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Gold Canyon Announces Long
Gold Intercept from Step-Out Drilling in the Portage Zone at its Springpole Gold Project
Gold Canyon Resources Inc. (GCU: TSX-V) ("Gold Canyon" or
"the Company") is pleased to announce the results of four
additional holes from its Winter 2011 Diamond Drill Program at its 100%
controlled Springpole Gold Project, located in the
Red Lake Mining District of Ontario, Canada. All the drill holes have
encountered long intercepts of gold mineralization; results include 138.5
meters at 1.13 grams per tonne gold (454 feet at
0.033 oz per ton gold) from hole SP11-036, a
step-out exploration hole drilled in the southeast extension of the Portage
Zone. This hole was terminated in mineralization, and it is believed that the
full width of the Portage Zone, in this section, extends further southwest. (Please see
attached map.)
- Hole
SP11-036 was collared approximately 75 meters south-southwest of hole
SP10-024 (225 meters
at 1.48 grams per tonne gold announced in a
press release dated Nov. 23, 2010) and drilled at an azimuth
of 220 degrees true north and inclination of -45 degrees. This hole
intersected several zones of gold mineralization, the longest of which
constituted the bottom 190.5 meters and graded 0.90 grams per tonne gold (625 feet at 0.026 oz per ton gold)
including 138.5 meters at 1.13 grams per tonne
gold (454 feet at 0.033 oz per ton gold). This hole was terminated in
gold mineralization due to poor ground conditions. It is believed that
the full width of the zone still remains to be tested. SP11-036 adds an
additional 50 meters of strike to the Portage Zone and indicates that it
remains open to the southeast.
- Hole
SP11-037 was collared 50 meters northwest of SP11-034 (see press release dated Feb.
16, 2011) and drilled at an azimuth of 220 degrees true
north and inclination of -45 degrees. Similar to hole
SP11-034, hole SP11-037 tests near surface and intermediate depths of
the Portage Zone where only historic drilling is present. SP11-037
intersected 262.5 meters at 0.92 grams per tonne
gold (861 feet at 0.027 oz per ton gold) including 18 meters at 3.22
grams per tonne gold (59 feet at 0.094 oz per
ton gold). First gold mineralization begins at a down hole
depth of 21 meters, essentially at the contact between lake bottom
sediments and bedrock.
- Holes
SP11-035 and -038 are both vertical infill holes testing near-surface
mineralization at the northwest end of the Portage Zone. Hole SP11-035 encountered gold mineralization at a
down hole depth of 16 meters, immediately below lake bottom. Several
intervals of gold mineralization were encountered including 95.5 meters
at 1.22 grams per tonne gold (313 feet at
0.036 oz per ton gold). Hole SP11-038 experienced no core recovery to 61
meters due to poor ground conditions. Like SP11-035, hole
SP11-038 encountered multiple intervals of gold mineralization including
81 meters at 1.21 grams per tonne gold (266
feet at 0.035 oz per ton gold). As both SP11-035 and -038 were designed
to be near-surface infill holes, both ended in mineralization at depths
of 200.5 and 202 meters respectively.
- With hole SP11-036, the strike length of the
northwesterly-trending Portage Zone currently stands at approximately
1,000 meters. Drilling confirms this zone persists to depths of at least
300 meters along its entire length. True widths of the zone generally range
from 90 to 150 meters, but locally widen to as much as 250 meters. The
Portage Zone remains open at depth, to the southeast and northwest where
it appears to plunge underneath the Main Zone. Drilling has commenced on
drill hole SP11-046 which steps-out a further 100m from drill hole
SP10-036; steps-outs will continue at 100 meter intervals southeast
while the weather conditions remain favourable.
- An
extended period of cold weather has allowed winter drilling on the ice
to continue unhindered at Springpole. Two
diamond core rigs are infilling gaps in Portage Zone mineralization due
to a lack of historic drilling, and one rig continues to test its
extension to the southeast. At present, 4,036 meters of drilling in 17
diamond drill holes have been completed since January 10th.
- The
Company is currently mobilizing a fourth rig to the property over the
winter road; this drill rig has the capacity to diamond drill HQ core to
depths of 1,000 meters. Once in place, this rig will drill a number of
holes testing the down-dip continuation of the Portage Zone to depths of
up to 700 vertical meters below surface. The drill program utilizing
this drill rig will continue to operate during break-up with helicopter
support. The first of two barges is in the process of mobilizing from
dry dock in Ottawa, Ontario and the other, currently under construction,
will mobilize shortly thereafter. The barges will be used to continue
exploration on Springpole Lake, as well as
infill resource drilling.
Tables have been removed, News
Release truncated; please
view entire News Release at: http://www.goldcanyon.ca/i/pdf/nr1mr11.pdf
View map at: http://www.goldcanyon.ca/i/pdf/nr1mr11_GCU-Springpole_Map_28Feb2011.pdf
"Given the position of mineralization encountered in hole SP11-036, it
appears the Portage Zone has shifted somewhat to the west," comments Dr.
Quinton Hennigh technical advisor to Gold Canyon.
"We believe movement along east-west oriented post-mineral faults may
have displaced the strike continuation of the Portage Zone westward
approximately 100 meters. Although hole SP11-036 was terminated in mineralized
rock, we are very encouraged that this hole intercepted the Portage Zone and
that it now helps us to better understand how to conduct further step-out
drilling."
The Winter 2011 Drill Program, now underway, is part on an ongoing program of
drilling and remodeling of the Springpole Gold
deposit to move it towards prefeasibility. Drilling is planned through early
April 2011, at which time work will begin on revising the resource estimate
for the deposit. In the event the Company does not complete the planned 9,000
meters of off-the-ice drilling needed to infill the Portage Zone this winter,
remaining holes will be designed to be completed from barges beginning in
late May or early June.
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
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.
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
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.
Copyright
� 2011 Gold Canyon Resources Inc. (GCU) All rights reserved. For more
information visit our website at http://www.goldcanyon.ca/ or send email to
info@goldcanyon.ca.
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