Vancouver, June 1, 2011 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that the recently completed ZTEM airborne geophysical survey at the Company's Sandra-Escobar silver-gold project in northern Durango State, Mexico, has returned a distinct porphyry style signature indicating the potential for a large gold-silver target. This is characterized by a circular area of high resisitivity and magnetic response surrounded by a low resistivity ring. This area coincides well with surface alteration and geochemistry suggesting the possibility of a large buried intrusive centre and surrounding zones with disseminated gold-silver and base metal mineralization.
Bahman Yamini, President of Canasil, commented: "The physical setting of the Sandra-Escobar project together with the geology and surface geochemistry is characteristic of disseminated porphyry style mineralization surrounded by higher grade veins. It is encouraging that the ZTEM survey and deep electromagnetic response confirms this model. The project now provides another high potential target for disseminated gold-silver-base metal mineralization in addition to the epithermal veins."
The deep sensing ZTEM geophysical survey at the Sandra Escobar project has outlined a "porphyry"-style target with potential for hosting disseminated mineralization. The target zone is associated with a circular high resistivity and high magnetic central core measuring 2.0 km by 1.2 km, surrounded by a low resistivity ring. The zone is crosscut by multiple west-northwest and north-northwest oriented faults. The porphyry target lies to the southeast of a prominent rhyolite dome complex under an area containing surface potassic alteration. Previous detailed geological mapping and soil and rock sampling have also outlined a large argillic altered zone with gold and silver bearing quartz breccias on the northern rim of the resistivity low, and numerous silver-gold veins on the southwest and northeast margins within the low resistivity ring as shown on the attached figures.
Canasil is currently conducting a diamond drill program to test the large silver-gold mineralized argillic altered zone on the northern fringe of the interpreted porphyry target with two deep 400 - 500 metre drill holes, as well as a number of 100 -150 metre reconnaissance drill holes to test the silver-gold epithermal veins. This program will be completed within two weeks with assays published when available. Initial observations of drill core from the surrounding low resistivy ring show highly altered rock with high pyrite and chlorite, which is consistent with the margins of porphyry systems. The drill program is supervised and carried out by the Company's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V., under the direction of Erme Enriquez CPG, Director of Exploration and Development. Gary Nordin, P. Geo. British Columbia and Director of Canasil, is the designated Qualified Person in accordance with National Instrument 43-101.
The ZTEM airborne geophysical survey was conducted by Geotech Ltd. The data was processed and provided by Geotech Ltd. The initial interpretations of the geophysical data were carried out by Frank Fritz, a geophysical consultant to Canasil, and Gary Nordin, P. Geo., Director of Canasil and a qualified person under NI43-101. The surveys were flown with 10 km lines and a line spacing of 200 metres. The Sandra-Escobar survey covered 420 line-kilometres covering an area of approximately 80 square kilometres.
The Sandra-Escobar project is located in northern Durango State, Mexico, 200 kilometres northwest of the city of Durango with excellent access and infrastructure, on an important mineral trend with many past and presently producing silver-gold mines and deposits. The project area hosts a mineralized system centered on a large altered rhyolite dome complex, with surrounding geological formations, alteration patterns, and extensive evidence of gold, silver and base metal mineralization. These features indicate the potential for hosting a large disseminated gold-silver-base metal mineralized system. Canasil's prior mapping and surface sampling programs and historical data have also identified a number of high-grade silver-gold veins surrounding the dome area, as previously reported in Canasil's news release dated May 03, 2010.
Canasil holds 100% interest in the 7,451 hectares Sandra project claims, and has entered into an option agreement with Pan American Silver to earn 51% interest in Pan American's 634 hectares adjoining Escobar project claims. Canasil's exploration expenditures will go towards completing the initial $1,000,000 work commitment to earn 51% interest in the Escobar claims. Pan American will then have a back-in right to acquire a 51% interest in the combined claims by paying three times exploration expenditures incurred.
Canasil is a Canadian mineral exploration company with interests in precious and base metal 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. The Company is actively engaged in the exploration of its mineral properties.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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