Gold Canyon Encounters 311.2 Meters at 1.81 Grams per Tonne Gold at its Springpole Gold Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/19/12 -- Gold Canyon Resources Inc. (TSX VENTURE: GCU)(PINKSHEETS: GDCRF) ("Gold Canyon" or "the Company") is pleased to announce additional infill diamond drill results from the 2012 barge drilling program at its 100% controlled Springpole Gold Project located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Included in these results is an intercept of 311.2 meters at 1.81 grams per tonne gold (1,021 feet at 0.053 oz per ton gold) including 107.1 meters at 2.79 grams per tonne gold (351 feet at 0.081 oz per ton gold) and 30.5 meters at 3.66 grams per tonne gold (100 feet at 0.107 oz per ton gold) from hole SP12-179.
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"Hole SP12-179 is an infill hole on the 0+700 meter section where we previously had a gap in drilling," commented Dr. Quinton Hennigh, technical advisor to and director of Gold Canyon. "This hole demonstrates continuity of mineralization to a depth of 360 meters here, nearly 60 meters beneath the potential pit pulled in the National Instrument 43-101 ("NI 43-101") compliant resource estimate announced on February 27, 2012. Because of the significance of this hole, we plan to include this and other recent holes in the upcoming NI 43-101 compliant resource update scheduled for Q4 of this year."
Two drills mounted on barges continue to operate at Springpole, drilling holes for geotechnical purposes. To date, nearly 39,600 meters of diamond core drilling have been completed. Results from recent infill holes are listed in the table below. All holes were drilled from barges and are vertical.
-- Hole SP12-179 is an infill hole on the 0+700 meter section. Previous
drilling on this section was angled from the southwest and northeast
leaving large undrilled gaps near surface and at depth. Hole SP12-179,
a vertical hole, tested both gaps, encountering 311.2 meters at 1.81
grams per tonne gold (1,021 feet at 0.053 oz per ton gold) including
107.1 meters at 2.79 grams per tonne gold (351 feet at 0.081 oz per ton
gold) and 30.5 meters at 3.66 grams per tonne gold (100 feet at 0.107
oz per ton gold) starting about 20 meters below lake bottom and
continuing to a depth of 360 meters. The 20 meter interval immediately
beneath lake bottom remains untested. Drill casing is set to this depth
to help stabilize the hole prior to coring and no material is recovered
during this process.
-- The upcoming NI 43-101 compliant resource update will include
approximately 35,900 meters of additional drilling completed in 2012 at
Springpole. The last published resource included all drill holes
completed through the end of 2011.
-- Work on a preliminary economic assessment (PEA) of the Springpole
deposit by SRK Consultants (Vancouver) will utilize the updated NI 43-
101 compliant resource as its basis and commence immediately after its
completion. The PEA is scheduled for completion in Q1/Q2 2013.
-- Three holes, SP12-175, SP12-176 and SP12-178, tested new targets
peripheral to eastern and southern areas around the Portage Zone. Hole
SP12-175 did not encounter significant gold mineralization whereas
holes SP12-176 and SP12-178 encountered short intervals of significant
mineralization.
Summary of Drill Results from the Portage Zone
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Gold Gold
(grams (oz
From To Length per Length per
Section Hole (meters) (meters) (meters) tonne) (feet) ton)
---------------------------------------------------------------------------
0+400 meter SP12-177 Hole terminated at shallow depth in broken
section; NE flank ground
0+400 meter SP12-177A 69.0 81.0 12.0 0.48 39 0.014
section; NE flank 96.0 102.0 6.0 0.47 20 0.014
108.0 178.0 70.0 0.74 230 0.022
195.4 206.0 10.6 0.69 35 0.020
225.0 241.0 16.0 0.64 52 0.019
257.0 285.0 28.0 0.53 92 0.015
300.0 307.5 7.5 0.78 25 0.023
364.0 372.0 8.0 0.47 26 0.014
0+700 meter SP12-179 48.8 360.0 311.2 1.81 1021 0.053
section; center includes 73.5 85.5 12.0 5.39 39 0.157
includes 126.9 234.0 107.1 2.79 351 0.081
includes 158.0 166.0 8.0 5.15 26 0.150
includes 292.0 322.5 30.5 3.66 100 0.107
includes 292.0 294.0 2.0 16.46 7 0.481
includes 317.0 319.0 2.0 11.66 7 0.340
000 meter section; SP12-180 49.0 55.0 6.0 0.67 20 0.020
SW flank 79.5 86.0 6.5 0.64 21 0.019
94.0 98.0 4.0 0.54 13 0.016
104.0 116.0 12.0 1.08 39 0.032
168.0 184.0 16.0 1.33 52 0.039
233.0 243.0 10.0 1.48 33 0.043
252.0 267.0 15.0 0.57 49 0.017
0-250 meter SP12-181 94.0 98.0 4.0 1.15 13 0.034
section; NE flank 157.0 225.0 68.0 0.72 223 0.021
0+400 meter SP12-182 64.0 93.0 29.0 0.94 95 0.027
section; SW flank 131.0 146.0 15.0 0.75 49 0.022
193.0 199.5 6.5 0.62 21 0.018
218.0 256.0 38.0 1.51 125 0.044
includes 223.0 225.0 2.0 6.52 7 0.190
0+100 meter SP12-183 138.0 146.0 8.0 0.43 26 0.013
section; SW flank 158.0 170.0 12.0 0.54 39 0.016
180.0 190.0 10.0 0.43 33 0.013
202.0 385.0 183.0 0.61 600 0.018
0+750 meter SP12-184 175.0 203.0 28.0 0.53 92 0.015
