News & Media

Canasil Intersects 2.49 metres with 458 g/t Silver, 2.2% Zinc and 2.3% Lead at La Esperanza Silver-Zinc-Lead Project in Zacatecas State, Mexico

August 29, 2006

Vancouver, August 29, 2006 – Canasil Resources Inc. (“Canasil” TSX-V: CLZ) is pleased to announce initial results from the diamond drill program at the La Esperanza Silver-Zinc-Lead project in Zacatecas State, Mexico. Four drill holes, ES-06-01 to ES-06-04, have been completed to date for a total of 458 metres, and work is in progress on ES-06-05. 

Drill hole ES-06-01 intersected the historic mine workings at a drill depth of 75 metres. Drill hole ES-06-02 was collared at the same location, and aimed at exploring for extension of the La Esperanza vein approximately 50 metres below the old workings. This drill hole intersected the mineralized vein at a drill depth of 100.22 metres to 107.74 metres for a drill intercept of 7.52 metres (true width 4.30 metres), with an average grade of 210 g/t silver, 1.25% zinc and 1.03% lead. A central higher-grade zone of 2.49 metres (true width 1.42 metres) of the vein, from 101.68 metres to 104.17 metres, returned average assays of 458 g/t silver, 2.2% zinc and 2.31% lead. Assay results from the mineralized intercept in ES-06-02 are listed below:

La Esperanza Project -  Diamond Drill Hole ES-06-02
Sample No.	Interval - Metres From           To		Width Metres	Grades
				Silver g/t	Silver oz/t	Zinc %	Lead %
5014	100.22	100.85	0.63	45	1.3	0.251	0.082
5015	100.85	101.18	0.33	10	0.3	0.125	0.045
5016	101.18	101.68	0.50	78	2.3	0.583	0.604
5017	101.68	102.17	0.49	727	21.2	1.880	2.880
5018	102.17	102.60	0.43	21	0.6	0.160	0.095
5019	102.60	103.17	0.57	800	23.3	2.980	2.090
5020	103.17	103.75	0.58	433	12.6	3.750	2.140
5021	103.75	104.17	0.42	161	4.7	1.490	4.460
5022	104.17	104.60	0.43	21	0.6	0.597	0.323
5023	104.60	105.09	0.49	14	0.4	0.518	0.407
5024	105.09	105.43	0.34	140	4.1	1.120	0.235
5025	105.43	106.08	0.65	125	3.6	0.437	0.288
5026	106.08	107.74	1.66	135	3.9	1.380	0.634
Average	100.22	107.74	7.52	210	6.1	1.25	1.03
Incl.	101.68	107.74	6.06	249	7.3	1.48	1.22
and	101.68	104.17	2.49	458	13.4	2.20	2.31
and	102.60	103.75	1.15	615	17.9	3.37	2.12

g/t (grams per metric tonne) is converted to oz/t (ounces per short ton) by a conversion factor of 34.2856

ES-06-03, collared 40 metres to the northwest of ES-06-01 and 02 and aimed at exploring for the lateral continuation of the vein, has been completed to a depth of 125 metres and intersected the mineralized vein structure at a depth of 99 metres, over a drill intercept of 5.0 metres. Drill hole ES-06-04, collared 55 metres northwest of ES-06-03 to further test the continuation of the vein structure, has been completed to a depth of 126.5 metres and intersected a 2.20 metre mineralized vein at a drill depth of 88.60 to 90.80 metres in the hanging wall of the main zone, followed by the La Esperanza vein at a drill depth of 120.00 to 126.40 metres for a drill intercept of 6.4 metres. The vein intercepts observed in ES-06-03 and 04 appear to consist of banded quartz with calcite, barite, pyrite, chalcopyrite, galena and sphalerite.

Eng. Erme Enriquez, Director of Exploration and Development of Minera Canasil S.A. de C.V., the Company’s wholly owned Mexican subsidiary, is responsible for the planning and implementation of the drill program. All core samples are processed at the Company’s core processing and storage facility in Durango, Mexico. Samples are cut by diamond saw, and half is sent for assay and half secured for reference. Samples are sent to the SGS Laboratories in Durango for processing and assay analysis for gold and silver by fire assay with an atomic absorption finish (“FA-AA”) on a 30 gram split, and for copper, lead and zinc by digestion of 1.00 gram sample in aqua regia and analysis by AA. A duplicate set of pulp samples are also sent to ALS Chemex Laboratories in Vancouver for check assays. 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.

The La Esperanza Silver-Zinc-Lead project covers 413 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 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.

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.