Canasil June 2009 Corporate Update
June 16, 2009
Vancouver - Canasil Resources Inc. (Canasil, TSX-V: CLZ) is pleased to provide an update covering the Company’s operations and plans for 2009. The operating environment for the Resource Sector has improved considerably over the first half of 2009. The increasing price of precious metals, a gradual improvement in the price of base metals and significant increase in the price of oil reflect a generally more positive economic outlook.
This has resulted in significant gains in the share prices of mineral producers, well-funded explorers and those with advanced projects. Smaller explorers, particularly those with limited working capital, have not recovered due to the barriers for raising exploration capital and the potential dilution from raising funds at the current very low share prices.
Given these conditions, the Company has focused on reducing operating costs and maintaining its core assets, which are its mineral exploration projects in Durango, Zacatecas and Sinaloa States in Mexico, and in British Columbia, Canada, as well as its operating team in Mexico. The Company has an exceptionally well located and prospective mineral exploration portfolio for Gold, Silver, Copper, Zinc and Lead in these well-recognized and politically stable jurisdictions, all with exceptional access and infrastructure. This portfolio includes at least three projects with the potential for hosting large gold, silver, copper and zinc mineralized systems, and a number of prospects with the potential for high grade gold and silver vein type mineralization.
The Company’s focus during the second half of 2009 will be to maintain and gradually advance its exploration projects. The immediate exploration objective will be to advance the Sandra-Escobar project under the Option agreement with Pan American Silver Corp. This project is located in northern Durango State, Mexico, on an important mineral trend with many past and presently producing silver-gold mines and deposits, approximately 75 kilometers west-north-west of Silver Standard Resources La Pitarrilla project. It has the potential to host a large gold-silver mineralized system with copper, lead and zinc credits.
The Company will also continue to pursue opportunities for Option and Joint Venture Agreements to advance its exploration projects. The increasing metal prices and improving economic conditions have resulted in greater interest for joint venture cooperation on our projects, particularly given the desirable location of these projects and the mix of precious and base metal prospects in our portfolio.
The Company has completed initial exploration and drill programs on the following projects, all of which have returned significant mineralized drill intercepts:
- Brenda gold-copper porphyry project, B.C., Canada
- Salamandra silver-zinc project, Durango, Mexico
- La Esperanza silver-lead-zinc project, Zacatecas, Mexico
- Colibrí silver-gold-copper project, Durango, Mexico
Results from the Brenda and Salamandra projects indicate the potential for hosting large mineralized systems. The La Esperanza and Colibri projects host high-grade epithermal vein type systems. In addition to the above projects, the Company has a further eight earlier stage exploration projects, two in British Columbia, Canada, and six in Durango and Sinaloa States, Mexico.
Canasil is a Canadian mineral exploration company with interests in precious and base metal projects in Durango, Sinaloa and Zacatecas States, Mexico, and in British Columbia, Canada. The Company’s directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. The Company is engaged in the exploration of its mineral properties.
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