🕐08.10.10 - 15:27 Uhr
Gold Canyon Intersects 305 Meters at 1.03 Grams Per Tonne Gold At Its Springpole Gold Project
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Re: News Release - Friday, October 08, 2010
Gold Canyon Intersects 305 Meters at 1.03 Grams Per Tonne Gold At
Its Springpole Gold Project
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Gold Canyon Resources Inc.
(GCU: TSX-V) ("Gold Canyon" or "the
Company") is pleased to announce it has intercepted 305 meters at 1.03
grams per tonne gold (1,000 feet at 0.030 oz per ton gold) including
174 meters at 1.35 grams per tonne gold (571 feet at 0.039 oz per ton
gold) in hole SP10-016 at its 100% controlled Springpole Gold Project,
located in the Red Lake Mining District of Ontario, Canada.
- Hole SP10-016 was collared 50 meters (164 feet) southeast and drilled
parallel to hole SP10-008 (see August 16, 2010 news release) at an
azimuth of 220 degrees true north and inclination of -45 degrees.
In
terms of grade-thickness, SP10-016 is one of the best holes drilled in
the Propertys history.
This intercept is the southeastern-most test
across the Portage Zone suggesting that the gold system is open for
expansion in that direction.
The true width represented by this
intercept is believed to be approximately 150 meters (492 feet); the
structure hosting economic gold mineralization in the Portage Zone is
interpreted to dip between 75 degrees southwest to vertical, and
striking northwest to southeast; further drilling will test this
hypothesis.
Hole SP10-016 ended in mineralization when the depth
capacity of the drill was reached at 511 meters (1,676 feet), thus, the
true width may be greater.
The width of the Portage Zone generally
ranges from about 50-150 meters along strike to the northwest.
Therefore, the intercept in SP10-016 suggests that the zone is widening
to the southeast.
Hole SP10-016 indicates the Portage Zone persists to
depths of at least 375 meters (1,230 feet) and remains open at depth.
- Hole SP10-012 was collared from the same location as SP10-008 and was
drilled at an azimuth of 235 degrees true north and inclination of -45
degrees.
Because of its somewhat oblique orientation to the Portage
Zone and the fact that the hole deviated while drilling, this hole
appears to have only tested the northeastern margin of the Portage Zone
rather than its full width.
Due to bad ground conditions, this hole had
to be reduced from HQ to smaller, NQ diameter core, resulting in poorer
core recoveries which also affected overall results.
Nonetheless, this
hole intercepted a long interval of gold mineralization, 133 meters at
0.79 grams per tonne gold (436 feet at 0.023 oz per ton gold).
- Silver assays have been received for holes SP10-007, -008, -009 and
-011.
Intervals through the Portage Zone appear to indicate a silver to
gold ratio of around 3:1 to 6:1 in this part of the system.
Locally,
this ratio varies from less than 1:1 to 27:1.
These results suggest
silver could be a significant complement to gold in this system.
High
silver assays set Springpole apart from most other gold deposits in the
Canadian Shield.
- Holes SP10-013, -014, -015 and -017 targeted open areas around the
East Extension Zone which lies approximately 500 meters (1,640 feet)
northeast of the Portage Zone.
All of these holes encountered zones of
gold mineralization suggesting that this shallow zone expands along
strike and at depth.
Mineralization in the East Extension Zone is
associated with a complex network of veins in contrast to the Portage
Zone which is a disseminated, porphyry-hosted deposit.
- Because of the recent financing (see September 23, 2010 news
release), Gold Canyon has extended the summer drill program through
mid-October.
The extended program includes drilling of additional holes
in the Portage Zone.
The Company expects to complete 23 drill holes by
the end of the Summer 2010 Diamond Drill Program, for a total of 29
holes drilled in 2010.
Twelve holes remain to be reported over the next
two months.
Approximately 10,300 meters have been drilled so far this
year.
Although there will be a two month break in drilling, the Company
is planning an aggressive drill campaign from the ice beginning the
first week of January 2011.
Tables have been removed and News Release has been truncated; please
view entire News Release at:
http://www.goldcanyon.ca/i/pdf/nr8oc10.pdf
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"We are very encouraged by results from hole SP10-016," states Alan
Roberts, Senior Geologist and Project Manager at Springpole.
"To date,
drill hole SP10-008 had been the only test of the southeastern portion
of the Portage Zone; hole SP10-016 confirms that mineralization is
continuous, open at depth and open along strike to the southeast.
The
fact that the hole ended in mineralization also tells us that we still
have a lot of work to do to establish the Portage Zones full
potential.
We are looking forward not only to infill drilling this
winter, but now, to chasing the Portage Zone further along strike to
the southeast which remains essentially untested."
"Mineralization in the Portage Zone is proving to be very consistent in
terms of grade-thickness," comments Dr.
Quinton Hennigh, technical
advisor to Gold Canyon.
"Holes we have drilled this summer have all
been inclined at -45 degrees and drilled more or less perpendicular to
strike of the zone.
Therefore, we can compare the aggregate
grade-thickness of all reported intervals in these holes.
At the
northwest end of the Portage Zone, gold intervals from SP10-007 have an
aggregate grade-thickness of 341 gram-meters, SP10-009, 314 gram-meters
and SP10-011, 339 gram-meters.
In the southeast, we have hole SP10-008
with an aggregate grade-thickness of 247 gram-meters, and now SP10-016
with 320 gram-meters.
Seeing such uniformity is very encouraging and
may indicate the system will persist along strike to the southeast."
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.
Subject to the Companys ability to obtain necessary
funding, drilling is planned to continue through April 2011, at which
time work will begin on revising the resource estimate for the deposit.
Springpole is an alkaline intrusive hosting a gold system that
represents a potentially new style of Canadian Archean Shield gold
deposit; Springpole shares many similarities with deposits such as the
Cripple Creek Gold deposit in Colorado.
The Portage Zone is hosted by a
trachytic porphyry intrusion displaying polyphase autolithic breccias
that contain gold mineralization of remarkably uniform grade.
Other
zones including East Extension, Camp and Main, consist of high grade
veins and pods, hosted in diatreme breccias that are composed of
intrusive and country rocks.
The diatreme breccias surround the
northwest and northern margins of the Portage Zone.
These mineralized
zones underlie a total known 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 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.
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 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 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 Companys website:
www.goldcanyon.ca
Akiko Levinson,
President & Director
For further information, please contact:
Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604)
682-0537
Investor Relations: Leo Karabelas, Tel: (416) 543-3120 Email:
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 Companys 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 companys 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.
Associated File:
http://www.goldcanyon.ca/i/pdf/nr8oc10.pdf
38 KB in size, approx.
15 seconds to download at 56.6Kbps
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(GCU) All rights
reserved.
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