News & Media

Canasil Signs Letter Agreement to Acquire La Esperanza Silver Lead Zinc Project in Zacatecas State, Mexico

October 3, 2005

VANCOUVER, Oct. 03, 2005 – Canasil Resources Inc. (Canasil, TSXV: CLZ) announces that the Company’s wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V. (Minera Canasil), has signed a letter agreement providing Minera Canasil with an option to acquire the La Esperanza silver lead zinc project in Zacatecas State, Mexico. The agreement provides for a period of three months for property evaluation and due diligence, following which Minera Canasil can decide to proceed with an agreement to acquire 100% interest in the project. The property hosts epithermal veins with silver lead zinc and gold mineralization. There is a history of past mining activity at La Esperanza with direct shipments of reportedly high-grade ore to local smelters.

The mineralization observed at La Esperanza occurs in a principal low sulphidation vein, which can be traced for a distance of approximately 600 metres, striking N50°W and dipping at 65°-75°. The mineralization consists of galena, argentiferous galena, silver sulphides and sphalerite, contained in grey and white crystalline quartz. There are a number of small dumps with ore left over from past mining operations around the vein and mine area. Seven samples were taken from these dumps during an initial property visit and analyzed for gold plus 14 elements by ICP-MS at the Luismin Laboratories in Durango. The results from these samples are presented in the table below.

La Esperanza project, Zacatecas, Mexico – results of samples taken from ore dumps:

Vein or Structure	Sample No.	UTM Coordinates East             North		Elev. (m)	Width (m)	Gold g/t	Silver g/t	Lead %	Zinc %	Copper %
Main Vein	435	600557	2583124	2439	Dumps	0.29	2,395	5.86	0.27	0.04
Main Vein	436	600580	2583179	2439	Dumps	0.50	120	0.19	0.15	0.02
Main Vein	437	600545	2585648	2473	Dumps	0.16	1,309	0.26	0.24	0.01
Main Vein	438	600521	2583695	2491	Dumps	0.11	864	0.88	1.58	0.01
Main Vein	439	600508	2583723	2494	Dumps	0.13	915	0.14	0.27	0.01
Main Vein	440	600406	2583745	2429	Dumps	0.09	444	6.11	4.54	0.14
Main Vein	441	600406	2583745	2429	Dumps	0.07	404	5.28	4.54	0.15

The La Esperanza project covers 335 hectares, located 100 km SSE of the city of Durango on the border between Durango and Zacatecas States. The project site is easily accessible from Canasil’s operating base in Durango. The area is well served with power lines, water access and services, such as banks, medical services and labour, which are available in local municipalities. The project is also close to a number of prominent silver mines – San Martin mine operated by Grupo Mexico, the La Colorada mine of Pan American Silver and La Parrilla mine of First Majestic Resource Corp.  The climate and topography are moderate and typical of the Eastern edge of the Sierra Madre Occidental volcanic province, with the rainy season between June and September, and colder temperatures in December and January.

The Company plans to start immediately with the evaluation program of the project. This will consist of sampling and mapping of the project area, with particular emphasis on sampling the mineralized vein material and underground samples wherever access to past workings is possible. This program should provide the data required to assess the potential of the project, to define drill targets, and for the decision to proceed with the acquisition.

Gary Nordin, P. Geo. British Columbia and Director of Canasil, is the designated Qualified Person for this project in accordance with National Instrument 43-101.

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 and Sinaloa States, Mexico. The Company is actively engaged in the exploration of its mineral properties and in evaluating additional acquisition opportunities. 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