Vancouver, January 19, 2012 - Canasil Resources Inc. (Canasil, the Company, TSX-V: CLZ) announces that in 2011 the Company completed exploration programs on 7 precious and base metal projects, 5 in Mexico and 2 in BC, Canada, including diamond drilling, airborne geophysical surveys, satellite imaging and geological mapping and sampling programs. Total expenditures by Canasil and partners in 2011 amounted to over $1.75 million. The 2012 exploration program has started with MAG Silver resuming drilling at the La Esperanza silver-lead-zinc project in Zacatecas, Mexico, to complete up to 5,000 metres of diamond drilling. Pan American Silver is also expecting approval of the drill permit for the Carina silver-gold-base metal project in Durango State, Mexico, and plans to start a drill program following receipt of the permit for up to 2,900 metres of diamond drilling. These drill programs will provide for an immediate start during this quarter to Canasil’s 2012 exploration activities.
President and CEO of Canasil, Bahman Yamini, commented: “We find the results of the 2011 exploration programs by Canasil and our partners very encouraging, with continued indications of potential for large silver-gold-base metal mineralized systems on our extensive project portfolio. We are looking forward to the results from drill programs currently underway by MAG Silver and planned to start by Pan American Silver on our projects in Mexico, as well as to another active year with exploration programs on our other projects in Mexico and BC, Canada.”
The 2011 exploration programs included work on the following projects:
Sandra-Escobar silver-gold-base metals, Durnago, Mexico: Canasil completed a satellite imaging survey, 420 line-kilometre ZTEM airborne geophysical survey, and 1,850 metres of diamond drilling in 11 drill holes for total expenditures of approximately $695,000 in 2011. The program has confirmed the potential for a large silver-gold-copper-lead-zinc mineralized system which warrants a significantly expanded exploration program. Canasil is close to completing the required $1,000,000 expenditure requirement to earn 51% interest in Pan American Silver’s Escobar claims, following which Pan American will have the right to back in to a 51% interest in the combined Pan American and Canasil claims.
La Esperanza silver-lead-zinc project, Zacatecas, Mexico: MAG Silver completed evaluation of data from the 2010 ZTEM airborne geophysical survey and surface mapping and sampling to define drill targets. Drill access roads were upgraded and a diamond drill program started in December 2011 with expenditures of $438,000 recorded as of Sept. 30, 2011. The drill program has resumed in January 2012 with plans to complete up to 5,000 metres of diamond drilling in 16 drill holes on 2 separate veins. Following review of the surrounding areas, MAG Silver has also expanded the project area by over 50,000 hectares through the staking of adjacent claims.
Carina silver-gold-base metal project, Durango, Mexico: In 2011 Pan American Silver completed mapping and sampling to identify drill targets, with expenditures of $55,000, and applied for a permit for 2,900 metres of diamond drilling in 14 drill holes. The permit approval is imminent and Pan American plans to start the drill program immediately after receipt of the permit.
Salamandra silver-copper-zinc project, Durango, Mexico: Canasil completed a 617 line-kilometre ZTEM airborne geophysical survey which outlined a very large potential electro-magnetic source east of the previous drill area. This was followed up with surface sampling which discovered old workings with high grade silver-copper-zinc mineralization. This program, with expenditures of approximately $226,000 in 2011, provides further indication of potential for a very large mineralized system at Salamandra. Canasil is continuing to investigate the area outlined by the ZTEM survey to define drill targets.
Victoria project, Durango, Mexico: A 680 line-kilometre ZTEM airborne geophysical survey was completed with expenditure of approximately $152,000 in 2011. The survey outlined a strong electromagnetic anomaly centered in an area where previous surface sampling had identified numerous zones with oxidized sulphides with anomalous lead, zinc, gold, arsenic, and antimony. This combination indicates potential for a mineralized system at depth. Further surface sampling is planned to investigate this area in more detail and to define drill targets.
Brenda gold-copper project, BC, Canada: Canasil applied for and received a permit covering 6,000 metres of diamond drilling in 10 drill holes to test this potentially large deep-seated porphyry gold-copper system. Drill testing is planned for summer 2012 either directly by Canasil or in cooperation with a potential partner for this project.
Lil Silver and Vega copper-gold projects, BC, Canada: Canasil applied for and received a permit covering 4,000 metres of diamond drilling from 6 drill sites to test the Lil high grade silver project. In addition reconnaissance field programs were conducted on both projects in September 2011 with expenditures of approximately $37,000 on the Lil and approximately $65,000 on the Vega project. Further work, including diamond drilling on the Lil project, is planned for the summer of 2012.
There is strong interest by third parties in Canasil’s extensive project portfolio to conclude option and joint venture cooperation agreements to advance some of these projects. Canasil is in discussions with these interested parties to conclude further cooperation agreements, and also plans to further strengthen our working capital to fund direct work programs on our exploration projects.
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.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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