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MAG Silver Withdraws from Earn-in Option Agreement on Canasil's Salamandra Silver-Copper-Zinc-Lead Project in Durango State, Mexico

Vancouver, February 22, 2016 - 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 withdrawing  from the earn-in option agreement  on Canasil’s Salamandra project in Durango State, Mexico. Under this agreement, which was announced on May 28, 2013, MAG completed a comprehensive program, including three phases of diamond drilling for a total of 14,384 metres in 23 holes, complementing 12 holes previously drilled by Canasil, and significantly advancing the project.

MAG concluded that Salamandra manifests signs of an extensive, complex system with a strong metals endowment. The broad pervasive multi-stage mineralization, including gold, silver, copper, zinc and lead is evidence of a potentially large and strong mineralized system which merits further exploration.

Canasil’s President and CEO, Bahman Yamini, commented: “We have enjoyed the positive working relations with MAG Silver’s management team and would like to thank them for MAG’s cooperation in advancing the Salamandra project. While we would have welcomed the opportunity to continue this cooperation, Canasil now retains 100% interest in the Salamandra project with considerable additional expenditures and advances in our understanding of the mineralized system. We continue to believe that the project has high potential for hosting a large silver-base metal mineralized system which will be of great interest with increasing precious and base metal prices. We look forward to the possibilities for further exploration work to advance the project, based on the extensive data base generated from MAG and Canasil’s work to date.” 

Eighteen of 23 holes drilled by MAG during its three phases of exploration cut appreciable widths of strongly anomalous zinc mineralization, lesser intervals of higher-grade silver-copper-zinc-lead mineralization, and appreciable gold and tungsten mineralization at depth. These results suggest that the system remains open for expansion through additional drilling. The lack of overlap between the metals zones may suggest a combination of large-scale zoning and multi-stage mineralization; both hallmark features of a large Carbonate Replacement Deposit/skarn system. The fact that the gold and tungsten-bearing skarns were encountered outside the area of concentrated drilling and that deep drilling has not been undertaken outside this small area suggests that potential remains open in the majority of the system.

About Salamandra;

Salamandra appears to be a typical Mexican Carbonate Replacement/Skarn Deposit (“CRD”).  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 and the Fresnillo Trend.  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 2,000 metres from previous drilling. Targets included mineralized intrusive breccias, dike swarms and mineralized structures revealed by detailed geologic mapping, geochemical sampling, and reinterpretation of geophysics.

J. Blackwell (P. Geo.), a technical advisor to Canasil and a Qualified Person as defined by National Instrument 43-101, has reviewed the technical information in this News Release.

About Canasil:

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:

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 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.