[Marinir] {Disarmed} Gold Canyon Announces Updated Resource Estimate for Springpole Gold Project

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http://www.goldcanyon.ca/s/Home.asp 

Gold Canyon Announces Updated Resource Estimate for Springpole Gold 
Project 

Gold Canyon Resources Inc. (TSX VENTURE: GCU 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=GCU&region=C&lookup=symbol&snapshot=default 

) (PINKSHEETS: GDCRF 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=GDCRF&region=U&lookup=symbol&snapshot=default 

) is pleased to announce an updated National Instrument 43-101 compliant 
resource estimate, effective February 27, 2012, for its 100% controlled 
Springpole Gold Project, located 110 kilometers northeast of the Red 
Lake, Ontario, Canada. This resource estimate is the first since the 
Company's original estimate prepared by P & E Mining Consultants Inc. on 
November 20, 2006 and includes approximately 39,000 metres of drilling 
completed in 2010-11. 

Highlights: 

Indicated mineral resource of 1.22 million ounces of gold and 4.82 
million ounces of silver. 

Inferred mineral resource of 2.45 million ounces of gold and 11.58 
million ounces of silver. 

Drilling continues at Springpole where Gold Canyon plans an additional 
50,000 meters of drilling in 2012. 

The updated estimate is summarized below: 

Tonnage Gold Grade Silver Grade Gold Contained Silver Contained 

(million metric (grams per (grams per (million troy (million troy 

Classification tonnes) tonne) tonne) ounces) ounces) 

Indicated 30.0 1.26 5.0 1.22 4.82 

Inferred 60.0 1.27 6.0 2.45 11.58 

Notes: 

(1) 1 troy ounce = 31.103 grams. 

(2) Cut-off grade of 0.4 grams per tonne gold. 

"The very positive news announced today is a testament to careful 
geological modelling, the hard work of project management and staff, and 
to the tenacity of Gold Canyon's management," states Dr. Quinton 
Hennigh, technical advisor to, and Director of, Gold Canyon. "Although 
the large size of this resource is impressive, we feel that the gold and 
silver grades are an equally important reflection of the high quality of 
the Springpole Project. This resource gives us a solid foundation upon 
which we believe we can quickly build significant upside through ongoing 
drilling in near-surface areas proximal to this resource, along the 
strike of the Portage Zone to the southeast, and at depth where drilling 
has recently encountered higher grade mineralization." 

Resource Modelling 

Mineral resources were estimated on the basis of a gold price of 
US$1,300/oz and US$15/oz for silver, both considered reasonable economic 
assumptions by the modeller. In order to establish a reasonable prospect 
of economic extraction in an open pit context, the resources above were 
defined within an optimized pit shell with pit walls set at 45 degrees; 
and estimated recovery of 80% for gold and 60% for silver; and mining 
costs estimated at US$2.00/tonne, processing costs estimated at 
US$12.00/tonne and general and administrative costs estimated at 
US$2.00/tonne. The cut-off grade used of 0.4 grams gold per tonne is 
considered to be an economically reasonable estimate of breakeven mining 
costs. 

Mineral resources were estimated by ordinary kriging using 3-D Gemcom 
block modelling software in 10 by 10 by 6 meter blocks. Grade estimates 
were based on capped, 3 meter composited assay data. Gold capping levels 
were set at 20 grams per tonne gold for the Portage Zone, 31 grams per 
tonne gold for the East Extension Zone and 12 grams per tonne gold for 
the Main Zone. Blocks were classified as indicated mineral resources if 
at least two drill holes and six composites were found within a 72 by 72 
meter search ellipse. All other interpolated blocks were classified as 
inferred mineral resource. 

This resource model includes mineralized material in the Main, East 
Extension and Portage zones spanning from geologic sections 0+1,150 m in 
the northwest to 0-150 m in the southeast. Along the axis of the Portage 
Zone, resource modelling includes mineralized material generally ranging 
from 240-360 meters below surface. 

Mineral resources that are not mineral reserves do not have demonstrated 
economic viability. The estimate of mineral resources may be materially 
affected by environmental, permitting, legal, title, taxation, 
sociopolitical, marketing, or other relevant issues. The quantity and 
grade of reported inferred resources in this estimation are uncertain in 
nature and there has been insufficient exploration to define these 
inferred resources as an indicated or measured mineral resource and it 
is uncertain if further exploration will result in upgrading them to an 
indicated or measured mineral resource category. The mineral resources 
in this news release were estimated using current Canadian Institute of 
Mining, Metallurgy and Petroleum (CIM) standards, definitions and 
guidelines. 

