Gold Canyon Announces Completed Results of Gold Assays from its 2011 Resource Drill Program at the Springpole Gold Project

Transcription

1 GOLD CANYON RESOURCES INC. GCU: TSX-V Suite Granville Street, P.O. Box 1036 Pacific Centre, Vancouver, BC, Canada V7Y 1G Tel: (604) Toll free: 1 (888) Fax: (604) December 14, 2011 NEWS RELEASE Gold Canyon Announces Completed Results of Gold Assays from its 2011 Resource Drill Program at the Springpole Gold Project Gold Canyon Resources Inc. (GCU: TSX-V) ( Gold Canyon or the Company ) is pleased to announce the completion of gold assays from samples submitted from its 2011 resource drilling program at the Springpole Gold Project. These assays make up the last group that are intended to be included in the forthcoming National Instrument (NI) technical report and mineral resource statement, due to be released in January The completed sample assays included results from five diamond drill holes: SP11-097, -098, -099, and -104, which all tested the Portage Zone ore body. The results included multiple long intercepts of gold mineralization: including 148 meters at 1.66 grams per tonne gold (48 feet at oz per ton gold) which includes 24 meters at.94 grams per tonne gold (79 feet at oz per ton gold) in hole SP Another hole, SP11-098, intersected 121 meters at 1.67 grams per tonne gold (397 feet at oz per ton gold) including 37 meters at 3.21 grams per tonne gold (121 feet at oz per ton gold) and a second interval of 90 meters at 2.00 grams per tonne gold (29 feet at 0.08 oz per ton gold) including 40. meters at 3.74 grams per tonne gold (133 feet at oz per ton gold). Since July, nearly 16,200 meters have been drilled at Springpole, 3% more meters than originally planned. Assays for three recently completed holes are due back by the end of the month. Drilling has been suspended for the Christmas season; it is scheduled to resume in mid-january, once sufficient lake ice thickness has been built up over the target area to permit drilling on Springpole Lake. The upcoming winter diamond drill program will comprise of infill drilling and testing of new targets, including the southeast strike projection of the Portage Zone. At least 0,000 meters of drilling are planned at Springpole in We are very pleased to now have all the gold assays needed to complete our revised NI compliant resource at Springpole, comments Dr. Quinton Hennigh, Technical Advisor to, and Director of, Gold Canyon. The results from these holes are very encouraging, and are consistent with the many long intercepts of gold mineralization that we have reported since the beginning of our drilling campaign here twenty-two months ago. Summary of Drill Results Diamond drill holes SP (situated on the 0+00 m section line) and SP (situated on the 0+40 m section line) were both drilled at an azimuth of 220 degrees true north with an inclination of -4 degrees. Both holes were designed to test the mid-levels of the Portage Zone. Hole SP intersected 148 meters at 1.66 grams per tonne gold (48 feet at oz per ton gold) including 24 meters at.94 grams per tonne gold (79 feet at oz per ton gold). Hole SP intersected 121 meters at 1.67 grams per tonne gold (397 feet at oz per ton gold) including 37 meters at 3.21 grams per tonne gold (121 feet at oz per ton gold) and a second, deeper interval of 90 meters at 2.00 grams per tonne gold (29 feet at 0.08 oz

