geo., Joins Gold Canyon Board Of D...
3/20/2011Mails Proxy Materials for Upcoming Annual General Meeting; P...
1/20/2011Appointment Of Sustainable Development Consultant of Mr. Gil...
Project news of Gold Canyon Resources Inc
12/17/2013Season's Greetings from Gold Canyon Resources Inc.
9/26/2013Reports Recent Assay Results - Encounters 39=2E5 Meters at 6...
1/24/2013will be at the Mineral Exploration Roundup 2013 Core Shack
10/17/2012(Springpole)s Springpole Resource
9/19/2012(Springpole)Encounters 311.2 Meters at 1.81 Grams per Tonne Gold at its ...
9/29/2011(Springpole)Adds Significant Strike to the Portage Zone at Springpole Go...
9/28/2011(Springpole)Expands Team To Advance Springpole Gold Project
9/15/2011(Springpole)Intercepts 308 Meters at 1.29 Grams per Tonne Gold Including...
9/8/2011Announces Expansion Of Joint Exploration Agreement With Japa...
8/30/2011(Springpole)Intercepts 286 Meters at 1.03 Grams per Tonne Gold Confirmin...
8/4/2011(Springpole)Intercepts 24 Meters at 17.48 Grams Per Tonne Gold at Spring...
5/31/2011(Springpole)Intercepts 292.5 Meters at 1.13 Grams Per Tonne Gold at Spri...
4/14/2011(Springpole)Springpole Gold Project Produces Long Gold and Silver Interc...
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3/29/2011(Springpole)Springpole Gold Project Continues to Produce Long Gold Inter...
3/15/2011(Springpole)Discovers Shallow High-Grade at Springpole Gold Project: Hol...
3/1/2011(Springpole)Announces Long Gold Intercept from Step-Out Drilling in the ...
2/16/2011(Springpole)Winter Drilling at Springpole Gold Project Produces Long Gol...
1/18/2011(Springpole)Announces Remaining Silver Assays From 2010 Drilling At Spri...
12/9/2010(Springpole)Announces Additional Long Gold Intercepts at Springpole Gold...
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11/17/2010(Springpole)Continues to Expand the Portage Zone at Springpole-Hole SP10...
11/2/2010(Springpole)Gold Canyon Intersects 307 Meters At 1.44 Grams Per Tonne Go...
2/26/2010(Springpole)Commences Drilling at its Springpole Gold Project
1/11/2010(Springpole)Outlines Multi-Phase Exploration Program for Springpole Gold...
11/5/2009(Springpole)Reports on review of springpole gold project
8/10/2009(Springpole)Reviews Springpole gold projectReviews Springpole gold proje...
5/20/2009(Favourable Lake)and Shoreham Form Joint Venture on Favourable Lake Property
2/10/2009Gold Canyon Receives NI 43-101 Technical Report For Horsesho...
10/10/2008(Cordero)Reports on Cordero Gallium Project
2/11/2008(Cordero) RECEIVES UPDATED NI 43-101 FOR CORDERO: 713,930 KG GALLIUM...
5/2/2007(Cordero)Announces Rare Metals and Rare Earth Elements at the Cordero...
4/12/2007(Springpole)Discovers New Gold Zone at Springpole
5/18/2006(Kratz Spring)Tests high-grade targets at Springpole
Corporate news of Gold Canyon Resources Inc
11/17/2015First Mining Completes Acquisitions of Gold Canyon and PC Go...
11/12/2015IIROC Trading Halt - GCU
11/9/2015Shareholder Approval of Arrangements Received
9/1/2015IIROC Trading Resumption - GCU; FF; PKL
9/1/2015First Mining Announces Business Combination With Gold Canyon...
9/1/2015IIROC Trading Halt - GCU
6/12/2015Gold Canyon Holds Its Annual General and Special Meeting of ...
4/2/2015Gold Canyon Announces Annual General & Special Meeting of Sh...
3/14/2015[$$] Smaller Mining Companies Hibernate to Survive Industry ...
3/11/2015Gold Canyon Corporate Update and New Investor Relations Agre...
11/12/2014Gold Canyon Announces Expansion of Joint Exploration Agreeme...
11/5/2014Gold Canyon Completes Key Environmental Surveys
5/7/2014Gold Canyon Fulfills Environmental Assessment for Access Cor...
4/17/2014Gold Canyon Holds Its Annual General Meeting of the Sharehol...
2/20/2014Announces Annual and Extraordinary =?ISO-8859-1?Q?=20General...
7/18/2013and First Nations Move Relationship Forward
7/17/2013Announces Changes in Senior Management
5/8/2013Holds its Annual General Meeting of the Shareholders
5/6/2013(Springpole)Files Preliminary Economic Assessment for the Springpole Gol...
3/25/2013(Springpole).: Preliminary Economic Assessment for the Springpole Gold P...
2/6/2013Comments on Recent Share Price and Trading Volume Concerns
1/15/2013Appoints Richard Moritz as Vice President of Corporate Commu...
1/4/2013Presents at Precious Metals Conference
11/30/2012(Springpole)Announces Filing of Updated NI 43-101 Technical Report for i...
11/14/2012Projects and Corporate Update
9/11/2012Presents at Denver Gold Forum
10/24/2011(Springpole)Intersects 106 Meters at 3.36 Grams Per Tonne Gold at Spring...
7/5/2011Receives Initial Metallurgical Results, Assays for First Dee...
5/11/2011(Springpole)Drilling at Gold Canyon's Springpole Gold Project Produces M...
4/19/2011Grant of Incentive Stock Options
4/14/2011Holds Annual General Meeting of Shareholders
2/16/2011Named To 2011 TSX Venture 50
9/15/2009enters into multiple non-disclosure agreements on rare earth...
9/11/2009obtains option to evaluate and lease Benson Mines IOCG+/-REE
5/19/2009Joint Exploration Agreement with the Japan oil, gas and meta...
5/7/2009Obtains Option to Evaluate and Lease Iron Mountain IOCG+/-RE...
4/24/2009Holds Annual General Meeting of Shareholders
1/22/2009Signs Joint Exploration Agreement With Japan Oil, Gas and Me...
12/30/2008Announces Resignation
10/15/2008Reports on Horseshoe Isl. Project (Gold, Platinum, Palladium...
8/18/2008Drilling at Cordero Gallium Project
6/10/2008Starts Summer Program at Horseshoe Island Project
5/27/2008issues News Releases for Springpole and Horseshoe Island Pro...
3/24/2008 Article in Ontario Mineral Exploration Review
7/27/2007Targets Au-Pt-PdNi-Cu and Stakes More Ground at Horseland Is...
6/22/2007To Acquire Options Over Horsehoe Island Gold Project
1/6/2006(Kratz Spring)Ron Struther's Micro-cap Report
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