Mr. Akiko Levinson reports
GOLD CANYON INTERSECTS 305 METERS AT 1.03 GRAMS PER TONNE GOLD AT ITS SPRINGPOLE GOLD PROJECT
Gold Canyon Resources Inc. has intercepted 305 metres at 1.03 grams per tonne gold (1,000 feet at 0.030 ounce per ton gold) including 174 metres at 1.35 grams per tonne gold (571 feet at 0.039 ounce per ton gold) in hole SP10-016 at its 100-per-cent-controlled Springpole gold project, located in the Red Lake mining district of Ontario, Canada.
Hole SP10-016 was collared 50 metres (164 feet) southeast and drilled parallel to hole SP10-008 (as announced in Stockwatch on Aug. 16, 2010) at an azimuth of 220 degrees true north and inclination of minus-45 degrees. In terms of grade thickness, SP10-016 is one of the best holes drilled in the property's history. This intercept is the southeasternmost test across the Portage zone suggesting that the gold system is open for expansion in that direction. The true width represented by this intercept is believed to be approximately 150 metres (492 feet); the structure hosting economic gold mineralization in the Portage zone is interpreted to dip between 75 degrees southwest to vertical, striking northwest to southeast; further drilling will test this hypothesis. Hole SP10-016 ended in mineralization when the depth capacity of the drill was reached at 511 metres (1,676 feet); thus, the true width may be greater. The width of the Portage zone generally ranges from about 50 metres to 150 metres along strike to the northwest. Therefore, the intercept in SP10-016 suggests that the zone is widening to the southeast. Hole SP10-016 indicates the Portage zone persists to depths of at least 375 metres (1,230 feet) and remains open at depth.
Hole SP10-012 was collared from the same location as SP10-008 and was drilled at an azimuth of 235 degrees true north and inclination of minus-45 degrees. Because of its somewhat oblique orientation to the Portage zone and the fact that the hole deviated while drilling, this hole appears to have only tested the northeastern margin of the Portage zone rather than its full width. Due to bad ground conditions, this hole had to be reduced from HQ to smaller NQ-diameter core, resulting in poorer core recoveries which also affected overall results. Nonetheless, this hole intercepted a long interval of gold mineralization, 133 metres at 0.79 gram per tonne gold (436 feet at 0.023 ounce per ton gold).
Silver assays have been received for holes SP10-007, -008, -009 and -011. Intervals through the Portage zone appear to indicate a silver-to-gold ratio of around 3:1 to 6:1 in this part of the system. Locally, this ratio varies from less than 1:1 to 27:1. These results suggest silver could be a significant complement to gold in this system. High silver assays set Springpole apart from most other gold deposits in the Canadian Shield.
Holes SP10-013, -014, -015 and -017 targeted open areas around the East Extension zone which lies approximately 500 metres (1,640 feet) northeast of the Portage zone. All of these holes encountered zones of gold mineralization suggesting that this shallow zone expands along strike and at depth. Mineralization in the East Extension zone is associated with a complex network of veins, in contrast to the Portage zone which is a disseminated, porphyry-hosted deposit.
Because of the recent financing (as announced in Stockwatch on Sept. 23, 2010), Gold Canyon has extended the summer drill program through mid-October. The extended program includes drilling of additional holes in the Portage zone. The company expects to complete 23 drill holes by the end of the summer 2010 diamond drill program, for a total of 29 holes drilled in 2010. Twelve holes remain to be reported over the next two months. Approximately 10,300 metres have been drilled so far this year. Although there will be a two-month break in drilling, the company is planning an aggressive drill campaign from the ice beginning the first week of January, 2011.
PORTAGE ZONE RESULTS
From To Length Gold (grams Length Gold (oz
Hole ID (metres) (metres) (metres) per tonne) (feet) per ton)
SP10-016 181.0 187.0 6.0 0.94 20 0.027
206.0 511.0 305.0 1.03 1000 0.030
includes 289.0 463.0 174.0 1.35 571 0.039
includes 289.0 292.0 3.0 7.30 10 0.213
includes 312.0 322.0 10.0 2.94 33 0.086
includes 387.0 397.0 10.0 2.08 33 0.061
SP10-012 275.0 408.0 133.0 0.79 436 0.023
includes 275.0 284.0 9.0 2.54 30 0.074
includes 359.0 362.0 3.0 8.76 10 0.256
SP10-016 ends in mineralization. Short intervals of no core recovery
were encountered at 247 metres to 250 m and 445 m to 448 m.
