Pan American Silver Terminates Option Agreement on Canasil's Carina Project, Durango State, Mexico
Vancouver, April 23, 2012 - Canasil Resources Inc. (Canasil, TSX-V: CLZ , DB Frankfurt: 3CC) announces that Pan American Silver Corp. (Pan American TSX: PAA), has elected to terminate the option agreement on Canasil’s Carina silver-gold project in Durango State, Mexico. At the time of entering into the agreement, Pan American was required to assign the agreement to the La Preciosa joint venture between Pan American and Orko Silver Corp. (Orko, TSX: OK). As previously announced by Orko on April 5, 2012, Pan American has relinquished its right to earn a 55% interest in the La Preciosa project and the Carina option will not be continued by the La Preciosa joint venture company. As a result Canasil now retains 100% interest in the Carina project.
Pan American completed an initial Phase 1 diamond drill program at the Carina project as previously announced by Canasil on March 5, 2012, with total expenditures of US$ 357,806. The drill program consisted of six drill holes for a total depth of 1,008 metres, which tested, at a relatively shallow depth of approximately 75 metres to 200 metres, an area with multiple quartz vein structures with anomalous silver, gold and base metal values in surface samples. All drill holes intersected narrow quartz vein structures varying in widths from 0.55 metres to 5.90 metres and carrying anomalous gold and silver values between 0.1 g/t to 0.435 g/t gold and 1.0 g/t to 6.0 g/t silver. As the surface mineralization observed at the Carina project appears to correspond to the higher levels of an epithermal system, further drilling will be required to test the system at depth.
The option agreement with Pan American Silver was signed on November 18, 2010, and provided for Pan American to earn an initial 55% interest in Canasil’s Carina property for total exploration expenditures of US$3,650,000 and total cash payments of US$365,000 to Canasil over a period of four years.
The Carina property covers 12,147 hectares and is located 45 km northeast of the city of Durango. The claims are adjacent to the southern border of the Orko Silver La Preciosa silver project. Canasil’s mapping and sampling has defined an area of 500 metres by 800 metres hosting multiple quartz vein structures with anomalous silver, gold and base metal values in surface samples. The drill program was implemented by Pan American Silver through its local subsidiary in Durango, Mexico. A total of 134 drill core samples, including standards and blanks, were assayed by SGS laboratories in Durango, Mexico. Gary Nordin, P. Geo. British Columbia and Director of Canasil, is Canasil’s designated Qualified Person in accordance with National Instrument 43-101.
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. Canasil’s directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. Canasil is actively 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
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