Vancouver, March 10, 2015 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the Company) announces that MAG Silver Corp. (TSX:MAG, NYSE MKT:MVG, “MAG”) has informed the Company that MAG is nearing completion of a comprehensive review of the data generated by past exploration programs at the Salamandra project to define drill targets for the planned Phase 3 drill program. The data includes airborne and ground geophysical surveys, extensive surface geochemical sampling, 3,600 metres of diamond drilling in 12 drill holes by Canasil and 10,100 metres of diamond drilling in 17 holes by MAG under the Canasil-MAG option agreement. The Phase 1 and Phase 2 drill programs completed and reported by MAG in 2014 returned pervasive zinc mineralization as well as two higher grade silver-copper-zinc-lead intercepts: SA-13-13 cut 810 metres with 0.6% zinc (Zn) including 31.72 metres with 3.6% Zn and 17.72 metres with 5.0% Zn. SA-14-15 cut 7.89 metres returning 166 grams per tonne (g/t) silver (Ag) and 1.2 % copper (Cu), including 2.3 metres with 393 g/t Ag and 3.6% Cu with appreciable lead and zinc. SA-14-20 cut 0.63 metres grading 258 g/t Ag and 0.27% Cu lying immediately above 9.9 metres grading 2.4% zinc (drill plan map attached below, full drill results detailed in MAG and Canasil news releases dated March 17, 2014, and July 21, 2014). Drill targets and drill contracts are being evaluated and finalized and drilling is expected to start as soon as drill targets have been defined aimed at identifying high-grade polymetallic skarn and CRD mineralization.
Salamandra appears to be a typical Mexican Carbonate Replacement/Skarn Deposit (“CRD”) and is very similar to MAG's Cinco de Mayo Project; the same exploration model that drove successful exploration there is being applied to Salamandra. Salamandra lies 80 kilometres northwest of Mexico's largest known silver-lead-zinc CRD-skarn deposit, the Sabinas-San Martin District. Both Salamandra and Sabinas-San Martin are favorably positioned at the intersection of the Mexican CRD Belt (that also hosts MAG’s Cinco de Mayo CRD project) and the Fresnillo Trend (that hosts MAG’s Juanicipio Project). Previous drilling at Salamandra by Canasil (Holes SA-1 to 12) was undertaken in a limited area characterized by medium to high-grade zinc mineralization with significant silver values. MAG’s exploration program was designed to probe and develop a better understanding of the scope and size of the system and development of exploration vectors, so drilling focused on targets 200 to 2000 metres from previous drilling. Targets in MAG’s Phase 1 and Phase 2 drill programs included mineralized intrusive breccias, dike swarms and mineralized structures revealed by MAG’s detailed geologic mapping, geochemical sampling, and reinterpretation of Canasil geophysics. The exploration and drill results to date are being analyzed and reinterpreted to define drill targets for MAG’s planned Phase 3 drill program.
MAG Silver-Canasil Option Agreement:
In May 2013, MAG entered into an option agreement with Canasil whereby MAG can earn up to a 70% interest in Canasil's 14,719 hectare Salamandra property (News Release dated May 28, 2013). For the initial earn-in of a 55% interest, MAG must complete C$5.5 million in exploration expenditures on the property and make total cash payments to Canasil of C$750,000 during the first option term to May 27, 2017. MAG reported C$ 4.1 million in qualifying expenditures and C$300,000 cash payments to September 30, 2014, with C$200,000 cash payment due on May 27, 2015. MAG can earn an additional 15% by producing either a feasibility study or spending an additional C$20 million over an additional four year period.
Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-copper-lead-zinc 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 through to discovery and further development. The Company is actively engaged in the exploration of its mineral properties, and maintains an operating subsidiary in Durango, Mexico, with full time geological and support staff for its operations in Mexico.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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 news release.
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.