2 2 per ton gold) including 40. meters at 3.74 grams per tonne gold (133 feet at oz per ton gold) and ended in mineralization. The upper intercept in hole SP is part of the Bridge Zone, a recently discovered body of near-surface mineralization between the Portage and East Extension Zones. This is the longest and highest grade interval yet encountered in this potentially significant new mineralized zone. Diamond drill hole SP11-097, a vertical infill hole drilled from a barge on the m section line, tested the southwest shoulder of the Portage Zone. This hole intersected 33 meters at 0.71 grams per tonne gold (108 feet at oz per ton gold) starting at the bedrock interface immediately beneath lake bottom sediments. A second interval of 91 meters at 0.79 grams per tonne gold (298 feet at oz per ton gold) was encountered deeper in the hole which ended in mineralization. Diamond drill hole SP11-099, situated on the m section line, was drilled at an azimuth of 220 degrees true north with an inclination of -4 degrees and tested mid- to deep levels of the Portage Zone. This hole intersected 176 meters at 0.80 grams per tonne gold (77 feet at oz per ton gold). Additional intervals of gold mineralization were encountered further down hole outside of the southwest margin of the Portage Zone. This hole ended in mineralization. Diamond drill hole SP11-100, situated on the 0+40 m section line and drilled at an azimuth of 220 degrees true north and inclination of -0 degrees, tested deeper parts of the Portage Zone in this area. This hole intersected 77. meters at 0.62 grams per tonne gold (24 feet at oz per ton gold). Summary of Results from Holes SP through -104 Hole From To Gold (grams per tonne) (feet) Gold (oz per ton) SP includes Hole ended in mineralization at 230 meters SP includes includes includes includes includes includes includes includes Hole ended in mineralization at 401. meters No core was recovered from meters

3 3 cont d: Summary of Results from Holes SP through -104 Hole From To Gold (grams per tonne) (feet) Gold (oz per ton) SP includes Hole ended in mineralization at 463 meters No core was recovered from meters SP Holes SP through -103 are condemnation holes (for future development site locations) with no significant gold values SP includes Weighted averages were used to calculate all reported intervals Intervals of no core recovery were given a gold grade of 0 gpt in the weighted averages above 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 10 meters. 1 troy oz = grams Conversion factor grams per tonne to troy oz per short ton; g/t divided by or g/t multiplied by 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.

4 4 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 1 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 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 Senior Exploration Geologist 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 Guyana Frontier Mining Corp. pursuant to an option and joint venture agreement entered into in December 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 Additional information can be found on the Company s website: Akiko Levinson, President & Director For further information, please contact: Tel: (604) Toll free: 1 (888) Fax: (604) info@goldcanyon.ca Investor Relations: Leo Karabelas, Tel: (416) leo@frontlineir.com This news release contains statements that constitute forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 199 or "forward looking information" within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "would", "should", "could", or "might" occur or be achieved and other similar expressions. Forwardlooking statements in this news release include statements regarding the timing and nature of permitting studies, the timing and nature of infrastructure developments and construction, projections of future optimization, production timeline targets, the timing of negotiations with third parties, and the timing and nature of future exploration programs which are dependent on projections which may change as drilling continues, or if unexpected ground conditions are encountered. In addition, areas of exploration potential are identified which will require substantial drilling to determine whether or not they contain similar mineralization to areas which have been explored in more detail. The description of the extent of mineralized zones is not intended to imply that any economically mineable estimate of reserves or resources exists on any of Gold Canyon s projects.

5 The forward-looking statements that are contained in this news release are based on various assumptions and estimates by Gold Canyon and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Gold Canyon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, unanticipated difficulties or costs in any rehabilitation which may be necessary, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Gold Canyon and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. Although Gold Canyon has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this news release and Gold Canyon disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. 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.

6 SP SP SP10-02 SP SP SP SP Ounces/Ton µ Collars 2010 Collars Meters Drill Traces (Assays Released) 2010 Drill Traces Historic Drilling Lake Surface SP SP UTM WGS 84 Zone 1N SP Grams/Tonne SP Cutoff Value of 0.34 grams/tonne or 0.01 oz/ton SP SP SP SP SP11-09 SP10-014SP10-01 SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP11-03 SP SP SP SP SP SP SP SP SP11-083A SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP11-03 SP SP11-08 SP SP SP11-07 SP SP11-06 SP SP SP10-00 SP SP SP11-04 SP11-04A SP SP SP11-04 SP11-07 SP SP SP SP11-09 SP SP SP SP11-02 SP SP SP SP SP SP SP11-01 SP SP SP SP December 2011 kdb