Canasil Resources Inc.: MAG Silver Receives Phase 2 Drill Permit and Completes 2012 Option Payment on Canasil's La Esperanza Project in Durango and Zacatecas States, Mexico
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/04/12 -- Canasil Resources Inc. ("Canasil") (TSX VENTURE: CLZ)(FRANKFURT: 3CC) announces that MAG Silver Corp. (TSX: MAG)(NYSE Amex: MVG) ("MAG") has received the drill permit for the planned Phase 2 drill program at Canasil's La Esperanza silver-zinc-lead project in Durango and Zacatecas States, Mexico. MAG has also completed the required CAD$150,000 option payment to Canasil for the third year of the option agreement and will now be required to spend an additional CAD$1,500,000 in exploration expenditures from September 1, 2012, to September 1, 2013, in order to maintain the agreement in good standing. A final option payment of CAD$200,000 will be required on September 1, 2013, together with additional exploration expenditures of CAD$1,750,000 by September 1, 2014, should MAG decide to continue and complete the earn-in of a 60% interest in the project under the agreement. MAG reported that drilling is expected to resume at La Esperanza during the third quarter 2012 to test the Fatima, San Pascual and Los Alamitos veins in the north-western part of the project area.
Bahman Yamini, President and CEO of Canasil commented: "We are very pleased with MAG's continued commitment to the La Esperanza project and plans to start the Phase 2 drill program during this quarter now that the required permits are in place. We look forward to positive results from this drill program and to further expenditures by MAG over the next twelve months to complete the requirements under the La Esperanza option agreement."
About La Esperanza:
The La Esperanza project covers 68,954 hectares, located in the Mexican Silver Belt in northern Zacatecas and southern Durango States. This recognized world class silver belt hosts a number of active mines such as Pan American Silver's La Colorada and First Majestic Silver's La Parrilla mines. The project covers multiple vein occurrences and alteration zones over a 20 kilometre strike length along a prospective SE-NW trend where the results of an airborne geophysical survey conducted by MAG indicate potential for hosting a very large mineralized system.
Drilling conducted by Canasil and MAG on the La Esperanza vein has confirmed a high-grade silver-zinc-lead mineralized panel along a strike distance of over 250 metres and to a depth of 300 metres, which is open in all directions, with mineralized vein intercepts of up to 10.30 metres. Recent drilling by MAG intersected a 10.15 metre intercept carrying 98 g/t (2.86 opt) silver, 2.42% zinc and 1.16% lead, including 2.42 metres with 278 g/t (8.10 opt) silver, 5.82% zinc and 2.84% lead. The La Esperanza vein includes several intercepts with very high silver grades of up to 2,144 g/t (62.53 opt) silver over 0.75 metres.
The project is under an option agreement whereby MAG can earn a 60% interest by completing CAD$ 5,000,000 in cumulative exploration expenditures by September 1, 2014, (CAD$ 1,624,393 completed to June 30, 2012) and making a further CAD$ 200,000 in cash payments to Canasil by September 1, 2013.
About MAG Silver and Canasil:
MAG is a leading silver exploration and emerging development company in Mexico with considerable experience and a very successful track record of high-grade silver discoveries in epithermal vein systems of the Fresnillo Silver Trend, as well as a number of other large development stage and exploration projects in Mexico.
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.
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
(604) 708-3728 (FAX)
admin@canasil.com
www.canasil.com