Option agreement signed to increase claim area at Tres Marias & Cebollas Projects, Durango, Mexico, From 2,326 hectares to 3,163
September 9, 2004
VANCOUVER, September 9, 2004 – Canasil Resources Inc. (Canasil, TSXV:CLZ) is pleased to announce the signature of an option agreement by Lusimin S.A. de C.V. (Luismin) for the acquisition of 6 claim blocks covering a total of 1,497 hectares in the San Dimas District of Durango, Mexico. The agreement provides for the acquisition of a 100% interest in four mineral claim blocks covering 837 hectares adjacent to the existing claim blocks at the Tres Marias and Cebollas projects, and two additional claim blocks covering 660 hectares located northwest of the San Dimas/Tayoltita mine. Payment commitments under the agreement will be US$150,000 over three years, payment of annual property taxes and exploration commitments during the option period, and a 2.5% Net Smelter Return royalty following completion of the acquisition.
This agreement forms an integral part of the Option and Joint Venture Agreement signed and announced on October 21, 2003, between Canasil, Wheaton River Minerals (Wheaton River, TSX:WRM) and Luismin for acquisition of up to 75% interest in the Tres Marias and Cebollas projects. As a result the area covered by these projects will increase from 2,326 hectares to 3,163 hectares, covering the presumed extensions of the outcropping silver/gold vein systems observed through previous exploration work.
As previously announced on April 23 and June 6, 2004, Canasil has completed satellite surveys, mapping, and sampling programs, identifying four target zones hosting epithermal gold/silver vein systems within the project area. Drill targets have been selected at two of these zones and diamond drilling is planned to start as soon as local weather conditions permit effective and safe access to the drill sites, expected towards the end of September or early October 2004.
The Tres Marias and Cebollas projects are located 150 kilometres west of the city of Durango and 14 kilometres southeast of Wheaton River/Luismin’s San Dimas/Tayoltita mine, which has produced 9.1 million ounces of gold and 654 million ounces of silver (over 19 million ounces gold equivalent). Canasil entered into an option and joint venture agreement with Wheaton River Minerals and its wholly owned subsidiary Luismin in October 2003 to earn up to a 75% interest in these projects (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.
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