Gold Canyon Intersects Multiple Long Intersections of Mineralization Including 94 Meters at 2.51 Grams Per Tonne Gold at its Springpole Gold Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/30/10 -- Gold Canyon Resources Inc. (TSX VENTURE: GCU)(PINK SHEETS: GDCRF) ('Gold Canyon' or 'the Company') is pleased to announce results for holes SP10-009 and SP10-011 of its Summer 2010 Diamond Drill Program at its 100% controlled Springpole Gold Project, located in the Red Lake Mining District of Ontario, Canada. Results include 94.0 meters at 2.51 grams per tonne gold (308 feet at 0.073 oz per ton gold) and 36 meters at 1.58 grams per ton gold (118 feet at 0.046 oz per ton gold) in hole SP10-011, and 164.0 meters at 1.02 grams per tonne gold (538 feet at 0.030 oz per ton gold) and 77.0 meters at 1.74 grams per tonne gold (253 feet at 0.051 oz per ton gold) in hole SP10-009.
-- Hole SP10-009, collared approximately 50 meters southeast of hole SP10-
007 (217.0 meters at 1.57 grams per tonne gold; announced in news
release dated August 16, 2010) intersected 164.0 meters at 1.02 grams
per tonne gold (538 feet at 0.030 oz per ton gold) followed by 77.0
meters at 1.74 grams per tonne gold (253 feet at 0.051 oz per ton gold).
Hole SP10-009 was drilled at an azimuth of 220 degrees true north and
inclination of -45 degrees, parallel to hole SP10-007. The Portage Zone
appears to bifurcate in this area, but the aggregate interval of
mineralization encountered in hole SP10-009, 164.0 plus 77.0 meters, is
longer than that reported from SP10-007 at 217.0 meters. Mineralization
starts at the top of SP10-009. It is therefore believed that the entire
width of the Portage Zone remains untested and it remains open to the
northeast.
-- Hole SP10-011, collared approximately 50 meters southeast and parallel
to hole SP10-009, intersected 36 meters at 1.58 grams per ton gold (118
feet at 0.046 oz per ton gold), then several low grade zones (see table)
followed by 94.0 meters at 2.51 grams per tonne gold (308 feet at 0.073
oz per ton gold). Hole SP10-011 was drilled at an azimuth of 220 degrees
true north and inclination of -45 degrees, parallel to holes SP10-007
and SP10-009. In this area the Portage Zone appears to separate into
multiple strands of mineralization, yet the aggregate of mineralized
intercepts encountered in SP10-011 is 217.5 meters. Like hole SP10-009,
hole SP10-011 collared in mineralization indicating the entire width of
the Portage Zone remains untested and remains open to the northeast.
-- Hole SP10-010, drilled near hole SP10-008 along the southeastern
projection of the Portage Zone, was terminated when the core barrel was
lost in bad ground. This hole was unable to test the entire width of the
Portage Zone, and because SP10-010 was finished after SP10-009 and -011,
assays for this hole will be reported at a later date, once assays have
been received. Another hole is planned to twin SP10-010 later this
season.
-- Holes SP10-012 and SP10-016, drilled 50 meters northwest and southeast
of SP10-008 respectively, both managed to fully test the width of the
Portage Zone. Holes SP10-013, -014, -015, -017 and -018 each test open
areas around the East Extension Zone. Assays for these holes are
expected back over the next few weeks.
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Gold
(grams
From To Length per Length Gold (oz
Hole (meters) (meters) (meters) tonne) (feet) per ton)
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SP10-009 0-3 meters is overburden
3.0 167.0 164.0 1.02 538 0.030
includes 40.0 43.0 3.0 3.85 10 0.112
includes 56.0 71.0 15.0 3.81 49 0.111
includes 59.0 65.0 6.0 5.92 20 0.173
includes 121.0 124.0 3.0 2.80 10 0.082
includes 149.0 151.0 2.0 3.87 7 0.113
includes 164.5 167.0 2.5 3.17 8 0.093
214.0 226.0 12.0 1.08 39 0.032
No recovery from 238-244 meters due to broken ground
244.0 321.0 77.0 1.74 253 0.051
includes 254.5 296.5 42.0 2.49 138 0.073
SP10-011 0.0 36.0 36.0 1.58 118 0.046
includes 24.0 32.5 8.5 3.16 28 0.092
73.0 128.0 55.0 0.50 180 0.015
140.5 155.0 14.5 0.70 48 0.020
169.0 187.0 18.0 0.46 59 0.013
229.0 323.0 94.0 2.51 308 0.073
includes 242.5 295.0 52.5 3.83 172 0.112
includes 258.0 261.0 3.0 15.69 10 0.458
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Reported intervals apply a 0.34 gram per tonne gold (0.01 oz per ton gold)
cutoff.
Internal dilution within reported intervals does not exceed core lengths of
8 meters.
All reported assay intervals are weighted.
1 troy ounce = 31.103 grams
Conversion factor - grams per tonne to troy ounces per short ton: g/t
divided 34.2857 or g/t multiply by 0.0292
1 meter = 3.28 feet
'We are once again very encouraged by these drill results,' states Quinton Hennigh, technical advisor to Gold Canyon. 'Holes SP10-009 and -011 clearly demonstrate continuity of the Portage Zone along strike to the southeast of SP10-007. Although this zone appears to separate into multiple strands in this direction, the overall width of the mineralized porphyry appears to be increasing in this direction. Because both holes started in mineralization, it will be necessary to drill additional holes under SP10-009 and -011 from the northeast to adequately evaluate the true width of the Portage Zone. Discovering that the system is much larger than previously believed is a good problem to have. We have a lot more to drill now.'
The Summer 2010 Diamond Drill Program is part on an ongoing program of drilling and remodelling of the Springpole deposit to move it towards prefeasibility. Drilling is planned to continue through early 2011, at which time work will begin on revising the resource estimate for the deposit.
Springpole is an alkaline gold system sharing similarities with other such deposits such as the great Cripple Creek deposit in Colorado. The Portage Zone is hosted by a trachytic porphyry and displays remarkably uniform grades. Other zones including East Extension, Camp and Main, consist of high grade veins and pods hosted in diatreme breccias and country rocks surrounding the northwest and northern margins of the Portage Zone. These mineralized zones underlie an area of about 4 square kilometres.
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 assays were completed by SGS Canada Inc. in Red Lake, Ontario using a 30 gram charge, fire assay, with an ICP finish. For over limit assay results, initial assays in excess of 10.0 gpt Au, a gravimetric finish is utilized.
Quinton Hennigh, Ph.D., P.Geo., is the Qualified Person pursuant to National Instrument 43-101 responsible for, and has reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical advisor to Gold Canyon.
In addition, the Company announces that Bojan Zabev has resigned as Vice President of Land Management. We thank Mr. Zabev for his numerous contributions over the many years in which he has been an officer of the Company.
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.
Contacts:
Gold Canyon Resources Inc.
(604) 682-3234 or Toll Free: 1 (888) 242-3234
(604) 682-0537 (FAX)
info@goldcanyon.ca
Gold Canyon Resources Inc.
Leo Karabelas
Investor Relations
(416) 543-3120
leo@frontlineir.com
www.goldcanyon.ca