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MAG Silver Completes ZTEM / Magnetic Aerial Survey on Canasil's La Esperanza Project in Zacatecas/Durango States, Mexico

Vancouver, Nov. 1, 2010 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that MAG Silver Corp. (MAG; TSX: MAG) has completed a 1,330 line-kilometre ZTEM (Z-Axis Tipper Electromagnetic System) helicopter-borne aerial geophysical survey on Canasil’s La Esperanza silver project in Durango and Zacatecas States, Mexico. The survey started on October 21, 2010, and was completed on October 27, 2010. The survey will be used to highlight geological structures in the project area, and together with further surface mapping and sampling will aid in defining drill targets. MAG Silver completed a successful test of this type of survey in 2009 on one of their exploration projects in Mexico.

Bahman Yamini, President of Canasil, commented: “We are very pleased to see that MAG Silver has started the exploration program at La Esperanza immediately with a comprehensive geophysical survey of the large project area. This is an excellent start to our cooperation and we appreciate MAG’s efforts in starting the program so quickly.”

The Geotech ZTEM (Z-Axis Tipper Electromagnetic System) is a helicopter-borne passive EM system that maps the pattern of telluric currents in the earth’s subsurface. The method is closely related to resistivity/conductivity mapping. For full details please refer to Geotech’s website at www.geotech.ca. MAG Silver’s objective in conducting this survey is to obtain geological and structural information over exposed ground and to follow those structures beneath alluvial cover.

The La Esperanza project is located within the Mexican Silver Belt in northern Zacatecas and southern Durango States. The project covers 18,954 hectares hosting several widely separated areas of epithermal silver vein outcrops and extensive alteration zones. The project is located on the northern extension of the Fresnillo Silver Trend and has the potential for hosting a district scale epithermal high-grade silver mineralized system in a recognized silver district with a number of active mines such as Pan American Silver’s La Colorada and First Majestic’s La Parrilla mines.  

The option agreement between MAG Silver and Canasil provides for MAG to earn a 60% interest in Canasil’s La Esperanza Silver project by completing CAD$5,000,000 exploration expenditures and CAD$500,000 cash payments to Canasil over a period of four years. The initial payment of CAD$50,000, due upon signature of the agreement, has been received and the first year expenditures of CAD$750,000 are a firm commitment, and will include a minimum of 1,500 metres of drilling. MAG Silver 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.

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. Canasil’s directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. Canasil is actively engaged in the exploration of its mineral properties.

For further information please contact:

Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
www.canasil.com

Neither 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 release