Zones of no recovery were given nil gold grade in the weighted
calculations above.
SP10-012 deviated, and as a result, did not test the full width of the
targeted zone. Short intervals of no core recovery were encountered
at 314 m to 317 m, 329 m to 332 m and 362 m to 365 m.
Zones of no recovery were given nil gold grade in the weighted
calculations above.
SP10-010 was lost in bad ground before reaching target.
Reported intervals apply a 0.34 gram per tonne gold (0.01 ounce per
ton gold) cut-off.
Internal dilution within reported intervals does not exceed core
lengths of eight metres.
All reported assay intervals are weighted.
One troy ounce equals 31.103 grams.
Conversion factor -- grams per tonne to troy ounces per short ton
is gram per tonne divided by 34.2857 or g/t multiplied by 0.0292.
One metre equals 3.28 feet.
"We are very encouraged by results from hole SP10-016," states Alan Roberts, senior geologist and project manager at Springpole. "To date, drill hole SP10-008 had been the only test of the southeastern portion of the Portage zone; hole SP10-016 confirms that mineralization is continuous, open at depth and open along strike to the southeast. The fact that the hole ended in mineralization also tells us that we still have a lot of work to do to establish the Portage zone's full potential. We are looking forward not only to infill drilling this winter, but now to chasing the Portage zone farther along strike to the southeast which remains essentially untested."
"Mineralization in the Portage zone is proving to be very consistent in terms of grade thickness," comments Dr. Quinton Hennigh, technical adviser to Gold Canyon. "Holes we have drilled this summer have all been inclined at minus-45 degrees and drilled more or less perpendicular to strike of the zone. Therefore, we can compare the aggregate grade thickness of all reported intervals in these holes. At the northwest end of the Portage zone, gold intervals from SP10-007 have an aggregate grade thickness of 341 gram-metres; SP10-009, 314 gram-metres; and SP10-011, 339 gram-metres. In the southeast, we have hole SP10-008 with an aggregate grade thickness of 247 gram-metres, and now SP10-016 with 320 gram-metres. Seeing such uniformity is very encouraging and may indicate the system will persist along strike to the southeast."
The summer 2010 diamond drill program is part of a continuing program of drilling and remodelling of the Springpole deposit to move it towards prefeasibility. Subject to the company's ability to obtain necessary financing, drilling is planned to continue through April, 2011, at which time work will begin on revising the resource estimate for the deposit.
Springpole is an alkaline intrusive hosting a gold system that represents a potentially new style of Canadian Archean Shield gold deposit; Springpole shares many similarities with deposits such as the Cripple Creek gold deposit in Colorado. The Portage zone is hosted by a trachytic porphyry intrusion displaying polyphase autolithic breccias that contain gold mineralization of remarkably uniform grade. Other zones including East Extension, Camp and Main consist of high-grade veins and pods, hosted in diatreme breccias that are composed of intrusive and country rocks. The diatreme breccias surround the northwest and northern margins of the Portage zone. These mineralized zones underlie a total known area of about four square kilometres.
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 duplicates, standards 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, Ont., using a 30-gram charge, fire assay, with an ICP finish. For overlimit assay results, initial assays in excess of 10 grams per tonne Au, a gravimetric finish is utilized.
EAST EXTENSION ZONE RESULTS
From To Length Gold (grams Length Gold (oz
Hole ID (metres) (metres) (metres) per tonne) (feet) per ton)
SP10-013 9.0 26.0 17.0 0.50 56 0.015
39.0 41.0 2.0 1.28 7 0.037
54.0 60.0 6.0 0.45 20 0.013
74.0 78.0 4.0 1.65 13 0.048
101.0 109.0 8.0 0.72 26 0.021
122.0 124.0 2.0 3.45 7 0.101
SP10-014 0.0 27.0 27.0 0.35 89 0.010
43.0 52.0 9.0 0.61 30 0.018
66.0 120.0 54.0 0.64 177 0.019
includes 66.0 69.0 3.0 1.72 10 0.050
208.0 222.0 14.0 0.99 46 0.029
includes 219.0 221.0 2.0 4.47 7 0.131
SP10-015 77.0 97.0 20.0 0.60 66 0.018
includes 90.0 91.0 1.0 4.44 3 0.130
SP10-017 90.0 107.0 17.0 0.78 56 0.023
includes 92.0 94.0 2.0 3.39 7 0.099
Reported intervals apply a 0.34 gram per tonne gold (0.01 ounce per ton gold)
cut-off.
