Gold Canyon Resources Inc V.GCU

NewsR

[montreal10]

Gold Canyon looks ahead, reviews winter program 2004-05-12 13:27 ET - News Release Mr. Robert Carrington reports SPRINGPOLE LAKE GOLD PROJECT WINTER 2004 SUMMARY AND PLANS FOR SUMMER 2004 PROGRAM Gold Canyon has provided the following overview and summary of the company's winter 2004 drill program, together with plans for its summer 2004 and winter 2004-2005 programs. The winter 2004 drill program, successfully demonstrated continuity of mineralization in projected targets, identified new mineralized structures within existing zones, and significantly expanded mineral potential along trend. As a result of the winter 2004 drilling program, previously unrecognized mineralized structures were identified in the East Extension, Hillside, Main and Vein zones. Drilling in the Camp zone confirmed mineralization, but did not return the exceptionally high grades encountered in previous drilling. The East Extension zone in particular is completely open along trend. Due to drilling logistics, no work was conducted on the Portage zone. Remodelling has led to a much higher success rate in encountering high-grade gold intercepts. Historically, one high-grade intercept was encountered in every six holes drilled (1:6). In the recent winter 2004 program, every second drill hole encountered high-grade gold mineralization (1:2). By modifying the drill orientation, the company identified mineralized structures within existing zones which had been missed in earlier drilling. This significantly expanded targeted mineral potential, particularly in the East Extension zone. The company feels that this mineralized trend has potential to extend for several thousand feet, and possibly several miles. Drilling was concentrated on the near surface portions of the Camp, Vein, Main, Hillside, North Porphyry and East Extension zones. These zones are the principal known on-land zones. The company concentrated on these areas due to better drilling logistics, and the relatively large number of high-grade drill targets. Holes 280, 281, 286, 289, 290, 297 and 298 were drilled in the Camp zone. Holes 287, 288, 299, 300, 301 and 302 were drilled in the Vein zone. Holes 282, 283, 284, 285 and 304 were all drilled in the Main zone, while hole 303 was drilled in the Hillside zone. Holes 291, 292, 295, 296, 176D and 178D were drilled in the East Extension zone, or projected extension of this zone, while holes 293 and 294 were drilled in the North Porphyry zone. Results of the winter 2004 drilling program which have been released in Stockwatch dated March 8, March 22, and April 5, 2004, are summarized in their entirety in Table 1, below. The company's management is very encouraged by the results of this program, and plans to complete a combined program of drilling, mapping, geophysics and sampling during its summer 2004 program, in preparation for an aggressive drill program during the winter 2004-2005 drill season consisting of roughly to 30,000 feet of core drilling. Planned work programs The proposed exploration plans for the summer 2004 and winter 2004-2005 are contingent on the company completing part or all of the private placement financing for $2.5-million that was announced in Stockwatch on April 27, 2004. Summer 2004 The summer 2004 program will consist in part of drilling to follow up this past winter's program, including stepout drilling related to the very positive results achieved in holes 295 and 296, believed to represent a significant expansion of the East Extension zone along trend. In preparation for an aggressive winter 2004-2005 drilling program, outlying portions of the Springpole property will be mapped and sampled, and suitable geophysical surveys, including airborne radiometrics and air magnetics, will be completed. There is roughly 310 miles of lake shore within the company's property that due to abnormally low lake levels from multiple dry winters has resulted in roughly three feet of exposure that previously has not been accessible for mapping or sampling. The limited mapping on the outlying portions of the property were completed prior to the development of global positioning system technology. As a result only small portions of the property have been mapped in detail. With the aid of GPS technology the company