VANCOUVER, British Columbia, Oct. 31, 2006 (PRIMEZONE) -- Gold Canyon Resources Inc. (TSX-V:GCU) ("Gold Canyon" or "the Company") is pleased to announce that as part of our overall exploration development plans, our exploration team has discovered significant uranium mineralization 3 kilometers west of any historic occurrences previously reported along the main Bear Head Fault Zone (BHFZ).
The Bear Head Uranium Project covers a 23 kilometer strike-length of the BHFZ and only the eastern-most 8 kilometers of the property have previously generated any uranium occurrences of significance. The new discovery, returning 0.06% uranium over 3 meters from a hand-held GR-135G Spectrometer, is located on the south shore of Favourable Lake. Generally, it is assumed for exploration purposes that deposits with sufficient widths and volume grading 0.02% U308 (0.4 lbs.) might support a large open pit, or 0.1% U308 (2 lbs.) an underground mining operation.
The main uranium trend is associated with the BHFZ, a major structural deformation zone of intense shearing striking N70 degrees W with dips varying from 60 degrees to 90 degrees to the south. It has been postulated that movement along this zone focused hydrothermal solutions derived from a deep-seated magma with assimilated sediments to deposit uraninite in en-echelon shears. These en-echelon, concordant shears host numerous zones of pegmatite lenses comprising quartz, feldspar and biotite with minor amounts of molybdenite, chalcopyrite, pyrite, magnetite and uraninite.
The new discovery, a westward extension of the known mineralization, is hosted in thick, biotite-rich sills rather than the narrow pegmatite dykes targeted by previous workers. The exploration team is excited to confirm that there is the potential to discover uranium mineralization over significant widths anywhere along the 23 kilometer target zone.
Gold Canyon's exploration efforts in Canada are currently centered around the Red Lake Mining Camp in north-west Ontario. The Springpole Lake Project is 70 miles to the east, and the Favourable Lake and Bear Head Projects are 120 miles to the north of Red Lake. Projects to the north may be accessed directly by winter roads connecting Native settlements to Red Lake. The Government of Ontario has recently pledged a budget to support the regional infrastructure and maintenance of these roads. This will greatly decrease the cost of future winter drill programs and the transport of heavy equipment and supplies necessary for exploring this area.
The Company controls a 100% interest in the Springpole Gold Project and the new Bear Head Uranium Project which is adjacent to their Favourable Lake Poly-metallic property currently under option to Shoreham Resources Inc. pursuant to an option and joint venture agreement entered into in December, 2005.
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.
All four properties are advancing as per the Company's overall development plans with upcoming announcements regarding specific results anticipated to be released over the next few weeks.
Additional information can be found on the Company's website: www.goldcanyon.ca.
This Press release has been reviewed by Garry K. Smith, P.Geo , an independent Qualified Person under the meaning of National Instrument 43-101.
Akiko Levinson President and Director
Certain statements contained in this news release using the terms "may", "expects to ", "projects ", "estimates ", "plans ", and other terms denoting future possibilities, are forward-looking statements in respect to various issues including upcoming events based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. The future conduct of the Company's business and the feasibility of its mineral exploration properties are dependent upon a number of factors and there can be no assurance that the Company will be able to conduct its operations as contemplate and the accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company's disclosure documents and its annual, quarterly and current reports; the fact that exploration activities seldom result in the discovery of a commercially viable mineral resource and are also significant amounts of capital to undertake and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.
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