EXPLORATION 1998 — New target at Springpole

Exploration by Gold Canyon Resources (GCU-V) has identified a new drill target at the Springpole Lake gold property, 70 miles from the Red Lake mining district of northern Ontario.

The target area is 2 miles southeast of the main camp, where drilling by the company and previous operators had focused on the Portage zone and other nearby zones.

The Johnson Lake target area is believed to have geological characteristics and a geophysical signature similar to that of the Portage zone, but on a larger scale. The new target coincides with an extensive lake-bottom sediment geochemical anomaly.

The target was tested by a recent hole that returned 1,100 ft. of oxidized and highly altered alkalic intrusive rocks with anomalous gold values. The next phase of work is being planned.

Gold Canyon completed 18 holes in the core area of the Springpole property, with mixed results.

The best result from the Hillside zone was 122.6 ft. grading 0.139 oz. gold per ton (from 17 to 139.6 ft.), which includes 28 ft. of 0.2 oz., 32 ft. of 0.1 oz., and 31.6 ft. of 0.22 oz.

The best results from the East Extension zone were 15 ft. of 0.27 oz., 8.5 ft. of 1.54 oz., and 3.6 ft.

of 0.26 oz. Several holes in other areas returned gold values of 0.1 oz. or less.