Canasil Files NI43-101 Technical Report on Sandra Gold-Silver-Copper-Lead Project in Durango State, Mexico
January 25, 2007
Vancouver, January 25, 2007 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) is pleased to announce that the Company has received and filed the NI 43-101 Technical Report on the geological mapping, surface sampling and trench sampling program at the Sandra Gold-Silver-Copper-Lead project in Durango State, Mexico. The report was prepared by the Company’s independent QP, Dr. Peter A. Christopher, P. Eng., and may be viewed on SEDAR at www.sedar.com and on the Company’s website at http://www.canasil.com/_resources/sandra_technical_report.pdf?v=0.553 .
The report states that the project’s proximity to a number of significant gold and silver mines and deposits “demonstrated that the Sandra project area is situated in a highly prospective sector of the Sierra Madre Occidental”. The report also concludes that, based on the results of the mapping and sampling program (reported by Canasil on March 22, 2006), and check samples taken by Dr. Christopher, the “sample results suggest potential for high-grade mineralization and possibly direct shipping ore” at the Maria Fernanda and Barite veins, as well the “potential for a wider zone of low-grade silver mineralization” at the Encino vein.
The report recommends an initial Phase 1 drill program of 1,000 metres in 8 – 10 drill holes to test these veins for a budget of US$164,000. A success contingent Phase 2 drill program of 1,600 metres is estimated to cost US$260,000. A map highlighting the drill target zones at the Maria Fernanda, Barite and Encino veins is attached. The Company will be evaluating opportunities for financing the proposed programs and plans to proceed with the Phase 1 diamond drill program once the necessary funding has been arranged.
The Sandra project is located 180 km northwest of the city of Durango, within easy access from Canasil’s operating base, with excellent infrastructure provided by paved roads, power lines and water access in the district. The property hosts a number of mineralised veins over an area of over 3 km in strike and 750 metres wide. The project area lies in a mineral rich district, immediately to the south of mineral claims held by the Pan American Silver Corp. and close to the La Pitarilla deposit of Silver Standard Corp. The Guanacevi mine of Endeavour Silver Corp. is located 35km to the northwest, and the Topia mine of Great Panther Resources and the La Cienega mine of Penoles are located 70 km and 80 km south southwest of the Sandra project respectively.
About Canasil:
Canasil is a Canadian mineral exploration company with interests in base and precious metal properties in British Columbia, Canada, and in Durango, Sinaloa and Zacatecas States, Mexico. The Company’s directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of mineral properties and evaluating additional acquisition opportunities.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.
For further information please contact:
| Bahman Yamini | Doug Kerr |
| President and C.E.O. | Corporate Communications |
| Canasil Resources Inc. | 604-718 5454 |
| 604-709-0109 | Email: [email protected] |
