Further Results from Diamond Drill Program at Tres Marias and Cebollas Gold-Silver Projects, Durango, Mexico
March 3, 2005
VANCOUVER, March 03, 2005 – Canasil Resources Inc. (Canasil, TSXV: CLZ) announces further results from the diamond drill program at the Tres Marias and Cebollas projects, located in the San Dimas District, Durango, Mexico. Three drill holes were completed in December 2004 and January 2005 on the Rosario and Los Laureles vein systems for a total of 569 metres to complete the program of 8 diamond drill holes with a total of 1,219 metres. The objective of the program was to test the continuity of the vein systems above and below the historical workings at the Tahuehueto, Rosario and Los Laureles veins, which were sampled and mapped between March and June 2004, and announced on April 23, 2004.
Drill hole ROS-2 (180.75 metres), targeted to test for gold-silver mineralization approximately 40 metres below the lower most level at the Rosario workings, intersected two closely spaced quartz breccia zones with widths of approximately 2 and 4 metres. Although gold and silver values reported are relatively low - 20.0 g/t silver and 0.473 g/t gold over 1.60 metres from 93.40 to 96.00 metres - the breccia zones indicate that the main mineralized structure at Rosario extends beyond 100 metres in depth.
Drill holes LAU-1 (177.15 metres) and LAU-2 (210.95 metres) were designed to test the vertical extent of the Los Laureles vein directly below the historical workings, where samples returned significant high grade gold and silver assays (up to 291 g/t silver and 30.3 g/t gold over 0.60 metres). Due to the difficult access for a drill set-up close to the workings, the drill set-up for these holes had to be located on the opposite side of a stream flowing parallel to the vein structure. As a result the projected intersection of the drill holes and the down-dip extension of the vein system was between 100 to 150 metres below the existing workings. These drill holes intersected quartz veins and breccias with widths from 0.50 to 4.08 metres with anomalous gold and silver values, indicating that the structure hosting high grade gold-silver epithermal mineralization found in the ‘main level’ workings extends beyond a depth of 140 metres.
The results from these drill holes, together with the results from 5 drill holes previously announced on January 21, 2005, indicate that precious metal epithermal mineralization at both the Tahuehueto-Rosario and the Los Laureles areas is confined to specific shoots or horizons isolated along extensive regional fault structures. Work completed by Canasil now confirms the Tahuehueto-Rosario structure to be over 800 metres long with a known vertical extent of 150 metres. The section of the Los Laureles vein tested extends intermittently for 75 metres and down dip for at least 140 metres. Both these areas of interest remain open along strike and at depth.
The Company is reviewing the results and information from the 6 drill holes in the Tahuehueto-Rosario structure in order to explain the occurrence of high grade gold and silver mineralization observed closer to the surface in the two levels of the historical workings, and intersected above the workings in drill hole TAH-1 (2.14 metres at 329 g/t silver and 6.28 g/t gold), with the absence of similar gold and silver mineralization in the drill holes TAH-2 – 4 located immediately below the workings. Fluid inclusion studies on samples from the Tahuehueto-Rosario structure indicate a relatively low boiling temperature suggesting that the mineralization observed is at a high level in the system and that stronger mineralization should occur at depth. Past experience at the nearby Tayoltita/San Dimas mine, operated by Wheaton River Minerals and Luismin, has shown the possibility that the mineralizing fluids deposit a “lithocap” of more or less barren quartz between ore shoots close to the surface and possibly larger ore shoots at depth. The surface mineralization could be a result of mineralizing fluids leaking up through fractures in the quartz cap from below. The Company will be evaluating the information from the drill program and prior sampling in detail, and comparing this information with past experience of exploration at the Tayoltita/San Dimas mine, in order to determine further exploration work to investigate these structures.
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 are crushed and pulverized to less than 75 microns, then analyzed for gold by fire assay with an ICP-AES finish, and silver with 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