will be able to accurately map and sample the outlying areas rapidly and economically during its summer 2004 program. A drilling program consisting of roughly 8,000 feet of drilling is planned to run concurrently with the summer mapping and sampling program. Due to soft and boggy ground conditions, drilling during the summer 2004 program will be confined to areas of higher and drier ground in the East Extension, Main, Hillside and Vein zones. Winter 2004-2005 During the winter 2004-2005 drill season, the company plans to execute roughly 30,000 feet of core drilling. This program will test new targets identified during the summer program in the outlying portions of the property, and to expand on mineral definition within the core area of the property. Winter conditions eliminate problems with soft, boggy ground and lakes, facilitating movement of the drill and equipment to selected sites. Geological summary The oldest rocks at Springpole are metamorphic rocks of the Balmer volcanic series, and are host for most of the gold mineralization at Springpole. These rocks consist of subaerial to submarine intermediate to mafic volcanic rocks up to 2.8 billion years old. These rocks have been intruded by various younger intrusive rocks, most notably, a large, northwest-trending, elliptical Feldspar porphyry complex and associated diatreme-like breccia pipes. Extensive swarms of fine to coarse grained feldspar porphyry dikes extend outward from the central intrusive mass. Younger diatreme-like breccia pipes suggest nearly explosive intrusion of at least a portion of the feldspar porphyry. The development of such breccia pipes is widely thought to accompany late-stage release of the volatile portions of intrusive masses. Valuable metals such as gold and silver are often thought to be contained in such late-stage volatile fractions. The company's remodelling together with the recently completed winter 2004 drilling campaign indicate that known high-grade gold mineralization is contained within two similar structural envelopes or trends related to large, northwest trending regional structural zones. Within the regional framework, individual zones, up to 700 feet wide and potentially several miles in length are composed of swarms of mineralized shears and structures. These consist of large, thoroughgoing, northwest trending faults, and a related complex systems of subsidiary splays, conjugate fracture systems and minor faults. Structural interpretation by the company indicates that the larger northwest faults exhibit a strong left lateral sense of movement. The related splays, conjugate fractures and faults form sinusoidal enechelon or gash type structures between the master faults. These enechelon- or gash-type structures often strike nearly perpendicularly to the main trend. This pattern of faults and shears forms ladder-like structural trends, which, at Springpole, have been localized along either side of the feldspar porphyry intrusive complex. For purposes of this release, on trend means the direction of the major axis of this ladder like structural package, realizing that within this envelope, many related structures may strike nearly perpendicular. Within this structural framework, high-grade gold mineralization is found from surface outcrop to depths of over 1,000 feet vertically below the present surface. At present, there are no known constraints on the vertical development of gold mineralization. Alteration and mineralization Gold mineralization at Springpole is generally associated with moderate to strong potassic alteration, consisting of development of microscopic grains of potassic feldspar. Importantly this style of potassic alteration almost always contains a natural isotope of potassium which is very weakly radioactive, as a result potassic alteration can readily be detected by radiometric surveys. The company believes that use of airborne radiometric surveys can detect areas of this radioactive potassium isotope, and thereby areas of potassic alteration, presumably associated with gold mineralization. Metallic screen analysis on samples from Springpole indicate that more than 90 per cent of the gold is occurring as coarse free gold. Microscopic evaluation corroborates that most of the gold found at Springpole is relatively coarse free