Canasil and Blackcomb Terminate Option Agreement On Salamandra and Victoria Projects in Durango, Mexico
March 12, 2009
Vancouver, March 12, 2009 – Canasil Resources Inc. (“Canasil” TSX-V: CLZ) announces the termination of the option agreement with Blackcomb Minerals Inc. (Blackcomb), signed on March 19, 2008, and providing for Blackcomb to earn a 60% interest in Canasil’s Salamandra and Victoria projects for $7 million exploration expenditures and $375,000 in cash or share payments over 6 years. As part of the agreement, Blackcomb was required to incur $1 million in exploration expenditures during the first year of the agreement by March 19, 2009. Due to the current economic downturn and its impact on junior exploration and mining companies, Blackcomb has not completed the required first year exploration expenditures, and as a result the agreement will terminate.
The Salamandra and Victoria projects cover a large prospective area located on a mineral rich trend, stretching from the northwest to the southeast, through Durango and Zacatecas States. There are numerous mines and large silver, gold and base metal deposits located on this trend. Geophysics and diamond drilling completed by Canasil to date has identified significant silver-zinc mineralization at Salamandra, with preliminary metallurgical tests showing high silver and zinc recoveries to clean concentrates. Initial reconnaissance in the Victoria project area has outlined several prospective target zones for further evaluation.
The data from geological, geochemical and geophysical surveys, as well as 3,595 metres of diamond drilling in 12 holes completed by Canasil in 2007, indicates the potential for a large silver-zinc mineralized system at the Salamandra project, including several high grade silver and zinc drill intercepts. There is considerable potential for further exploration at the Salamandra project, including extending the geophysical survey over an area of at least 12 square kilometers from the 4 square kilometers covered by the previous survey, and additional diamond drilling to investigate untested targets indicated by the past exploration program.
The Salamandra and Victoria projects are located 30 kilometres to the northeast of the city of Durango in central Mexico. The claim area covers a large strategic land position within an area which has generated a number of important recent discoveries, and benefits from excellent access and infrastructure for mineral exploration and development. The projects are located on the mineral-rich Fresnillo geologic trend, approximately 80 km northwest of the San Martin mine of Grupo Mexico, which is the largest underground zinc-copper-silver mining operation in Mexico, producing at approximately 6,000 tonnes per day.
Canasil is a Canadian mineral exploration company with interests in precious and base metal properties in Durango, Sinaloa and Zacatecas States, Mexico, and in British Columbia, Canada. The Company’s directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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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.