Vancouver, April 3, 2012 - Canasil Resources Inc. (“Canasil”, TSX-V: CLZ , DB Frankfurt: 3CC) announces that MAG Silver Corp. (TSX: MAG, NYSE-A: MVG, “MAG”) has completed 8 additional drill holes on the Esperanza Vein at Canasil’s La Esperanza silver-zinc-lead project in Durango and Zacatecas States, Mexico. These holes were blind step-outs on projection of the vein located 400 metres northwest, 350 metres southeast and 1,000 metres southeast of the previously drilled high-grade ore shoot, which returned very encouraging silver, zinc and lead intercepts in MAG’s initial 3 drill holes, previously reported on February 22, 2012, as well as in previous drilling by Canasil. The latest holes did not intercept the vein, most probably due to apparent post-mineral faulting that has displaced the vein, which will be investigated in future exploration and drilling. MAG interprets the large aeromagnetic anomaly observed in the Esperanza vein zone, measuring approximately 5 kilometres by 3 kilometres, as a possible signature of a significant mineralized system which will continue to be explored.
Looking forward, permits are being finalized for drilling the Fatima, San Pascual and Los Alamitos veins in the north-western part of the project area. These veins are located in the State of Durango requiring a longer time to complete the permit than that for the Esperanza vein which lies in the State of Zacatecas. MAG Silver has informed Canasil that they plan to begin drilling to test these veins shortly after the Easter break in Mexico.
Bahman Yamini, President and CEO of Canasil commented: “We are very pleased with MAG’s commitment to advancing the La Esperanza project and plans to move forward with drilling on the north-western part of the project area, where we have identified extensive alteration and three significant vein structures that have never been drilled. We remain encouraged by the positive early results for the Esperanza vein and hope that additional field work will provide further information to direct future drill programs in this zone.”
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.
Canasil and MAG drilling 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 60% interest by completing CAD$ 5,000,000 in cumulative exploration expenditures ($ 912,480 completed to December 31, 2011) by September 1, 2014, and making a further CAD$ 350,000 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.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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