Strong High grade Gold/Silver Mineralized Targets Outlined for Further Exploration and Drilling at Tres Marias&Cebollas Projects
June 4, 2004
VANCOUVER, June 04, 2004 – Canasil Resources Inc. (Canasil, TSXV:CLZ) is pleased to announce conclusions from the review and interpretation of the results of the recent exploration program on the Tres Marias and Cebollas Projects, located in Durango State, Mexico. The program included satellite surveys of the project area followed by sampling and mapping of prospective mineralized zones. A total of 135 rock chip samples were collected from underground workings and surface outcrops in and around four mineralized vein systems on the property, with initial results of underground samples announced on April 23, 2004. Further surface sampling is in progress.
The review of the results has identified four highly prospective target zones, hosting epithermal gold/silver vein systems within the project area (labeled TZ1 to TZ4 on the attached map), for further exploration including mapping, sampling and diamond drilling. These zones are located over an area of over 20 square km, approximately 7 km North-South by 3 km East-West. In addition a number of surrounding anomalous zones observed in the regional satellite survey have been identified for further investigation. Applications have also been filed for additional claim blocks located northwest of the Tres Marias project and southwest of the Cebollas project, which will extend the total area covered by the projects to 2,326 hectares.
Target Zone 1 - Tahuehueto-Rosario Vein System:
The primary target zone on the property is the Tahuehueto-Rosario zone (TZ1). The Tahuehueto vein structure stretches continuously over 300 metres and appears to continue southwest for another 500 metres. Vertically, the vein outcrops from 2,440 metres up to the surface at 2,520 metres. Twenty-two underground chip samples and at least five surface samples suggest the structure, including at least one and possibly two enclosed ore shoots, is open for drill testing. On level 2 of this vein, a first ore shoot assayed an average of 13.81 g/t Au equivalent* (591.25 g/t Ag and 3.45 g/t Au) over a horizontal length of 109 metres at an average width of 1.62 metres. A second ore shoot on the same level may be represented by one chip sample that assayed 12.59 g/t Au equivalent* (425 g/t Ag and 5.13 g/t Au) over 2.6 metres.
Target Zone 1 - Tahuehueto-Rosario Vein System (contd.):
Capping the Tahuehueto and adjacent Rosario veins is a central area of “rib like” to “flood cap” silica that either flanks or overlies the structures, with a width in excess of 30 metres. This complex zone has low grade gold, and occurs as highly brecciated white quartz with lesser chalcedony and resembles the upper levels of an epithermal vein system, or possibly a breccia pipe, at the strike convergence of the Tahuehueto and Rosario veins. The footwall area in level 2 of the Rosario vein averages 3.63 g/t Au equivalent* (134 g/t Ag and 1.59 g/t Au) over 12.3 metres adjacent to the breccia zone. A follow-up exploration program of further mapping and sampling on the southern extension of the Tahuehueto vein is planned. Drilling on the northern area of the vein, over a strike length of approximately 500 metres, will be scheduled for July or September 2004 depending on weather conditions.
Target Zone 2 – Huehuento Vein System and Tahuehueto Extension:
A second target zone is the Huehuento vein system (TZ2), indicated on the government geological maps of the project area, and located in line with the observed southwest extension of the Tahuehueto vein. The Huehuento vein system and the area from the Tahuehueto-Rosario veins leading southwest to the Huehuento vein, representing a potential strike length of over 2,000 metres, will be the focus of further exploration
Target Zone 3 – Tres Marias/Los Laureles Vein system:
A third target zone (TZ3) is the Tres Marias/Los Laureles vein system located in the southwest of the project area. This is a high-grade gold prospect with an average combined assay from 12 samples along the entire 35 metres of the underground workings grading 9.45 g/t Au equivalent* (146.5 g/t Ag and 6.8 g/t Au) at an average width of 1.3 metres. This ore shoot remains open on level 2 of the previous workings and has potential along strike to the northeast and down dip. A number of old artisanal gold mills (Tahunas) located up to 2,000 metres northeast of these workings indicate a potential extension of the gold bearing zones. Further prospecting and geological mapping is required to define the extent of this mineralized system.
Target Zone 4 – Las Minitas Vein:
The fourth target zone is the Las Minitas silver/gold vein, located in the northern part of the project area. Of nine chip samples collected from surface outcrops of this vein, three samples assayed 31.28 g/t Au equivalent* (1,680 g/t Ag and 1.8 g/t Au) over 1.60 metres, 11.60 g/t Au equivalent* (567 g/t Ag and 1.65 g/t Au) over 1.00 metre and 4.39 g/t Au equivalent* (238 g/t Au and 0.21 g/t Au) over 1.40 metres. Further prospecting, soil and rock chip sampling is required in this zone to define the potential extensions of the Las Minitas vein.
The occurrence of multiple gold/silver mineralized vein systems in the project area returning consistent high-grade assays over significant intervals from underground and surface samples is very encouraging. Furthermore there are indications that some of the mineralized veins have potential for significantly longer strike lengths than has been previously observed. These results provide substantial scope and potential for further exploration of the project area, as well as possibilities for additional surrounding targets.
The Qualified Person for this project, under the definition established by National Instrument 43-101, is Jim Cuttle, P. Geo., Canasil’s Project Geologist. All samples were collected under his supervision and shipped in sealed bags directly to ALS Chemex Laboratories in North Vancouver, B.C., for preparation and assay. The samples were assayed for Gold by ICP-21 and ME-GRA21, and for Silver by ME-ICP61 and ME-GRA2.
The Tres Marias and Cebollas projects cover 2,326 hectares, and are located 150 kilometres west of the city of Durango and 14 kilometres southeast of Wheaton River/Luismin’s Tayoltita mine, which has produced 9.1 million ounces of gold and 654 million ounces of silver (over 19 million ounces gold equivalent). The Company entered into an option agreement with Wheaton River Minerals Ltd. (Wheaton River, TSX: WRM) and its wholly owned subsidiary Minas Luismin S.A. de C.V. (Luismin) in October 2003 to earn up to a 75% interest in the Tres Marias and Cebollas properties (announced on October 21, 2003).
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 Durango State, Mexico. The Company is reviewing a number of other gold and silver properties in Mexico for acquisition. 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.
* Au equivalent grades based on gold at $400/oz. and silver at $7.00/oz., 57:1 ratio.
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
(Click to enlarge)