gold. Camp, Vein, Main and Hillside zones As previously discussed, these four zones are considered to be portions of a single, larger, structural envelope trending from the southeast to the northwest. Where this structural envelope projects beneath Springpole Lake, it is referred to as the Portage zone. Within this large envelope, discrete gold bearing structures occur over an area up to 700 feet wide, 4,000 feet long and over 1,000 feet in depth. This mineralized area is localized along the southwestern margin of the feldspar porphyry intrusive. Gold mineralization is related to large northwest-trending structures with significant lateral (horizontal component) and presumably vertical movement. As a result the principal gold-bearing structures form a ladder-like pattern which trend from southeast toward the northwest. Within this trend, gold-bearing structures strike either northwest (major faults), or east-northeast (Conjugate structures), with steep to subvertical dips (gash faults). East Extension and North Porphyry zones The East Extension and North Porphyry zones, like other known gold trends on the property, are dominated by large thoroughgoing northwest and related subsidiary structures, forming a ladder like structural lattice. To date, drilling indicates a significant northwest-trending envelope of structurally controlled gold mineralization where discrete high-grade bearing structures are found in an area at least 1,500 feet long on trend and up to 500 feet in width. Gold mineralization in this area is presumably completely open on trend and to depth. Limited historic data, dating to 1936, identify gold occurrences on trend over a distance of nearly 3-1/2 miles, all of which are located on the company's present landholdings. Table 1 below summarises the more significant drill results for the winter 2004 drill program. TABLE 1 PREVIOUSLY ANNOUNCED RESULTS WINTER 2004 DRILL PROGRAM Hole Local Local Angle Grid Depth grid grid az (ft) east north 280 1300 400 -45 N 197 281 1300 400 -75 N 217 282 700 400 -45 S 277 283 400 400 -45 S 287 284 500 360 -45 S 277 285 800 360 -45 S 277 286 1350 350 -45 N 237 287 1000 -50 -45 S 527 288 1100 0 -45 N 387 289 1450 300 -50 N 147 290 1500 300 -45 N 247 291 3050 875 -45 N 217 292 3000 900 -45 N 147 293 2600 945 -45 N 377 294 2500 1200 -45 N 217 295 3550 745 -45 N 397 296 3500 720 -45 N 477 297 1500 300 -70 N 297 298 1300 456 -45 N 87 299 1000 -50 -45 N 500 300 1000 16 -45 N 197 301 1000 92 -45 N 117 302 1000 169 -45 N 117 303 1000 560 -45 N 247 304 900 390 -45 N 377 176D 3500 1250 -45 S 100 178D 3600 1175 -45 N 111 Hole Target Mineralized intercepts zone From To Length Au drilled (ft) (ft) (ft) (oz/t) 280 Camp 62.0 74.6 12.6 0.183 281 Camp Nil Nil Nil Nil 282 Main 96.0 101.0 5.0 0.169 Main 107.0 112.0 5.0 0.227 283 Main Nil Nil Nil Nil 284 Main Nil Nil Nil Nil 285 Main 67.7 71.6 3.9 0.126 286 Camp 128.4 129.0 0.6 0.188 Camp 133.6 135.1 1.5 0.235 287 Vein Nil Nil Nil Nil 288 Vein 24.5 27.0 2.5 1.261 Vein 91.0 94.0 3.0 0.478 289 Camp 35.4 37.0 1.6 0.106 290 Camp 80.0 82.0 2.0 0.131 Camp 107.0 111.8 4.8 0.127 Camp 208.5 212.8 4.3 0.327 291 East Ext. 107.0 111.8 4.8 0.127 East Ext. 117.0 122.0 5.0 0.284 East Ext. 132.0 137.0 5.0 0.358 East Ext. 146.0 149.8 3.8 0.431 292 East Ext. 51.4 82.0 133.4 0.37 Incl East Ext. 118.6 128.7 10.1 1.264 293 North Porph. 372.0 377.0 5.0 0.477 294 North Porph. Nil Nil Nil Nil 295 East Ext. 267.0 277.7 10.7 0.272 East Ext. 267.0 271.1 4.1 0.542 East Ext. 353.5 356.0 2.5 0.727 296 East Ext. 194.8 196.3 1.5 2.975 East Ext. 209.6 210.7 1.1 0.21 East Ext. 212.0 213.6 1.6 4.016 East Ext. 282.0 287.0 5.0 0.938 East Ext. 458.0 461.8 3.8 0.208 297 Camp Nil Nil Nil Nil 298 Camp 24.8 25.6 0 8 0.254 299 Vein 279.2 299.8 206 0.161 Incl Vein 284.3 287.0 2.7 0.425 Vein 328.8 338.0 9.2 0.63 Incl Vein 328.8 331.2 2.4 1.906 300 Vein 150.0 163.0 13.0 0.103 301 Vein Nil Nil Nil Nil 302 Vein 15.0 19.0 4.0 0.188 Vein 91.4 103.4 12.0 0.118 Incl Vein 91.4 93.0 1.6 0.554 303 Hill- side 25.5 34.0 8.5 0.49 Hill- side 194.1 209.0 14.9 0.54 Incl Hill- side 194.1 201.0 6.9 0.956 304 Main 10.5 93.2 82.7 0.081 Incl Main 60.5 91.0 30.5 0.132 Main 167.0 171.3 4.3 0.773 Incl Main 170.0 171.3 1.3 2.246 Main 238.0 238.5 0.5 0.951 Main 283.6 287.0 3.4 0.116 176D East Ext. 377.0 382.0 5.0 0.155 178D East Ext. Nil Nil Nil Nil