Canasil Mexico Exploration Programs Advancing as Planned
August 25, 2006
Vancouver, August 25, 2006 – Canasil Resources Inc. (“Canasil” TSX-V: CLZ) is pleased to announce that the Company’s exploration programs in Mexico, announced on July 24, 2006, are advancing as planned. These include diamond drilling, geological mapping and sampling and geophysical surveys, on the Company’s silver, gold, zinc, copper and lead projects in Durango, Zacatecas and Sinaloa states in Mexico. A summary of the developments at the various projects is outlined below.
La Esperanza silver-zinc-lead project, Zacatecas
The diamond drill program at La Esperanza is in progress with three diamond drill holes, ES-06-01 – 03, completed to date for a total of 318 metres. Drill hole ES-06-01, aimed immediately below the presumed depth of the old mine workings, intersected the mine workings at a drill depth of 75 metres, indicating the actual depth of historic workings. Drill hole ES-06-02 from the same location and aimed approximately 50 metres below the old workings, intersected the vein structure at a drill depth of 100 metres over a drill intercept of 7.0 metres, indicating a true width of 3.6 metres. The Company is waiting for assay results from core samples sent for analysis from ES-06-02.
ES-06-03 was collared 40 metres to the northwest of ES-06-01 and 02, aimed at exploring for the lateral continuation of the vein at the same depth as the vein intercept observed in ES-06-02. This drill hole intersected the vein structure at a depth of 99 metres, over a drill intercept of 5.0 metres with a true width of 2.5 metres. The drill core from this hole is being sent from the drill site to the Company’s core processing and storage facility in Durango for inspection and preparation of assay samples. Drill hole ES-06-04 has been collared at 55 metres northwest of ES-06-03 to further test the continuation of the vein structure along strike and is currently in progress.
The vein intercepts observed in ES-06-02 and 03 appear to consist of banded quartz with calcite, barite, pyrite, galena and sphalerite. Up to four additional drill holes are planned at La Esperanza to test the vein structure at depth and along strike depending on the results from the holes already completed.
Sandra silver-gold-zinc-lead project, Durango
Preparations for the start of the planned diamond drill program at the Sandra project have been completed including the necessary permits. Drilling will start immediately after completion of the drill program at La Esperanza or sooner depending on the availability of drill rigs and crews.
Salamandra zinc-silver project, Durango
Detailed planning and preparations for a 3-D induced polarization survey to test a target area of 2 km by 1.2 km is in progress at the Salamandra project. The survey area and stations are being marked out, as well as geological mapping and sampling over the survey area. The geophysical survey will be carried out based on the availability of the survey equipment and crews, expected over the next 4 weeks.
Los Azules gold-copper project, Sinaloa
The prospecting and sampling program at the Los Azules project was completed between July 19 and August 11, 2006. The program identified a number of apparently mineralized structures over the project area. Over 120 samples were collected from veins and anomalous structures observed adjacent to veins, as well as soil and silt samples. These samples have been sent for analysis and the Company is waiting for assay results in order to interpret the significance of these structures.
43-101 qualifying reports
Dr. Peter Christopher visited the Los Azules, La Esperanza, Sandra, Salamandra and Colibri projects in July and August 2006. He is in the process of preparing qualifying reports for the La Esperanza, Sandra and Colibri projects, where drill programs are either in progress or planned. He will be preparing summary reports on the Los Azules and Salamandra projects.
Bahman Yamini, President & CEO of Canasil commented: “We are making progress with our Mexico exploration programs, and look forward to receiving the results from the drilling, as well as from sampling program and the planned geophysical survey. We are actively working on a number of projects in order to maximise the opportunities for returning successful results.”
Maps showing the locations of the above projects and general information on the projects can be found on the Company’s website - www.canasil.com.
About Canasil:
Canasil is a Canadian mineral exploration company with interests in base and precious metal properties in British Columbia, Canada, and in Durango, Sinaloa and Zacatecas States, Mexico. The Company’s directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of its mineral properties and evaluating additional acquisition opportunities.
For further information please contact:
Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
604-709-0109
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.
This news release contains certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to occur, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made.