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Canasil Outlines Initial Drill Plans to Test Silver-Gold Targets at the Nora Project in Durango State, Mexico, and Provides Update on COVID-19 Measures


April 29, 2020

Vancouver, April 29, 2020 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) outlines plans for an initial core drill program to test silver-gold-copper-zinc-lead targets along the Candy vein at the Nora project in north-central Durango State, Mexico. Drilling should begin after the lifting of the COVID-19 restriction in Mexico.

Gold-silver mineralization at Nora is hosted within structurally-controlled epithermal veins. The drill sites have been selected based on a geological review including surface samples collected in August 2019 (reported September 26, 2019), as well as available historical information. Drill sites form four sections on the Candy vein, spaced over a strike length of 500 metres, all below high-grade silver and gold samples from vein outcrops and rock dumps from earlier underground development. The Candy vein has not been previously drilled, however there has been some historical small-scale mining. While access to the underground workings is not possible now, waste dumps from prior mining activity contain well-mineralized high-grade material. Four of the planned holes, located on two sections, are targeting the vein(s) immediately below the historical workings. Maps of the underground workings at a depth of approximately 50m to 75m below surface indicate a second, steeper mineralized footwall structure. The planned drill holes below the old workings will test this structure as well.  The four sections selected for drill testing are detailed below together with the related surface samples. A plan map and sections can be seen on the Company’s website at http://www.canasil.com/news_releases/ .

Canasil President and CEO, Bahman Yamini, commented: “The Nora project presents the opportunity for discovery of a high-grade silver-gold epithermal vein system. The project is exceptionally well located in northern Durango State, Mexico, in a region recognized for hosting large silver-gold deposits.”

Nora Project, Durango State, Mexico – Candy Vein Drill Sections as at April 2020
Sample Easting Northing Elevation Width Sample Gold Silver Copper Lead Zinc
Number       Metres Type g/t g/t % % %
14278 451609 2822331 2017.12 1 Vein 3.72 605 0.97 1.17 0.40
14280 451615 2822338 2018.52 1.4 Rock 0.892 392 0.06 0.19 0.05
14281 451614 2822339 2018.70 1 Vein 2.98 540 0.85 4.00 3.55
Section 2300N: Holes DDH20A and SDDH20B projected to intercept the vein at a vertical depth of 135m and 175m and to test for possible deeper footwall structure at a projected vertical depth of 185m and 250m below surface
14287 451623 2822395 1972.83 0.6 Vein 2.18 316 0.57 2.44 0.17
14288 451629 2822403 1984.14 0.8 Vein 3.03 585 2.80 5.24 1.83
14290 451639 2822398 1997.50 D Dump 2.42 203 0.87 8.05 2.10
14293 451631 2822419 1998.43 D Dump 1.72 215 0.38 2.94 0.71
14297 451634 2822444 2009.87 D Dump 2.89 193 2.64 7.19 9.76
Section 2400N: Holes DDH20C and DDH20D  projected to intercept the vein at a vertical depth of 110m and 160m  and to test for possible deeper footwall structure at a projected vertical depth of 160m and 235m below surface
14299 451626 2822578 2006.46 0.6 Vein 6.55 10.4 0.06 0.28 0.05
Section 2600N: Hole DDH20E projected to intercept the vein at a vertical depth of 100m below surface
14311 451608 2822812 2009.71 0.4 Vein 12.55 12.2 1.02 2.67 0.68
Section 2800N: Hole DDH20F projected to intercept the vein at a vertical depth of 100m below surface

A second epithermal vein outcrop, the Nora vein, occurs 600 metres northeast of the Candy vein with a parallel north-south strike. The two parallel vein structures at the Nora project and the large areas of anomalous silver and base metal values in soil samples surrounding the veins, enhance the project’s continuing potential.

The Company has arranged the drill contract and is standing by for resumption of exploration activities in Mexico following the current suspension of all non-essential operations by the Mexican government due to the Covid-19 pandemic.

COVID-19 Update:
The Company is currently following government guidelines both in Canada and Mexico to minimize the spread of the Covid-19 pandemic. The Company’s staff in both locations is self-isolating to minimize non-essential contacts. All required administrative and technical functions are proceeding normally except for direct field activities. The Mexican government issued an emergency decree on March 31, 2020, limiting or stopping all non-essential operations, including mining and mineral exploration, until April 30, 2020. This has now been extended until May 30, 2020. The directive provides for a possible exemption for re-start of certain operations located in municipalities exhibiting low, or no, cases of Covid-19 following May 18, 2020.  The Company will continue to comply with the directive, and will evaluate the opportunity to qualify for the noted exemption, in order to resume field activities.

About Nora Silver-Gold-Copper-Zinc-Lead, Durango State, Mexico:

The Nora project is located approximately 200 km north-west of the City of Durango, with good access and infrastructure. The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora. Mineralization is typical of that found at many mines in the region, with gold and silver associated with galena, sulfosalt minerals and lesser pyrite, sphalerite and chalcopyrite. There is evidence of historical mining activity on the Candy vein, which can be traced for over 900 metres on surface, while the host structure is exposed in discontinuous outcrops for a distance of over 3 km. Samples of vein outcrop and mineral dumps from the Candy vein returned significant gold, silver, copper, zinc and lead values. The Nora vein is found 600 metres northeast of the Candy vein and can be traced for 230 metres with widths of over 9.0 metres. Surface samples from this vein returned anomalous silver values and contained trace sulphides, with a geochemical signature typical of the higher levels of epithermal vein systems in the region.

Historical systematic grid soil sampling over an area of 3 km by 2 km covering the Candy and Nora veins and projected extensions, showed elevated silver, base metal (copper, lead and zinc) and pathfinder (antimony and arsenic) values. The combination of the vein outcrops with large areas of anomalous silver and base metal values in soil samples may indicate additional concealed mineral systems.

About Canasil:

Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-copper-lead-zinc projects in Durango 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.

The technical information herein has been reviewed and approved by J. Blackwell (P. Geo.), a Qualified Person as defined by National Instrument 43-101. Mr. Blackwell is a technical advisor to Canasil.

For further information please contact:

Bahman Yamini
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 news 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.

Candy Vein Drill Plan Map
Candy Vein Drill Plan map

Section 2300N DDH20A & 20B
Section 2300N DDH20A & 20B

Section 2400N DDH20C & 20D
Section 2400N DDH20C & 20D

Section 2600N DDH20E
Section 2600N DDH20E

Section 2800N DDH20F
Section 2800N DDH20F

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