section; SW flank 223.0 235.0 12.0 0.64 39 0.019
0-250 meter SP12-185 21.0 31.0 10.0 0.79 33 0.023
section; NE flank 39.0 45.0 6.0 0.91 20 0.027
197.0 219.0 22.0 0.90 72 0.026
0+50 meter SP12-186 47.5 73.0 25.5 0.73 84 0.021
section; NE flank 114.0 240.0 126.0 1.17 413 0.034
includes 164.0 174.0 10.0 3.09 33 0.090
includes 180.0 183.0 3.0 5.23 10 0.153
355.0 391.0 36.0 0.66 118 0.019
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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
15 meters.
Intervals of no recovery were given a gold grade of 0 in the weighted
average calculations above.
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.
Summary of Exploration Drill Results
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Gold Gold
(grams (oz
From To Length per Length per
Section Hole (meters) (meters) (meters) tonne) (feet) ton)
---------------------------------------------------------------------------
New target approx. SP12-175 No significant values
500 meters E-SE
of Portage Zone
New target approx. SP12-176 52.0 56.0 4.0 0.46 13 0.013
400 meters S of 125.0 131.0 6.0 0.52 20 0.015
Portage Zone 176.0 190.0 14.0 0.48 46 0.014
New target approx. SP12-178 49.0 53.0 4.0 0.66 13 0.019
400 meters E of
Portage Zone
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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 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.
On February 27, 2012, Gold Canyon announced an updated NI 43-101 compliant resource estimate for Springpole, effective February 27, 2012, which included an indicated mineral resource of 1.22 million ounces gold and 4.82 million ounces silver and an inferred mineral resource of 2.45 million ounces gold and 11.58 million ounces silver (cut-off grade of 0.4 grams per tonne gold). Tonnage and grades were reported as 30.0 million metric tonnes at 1.26 grams per tonne gold and 5.0 grams per tonne silver for the indicated category, and 60.0 million metric tonnes at 1.27 grams per tonne gold and 6.0 grams per tonne silver for the inferred category. A technical report detailing this resource was filed by the Company on April 10, 2012 and is available through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
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 adviser to, and a director of, Gold Canyon.
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 a minority interest in the 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 REE 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
Cautionary Note Regarding Mineral Resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred resources in any estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Cautionary Note to U.S. Readers Regarding Estimates of Measured, Indicated and Inferred Resources
This news release uses the term "inferred resources". We advise U.S. investors that while this term is recognized and required by Canadian regulations, it is not recognized by the SEC. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade without reference to unit measures. The term "contained gold ounces" used in this news release is not permitted under the rules of the SEC. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.
Cautionary Note Regarding Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "would", "should", "could", or "might" occur or be achieved and other similar expressions. Forward-looking statements in this news release include statements regarding the timing and nature of permitting studies, the timing and nature of infrastructure developments and construction, projections of future optimization, production timeline targets, the timing of negotiations with third parties, and the timing and nature of future exploration programs which are dependent on projections which may change as drilling continues, or if unexpected ground conditions are encountered. In addition, areas of exploration potential are identified which will require substantial drilling to determine whether or not they contain similar mineralization to areas which have been explored in more detail. The description of the extent of mineralized zones is not intended to imply that any economically mineable estimate of reserves or resources exists on any of Gold Canyon's projects.
The forward-looking statements that are contained in this news release are based on various assumptions and estimates by Gold Canyon and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Gold Canyon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, unanticipated difficulties or costs in any rehabilitation which may be necessary, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Gold Canyon and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. Although Gold Canyon has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this news release and Gold Canyon disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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
Frontline IR
Leo Karabelas
Investor Relations
416-543-3120
leo@frontlineir.com