Initial Results from Diamond Drill Program - At Tres Marias and Cebollas Gold-Silver Projects, Durango, Mexico
January 21, 2005
VANCOUVER, January 21, 2005 – Canasil Resources Inc. (Canasil, TSXV: CLZ) announces initial results from diamond drilling at the Cebollas project, located in the San Dimas District, Durango, Mexico. Assays have been received for the first 5 drill holes completed in the Tahuehueto and Rosario vein systems for a total of 650 metres. The objective of the drill program was to test the continuity of the vein systems above and below the historical workings, which were sampled and mapped between March and June 2004, and announced on April 23, 2004.
Drill hole TAH-1 intersected the Tahuehueto vein 16 metres above level 2 of the historical workings at a core depth of 53.23 to 55.37 metres and returned assays of 329 g/t silver and 6.28 g/t gold over 2.14 metres. Drill holes TAH-2, TAH-3 and TAH-4 were drilled to intersect the vein system approximately 30 to 40 metres below level 1 of the historical workings over a strike length of approximately 120 metres. These drill holes all pierced the Tahuehueto structure, however assays returned relatively low gold and silver values due to the presence of later intrusive events displacing the mineralized vein material.
It is encouraging that each of the projected vein intercepts and associated younger intrusive activity below the historical workings are surrounded by pronounced envelopes of brecciation and local silicification, regardless of the low gold and silver values. This suggests that the structure hosting the gold–silver mineralization most likely continues below the current drilling.
Drill hole ROS-1, designed to test the Rosario vein below the main level 2 historical workings, intersected two quartz vein structures between 107.15 and 109.20 metres, and returned assays of 120 g/t silver and 0.97 g/t gold over 2.05 metres, and between 116.80 and 118.20 metres, returning assays of 76 g/t silver and 0.94 g/t gold over 1.40 metres. A wide zone of intense quartz breccia found in the footwall of the structure from 123.15 metres to 185.5 metres returned only low grade gold and silver assays.
The mineralized intercept above the Tahuehueto vein is encouraging and confirms the high-grade gold-silver mineralization in the Tahuehueto vein system previously sampled in the historical workings. The Company will review the detailed results with regards to the presence of intrusive formations displacing the mineralization below the workings. Past experience from large mining operations in the region, such as the Tayoltita/San Dimas mine, indicate that approximately 1/3 of the mineralized zones within the vein systems return productive ore mineralization.
The Company is awaiting further data and assays for three additional drill holes for a total of over 560 metres completed in late December 2004 and in January 2005.
Jim Cuttle, P. Geo., Canasil’s senior project geologist, is the qualified person (QP) and has been responsible for the design and implementation of the drill program. All core samples have been logged on site and mineralized sections split and bagged for assaying. These samples have then been sent directly from Durango, Mexico, to ALS Chemex Laboratories in Vancouver, B.C., where they were crushed and pulverized to less than 75 micron, then analyzed for gold by fire assay with an ICP-AES finish, and for silver and 26 other elements digested with four acids and finished with ICP-AES. Any gold and silver greater than 2.0 ppm and 100 ppm respectively has a comparative gravimetric finish.
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