VANCOUVER, British Columbia, Nov. 7, 2006 (PRIMEZONE) -- Gold Canyon Resources Inc. (TSX-V:GCU) (the "Company") is pleased to announce the completion of the first National Instrument 43-101 compliant gold resource estimate for the Core Area of the Springpole Gold Project, located in the Red Lake Mining District of Ontario, Canada. The resource estimate of 243,000 ounces of gold (please see the table below to identify the measured, indicated and inferred categories) was received from P & E Mining Consultants Inc., independent mining consultants and Qualified Persons. The Core Area occupies approximately 500 acres of the 20,000 acres of land held by the Company in this Project.
Defined over a strike length of 1,400 metres and a maximum vertical depth of 575 metres, this resource estimate states that the gold mineralization is open at depth with the constraining domains being terminated down dip by only the lack of sufficient drill hole density and not from the lack of mineralization in the sampled intervals.
At a cut-off of grade of 1.0 g/t (grams per tonne) gold, the open pitable resource has contained gold of 33,000 ounces in the measured and indicated category, in addition to 46,200 ounces in the inferred category. Average grade of the open pitable measured and indicated resource is 5.78 g/t gold and 4.16 g/t gold for the inferred resource.
At a cut-off grade of 2.5 g/t gold, the underground resource has contained gold of 12,500 ounces in the measured and indicated category, in addition to 150,900 ounces in the inferred category. Average grade of the underground measured and indicated resource is 5.35 g/t gold and 4.66 g/t gold for the inferred resource.
Grade capping for the purpose of this calculation was performed at 40 g/t gold for all constrained mineralization. A total of 7,867 assays were constrained for the resource calculation, of which only 71 (0.9%) were capped resulting in a coefficient of variation for 0.75 metre composites of 2.39. Search ellipsoid ranges determined from variography were 20 metre down dip and 20 metre along strike. Drilling was completed on approximate 7.5 metre and 15 metre section spacing.
Tonnages were calculated using a bulk density of 2.88 tonnes per cubic metre which is the average of measurements from representative samples taken by the Qualified Person and submitted to ALS Chemex, Mississauga. Modeling grade blocks were sized at 4.5m x 4.5m x 4.5m with variable percentage of domain inclusion so as to accurately represent model volumes. Inverse distance cubed (ID3) interpolation was used to determine the gold grade block values.
This resource estimate is calculated using an internal cut-off grade of 1.0 g/t gold for open pitable resources and 2.5 g/t gold for underground resources. A Whittle 4X optimized pit shell was used to determine the demarcation between open pit and underground resources.
OPEN PIT RESOURCE @ 1.0 g/t GOLD CUT-OFF GRADE
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Contained
Classification Tonnes Au g/t Au Oz
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Measured 31,000 6.20 6,200
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Indicated 146,000 5.69 26,800
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Measured &
Indicated 177,000 5.78 33,000
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Inferred 345,000 4.16 46,200
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UNDERGROUND RESOURCE @ 2.5 g/t GOLD CUT-OFF GRADE
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Contained
Classification Tonnes Au g/t Au Oz
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Measured 4,000 6.79 900
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Indicated 68,000 5.27 11,600
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Measured &
Indicated 72,000 5.35 12,500
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Inferred 1,008,000 4.66 150,900
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TOTAL RESOURCE
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Contained
Classification Tonnes Au g/t Au Oz
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Measured 35,000 6.27 7,100
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Indicated 214,000 5.56 38,400
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Measured &
Indicated 249,000 5.66 45,500
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Inferred 1,353,000 4.53 197,100
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1) Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral
resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues.
2) The quantity and grade of reported inferred resources in this
estimation are conceptual in nature and there has been
insufficient exploration to define these inferred resources
as an indicated or measured mineral resource and it is
uncertain if further exploration will result in upgrading
them to an indicated or measured mineral resource category.
The exploration team of Gold Canyon is excited to now have a modern, and legally recognized, resource estimate to work from. The statistics used to model this independent resource estimate confirms the Company's belief that normal exploration drilling does not always return an accurate measure of the gold contained in some of the higher grade areas of the Core Area where significant amounts of visible gold occur. The elusive nature of high grade gold deposits, typical of the Red Lake Gold Camp, has challenged exploration teams since the earliest discoveries in the area.
Based on these results the Company will consider more advanced methods of exploration for the Core Area mineralization while continuing our exploration efforts on other highly prospective target zones at Springpole, where we believe there is the potential for discovering additional gold deposits.
This news release has been reviewed and approved by Eugene Puritch, P.Eng. of P & E Mining consultants Inc., a Qualified Person under the NI 43-101.
Eugene Puritch, P.Eng., Tracy Armstrong, P.Geo. and Antoine Yassa, P.Geo. of P & E Mining Consultants Inc. prepared the mineral resources estimate in this press release using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
The NI 43-101 Technical Report is currently being finalized by P & E Mining Consultants Inc. and the details of the Resource Estimates can be found in that report which will be filed on SEDAR as soon as that is made available to the company. The map of Springpole Gold Project will be posted on our website www.goldcanyon.ca under "Latest News."
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 over 20,000 acres of the Springpole Gold Project, the Favourable Lake Poly-metallic Project and Bear Head Uranium Project 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.
Additional information can be found on the Company's website: http://www.goldcanyon.ca.
Akiko Levinson, President & 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.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.