Gold Canyon Intercepts 308 Meters at 1.29 Grams Per Tonne Gold Including 216 Meters at 1.71 Grams Per Tonne Gold At Springpole Gold Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/15/11 -- Gold Canyon Resources Inc. (TSX VENTURE: GCU)(PINK SHEETS: GDCRF) ('Gold Canyon' or 'the Company') is pleased to announce that hole SP11-070 intersected 308 meters at 1.29 grams per tonne gold (1010 feet at 0.038 oz per ton gold) including 216 meters at 1.71 grams per tonne gold (708 feet at 0.050 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 affirms that the Portage Zone dips northeast at approximately -70 degrees and remains open at depth.
To view Map 1 - Drillholes please visit the following link: http://media3.marketwire.com/docs/gcu_Fig01.pdf
To view Map 2 - Cross-section please visit the following link: http://media3.marketwire.com/docs/gcu_Fig02.pdf
-- Diamond drill hole SP11-070, situated on the 0 800m section and oriented
at 220 degrees true north and inclined at -55 degrees, tested deeper
parts of the Portage Zone in an area where it is believed to be plunging
underneath the Main Zone. This hole intersected 308 meters at 1.29 grams
per tonne gold (1010 feet at 0.038 oz per ton gold) including 216 meters
at 1.71 grams per tonne gold (708 feet at 0.050 oz per ton). As with
hole SP11-071 drilled on the 0 00m section (286 meters at 1.03 grams per
tonne gold announced in a press release dated August 31, 2011), SP11-070
confirms that the Portage Zone is dipping to the northeast at about -70
degrees. It also confirms the zone is open at depth.
-- Drill Hole SP11-070 not only supports the modeled data that the dip of
the Portage Zone is steeply to the northeast but provides strong
evidence that it is indeed plunging underneath the Main Zone. This area,
where once there was a significant gap in drilling, is proving to be
particularly robust in grade. Within the broader reported intervals is
an intercept of 21 meters at 7.22 grams per tonne gold (69 feet at 0.211
oz per ton gold) indicating there is a higher grade core to the zone
here.
-- Drill Hole SP11-070 drilled underneath SP10-001 which contained gold
intercepts including 1.31 grams per tonne gold over 21.5 meters (news
release dated April 6, 2010) indicating that mineralization, though
plunging, is still continuous to the near-surface. Recently completed
drilling on the 0 800 section tested mineralization in the near-surface
and down to vertical depths of approximately 350 meters; results are
expected from these holes over the coming weeks.
-- Drill hole SP11-070 was collared near the East Extension Zone and
intersected a near-surface high grade vein, 1 meter at 12.34 grams per
tonne gold (3 feet at 0.360 oz per ton gold) thought to be part of that
body of mineralization. Near-surface mineralization has been encountered
in several drill holes in this area and it now appears there is a bridge
of shallow mineralization connecting the East Extension Zone with the
larger Portage Zone to the southwest.
-- Diamond drill hole SP11-068 was collared on the southwest shore of
Portage Bay on the 600m section and drilled at 040 degrees true north
with an inclination of -60 degrees. It was designed to test deeper parts
of the Portage Zone prior to the recognition that the zone is dipping
northeast. Like other holes drilled from the southwest shore of the bay,
SP11-068 appears to have drilled sub-parallel to the margin of the
Portage Zone rather than across it. Nonetheless, this hole encountered
multiple intervals of mineralization. The deepest interval, at a down-
hole depth of 823-830 meters (see table below), is typical Portage style
mineralization and suggests this type of mineralization persists to
these depths, over 700 meters vertically below surface.
'We are extremely happy with these results,' states Dr. Quinton Hennigh, technical advisor and Director of Gold Canyon. 'Not only does drill hole SP11-070 confirm that the Portage Zone dips northeast; this intercept also fills an important gap in drilling where the Portage Zone is believed to be plunging underneath the Main Zone. The grade of the included intercepts are very encouraging, especially the higher grade core that returned assay values in excess of 7 grams per tonne gold. This drill hole also makes it very clear that the Portage Zone remains open at depth along its entire length.'
Summary of Results from SP11-068 and -070
----------------------------------------------------------------------------
Gold Silver Gold Silver Silver
From To Length (grams (grams (oz (oz -to-
(met- (met- (met- per per Length per per Gold
Hole ers) ers) ers) ton) ton) (feet) ton) ton) Ratio
----------------------------------------------------------------------------
SP11-068 123.0 126.0 3.0 1.43 6.20 10 0.042 0.181 4.3
170.0 172.0 2.0 3.37 65.60 7 0.098 1.916 19.5
261.0 264.0 3.0 1.63 17.77 10 0.048 0.519 10.9
536.0 544.0 8.0 1.11 3.64 26 0.032 0.106 3.3
606.0 625.5 19.5 0.42 2.80 64 0.012 0.082 6.7
823.0 830.0 7.0 0.97 6.31 23 0.028 0.184 6.5
in in
SP11-070 5.0 8.0 3.0 4.87 process 10 0.142 process N/A
in in
includes 6.0 7.0 1.0 12.34 process 3 0.360 process N/A
in in
55.0 62.0 7.0 0.78 process 23 0.023 process N/A
in in
93.0 401.0 308.0 1.29 process 1010 0.038 process N/A
in in
includes 129.0 345.0 216.0 1.71 process 708 0.050 process N/A
in in
includes 129.0 137.0 8.0 3.33 process 26 0.097 process N/A
in in
includes 151.0 156.0 5.0 5.27 process 16 0.154 process N/A
in in
includes 163.0 170.0 7.0 6.05 process 23 0.177 process N/A
in in
includes 202.0 223.0 21.0 7.22 process 69 0.211 process N/A
----------------------------------------------------------------------------
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 10 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
Two barge-based and two land-based drills are currently operating on site and will continue through freeze-up, likely in early November. Approximately 6,000 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 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
www.goldcanyon.ca
Investor Relations:
Leo Karabelas
(416) 543-3120
leo@frontlineir.com