VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2011) -
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Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce that hole SP11-077 has intersected 106 meters at 3.36 grams per tonne gold (348 feet at 0.098 oz per ton gold) including 28 meters at 10.10 grams per tonne gold (92 feet at 0.295 oz per ton gold) at its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. This hole confirms that the Portage Zone exhibits a high grade core on the 0+800 meter section.
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- Diamond drill hole SP11-077 intersected 106 meters at 3.36 grams per tonne gold (348 feet at 0.098 oz per ton gold) including 28 meters at 10.10 grams per tonne gold (92 feet at 0.295 oz per ton gold), one of the longest higher grade intersections yet drilled on the Portage Zone. This vertical infill hole tested the mid section of the Portage Zone on the 0+800 meter section. In addition to this high grade interval, SP11-077 also intersected 77 meters at 0.73 grams per tonne gold (253 feet at 0.021 oz per ton gold) starting at the bedrock interface below the lake bottom demonstrating continuity of mineralization to surface.
- Diamond drill hole SP11-076 was drilled at an azimuth of 220 degrees true north and an inclination of -45 degrees on the 0+650 meter section. A 121 meter interval at 0.70 grams per tonne gold (397 feet at 0.02 oz per ton gold) was encountered beginning at just 28 meters down hole depth, or a true vertical depth of just 20 meters. This interval of mineralization effectively connects the Portage and East Extension Zones in the near-surface environment.
"Hole SP11-077 gives our first indication that a higher grade core of the Portage Zone is present near the northwest end of the porphyry body," states Dr. Quinton Hennigh, technical advisor and Director of Gold Canyon. "We have seen similar mineralization a few hundred meters further southeast, and we are hopeful that as our infill program progresses, we will see continuity of this higher grade core continue. We are also quite pleased that hole SP11-076 demonstrates near-surface mineralization between the Portage and East Extension Zones. This adds a significant volume of mineralized rock to the overall picture."
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
Two barge-based and two land-based drills are currently operating on site and will continue through freeze-up, likely in early November. Approximately 12,000 meters of core have been drilled so far this summer, and it is expected that the drills should produce around 14,000 meters of core, in excess of 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 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 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.
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