Mr. Akiko Levinson reports
GOLD CANYON INTERCEPTS 286 METERS AT 1.03 GRAMS PER TONNE GOLD CONFIRMING NORTHEAST DIP OF PORTAGE ZONE AT SPRINGPOLE GOLD PROJECT
Gold Canyon Resources Inc. has drilled hole SP11-071, which intersected 286 metres at 1.03 grams per tonne gold (938 feet at 0.030 ounce per ton gold) including 197 metres at 1.30 grams per tonne gold (646 feet at 0.038 ounce per ton) at its 100-per-cent-controlled Springpole gold project, located 110 kilometres northeast of the Red Lake mining camp, Ontario, Canada. The intercept encountered in this hole indicates that the Portage Zone dips northeast at approximately -70 degrees and remains open at depth.
-- Diamond drill hole SP11-071 intersected 286 meters at 1.03 gram per tonne gold (938 feet at 0.030 oz per ton gold) including 197 meters at 1.30 grams per tonne gold (646 feet at 0.038 oz per ton). This hole, situated on the 0+00 meter section, is oriented at 220 degrees true north with an inclination of -60 degrees. The drill hole undercuts previous drilling on this section including hole SP10-024 (225 meters at 1.48 grams per tonne gold announced in a news release dated November 23, 2010). The intercept encountered in SP11-071 indicates that the Portage Zone dips northeast at approximately -70 degrees and remains open at depth.
-- Previous to drilling hole SP11-071, the Portage Zone was believed to dip at approximately -75 degrees southwest with a true width estimated at about 140 meters. The newly interpreted geometry results in a true thickness of approximately 220 meters in this area.
-- The Company has plans to step back and drill under hole SP11-071 to further evaluate the continuation of the Portage Zone at depth. Drilling is underway along strike from this intercept to the southeast where it is believed mineralization should continue.
"Earlier this year, we tested the depth extension of the Portage Zone by drilling hole SP11-063 from the southwest shore to the northeast," states Dr. Quinton Hennigh, Technical Advisor to and Director of Gold Canyon Resources. "As it turns out, that hole drilled down the southwest margin of the deposit encountering its low grade fringe. Hole SP11-071 clearly indicates the deposit dips northeast, is wider than previously thought, and remains open at depth."
Summary of Results from SP11-071 --------------------------------------------------------------------------- Gold Gold From To Length (grams per Length (oz perHole (meters) (meters) (meters) tonne) (feet) ton)---------------------------------------------------------------------------SP11-071 149.0 435.0 286.0 1.03 938 0.030includes 211.0 408.0 197.0 1.30 646 0.038includes 250.0 284.0 34.0 2.92 112 0.085includes 272.0 281.0 9.0 5.53 30 0.161includes 333.0 345.0 12.0 2.43 39 0.071includes 391.0 396.0 5.0 3.55 16 0.104---------------------------------------------------------------------------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 5 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
The numerous forest fires in the area that caused delays earlier this summer have diminished. Two barge-based and two land-based drills are currently operating on site and will continue through freeze-up, likely in early November. Approximately 4,000 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, somewhat less than the 12,000 meters that was originally planned. 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, Camp 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.
We seek Safe Harbor.