Internal dilution within reported intervals does not exceed core lengths of
eight metres.
All reported assay intervals are weighted.
One troy ounce equals 31.103 grams.
Conversion factor -- grams per tonne to troy ounces per short ton is g/t
divided by 34.2857 or g/t multiplied by 0.0292.
One metre equals 3.28 feet.
GOLD AND SILVER ASSAYS FROM HOLES SP10-007, -008, -009 AND -011
Previ-
ously Previ-
announ- ously
ced announ-
gold Silver ced Silver-
(grams (grams gold Silver to-
From To Length per per Length (oz per (oz per gold
Hole (m) (m) (m) tonne) tonne) (feet) ton) ton) ratio
SP10-007 33.0 250.0 217.0 1.57 7.44 712 0.046 0.217 4.74
includes 46.0 57.0 11.0 3.47 5.12 36 0.101 0.150 1.48
includes 76.0 79.0 3.0 3.83 2.93 10 0.112 0.086 0.77
includes 101.0 102.0 1.0 8.15 4.20 3 0.238 0.123 0.52
includes 124.0 143.5 19.5 2.92 12.16 64 0.085 0.355 4.16
includes 172.0 181.0 9.0 4.01 9.98 30 0.117 0.291 2.49
includes 187.0 204.0 17.0 2.22 22.71 56 0.065 0.663 10.23
includes 209.0 221.0 12.0 3.23 26.00 39 0.094 0.759 8.05
SP10-008 141.0 160.0 19.0 0.53 0.58 62 0.015 0.017 1.09
257.0 316.0 59.0 0.98 4.86 194 0.029 0.142 4.96
includes 280.0 282.0 2.0 11.26 4.20 7 0.329 0.123 0.37
328.0 451.0 123.0 1.45 9.71 403 0.042 0.284 6.70
includes 350.5 360.0 9.5 2.40 10.81 31 0.070 0.316 4.50
includes 376.0 391.0 15.0 3.69 40.94 49 0.108 1.195 11.09
SP10-009 3.0 167.0 164.0 1.02 2.68 538 0.030 0.078 2.63
includes 40.0 43.0 3.0 3.85 2.20 10 0.112 0.064 0.57
includes 56.0 71.0 15.0 3.81 6.37 49 0.111 0.186 1.67
includes 59.0 65.0 6.0 5.92 6.55 20 0.173 0.191 1.11
includes 121.0 124.0 3.0 2.80 1.57 10 0.082 0.046 0.56
includes 149.0 151.0 2.0 3.87 7.30 7 0.113 0.213 1.89
includes 164.5 167.0 2.5 3.17 36.72 8 0.093 1.072 11.58
214.0 226.0 12.0 1.08 29.35 39 0.032 0.857 27.18
244.0 321.0 77.0 1.74 6.53 253 0.051 0.191 3.75
includes 254.5 296.5 42.0 2.49 10.30 138 0.073 0.301 4.14
SP10-011 0.0 36.0 36.0 1.58 6.26 118 0.046 0.183 3.96
includes 24.0 32.5 8.5 3.16 17.21 28 0.092 0.503 5.45
73.0 128.0 55.0 0.50 4.44 180 0.015 0.130 8.88
140.5 155.0 14.5 0.70 0.43 48 0.020 0.013 0.61
169.0 187.0 18.0 0.46 0.75 59 0.013 0.022 1.63
229.0 323.0 94.0 2.51 10.69 308 0.073 0.312 4.26
includes 242.5 295.0 52.5 3.83 17.22 172 0.112 0.503 4.50
includes 258.0 261.0 3.0 15.69 42.43 10 0.458 1.239 2.70
In SP10-008, there was no recovery from 316 metres to 328 metres due to
broken ground. In SP10-009, zero to three metres is overburden. Also in
SP10-009, there was no recovery from 238 m to 244 m due to broken ground.
Mr. Hennigh, PhD, PGeo, and Mr. Roberts, MSc, PGeo, 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.
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