Gold Canyon Intercepts 286 Meters at 1.03 Grams Per Tonne Gold Confirming Northeast Dip of Portage Zone at Springpole Gold Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/30/11 -- Gold Canyon Resources Inc. (TSX VENTURE: GCU)(PINK SHEETS: GDCRF) ('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.'
Summary of Results from SP11-071
---------------------------------------------------------------------------
Gold Gold
From To Length (grams per Length (oz per
Hole (meters) (meters) (meters) tonne) (feet) ton)
---------------------------------------------------------------------------
SP11-071 149.0 435.0 286.0 1.03 938 0.030
includes 211.0 408.0 197.0 1.30 646 0.038
includes 250.0 284.0 34.0 2.92 112 0.085
includes 272.0 281.0 9.0 5.53 30 0.161
includes 333.0 345.0 12.0 2.43 39 0.071
includes 391.0 396.0 5.0 3.55 16 0.104
---------------------------------------------------------------------------
Weighted averages were used to calculate all reported intervals
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
5 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
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
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