Orex Intercepts 32 Metres of 255 g/t Silver and Starts Phase 2 Drill Programat Canasil's Sandra-Escobar Project in Durango State, Mexico
March 23, 2016
Vancouver, March 23, 2016 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) is pleased to announce that Orex Minerals Inc. (TSX-V: REX, “Orex”) has reported assay results from four more drill holes, SA-16-007 to SA-16-010, of the Phase 1 core drilling program in the southeastern region of the Sandra-Escobar Project. The project is being advanced by Orex under an option agreement announced on September 15, 2015. The results are detailed in the table below. Results from a further 7 drill holes of the Phase 1 program are pending. Orex has also confirmed that the Phase 2 drill program, planned for 3,000 metres in approximately 20 drill holes, commenced on March 16, 2016.
Highlight for this batch of holes is SA-16-009, which yielded 32 metres core length (30 m true thickness) grading 255 g/t silver, starting 10 metres vertically below surface. Within this is a sub-interval of 9 metres (8.44 m true thickness) grading 673 g/t silver. This drill hole was collared on the same section and 48.50 metres south of drill holes SA-15-005 and SA-15-006, confirming continuity of the near surface mineralized zone over a minimum width of 100 metres.
Holes SA-16-007 and SA-16-008, located about 100 metres east of SA-16-009, encountered a northwesterly fault offsetting the mineralized unit, thus the holes clipped the lower edge of the block and yielded narrow, lower grade intercepts. Additional holes are planned further to the east of this fault where the mineralized unit is exposed at surface.
Hole SA-16-010 is on the same section and same collar location as SA-16-009, but drilled in the opposite direction. It confirms that the mineralized horizon unit is present, however, in hole SA-16-010 the unit is less permeable and altered. Hole SA-16-010 yielded an intercept of 29.50 metres (25 m true thickness) grading 59 g/t silver. Within this is a sub-interval of 7 metres (5.93 m true thickness) grading 104 g/t silver.
Canasil President & CEO, Bahman Yamini, commented: “It is very positive to see more near surface mineralized intercepts from the Phase 1 drill program, which is now starting to provide a better understanding of the mineralized zone. This will be complemented with the results expected from the remaining 7 drill holes. It is also very encouraging to see Orex’s commitment to advancing the project with the start of the Phase 2 drill program.”
True thicknesses are estimated based on structural and stratigraphic interpretations. A drill hole location map and sample cross sections are available on the Canasil website.
| Sandra Escobar Project – 2015-2016 Diamond Drilling Program – Holes SA-16-007 to 010 | |||||
| Hole | From (m) | To (m) | Core Lgth. (m) | True Thick. (m) | Ag (g/t) FA |
| SA-16-007 | 14.00 | 19.00 | 5.00 | 4.00 | 112 |
| Includes | 14.00 | 16.00 | 2.00 | 1.60 | 197 |
| Includes | 14.00 | 15.00 | 1.00 | 0.80 | 234 |
| SA-16-008 | 11.00 | 17.00 | 6.00 | 4.80 | 143 |
| Includes | 12.00 | 16.00 | 4.00 | 3.20 | 182 |
| Includes | 13.00 | 14.00 | 1.00 | 0.80 | 320 |
| SA-16-009 | 11.00 | 43.00 | 32.00 | 30.00 | 255 |
| Includes | 22.00 | 42.00 | 20.00 | 18.75 | 377 |
| Includes | 27.00 | 36.00 | 9.00 | 8.44 | 673 |
| Includes | 30.00 | 31.00 | 1.00 | 0.94 | 1,273 |
| SA-16-010 | 18.00 | 47.50 | 29.50 | 25.00 | 59 |
| Includes | 27.00 | 38.00 | 11.00 | 9.32 | 87 |
| Includes | 31.00 | 38.00 | 7.00 | 5.93 | 104 |
| Includes | 34.00 | 35.00 | 1.00 | 0.85 | 141 |
Silver mineralization is hosted on the north side of a rhyolite volcanic dome. An altered and highly permeable volcanoclastic unit contains disseminations of silver bearing minerals and broadly spaced stockwork veinlets. The current working model has a porphyritic rhyolite unit as an impermeable cap, which may have focused mineralizing fluids into the host volcanoclastic unit.
The drill program is being managed by Orex and the above results were prepared by and provided by Orex. Orex maintains a QA/QC sampling protocol for the diamond drilling program, including the insertion of commercial analytical standards and blank samples. Analytical testing was performed by SGS Mineral Services. Silver was determined by fire assay with an atomic absorption finish. Multi-element analyses are also determined using a 4-acid digestion and ICP-MS (Inductively Coupled Plasma Mass Spectrometry).
Sandra-Escobar Silver-Gold Project, Durango, Mexico:
The Sandra-Escobar project is located 200 km northwest of the City of Durango, Mexico, in the heart of the “Mexican Silver Trend”, with excellent access and infrastructure. This prolific trend hosts some of the world’s largest silver camps and deposits with many past and present producing mines and significant silver-gold deposits. The project area covers over 6,976 hectares of mineral concessions with multiple mineralized epithermal veins and breccia structures. These veins form a high level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite dome complexes to the southeast. Intense alteration zones and fluid flooding in permeable formations may also indicate the presence of bulk tonnage targets. Under the terms of the agreement dated September 15, 2015, Orex has an option to earn up to 65% interest in the project through total cash and share payments of $1,000,000 and exploration expenditures of US$4,000,000 over five years.
The technical information in this news release is based on data supplied by Orex. 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.
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.
For further information please contact:
Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
www.canasil.com
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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.