Gold Canyon drills 1,100 g/t Ag at Favourable Lake

2008-04-21 06:16 ET - News Release

Mr. Akiko Levinson reports

GOLD CANYON REPORTS PROGRESS ON FAVOURABLE LAKE POLYMETALLIC PROJECT

Gold Canyon Resources Inc. has made developments in the winter 2008 program at the Favourable Lake polymetallic property located in the Red Lake mining district of Ontario, Canada. Gold Canyon entered into a mineral property option agreement with Shoreham Resources Ltd. on Dec. 22, 2005.

Further to a press release issued in Stockwatch on Wednesday, April 16, 2008, by project operator (Shoreham) David Bending, MSc, PGeo, and Dr. G.H. Cameron, MSc, PhD, AusIMM, qualified persons pursuant to National Instru,ent 43-101, are responsible for the planning, completion and interpretation of the results disclosed in this release.

As per news released by Shoreham relating to the Borland Lake silver target on the property, "Shoreham's field team had collected 11, one-metre diamond saw cut samples (four outcrops represent a cumulative width of 10 metres, but the sampling is not continuous and the mineralized material continues beyond the sampled intervals). Of the 11 samples previously submitted to the lab for assay, five were returned as over limit silver values exceeding the analytical limits of 300 grams per tonne.

Sample  Width metres   Au ppb     Ag grams/t   Pb %     Zn %

BLG001             1    1,030  less than 0.3   1.09     0.17
BLG002             1    2,400        1,100.0   1.33     1.96
BLG003             1    1,740          621.0   0.29     1.42
BLG004             1      644          426.0   0.54     0.99
BLG005             1      114           30.5   0.04     0.08
BLG006             1    1,700          130.0   0.14     0.05
BLG007             1    1,150          442.0   0.57     1.60
BLG008             1      113           31.4   0.09     0.12
BLG009             1        6            4.7   0.09     0.12
BLG010             1      608          627.0   0.22     0.16
BLG011             1      910          144.0   0.04     0.03

As can be seen, results include one-metre intervals ranging in silver concentration from less than 0.3 gram per tonne to 1,100 grams per tonne; gold values range from six parts per billion to 2,400 parts per billion; lead concentrations from 0.04 per cent to 1.09 per cent; and zinc concentrations from 0.3 per cent to 1.96 per cent. SGS Laboratory in Red Lake, Ont., assayed these samples.

Shoreham contracted Quantec Geoscience Ltd. to complete a Titan 24 DCIP and MT survey to aid in the evaluation and exploration of the Borland Lake silver-mineralized zone. This survey was completed March 15, 2008, and the results are being processed at this time. The program was designed to confirm and define the geometry of the known mineralized shoots and expand the targets. The camp, fuel and supplies for Shoreham's drilling program were mobilized to a centralized location using the winter roads, but mobilization of the drilling program was delayed pending talks with the Sandy Lake First Nation.

The company plans to test the targets using air-supported drilling when the land-use protocols have been finalized with the first nation. David Bending, president and chief executive officer of Shoreham Resources Ltd., reports, "The Borland Lake silver target was the main attraction for Shoreham in the Favourable Lake option agreement, and we are excited by the opportunity to proceed with the exploration work in an attempt to validate and expand this important target."

Gold Canyon's exploration efforts in Canada are currently centred around the Red Lake mining camp in Northwest Ontario. The Springpole-Horseshoe Island project is 70 miles to the east, and the Favourable Lake and Bear Head projects are 120 miles to the north of Red Lake.

We seek Safe Harbor.