The Company is preparing a NI 43-101 compliant technical report in 
respect of the updated resource estimate discussed in this news release 
and will file the technical report on SEDAR within 45 days of the date 
this news release was disseminated. 

Dr. Gilles Arseneau ("Arseneau") has prepared the Mineral Resource 
Estimate for the Springpole Gold Project, and is independent of Gold 
Canyon for purposes of National Instrument 43-101 - Standards of 
Disclosure for Mineral Projects ("NI 43-101"). Gilles Arseneau (P.Geo.) 
is a Qualified Person as defined by NI 43-101. 

Future Plans 

Drilling continues at Springpole where Gold Canyon plans 50,000 meters 
in 2012. A winter drill program is presently underway with approximately 
4,000 meters of diamond core drilling having been completed since 
January 20, 2012. Two additional drill barges have been delivered across 
the winter road to the Springpole site bringing the total number of 
barges to four. Barge drilling is expected to commence following 
breakup, which is estimated to be sometime in May. 

Gold Canyon plans to focus approximately 80% of 2012's planned drilling 
at increasing the resource along the Portage Zone, including testing 
near-surface areas that currently have a low density of drilling, deeper 
areas where higher grade mineralization has been recently discovered ( 
127.5 meters at 3.51 grams per tonne gold in diamond drill hole SP11-106 
announced in a news release dated January 26, 2012 ) and along the 
southeast corridor where the deposit remains open for expansion. The 
remaining 20% of drilling will be directed at exploration elsewhere on 
the property. 

Gold Canyon and SRK Consulting (Canada) Inc. have recently initiated 
work on a preliminary economic assessment (PEA). Completion of this PEA 
is expected by early quarter four, 2012, and it will be accompanied by 
an updated NI 43-101 compliant resource estimate that includes some of 
the aforementioned 2012 drilling. 

Quinton Hennigh (Ph.D., P.Geo.) and Gilles Arseneau (Ph.D., P.Geo) are 
the Qualified Persons pursuant to National Instrument 43-101 responsible 
for, and have reviewed and approved, the technical information contained 
in this news release. Dr. Hennigh is a technical adviser to, and 
Director of, Gold Canyon and Dr. Arseneau is independent of Gold Canyon 
for purposes of NI 43-101. 

About Springpole 

Springpole is an alkaline intrusion hosting a gold system that 
represents a potentially new style of Canadian Archean Shield gold 
deposit. The Portage Zone is hosted by a trachytic porphyry intrusion 
displaying polyphase autolithic breccias that host gold mineralization. 
Other zones, including the East Extension and Main, consist of 
high-grade veins and pods hosted in diatreme breccias composed of 
intrusive and country rock fragments. These breccias surround the 
northwest and northern margins of the Portage Zone. The known 
mineralized zones underlie a total known area of about 4 square 
kilometers representing only about 15 percent of the greater alkaline 
intrusive complex which remains yet to be explored. 

Conference Call 

A conference call to discuss Gold Canyon and the resource estimate will 
be held at 9:00 A.M. (EST) on February 28, 2012. Investors are invited 
to participate by connecting to the call using one of the following 
dial-in numbers: 

Date: February 28, 2012 

Time: 9:00 A.M. Eastern Standard Time 

Dial in Number: Local / International: 647-426-1845 or 

North American Toll- Free: 1-866-782-8903 

About Gold Canyon Resources Inc.: 

Gold Canyon is engaged in the acquisition and exploration of mineral and 
precious metals properties. The Company controls a 100% interest in the 
Springpole Gold - Horseshoe Island Gold, Platinum, Palladium Project and 
Favourable Lake Poly-metallic property currently under option to Guyana 
Frontier Mining Corp. pursuant to an option and joint venture agreement 
entered into in December 2005 - all in the Red Lake Mining District of 
Ontario, Canada. 

Through its wholly owned U.S. subsidiary, Gold Canyon Resources USA 
Inc., the Company controls a 100% interest in the Cordero Gallium 
Project situated in Humboldt County, Nevada, U.S.A. 

Gold Canyon entered into a REE Joint Exploration Agreement with the 
Japan Oil, Gas and Metals National Corporation (JOGMEC) in January 2009. 

