Gold Canyon tests high-grade targets at Springpole (December 09, 2005)

Vancouver With results from 2005 drilling in hand, Gold Canyon Resources (GCU-V) says it has confirmed the presence of ‘bonanza-grade’ mineralization at its Springpole property in the Red Lake district of Ontario. The company plans to carry out more drilling next year to delineate resources compliant with National Instrument 43-101 reporting standards.

Gold Canyon has been exploring the property intermittently for more than a decade, with the original focus being on low-grade, bulk-tonnage targets. Director Duncan Riesmeyer says the emphasis now is on land-based, vein-type deposits similar to others in the Red Lake camp.

In the 2005 program, the company tested three main targets – the Core, Southwest Target, and Sandy Point areas – with 34,000 feet of diamond drilling. The bulk of the drilling (about 24,000 feet) tested the Core area, which includes the East Extension Bonanza zone where the main chute of ‘bonanza-style’ gold mineralization was defined.

The length-weighted average for all holes drilled across the East Extension Bonanza zone is 1.14 oz. gold per ton over an average intercept length of 8.8 feet. The zone was extended nearly 500 feet down rake, and remains open down-rake to the east-southeast, with potential to develop mineralization along strike to the west.

Other zones in the Core area typically returned lower grade or anomalous values, though some narrow higher-grade intervals were returned from wedge drilling in the Main and Vein zones. No significant results were returned from the Southwest Target area. One drill-hole tested the Sandy Point area and returned two narrow intervals with values of 0.42 oz. gold and 0.032 oz. gold.

Gold Canyon is compiling results from this year’s program, which also included mapping, channel and geochemical sampling, and will use the data to plan next year’s drill program. Assuming continued positive results from the East Extension Bonanza zone, the company would drive a decline to extract a bulk-sample for metallurgical testing and to get a better handle on grade and continuity.