Canasil expands Los Azules Claims in Sinaloa, and plans to start mapping and sampling at the Sandra Claims in Durango, Mexico
August 31, 2005
VANCOUVER, August 31, 2005 – Canasil Resources Inc. (Canasil, TSXV: CLZ) announces that following visits to review a number of new projects in Sonora, Sinaloa and Durango States in Mexico, the Company has significantly expanded the area covered by the Los Azules claims, located 60 km southeast of Mazatlan in Sinaloa, and plans to start a mapping and sampling program at the Sandra claims, located 183 km northeast of Durango in Durango State.
The Los Azules claims originally covered 2,000 hectares, located on the new Mazatlan-Escuinapa highway, 15 km north of the historic El Rosario gold mine and town. The mineralization consists of epithermal low sulphidation veins with gold, silver and copper mineralization, hosted by volcanic and intrusive rocks of Tertiary age. The area has shown possibilities for the occurrence of tourmaline-gold breccias. Samples previously collected to evaluate and define the boundaries of the claims returned encouraging results in gold, silver and copper, with grades up to 2.71 g/t gold, 60 g/t silver and 4.49% copper observed in various samples with widths of 1.0 – 1.5 metres.
Canasil has successfully applied for and obtained the necessary approvals to expand the Los Azules claims by 6,000 hectares, to a total of 8,000 hectares. This large claim package now covers the northwest extensions and outcrops observed over a distance of 3.4 km from an exploratory trench showing vein structures in the southeast of the property. The new claim area includes the western part of the district, which hosts a number of quartz veins and tourmaline breccias. These formations are usually associated with gold, silver and copper mineralization. Canasil is planning a program to map and sample these structures in order to evaluate the potential of this project.
The Sandra property covers 500 hectares, located 40 km north of the community of Tepehuanes, within easy access from Canasil’s operating base in Durango, and with excellent infrastructure provided by paved roads, power lines and water access in the district. The mineralization consists of low sulphidation veins hosting silver and gold, possibly in a transition between epithermal and mesothermal formations. The host rocks are composed of andesites, rhyolites and intrusive bodies, possibly of andesitic composition. The Maria Fernanda vein on the property has been traced over a strike length of over 500 metres. Initial surface samples collected over the vein alteration zone to test the system returned gold values up to 10.93 g/t and silver values up to 686 g/t. During the field visit a number of additional veins were observed fanning out from the footwall of the Maria Fernanda vein. These veins dip under younger volcanic formations, which cover part of the southeast extensions of the veins. A detailed geologic mapping and trench sampling program is planned to test these structures and identify drill targets.
Observations on the ground during the visit to the El Terco project in Sonora did not confirm the indicators for extensions at depth of the mineralized zones identified close to the surface in past drilling by Glamis Gold Corp. As a result Canasil has decided not to proceed with completion of the agreement covering the El Terco project.
Gary Nordin, P. Geo. British Columbia and Director of Canasil, visited the above projects and is the designated Qualified Person for these projects in accordance with National Instrument 43-101.
About Canasil:
Canasil is a Canadian-based mining and mineral exploration company with interests in base and precious metal properties in British Columbia, Canada, and Sinaloa and Durango States, Mexico. The Company is actively engaged in the exploration of its mineral properties and in evaluating additional acquisition opportunities. The management team is focused on identifying and implementing strategies to increase the value of the Company’s mineral properties through cost effective and responsible development.
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:
Mr. Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
604-709-0109
www.canasil.com