U.S. REPORT Noranda to explore Blue Dog

Ongoing exploration of the Blue Dog gold project near Weiser, Idaho, is to be managed by a unit of Noranda (TSE) under the terms of a recent agreement-in-principle with Gold Canyon Resources (VSE). Should all phases of the proposed programs be completed and Noranda provide Gold Canyon with 25% of the capital costs of production, the major will receive sufficient treasury shares to give it a 60% interest in Gold Canyon.

Gold Canyon also entered into a more recent agreement with Bradner Resources (VSE) which will result in Gold Canyon holding a 100% interest in the Blue Dog project. To acquire the additional interest, Gold Canyon will issue two million of its shares to Bradner over a period of three years.

A geological resource of three million tons grading 0.05 oz. gold has been identified on the Blue Dog property, and recent work is reported to have outlined a second zone of silicification southeast of the main gold zone. Ongoing exploration is expected to be focused on identifying drill targets associated with gold-in-soil anomalies at the south end of the property.

The Blue Dog property adjoins the Chandler property which is operated by 25% owner, Silver Standard Resources (VSE). Other joint venture partners are Carlin Resources (VSE) with a 25% interest, and Bradner Resources with a 50% interest.