Gold Canyon Intercepts 24 Meters at 17.48 Grams PeGold Canyon Intercepts 24 Meters at 17.48 Grams Per Tonne Gold at Springpole Gold Project
VANCOUVER, BRITISH COLUMBIA, Aug 04, 2011 (MARKETWIRE via COMTEX News Network) --
GoldCanyon Resources Inc. (TSX VENTURE: GCU)(PINK SHEETS: GDCRF) ("GoldCanyon" or "the Company") is pleased to announce hole SP11-066intersected 24 meters at 17.48 grams per tonne gold (79 feet at 0.510 ozper ton gold) including 6 meters at 52.60 grams per tonne gold (20 feetat 1.536 oz per ton gold) at its 100% controlled Springpole GoldProject, located 110 kilometers northeast of the Red Lake Mining Camp,Ontario, Canada.
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-- Diamond drill hole SP11-066 intersected 24 meters at 17.48 grams per
tonne gold (79 feet at 0.510 oz per ton gold) including 6 meters at
52.60 grams per tonne gold (20 feet at 1.536 oz per ton gold). Applying
a 1 oz per ton (34.29 grams per tonne) top cut, these intervals are 24
meters at 10.31 grams per tonne gold (79 feet at 0.301 oz per ton gold)
including 6 meters at 29.45 grams per tonne gold (20 feet at 0.859 oz
per ton gold). This hole was collared along the southwest margin of the
East Extension Zone and drilled at an azimuth of 020 degrees true north
with a -45 degree inclination. Remaining un-assayed core from this hole
will be submitted for metallurgical testing to characterize ore from the
East Extension Zone.
-- Diamond drill hole SP11-067 intersected 39 meters at 2.93 grams per
tonne gold (128 feet at 0.086 oz per ton gold) including 1 meter at
39.73 grams per tonne gold (3 feet at 1.160 oz per ton gold). This hole
was collared from the same pad as SP11-066, but was drilled at an
azimuth of 040 degrees true north with a -45 degree inclination.
-- Holes SP11-066 and -067 tested an area where historic drill holes
reportedly encountered similar mineralization. Some nearby historic
holes were selectively sampled and, in several cases, core is now
missing from these holes. Holes SP11-066 and -067 confirm results in
this area; they also demonstrate overall better continuity of
mineralization when compared to historic data and will be used for
future resource calculations.
"Weare very pleased to confirm high grades at shallow depth in the EastExtension Zone," states Dr. Quinton Hennigh, Technical Advisor to andDirector of Gold Canyon. "Although East Extension is a smaller targetthan the Portage Zone, it could potentially make a good starter pit.Holes SP11-066 and -067 demonstrate good continuity of high-grademineralization along the southwest margin of this deposit. These resultscoupled with the corridor of near-surface mineralization that wediscovered in drilling between the Portage Zone and East Extension lastsummer suggest we might ultimately be able to connect these twodeposits."
Summary of Results from SP11-066 and -067
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Gold
(grams
per Gold
tonne) (oz
Gold - top per ton)
(grams cut to Gold - top
From To Length per 34.29 Length (oz per cut to
Hole (meters) (meters) (meters) tonne) gpt (feet) ton) 1 opt
---------------------------------------------------------------------------
SP11-066 16.0 40.0 24.0 17.48 10.31 79 0.510 0.301
includes 22.0 23.0 1.0 67.54 34.29 3 1.972 1.000
includes 30.0 36.0 6.0 52.60 29.45 20 1.536 0.859
includes 34.0 35.0 1.0 117.94 34.29 3 3.444 1.000
SP11-067 15.0 54.0 39.0 2.93 2.79 128 0.086 0.081
includes 41.0 42.0 1.0 39.73 34.29 3 1.160 1.000
105.0 109.0 4.0 2.03 NA 13 0.059 NA
---------------------------------------------------------------------------
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 2 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
-- Diamond drill hole SP11-064 was drilled from the southwest shore of
Springpole Bay on the +300 section at an azimuth of 040 degrees true
north and an inclination of -45 degrees. This hole encountered numerous
intervals of gold and silver mineralization as well as typical Portage
Zone style alteration, but appears to have followed the southwest margin
of the zone.
-- Based on 3-dimensional and geostatistical modelling of the results of
SP11-064 and other recent drill holes, it is now believed that the
Portage Zone dips moderately to steeply northeast as opposed to
southwest as previously believed. Holes SP11-070 and -071, part of the
summer-fall 2011 drill program, and both currently in progress, are
drilled from the northeast shore of Springpole Lake, adjacent to camp,
toward the southwest, and are designed to better test this newly
interpreted geometry. The results from both holes will be included in
future resource calculations.
Summary of Results from SP11-064
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Gold Silver Gold Silver Silver
(grams (grams (oz (oz -to-
From To Length per per Length per per Gold
Hole (meters) (meters) (meters) tonne) tonne) feet) ton) ton) Ratio
----------------------------------------------------------------------------
SP11-064 61.0 63.0 2.0 4.20 78.00 7 0.123 2.278 18.6
154.0 156.0 2.0 1.26 42.80 7 0.037 1.250 34.0
263.0 264.0 1.0 1.82 34.90 3 0.053 1.019 19.2
407.0 415.0 8.0 0.51 3.71 26 0.015 0.108 7.3
439.0 444.0 5.0 0.74 4.46 16 0.022 0.130 6.0
479.0 489.0 10.0 0.41 0.88 33 0.012 0.026 2.1
510.0 514.0 4.0 0.44 0.65 13 0.013 0.019 1.5
535.0 561.0 26.0 0.40 1.31 85 0.012 0.038 3.3
571.0 576.0 5.0 0.39 3.95 16 0.011 0.115 10.1
627.5 633.5 6.0 0.39 2.18 20 0.011 0.064 5.6
----------------------------------------------------------------------------
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 2 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
HolesSP11-061, -065 -069, all recently completed core holes, will be assayedlater in the year when they undergo an extensive series ofmetallurgical tests.
Operational Update
On August 1, amedium lift helicopter mounted drills on each of the two bargescurrently on-site at Springpole. Availability of a suitable helicopterto lift the drills onto the barges has been hampered by the need of suchaircraft to help fight extensive forest fires that have erupted in NWOntario since early July. Due to this and other fire related issues, theCompany's summer drill program has experienced slower core productionthan planned. Dry and warm weather conditions persist and the Springpolebase camp remains on high alert.
Two land-based drills haveoperated continuously at Springpole since late June. These rigs arecurrently drilling holes SP11-070 and -071, both tests of the PortageZone drilled from the northeast shore of Springpole Lake. In addition,four metallurgical holes have recently been completed and will undergoan extensive series of metallurgical tests to be run over the nextseveral months. With the barge drills operational, the Company plans tokeep four drills operating through freeze-up, likely in early November.These rigs should produce around 9,000 meters of core, which is lessthan the 12,000 meters that was originally planned. Holes drilled thissummer are expected to allow the Company to revise the 43-101 compliantresource estimate for the deposit sometime late in the second half of2011.