MAG Silver Makes $200,000 Option Payment and Plans Phase 3 Drill Program at Canasil's Salamandra Silver-Copper-Zinc-Lead Project
Vancouver, June 02, 2015 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the Company) announces that MAG Silver Corp. (MAG) has completed the $200,000 second anniversary option payment due on May 27, 2015, under the option agreement on Canasil’s Salamandra Silver-Copper-Zinc-Lead project in Durango State, Mexico. MAG has confirmed that new drill targets for the Phase 3 diamond drill program are currently being finalized. The program is expected to start early in the third quarter of 2015, aimed at identifying high-grade polymetallic Skarn and Carbonate Replacement Deposit style (“CRD”) mineralization. MAG reported exploration expenditures of approximately C$4.5 million under the option agreement as of March 31, 2015. It is expected that with the Phase 3 drill program MAG will complete the C$5.5 million in exploration expenditures required under the first option to earn a 55% interest in the project.
MAG Silver-Canasil Option Agreement:
Under the terms of the agreement (News Release dated May 28, 2013) MAG can earn an initial 55% interest in Canasil's 14,719 hectare Salamandra property by incurring C$5.5 million in exploration expenditures and making total cash payments of C$750,000 over four years by May 27, 2017 (C$500,000 cash payments and approximately C$4.5 million in expenditures completed to date). Upon earning an initial 55% interest, MAG may elect to earn an additional 15% interest by producing either a feasibility study or spending an additional C$20 million over a further four year period.
Salamandra appears to be a typical Mexican Carbonate Replacement/Skarn Deposit and is very similar to MAG's Cinco de Mayo Project; the same exploration model that drove successful exploration there is being applied to Salamandra. Salamandra lies 80 kilometres northwest of Mexico's largest known silver-lead-zinc CRD-Skarn deposit, the Sabinas-San Martin District. Both Salamandra and Sabinas-San Martin are favorably positioned at the intersection of the Mexican CRD Belt and the Fresnillo Trend. Previous drilling at Salamandra by Canasil (Holes SA-1 to 12) was undertaken in a limited area characterized by medium to high-grade zinc mineralization with significant silver values. MAG’s exploration program was designed to probe and develop a better understanding of the scope and size of the system and development of exploration vectors, so drilling focused on targets 200 to 2000 metres from previous drilling. The Phase 1 and Phase 2 drill programs, completed and reported by MAG in 2014, returned pervasive zinc mineralization as well as two higher grade silver-copper-zinc-lead intercepts. The exploration and drill results from these programs have been analyzed and reinterpreted to define drill targets for MAG’s planned Phase 3 drill program.
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
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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.