Gold Canyon Receives More High Grade Results at Springpole
VANCOUVER, British Columbia–(BUSINESS WIRE)–March 22, 2004
Gold Canyon Resources Inc. (TSX VENTURE:GCU) (“Gold Canyon” or “the Company”) is pleased to report the following results from the recently completed 2004 winter drilling program at its Springpole Gold Project. Hole BL 292 encountered 51.4 feet assaying 0.370 ounces of gold per ton (“opt Au”), including 10.1 feet of 1.264 ounces per ton. This hole was drilled in the East Extension Zone, 50 feet westerly of hole BL 291 (reported in News Release dated March 8, 2004). Re-sampling of hole BL 3 resulted in 11.4 feet which averaged 1.262 opt Au. This hole was drilled in 1987 in what is known as the Hillside Zone. The reader is referred a detailed discussion of sampling procedure and treatment of values in reference to BL 3 on page two of this news release. Hole BL 303 was drilled to test the up-dip projection of the mineralization in BL 3.
Coupled with the results already announced from this program, the Company is very encouraged by results from the remodelling at Springpole. After this press release roughly 1/3 of the drill samples remain outstanding.
Hole Length From To Avg.
Feet Feet Feet Au oz / ton
BL 289 No Significant Intervals
BL 290 4.3 208.5 212.8 0.327
BL 291 3.8 146.0 149.8 0.431
BL 292 51.4 82.0 133.4 0.370
Including 10.1 118.6 128.7 1.264
BL 296 1.5 194.8 196.3 2.975
1.1 209.6 210.7 0.210
BL 298 0.8 24.8 25.6 0.254
176D 5.0 377.0 382.0 0.155
178D No Significant Intervals
BL 3 (drilled in 1987) 11.4 155.6 167.0 1.262
Composited from the following intervals
Sampled in 1987 2.4 155.6 158.0 2.510
Sampled in 2004 (weighted) 9.0 158.0 167.0 0.929
East Extension Zone Drilling
As reported previously, Holes BL 291, BL 292, BL 295, and BL 296 together with the extensions of BL 176D, and BL 178D were all completed in the East Extension Zone. Partial results were previously reported for holes BL 291 and BL 296. The intercept reported herein, for hole BL 291 corresponds well with the projected deepest high grade target for that hole. In all, the targeting in Hole BL 291, intersected mineralization consistent with all modelled targets. It also intersected additional high grade mineralization, which appears to have been straddled by previous drilling.
Hole BL 292, drilled approximately 50 feet west of, and parallel to BL 291, intersected a larger mineralized zone than was anticipated. The 51.4 feet, from 82.0 to 133.4 feet averaged 0.370 opt Au, including 10.1 feet from 118.6 to 128.7 which averaged 1.264 opt Au. Mineralization was first encountered as targeted, but rather than the three separate mineralized strands as modelled, mineralization in this hole appears to have blossomed near the hinge area of a folded contact between intermediate, and mafic volcanics. This mineralization while much more extensive than projected, compares well with that found in adjacent drill holes in all respects, and confirms the continuity of high grade gold mineralization in this area of the East Extension Zone.
In addition to the intercepts already announced, additional intercepts received for hole BL 296 include 1.5 feet from 194.8 to 196.3 feet with an average grade of 2.975 opt Au, and 1.1 feet from 209.6 to 210.7 with a grade of 0.210 opt Au. The intercepts reported previously for 296 remain as reported. Hole BL 296 is roughly 480 feet east-south-east of holes BL 291 and BL 292.
Camp, Main, Vein, and Hillside Zones
Results received to date verify the validity of the Company’s high grade modelling. Holes BL 280, BL 281, and BL 298 were designed to test up and down rake continuity of mineralization intersected in hole BL 160. As reported on March 8, 2004 BL 280 successfully tested the down dip projection of mineralization on this section, and visible gold was observed in hole BL 298 in the interval from 24.8 to 25.6 feet. This corresponded well with the up dip projection of mineralization from hole BL 160. This narrow interval assayed 0.210 opt Au, and while narrower than anticipated, confirms the geologic continuity of mineralization here.
Re-sampling of historic drill hole BL 3 returns 11.4 feet at 1.262 opt Au
Review of hole BL 3, located at 1000 E and 746 N was performed as part of the 2004 drilling program. BL 3 was drilled and sampled in 1987 and a high grade interval of 2.51 opt Au over 2.4 feet (from 155.6 to 158.0 feet) was reported at that time. This re-examination revealed the presence of visible gold in the interval between 164.8 and 166.5 feet, situated just below the historic intercept. As a result of inadequate sampling techniques, the sampling failed to include the vein which carried the visible gold. This single sample from 164.8 to 166.5 feet returned a value of 8.838 opt Au over the 1.7 foot sample interval. When combined with the historic high grade intercept, a composite 11.4 foot long core intercept from 155.6 to 167.0 feet averaged 1.262 opt Au.
The split core was re-sampled by carefully quartering the core by diamond sawing, taking care to make sure the core was cut normal to the observed gold mineralization. Sample intervals were selected based on the presence of wood footage blocks, and footage marks clearly visible on the core, thereby assuring the sampled intervals and lengths are representative and true.
For purposes of calculating the average grade, because the core had previously been split, all re-sample assay results were averaged with the historic assays for the appropriate intervals on a length weighted basis. The length weighted average composite grade for this zone, including all relevant historic samples, is 1.262 opt Au over the 11.4 foot interval from 155.6 to 167.0 feet. Analytical values for standards submitted with these re-samples are within the 95% confidence level of the stated value of the standard samples.
BL 303 was drilled as part of the 2004 winter drilling to test the up dip projection of mineralization in BL 3. Results are pending.
Management continues to be very encouraged by these positive results. The results achieved to date substantially validate the high grade model proposed for Springpole.
All analyses reported herein were performed by SGS Laboratories. Certified sample standards prepared by Ore Research & Exploration Pty Ltd., were submitted with the normal sample stream sent to the laboratory, and ten percent of the samples are being sent to Chemex Laboratories for check assay. Pending analyses will be announced when available.
Robert G. Carrington, Registered Professional Geologist, of Carrington Consultants is the Company’s qualified person on the Springpole project and has overseen the current exploration program.
Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties and currently owns and operates the Springpole Gold Project in the Red Lake Mining District of Ontario, Canada and its Cordero Gallium Project in Humboldt County, Nevada, U.S.A. Additional information can be found on the Company’s website: http://www.gcu-vse.com.
GOLD CANYON RESOURCES INC.
Chief Executive Officer
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