Additional information can be found on the Company's website: 
www.goldcanyon.ca 

http://www.goldcanyon.ca/ 

Cautionary Note to U.S. Readers Regarding Estimates of Measured, 
Indicated and Inferred Resources 

This news release uses the term "inferred resources." We advise U.S. 
investors that while this term is recognized and required by Canadian 
regulations, it is not recognized by the SEC. "Inferred resources" have 
a great amount of uncertainty as to their existence, and great 
uncertainty as to their economic and legal feasibility. It cannot be 
assumed that all or any part of an "inferred mineral resource" will ever 
be upgraded to a higher category. Under Canadian rules, estimates of 
"inferred mineral resources" may not form the basis of a feasibility 
study or prefeasibility studies, except in rare cases. The SEC normally 
only permits issuers to report mineralization that does not constitute 
"reserves" as in-place tonnage and grade without reference to unit 
measures. The term "contained gold ounces" used in this news release is 
not permitted under the rules of the SEC. U.S. investors are cautioned 
not to assume that any part or all of a measured, indicated or inferred 
resource exists or is economically or legally mineable. 

Cautionary Note Regarding Forward Looking Statements 

This news release contains statements that constitute "forward looking 
statements" within the meaning of the United States Private Securities 
Litigation Reform Act of 1995 or "forward looking information" within 
the meaning of applicable Canadian provincial securities legislation 
(collectively, "forward-looking statements"). Forward-looking statements 
often, but not always, are identified by the use of words such as 
"seek", "anticipate", "believe", "plan", "estimate", "expect", 
"targeting" and "intend" and statements that an event or result "may", 
"will", "would", "should", "could", or "might" occur or be achieved and 
other similar expressions. Forward-looking statements in this news 
release include statements regarding the timing and nature of permitting 
studies, the timing and nature of infrastructure developments and 
construction, projections of future optimization, production timeline 
targets, the timing of negotiations with third parties, and the timing 
and nature of future exploration programs which are dependent on 
projections which may change as drilling continues, or if unexpected 
ground conditions are encountered. In addition, areas of exploration 
potential are identified which will require substantial drilling to 
determine whether or not they contain similar mineralization to areas 
which have been explored in more detail. The description of the extent 
of mineralized zones is not intended to imply that any economically 
mineable estimate of reserves or resources exists on any of Gold 
Canyon's projects. 

The forward-looking statements that are contained in this news release 
are based on various assumptions and estimates by Gold Canyon and 
involve a number of risks and uncertainties. As a consequence, actual 
results might differ materially from results forecast or suggested in 
these forward-looking statements. Forward-looking statements involve 
known and unknown risks, uncertainties, assumptions and other factors 
that may cause the actual results, performance or achievements of Gold 
Canyon to be materially different from any future results, performance 
or achievements expressed or implied by the forward-looking statements. 
Factors that could cause the actual results to differ include; risks 
relating to fluctuations in the price of gold; the inherently hazardous 
nature of mining-related activities; uncertainties concerning resource 
estimates; results of exploration, availability of capital and financing 
on acceptable terms, inability to obtain required regulatory approvals, 
unanticipated difficulties or costs in any rehabilitation which may be 
necessary, market conditions and general business, economic, 
competitive, political and social conditions. These statements are based 
on a number of assumptions, including assumptions regarding general 
market conditions, timing and receipt of regulatory approvals, the 
ability of Gold Canyon and other relevant parties to satisfy regulatory 
requirements, the availability of financing for proposed transactions 
and programs on reasonable terms and the ability of third-party service 
providers to deliver services in a timely manner. Although Gold Canyon 
has attempted to identify important factors that could cause actual 
results to differ materially from those expressed or implied in 
forward-looking statements, there may be other factors which cause 
actual results to differ. Forward-looking statements contained herein 
are made as of the date of this news release and Gold Canyon disclaims 
any obligation to update any forward-looking statements, whether as a 
result of new information, future events or results or otherwise, except 
as required by applicable securities laws. There can be no assurance 
that forward-looking statements will prove to be accurate, as actual 
results and future events could differ materially from those anticipated 
in such statements. Accordingly, readers should not place undue reliance 
on forward-looking statements. 

Neither the TSX Venture Exchange nor its Regulation Services Provider 
(as that term is defined in the policies of the TSX Venture Exchange) 
accepts responsibility for the adequacy or accuracy of this news 
release. 

Gold Canyon Resources Inc. 

Akiko Levinson 

President & Director 

(604) 682-3234 or Toll free: 1 (888) 242-3234 

(604) 682-0537 (FAX) 

info at goldcanyon.ca 

www.goldcanyon.ca 

http://www.goldcanyon.ca 

Investor Relations: 

Leo Karabelas 

(416) 543-3120 

leo at frontlineir.com 

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