Vancouver, August 08, 2012 - Canasil Resources Inc. (Canasil, TSX-V: CLZ, DB Frankfurt: 3CC) announces completion of the 2012 exploration program at the Sandra-Escobar silver-gold project in northern Durango State, Mexico, outlining seven significant silver-gold targets over an area of 25 square kilometres. The 2012 program included an ASTER satellite alteration survey, surface mapping and sampling including collection of 370 surface samples, and an 11.8 line-kilometre ground IP geophysical survey, complementing previous mapping and sampling, airborne ZTEM geophysical survey and 1,849 metres of diamond drilling in 11 drill holes completed up to December 2011. These programs have confirmed evidence of a large hydrothermal system centred on an intrusive source and surrounded by mineralized zones observed at surface with veins and outcrops returning high silver, gold, copper, lead and zinc mineralization, with the potential for hosting both high grade vein style and disseminated mineralization. The results are consistent with earlier interpretations based on the project’s geologic setting and similarities with some major silver and gold deposits in northern Durango State such as La Pitarrilla, San Agustin and El Cairo, as outlined prior to these programs in Canasil’s news release dated July 14, 2009.
Bahman Yamini, President and CEO of Canasil, commented: “We are very pleased with the results of the exploration program at Sandra-Escobar with continuing evidence of a large silver-gold-base metal mineralized system. The project is now ready to move forward to comprehensive drill testing of the principal mineralized zones identified. The Sandra-Escobar project is an excellent silver-gold prospect with the potential for hosting both high grade and disseminated mineralization benefiting from base metal credits in an area with excellent location and infrastructure.”
The principal targets are shown on the attached map and described briefly below, with details included in previous news releases as indicated:
The majority of these exploration zones are located close to the main paved road running through the project area, which provides exceptional ease of access for drilling and future exploration programs. The initially postulated geologic setting at Sandra-Escobar from the review of historical data indicating the possibility of a major intrusive hosted mineralized system (previously announced on July 14, 2009) is being confirmed by the airborne and ground geophysics, satellite imaging, extensive surface sampling and diamond drilling carried out in Canasil’s exploration programs. The project now warrants aggressive drilling to discover the source of the widespread silver, gold, copper, lead and zinc mineralization observed throughout the project area.
The exploration programs at the Sandra-Escobar project were 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. All surface and drill core 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 indicating 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 adjoining 634 hectares Escobar project claims. Canasil has recorded over $1,107,008 in expenditures under the agreement and completed the earn-in of 51% interest in Pan American’s Escobar claims. Pan American has advised Canasil of its decision not to exercise its back-in right to acquire a 51% interest in the combined project claims and to sell its remaining 49% interest in the Escobar claims to Canasil as provided for in the agreement.
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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