Canasil Drilling Intersects Both High-Grade and Disseminated Mineralization in Three Veins at Sandra-Escobar Project in Durango State, Mexico
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/06/11 -- Canasil Resources Inc. (Canasil) (TSX VENTURE: CLZ)(DB Frankfurt: 3CC) announces that the initial 6 drill holes for a total of 682 metres drilled to test four different silver-gold veins at the Sandra-Escobar project in northern Durango State, Mexico, has returned mineralized intercepts from three veins. These included a high-grade intercept of 0.65 metres carrying 429 g/t silver, 2.58 g/t gold and 0.53% copper from the Maria Fernanda vein, an intercept of 2.06 metres carrying 121 g/t silver from the Candelaria vein, and an intercept of 0.45 metres carrying 121 g/t silver, 6.62% zinc and 1.79% lead from the El Encino vein. A wider 10.64 metre intercept of lower grade silver mineralization was cut at the footwall of the El Encino vein carrying 18 g/t silver, 0.76% zinc and 0.29% lead. The narrow high-grade silver-gold intercept seen at the Maria Fernanda vein is typical of the vein systems in the Guanacevi district and similar to the veins being successfully mined by Endeavour Silver Corp. and Great Panther Silver Corp. in this district. The occurrence of a wider intercept with lower grade silver mineralization at the El Encino vein points to the possibility of a larger zone of disseminated silver mineralization in this area. Details of the drill results are included in the table below.
Bahman Yamini, President of Canasil commented: 'We are pleased with the results from the initial reconnaissance drill holes testing the veins at the Sandra-Escobar project. Only one or two holes were drilled to a relatively shallow depth in each of these veins to test if the mineralization seen at surface would be found at a depth of 50 metres to 100 metres. The discovery of mineralization below surface in these veins is very encouraging and now warrants further drilling along strike and at depth to investigate these veins, which occur over an overall strike distance of over 3 kilometres. The high-grade silver-gold Maria Fernanda vein can be traced on surface over a strike distance of 500 metres and together with the other veins presents the opportunity for further positive results from more drilling along strike and at depth.'
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Sandra-Escobar Reconnaissance Drill Program - Veins
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From To Width True W Au Ag Cu Pb Zn
Hole No. m m m m g/t g/t % % %
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Maria Fernanda Vein
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SE-11-02 72.94 73.69 0.75 0.65 2.58 429 0.53 0.06 0.07
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El Encino Vein
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SE-11-05 88.00 88.50 0.50 0.45 0.22 121 0.08 1.79 6.52
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SE-11-05 88.93 103.10 11.67 10.64 0.03 18 0.01 0.29 0.76
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Candelaria Vein
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SE-11-06 47.80 49.90 2.10 2.06 0.005 126 0.00 0.14 0.19
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Including:
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SE-11-06 47.80 48.90 1.10 1.08 0.005 161 0.00 0.09 0.16
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Further diamond drilling is currently in progress to test a large argillic-silica altered porphyry-breccia target on the south-eastern fringe of the Cerro Rojo rhyolitic dome complex. The mineralized veins are located on the periphery of this target. The additional drill holes will be completed within two to three weeks with assays published when available.
The drill program is supervised and carried out by the Company's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V., under the direction of Erme Enriquez CPG, Director of Exploration and Development. Samples were sent to ALS Chemex Laboratories in Zacatecas, Mexico, for preparation and on to ALS Chemex in North Vancouver, B.C. Canada, for assay analysis for gold and silver by fire assay with an atomic absorption finish ('FA-AA') on a 30 gram split, and for copper, lead and zinc by digestion of 1.00 gram sample in aqua regia and analysis by AA. Gary Nordin, P. Geo. British Columbia and Director of Canasil, is the designated Qualified Person in accordance with National Instrument 43-101.
The Sandra-Escobar project is located in northern Durango State, Mexico, 200 kilometres northwest of the city of Durango with excellent access and infrastructure, on an important mineral trend with many past and presently producing silver-gold mines and deposits. The project area hosts a mineralized system centered on a large altered rhyolite dome complex, with surrounding geological formations, alteration patterns, and extensive evidence of gold, silver and base metal mineralization. These features indicate the potential for hosting a large disseminated gold-silver-base metal mineralized system. A number of high-grade silver-gold veins surround the dome area.
Canasil holds 100% interest in the 7,451 hectares Sandra project claims, and has entered into an option agreement with Pan American Silver to earn 51% interest in Pan American's 634 hectares adjoining Escobar project claims. Canasil's exploration expenditures will go towards completing the initial $1,000,000 work commitment to earn 51% interest in the Escobar claims. Pan American will then have a back-in right to acquire a 51% interest in the combined claims by paying three times exploration expenditures incurred.
About Canasil:
Canasil is a Canadian mineral exploration company with interests in precious and base metal projects in Durango, Sinaloa and Zacatecas States, Mexico, and in British Columbia, Canada. The Company's directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of its mineral properties.
To view the map accompanying this press release please visit the following link: http://canasil.com/news_releases/
Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contacts:
Canasil Resources Inc.
Bahman Yamini
President and C.E.O.
(604) 709-0109
www.canasil.com