Canasil Resources Inc.
TSX VENTURE : CLZ

Canasil Resources Inc.

June 11, 2007 09:30 ET

Canasil Completes 2,300 Metre Phase 1 Drill Program and Intersects Consistent Zinc-Silver Mineralized Zones at the Salamandra Project in Durango, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2007) - Canasil Resources Inc. ("Canasil") (TSX VENTURE:CLZ) is pleased to announce that the Phase 1 diamond drill program has been completed at the Salamandra project in Durango, Mexico. The program, planned for 1,500 metres, was expanded to include 8 drill holes for a total of 2,285 metres. Seven of the drill holes, SA-07-02 to SA-07-08, have consistently intersected mineralized zones carrying zinc, silver and lead mineralization. The Canasil has received assay results from drill holes SA-07-01 to SA-07-03, and expects to receive assay results from the remaining five drill holes over the next 4 to 6 weeks.

The results from significant intercepts in drill hole SA-07-02 were announced on April 30, 2007. Assay results from SA-07-03 indicate two zones carrying zinc, lead and silver mineralization, including a broad mineralized intercept of 78 metres (185 metres to 263 metres) with an average grade of 1.15% zinc, 16 grams per tonne ("g/t") silver and 0.25% lead. The best grades are observed within a 20 metre intercept (195 metres to 215 metres) with an average grade of 2.62% zinc, 45 g/t silver and 0.77% lead. An 11 metre intercept (195 metres to 206 metres) within this zone returned an average grade of 3.48% zinc, 71 g/t silver and 1.26% lead, with a high-grade zinc-silver-lead intercept of 3 metres (196 metres to 199 metres) carrying 5.34% zinc, 178 g/t silver and 3.59% lead. Assay results from this zone are listed in the table below and a summary of the mineralized zones in drill hole SA-07-03 is attached for reference:



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Salamandra Project - Diamond Drill Hole SA-07-03, May 2007
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Sample Interval- Grades
metres ---------------------
----------------- Width Silver
Ref. No. Sample No. From To Metres g/t Zinc% Lead%
----------------------------------------------------------------------
1 5971 195.00 196.00 1.00 61.4 1.21 0.646
----------------------------------------------------------------------
2 5972 196.00 197.00 1.00 324 8.08 6.45
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3 5973 197.00 198.00 1.00 117 4.08 2.47
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4 5974 198.00 199.00 1.00 92.8 3.87 1.84
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5 5975 199.00 200.00 1.00 42.7 1.61 0.74
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6 5976 200.00 201.00 1.00 36.4 4.09 0.55
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7 5977 201.00 202.00 1.00 12 3.37 0.07
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8 5978 202.00 203.00 1.00 13.7 1.52 0.14
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9 5979 203.00 204.00 1.00 22.1 0.89 0.35
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10 5980 204.00 205.00 1.00 30.7 3.63 0.36
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11 5981 205.00 206.00 1.00 22.9 5.95 0.27
----------------------------------------------------------------------
12 5982 206.00 207.00 1.00 6.7 1.42 0.08
----------------------------------------------------------------------
13 5983 207.00 208.00 1.00 20.8 3.34 0.20
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14 5984 208.00 209.00 1.00 20.8 1.59 0.30
----------------------------------------------------------------------
15 5985 209.00 210.00 1.00 22.6 3.86 0.37
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16 5986 210.00 211.00 1.00 8.9 2.04 0.07
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17 5987 211.00 212.00 1.00 8.6 0.86 0.11
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18 5988 212.00 213.00 1.00 15.6 0.46 0.11
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19 5989 213.00 214.00 1.00 6.9 0.31 0.13
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20 5990 214.00 215.00 1.00 15.1 0.26 0.07
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Average Grade 195.00 215.00 20.00 45 2.62 0.77
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Including 195.00 205.00 11.00 71 3.48 1.26
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and 196.00 199.00 3.00 178 5.34 3.59
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Bahman Yamini, President & CEO, commented: "We are pleased with the completion of the expanded Phase 1 drill program at the Salamandra project, and the assay results received from drill holes SA-07-02 and SA-07-03, which confirm the occurrence of Zinc-Silver-Lead mineralized zones with significant grades and widths."

