Gold Canyon Updates Progress at its Chambe Basin REE Project, Malawi
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/09/12 -- Gold Canyon Resources Inc. (TSX VENTURE: GCU)(PINKSHEETS: GDCRF) ("Gold Canyon" or "the Company") is pleased to announce Phase II work has begun at its Chambe Basin rare earth elements (REE) project in Malawi, Africa. The Chambe Basin REE Project, covered by a 400 sq km prospecting license, is being explored through a Project Venture Agreement (PVA) between Gold Canyon (33%) and partner, Japan Oil, Gas and Metals National Corporation (JOGMEC; 67%), and belongs to the Company's wholly owned joint venture subsidiary, Spring Stone Limited, a Malawi Corporation. Mitsui Mineral Development Engineering Co., Ltd (MINDECO) of Japan is the contract operator of the program.
Situated on the west side of Mount Mulanje, Chambe Basin hosts clay-type REE deposits (see NI 43-101 compliant technical report prepared by Peter C. Le Couteur, PH.D, P. ENG., an independent qualified person, dated December 2, 2011 and available through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com). Phase I drilling in 2011, within the approximately 3.2 km diameter circular basin, encountered a surficial horizon of REE-bearing kaolinite/halloysite clay ranging from 3 to 26 meters thick. Analysis of core from these holes indicates this clay contains comparable levels of total REE's to its Chinese counterparts as well as similar Heavy REE enrichment. Very low radioactivity is associated with clays at Chambe, a potentially positive metallurgical attribute. Initial leach testing conducted at the Corporate R & D Center of Mitsui Mining & Smelting Co., Ltd indicates the recovery of REE's may be possible through simple leaching of this clay using simple ionic solutions like those employed in China, followed by precipitation of REE carbonates.
Phase II work encompasses drilling of 167 shallow core holes on a staggered 200 meter grid across Chambe Basin. MINDECO will undertake extensive metallurgical testing of clay samples from these holes to determine the leachability of REE's and the quality and composition of resulting REE carbonate concentrates. In addition to drilling, extensive baseline environmental work is underway including study of how indigenous vegetation could be regenerated to Chambe Basin as part of future development of the site. Work completed in 2012 should advance the Chambe Basin REE project toward prefeasibility by mid-2013. The total budget for Phase II work is approximately US$4 million of which Gold Canyon contributes 33%.
Quinton Hennigh, Ph.D., P.Geo. is the Qualified Person pursuant to NI 43-101 responsible for, and has reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical adviser to, and a director of, Gold Canyon.
MINDECO is a 100% owned subsidiary of Mitsui Mining and Smelting Co., Ltd. It was established in 1981 in response to public sector demand for geo-environmental consultation and exploration of geological resources such as minerals, geothermal resources and groundwater.
JOGMEC is a government organization established under administration of the Japanese Ministry of Economy, Trade and Industry, and is responsible for fostering international exploration and development of strategic minerals, amongst other mineral and petroleum related activities.
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
Akiko Levinson, President & Director
Certain statements contained in this news release using the terms "may", "expects to", "project", "estimate", "plans", and other terms denoting future possibilities, are forward-looking statements in respect to various issues including upcoming events based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. The future conduct of the Company's business and the feasibility of its mineral exploration properties are dependent upon a number of factors and there can be no assurance that the Company will be able to conduct its operations as contemplated and the accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company's disclosure documents and its annual, quarterly and current reports; the fact that exploration activities seldom result in the discovery of a commercially viable mineral resource and are also significant amounts of capital to undertake and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.
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.
Contacts:
Gold Canyon Resources Inc.
(604) 682-3234 or Toll free: 1 (888) 242-3234
(604) 682-0537 (FAX)
info@goldcanyon.ca
www.goldcanyon.ca
Gold Canyon Resources Inc.
Leo Karabelas
Investor Relations
(416) 543-3120
leo@frontlineir.com
