Gold Canyon Adds Significant Strike to the Portage Zone at Springpole Gold Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/29/11 -- Gold Canyon Resources Inc. (TSX VENTURE: GCU)(PINK SHEETS: GDCRF) ('Gold Canyon' or 'the Company') is pleased to announce step-out diamond drill holes SP11-074 and -078 have added significant strike to the southeast end of the Portage Zone at its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Although historic drilling suggested mineralization was present in this area, the long gold intercepts encountered in holes SP11-074 and -078 clearly demonstrate continuity of mineralization to at least the 0-200 m section.
To view Map 1 - Plan section please visit the following link: http://media3.marketwire.com/docs/Plan_Section929.jpg
To view Map 2 - Drill plan please visit the following link: http://media3.marketwire.com/docs/Drill_Plan929.jpg
-- Diamond drill hole SP11-074 intersected 369 meters at 0.91 grams per
tonne gold (1210 feet at 0.027 oz per ton gold), one of the longest
continuous mineralized intervals yet encountered at Springpole. This
hole was collared on the 0-050 m section and drilled at 220 degrees true
north with an inclination of -45 degrees. The interval encountered in
SP11-074 is remarkably similar to hole SP11-042 (402 meters at 0.76
grams per tonne gold announced in a press release dated March 29, 2011).
-- Diamond drill hole SP11-078 encountered multiple intervals of
mineralization including 114 meters at 0.58 grams per tonne gold (374
feet at 0.017 oz per ton gold). This hole was collared on the 0-150 m
section and drilled at 220 degrees true north with an inclination of -45
degrees. Results from hole SP11-078 are very similar to nearby hole
SP11-046 (announced in a press release dated April 14, 2011). Like SP11-
046, it is believed that the results from SP11-078 indicate that the
drill hole passed through the upper margin of the Portage Zone. If so,
this would imply that the Portage Zone is plunging to the southeast.
-- Results from SP11-074 and -078 are interpreted to indicate that the
Portage Zone remains open along strike and at depth to the southeast.
Additional drilling to test areas underneath SP11-078 and further along
strike is planned for later this fall or early winter.
'We are very pleased with the results from our step-out holes,' states Dr. Quinton Hennigh, technical advisor and Director of Gold Canyon Resources. 'Looking at a plan section, it is very clear that the system remains wide open for expansion to the southeast. The profile of the deposit on the 0 00 m section is roughly 300 meters wide and 400 meters tall. The very long intercept in hole SP11-074 suggests this profile projects to the -050 m section further southeast. If such a profile continues even further, we can quickly add a lot of volume to this zone.'
Summary of Results from Step-out Holes
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Gold Gold
From To Length (grams per Length (oz per
Hole (meters) (meters) (meters) tonne) (feet) ton)
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SP11-074 73.0 77.0 4.0 0.46 13 0.013
98.0 102.0 4.0 0.77 13 0.022
121.0 490.0 369.0 0.91 1210 0.027
includes 299.0 307.0 8.0 2.59 26 0.076
includes 406.5 409.5 3.0 11.01 10 0.321
SP11-078 108.0 135.0 27.0 0.49 89 0.014
163.0 169.0 6.0 0.50 20 0.015
194.0 203.0 9.0 0.35 30 0.010
249.0 363.0 114.0 0.58 374 0.017
409.5 437.0 27.5 0.40 90 0.012
An interval of no recovery was encountered from 415.5-418.5 meters
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Weighted averages were used to calculate all reported intervals
Intervals of no recovery were given a grade of zero in the calculations
above.
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 8 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
Infill Drilling
Recent infill drill results continue to demonstrate continuity and, in places high grades.
-- Diamond drill hole SP11-072 was collared on the 0 750 m section, 50m
southeast of drill hole SP11-070 (news release dated 15th September
2011), and drilled at an azimuth of 220 degrees true north with an
inclination of -55 degrees and tested mid-levels of the Portage Zone. A
continuous interval of 319 meters at 0.97 grams per tonne gold (1046
feet at 0.028 oz per ton gold) started at a down hole depth of 63
meters.
-- Diamond drill hole SP11-073 was collared on the 0 700 m section, was
vertical and drilled from a barge. This hole encountered an impressive
250 meters at 1.46 grams per tonne gold (820 feet at 0.043 oz per ton
gold) starting at the bedrock interface. Included within this long
interval are several intervals of higher grade mineralization including
15 meters at 5.83 grams per tonne gold (49 feet at 0.170 oz per tonne
gold) starting at the bedrock interface and 28 meters at 4.57 grams per
tonne gold (92 feet at 0.133 oz per ton gold) starting at 89 meters down
the hole.
-- Diamond drill hole SP11-075 was collared on the 0 100 m section, was
vertical and drilled from a barge. This hole tested the north-eastern
margin of the Portage Zone and encountered multiple intervals of
mineralization, the longest of which was 206 meters at 0.91 grams per
tonne gold (676 feet at 0.027 oz per ton gold). This hole ended in
mineralization.
'Infill drilling continues to demonstrate the robust, continuous nature of mineralization at Springpole,' comments Hennigh. 'When we see multiple zones of higher grade mineralization like that encountered in SP11-073, we know we have a lot more drilling to do to fully understand this large, dynamic gold system.'
Summary of Results from Infill Holes
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Gold Gold
From To Length (grams per Length (oz per
Hole (meters) (meters) (meters) tonne) (feet) ton)
--------------------------------------------------------------------------
SP11-072 63.0 382.0 319.0 0.97 1046 0.028
includes 128.0 134.0 6.0 4.14 20 0.121
includes 159.0 178.0 19.0 3.29 62 0.096
includes 199.0 203.0 4.0 4.28 13 0.125
includes 334.0 336.0 2.0 11.21 7 0.327
SP11-073 17.0 267.0 250.0 1.46 820 0.043
includes 17.0 195.0 178.0 1.91 584 0.056
includes 17.0 43.0 26.0 3.71 85 0.108
includes 17.0 32.0 15.0 5.83 49 0.170
includes 89.0 117.0 28.0 4.57 92 0.133
includes 109.0 116.0 7.0 8.57 23 0.250
288.5 296.0 7.5 0.73 25 0.021
An interval of no recovery was encountered from 204.5-206 meters
SP11-075 113.0 319.0 206.0 0.91 676 0.027
includes 163.0 244.0 81.0 1.87 266 0.055
includes 201.0 217.5 16.5 3.39 54 0.099
359.0 366.0 7.0 0.52 23 0.015
384.0 399.0 15.0 0.49 49 0.014
Hole ended in mineralization at 399 meters
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Weighted averages were used to calculate all reported intervals
Intervals of no recovery were given a grade of zero in the calculations
above.
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 14 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 8,000 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. 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.
Akiko Levinson
President & Director
(604) 682-3234 or Toll free: 1 (888) 242-3234
(604) 682-0537 (FAX)
info@goldcanyon.ca
Gold Canyon Resources Inc.
Investor Relations
Leo Karabelas
(416) 543-3120
leo@frontlineir.com
www.goldcanyon.ca