The Salamandra project covers 2,900 hectares (7,163 acres), located 35 kilometres NE of the city of Durango in Durango State, Mexico, with good access via paved and gravel roads. The access, infrastructure, climate and topography at the Salamandra project provide favourable conditions for exploration and development. The Salamandra project is located on the mineral-rich Fresnillo geologic trend, approximately 80 kilometres northwest of the San Martin mine of Grupo Mexico, which is the largest underground zinc-copper-silver producer in Mexico operating at approximately 6,000 tonnes per day.

The diamond drill program is being supervised and implemented by Canasil's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V., under the direction of Erme Enriquez, Director of Exploration and Development. Drill core is sent from the project site to the Company's core processing and storage facility in Durango. Core samples from half of the drill core are cut by diamond saw and sent to SGS Laboratories in Durango and to ALS Chemex Laboratories in Hermosillo for processing and preparation, with sample pulps assayed by SGS Laboratories In Toronto and ALS Chemex Laboratories in Vancouver with assay analysis for gold and silver by fire assay with an atomic absorption finish ("FA-AA") on a 30 gram split, and for copper, lead and zinc by digestion of 1.00 gram sample in aqua regia and analysis by AA. Gary Nordin, P. Geo. British Columbia and Director of Canasil, is the designated Qualified Person for this project in accordance with National Instrument 43-101.

About Canasil:

Canasil is a Canadian mineral exploration company with interests in precious and base metal properties in British Columbia, Canada, and in Durango, Sinaloa and Zacatecas States, Mexico. The Company's directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of mineral properties and evaluating additional acquisition opportunities.

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to occur, are 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 may differ materially from those in the forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made.

Salamandra Zinc-Silver Project, Durango, Mexico

Summary of Mineralized Drill Intervals in Diamond Drill Hole SA-07-03



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Salamandra Project - Diamond Drill Hole SA-07-03, May 2007
Average Grades of Mineralized Intercepts
------------------------------------------------------------
Sample Interval- Grades
Sample No. metres ---------------------
----------- ----------------- Width Silver
From To From To Metres g/t Zinc% Lead%
------------------------------------------------------------
5892 5902 116.40 127.00 10.60 16 1.60 0.26
------------------------------------------------------------
5961 6039 185.00 263.00 78.00 16 1.15 0.25
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Including
------------------------------------------------------------
5961 5990 185.00 215.00 30.00 33 1.84 0.55
------------------------------------------------------------
5971 5990 195.00 215.00 20.00 45 2.62 0.77
------------------------------------------------------------
5971 5981 195.00 205.00 11.00 71 3.48 1.26
------------------------------------------------------------
And
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5997 6002 220.75 226.00 5.25 9 1.70 0.11
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And
------------------------------------------------------------
6003 6039 226.00 263.00 37.00 6 0.69 0.06
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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Canasil Resources Inc.
    Bahman Yamini
    President and C.E.O.
    (604) 709-0109
    Email: info@canasil.com
    or
    Canasil Resources Inc.
    Doug Kerr
    Corporate Communications, Vancouver
    (604) 718-5454
    Email: dkerr@canasil.com
    or
    Canasil Resources Inc.
    Garth McTavish
    Corporate Communications, Calgary
    (403) 618-7327
    Email: garthmctavish@shaw.ca
    Website: www.canasil.com
    or
    Pro-Edge Consultants Inc. - Toronto
    Tracy Weslosky
    (416) 581-0177 or Toll Free: 1-866-544-9622
    Email: tracy@pro-edge.com
    or
    Pro-Edge Consultants Inc. - Toronto
    Fred Cowans
    (416) 581-0177 or Toll Free: 1-866-544-9622
    Email: fred@pro-edge.com