Canasil Mexico Gold-Silver Projects Exploration Update
March 17, 2010
Vancouver - Canasil Resources Inc. (Canasil, TSX-V: CLZ) is pleased to provide an update on exploration activities on the Company’s Sandra-Escobar Gold-Silver and La Esperanza Silver-Lead-Zinc projects in Durango and Zacatecas States, Mexico. The Company is completing comprehensive mapping and sampling programs to define drill targets for testing of these projects. The Company has also received several expressions of interest for option and joint venture cooperation to advance the La Esperanza and other Mexican exploration projects, which are in the process of evaluation.
At the Sandra-Escobar gold-silver project, a surface rock chip and stream sediments sampling program is nearing completion with over 300 surface samples collected and sent for assay to date. The program objective is to gather approximately 500 surface samples over an area of 5 square kilometers on a 100m x 100m grid in the central area and 200m x 200m grid in the surrounding area. The samples will test in detail the alteration zones and mineralized structures already identified by earlier sampling and historical surface sampling data in order to identify targets for drill testing. The Company plans to undertake a Phase 1 drill program after analyzing the results of the sampling program. The project is located in northern Durango State, Mexico, 200 kilometers northwest of the city of Durango with excellent access and infrastructure, on an important mineral trend with many past and presently producing silver-gold mines and deposits. Canasil holds 100% interest in the 7,512 hectares Sandra project claims, and has entered into an option agreement with Pan American Silver to earn 51% interest in Pan American’s 634 hectares adjoining Escobar project claims. The project area hosts a mineralized system centered on a large altered rhyolite dome complex, with surrounding geological formations, alteration patterns and extensive evidence of gold, silver and base metal mineralization, indicating the potential for discovery of a large disseminated gold-silver-base metal deposit.
At the La Esperanza silver-lead-zinc project the Company has completed upgrading and building of 24 kilometers of access roads within the newly acquired extensive claims in the northwest of the project area. The Company can now proceed with the evaluation of the new claim areas, where historical reports and data from previous exploration have outlined two vein systems and one stockwork vein system with silver, lead and zinc values, associated with a rhyolite dome with anomalous silver values. This area is approximately 10 kilometers northwest of the La Esperanza vein, which has already been tested with a Phase 1 drill program (previously reported) with encouraging high grade silver, lead and zinc values over wide intercepts. Planned exploration of the La Esperanza vein area will target extensions of the vein system, which is surrounded by a 5 kilometer argillic altered zone, followed by further drill testing. The project area now covers 17,000 hectares (170 square kilometers), with the potential for hosting a district scale mineralized system. The project is located in the Chalchihuites district in northern Zacatecas and southern Durango States, 100 kilometers south southeast of the city of Durango with excellent access and infrastructure, in a recognized silver district hosting a number of active mines such as Pan American Silver’s La Colorada and First Majestic’s La Parrilla silver-lead-zinc mines. Recently announced results from drilling below the lowest working levels at Pan American Silver’s La Colorada mine indicate encouraging potential for very high grade silver-lead-zinc mineralization at depth in the epithermal veins found in the Chalchihuites district.
In addition to the above projects, the Company has also defined drill targets on the Salamandra silver-zinc, Vizcaino gold-silver and Carina silver-gold projects, which are all strategically located on the highly prospective silver-gold trend running through Durango and Zacatecas States (location map attached below). These projects are ready for drill testing either through direct funding of the exploration programs or through option and joint venture cooperation.
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.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.