Canasil Proposes Spin-out Transaction for Transfer of B.C. Properties to Canmine Minerals Inc.
July 26, 2017
Vancouver, April 14, 2016 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) is pleased to announce that Orex Minerals Inc. (TSX-V: REX, “Orex”) has reported assay results from the remaining seven drill holes, SA-16-011 to SA-16-017, of the Phase 1 core drilling program in the southeastern region of the Sandra-Escobar Project. The project is being advanced by Orex under an option agreement announced on September 15, 2015. The results are detailed in the table below. These complete the results from the Phase 1 drill program of 17 holes which confirm consistent near-surface silver mineralization in a zone extending 550 metres along strike. Orex has also reported progress with the Phase 2 drill program, planned for 3,000 metres in approximately 20 to 25 drill holes, which started on March 16, 2016, with nine drill holes completed to date. This second drill program is intended to test the mineralized zone up to 750 metres along strike, as well as stepping back into the hillside to test for extensions of the mineralized block under cover.
A highlight for this final batch of Phase 1 drill holes is SA-16-015, which returned 44 metres core length (36 metres true thickness) grading 129 g/t silver, starting 26 metres vertically below surface. Within this is a sub-interval of 5 metres (4.10 metres true thickness) grading 252 g/t silver. While the average grade of these holes was generally lower than the prior drill holes, the consistency of mineralization through the zone is encouraging, and grades remain very attractive. Orex has also received some mineralogical information from four surface rock and core samples which indicate that silver occurs as fine-grained native silver. Several grains of galena were also observed, but overall sulphide minerals are notably very rare. These observations are in keeping with field observations and geochemical results so far.
Canasil President & CEO, Bahman Yamini, commented: “It is very rare to see an initial drill program in a new discovery return such consistent mineralized intercepts through the mineralized zone with 15 of the 17 drill holes all returning significant silver values. It is also encouraging to see positive progress on the Phase 2 drill program, with 9 drill holes already completed and drill hole SA-16-27 in progress. We are looking forward to initial results from the Phase 2 program, with further results coming in as additional drill holes are completed and assays received by Orex.”
Drilling of silver-bearing mineralization to date has been focused on the north side of a rhyolite volcanic dome. In this area an altered and highly permeable volcanoclastic unit contains disseminations of silver bearing minerals and broadly spaced stockwork veinlets. The current working model has a porphyritic rhyolite unit as an impermeable cap, which may have focused mineralizing fluids into the host volcanoclastic unit. Reconnaissance sampling in areas surrounding the currently drilled mineralized zone indicate the potential for additional mineralized outcrops to be investigated with more detailed surface sampling and drilling.
|Sandra Escobar Project – 2015-2016 Core Drilling Program – Holes SA-16-011 to 017|
|Hole||From (m)||To (m)||Core Length (m)||True Thick. (m)||Ag (g/t) FA|
True thicknesses are estimated based on structural and stratigraphic interpretations. A drill-hole location map and sample cross sections are available on the Canasil website.
The drill program is being managed by Orex and the above results were prepared by and provided by Orex. Orex maintains a QA/QC sampling protocol for the diamond drilling program, including the insertion of commercial analytical standards and blank samples. Analytical testing was performed by SGS Mineral Services. Silver was determined by fire assay with an atomic absorption finish. Multi-element analyses are also determined using a 4-acid digestion and ICP-MS (Inductively Coupled Plasma Mass Spectrometry).
The technical information in this news release is based on data supplied by Orex. The technical information herein has been reviewed and approved by J. Blackwell (P. Geo.), a Qualified Person as defined by National Instrument 43-101. Mr. Blackwell is a technical advisor to Canasil.
Sandra-Escobar Silver-Gold Project, Durango, Mexico:
The Sandra-Escobar project is located 200 km northwest of the City of Durango, Mexico, in the heart of the “Mexican Silver Trend”, with excellent access and infrastructure. This prolific trend hosts some of the world’s largest silver camps and deposits with many past and present producing mines and significant silver-gold deposits. The project area covers over 6,976 hectares of mineral concessions with multiple mineralized epithermal veins and breccia structures. These veins form a high level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite dome complexes to the southeast. Intense alteration zones and fluid flooding in permeable formations may also indicate the presence of bulk tonnage targets. Under the terms of the agreement dated September 15, 2015, Orex has an option to earn up to 65% interest in the project through total cash and share payments of $1,000,000 and exploration expenditures of US$4,000,000 over five years.
Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-copper-lead-zinc projects in Durango 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 through to discovery and further development. The Company is actively engaged in the exploration of its mineral properties, and maintains an operating subsidiary in Durango, Mexico, with full time geological and support staff for its operations in Mexico.
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 news release.
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.