Canasil Resources Inc.
TSX VENTURE : CLZ

Canasil Resources Inc.

November 06, 2007 09:00 ET

Canasil Drilling and Geophysics Identifies a Deep Porphyry Gold-Copper System at the Brenda Project in British Columbia, Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 6, 2007) - Canasil Resources Inc. ("Canasil") (TSX VENTURE:CLZ) is pleased to announce the results from the 1,708 meter diamond drill program in 5 diamond drill holes, as well as a 3-dimensional Induced Polarization geophysical survey, completed at the Company's Brenda Gold-Copper Porphyry Project in the Kemess-Toodogoone Mining District in north-central British Columbia. These programs have identified a deep porphyry gold-copper system at the Brenda project.

Drill holes BR-07-04 and BR-07-05, drilled to a depth of 562 metres and 530 metres respectively, both intersected broad gold-copper mineralized zones with increasing grades at depth, and which are also open to depth. Drilling was limited to a maximum depth of 550 metres based on the availability of drill rods and appropriate drill bits required for deeper drilling. The average grade of 5 intercepts from both holes above a depth of 450 metres (Nos. 1, 2, 3, 5 and 6 in the table below) was 0.48 g/t gold and 0.079% copper over a combined intercept width of 393.72 metres. The average grade of 3 intercepts below 450 metres (Nos. 4, 7 and 8 below) was 0.68 g/t gold and 0.116% copper over a combined intercept width of 92.84 metres. A significant number of samples returned assays of over 1.0 g/t gold and 0.15% copper.

The increasing gold and copper grades at depth and the strength of the highly altered mineralized structure observed in the drill core, in conjunction with the strong anomalies observed in the geophysical survey, are highly encouraging and indicate the potential for a large deep-seated gold-copper porphyry system at the Brenda project. The mineralized environment observed at the Brenda project appears similar to that of the deep-seated Cadia East underground gold-copper porphyry deposit of Newcrest Mines in Eastern Australia (described below), which was discovered by drilling below a depth of 600 metres.

Significant mineralized intercepts from drill holes BR-07-04 and BR-07-05 are listed below:



---------------------------------------------------------------------
Brenda Gold-Copper Project - 2007 Diamond Drill Program
---------------------------------------------------------------------
Interval - Metres Width Gold Copper Gold Eqv.
No.: Intercept From To Metres g/t % g/t(i)
---------------------------------------------------------------------
Diamond Drill Hole BR-07-04
---------------------------------------------------------------------
1 Zone 1 90.12 260.00 169.88 0.466 0.088 0.697
---------------------------------------------------------------------
Includes 200.00 260.00 60.00 0.592 0.111 0.884
---------------------------------------------------------------------
2 Zone 2 312.00 378.00 66.00 0.310 0.038 0.410
---------------------------------------------------------------------
3 Zone 3 420.08 460.00 39.92 0.418 0.080 0.628
---------------------------------------------------------------------
4 Zone 4 504.00 561.96 57.96 0.707 0.119 1.020
---------------------------------------------------------------------
Includes 508.00 546.00 38.00 0.867 0.141 1.238
---------------------------------------------------------------------
Diamond Drill Hole BR-07-05
---------------------------------------------------------------------
5 Zone 1 110.00 188.03 78.03 0.610 0.104 0.884
---------------------------------------------------------------------
6 Zone 2 336.11 376.00 39.89 0.625 0.062 0.788
---------------------------------------------------------------------
7 Zone 3 459.52 483.90 24.38 0.670 0.114 0.970
---------------------------------------------------------------------
8 Zone 4 488.89 499.39 10.50 0.570 0.101 0.836
---------------------------------------------------------------------
(i) Gold Equivalent based on $650 per oz. Gold, $2.50/lb Copper,
assuming 100% recoveries
---------------------------------------------------------------------


The gold copper mineralization is associated with quartz magnetite stockworks in highly altered volcanics with potassic alteration. The mineralization increases in intensity and is open to depth below 450 metres, beneath a series of thick branching barren quartz monzonite dykes. The barren dykes have disrupted the upper levels of the porphyry system, and lowered the grade in envelopes near the dyke contacts.

No intrusive rocks, which form the core of the mineralized system, were observed within the zones drilled, except for the late stage intrusive dykes. This indicates that there is potential for a large gold-copper porphyry system, associated with a deeper buried intrusive, below a depth of 450 metres. In order to investigate this system at depth and along strike, the above drill holes should be deepened to a depth of over 1,000 metres, as well as additional holes drilled along strike. The mineralized system averages 300 to 400 metres in width, and has been traced along a strike length of 400 meters by drilling, with a potential strike length in excess of 1,000 metres indicated by the chargeability anomalies observed in the 3-Dimensional Induced Polarisation geophysical survey.

The geophysical survey covered approximately 30 line-kilometres over an area of 1,600 metres by 2,500 metres. The survey and interpretation models used provide chargeability and resistivity profiles down to a depth of 500 metres. The results showed significant chargeability anomalies, highlighting the pyritic and phyllic envelopes around the gold-copper mineralized zone. These signatures extend down to the extent of the survey depth of 500 metres in the sectional views. They also outline the potential gold-copper mineralized zone in the plan views at depths of 300 metres to 500 metres, with anomalies extending over a strike distance of approximately 1,000 metres. These features are a further indication of a potentially large buried mineralized structure. A deeper sensing geophysical survey, which can penetrate to 1,000 metres depth, may be used in a future program for further definition of the structure at depth.

Drill holes BR-07-01, 02 and 03 were drilled to test peripheral targets and did not intersect significant gold-copper mineralization.

The Cadia East gold-copper porphyry underground deposit of Newcrest Mines in Eastern Australia was discovered by deep drilling below a depth of 600 metres in potassic altered volcanics with gold-copper mineralized quartz magnetite stockworks above a deep intrusive complex. The Cadia East underground deposit has indicated and inferred resources of 690 million tonnes with gold grades of 0.53 g/t to 0.93 g/t, and copper grades of 0.29% to 0.35%. The deep underground deposit contains 16 million ounces of gold and 2.2 million tonnes of copper.

The Brenda gold-copper property comprises 178 mineral claim units, covering 44.5 square kilometres (4,450 hectares, 10.990 acres). The project is situated approximately 450 km northwest of Prince George, B.C., and 25 km northwest of Northgate Mineral Corporation's 300,000 ounces gold per year Kemess South Mine, in the core of the Kemess-Toodoggone porphyry gold-copper / epithermal district. The property is 100% owned by Canasil and all claims are valid to May 31, 2015, with cumulative exploration expenditures of over $3,500,000 to date.

The diamond drill program was implemented under the direction of Gary Nordin, P. Geo. British Columbia, and Director of Canasil. Drill core from the program was processed and is stored at the project site. Core samples from half of the drill core were cut by diamond saw in 2-metre intervals and sent to ALS Chemex Laboratories in North Vancouver, B.C., for preparation and assay analysis for gold and silver by fire assay with an atomic absorption finish ("FA-AA") on a 30 gram split, and for a 28 element package of major and trace elements by ICP Analysis. Gary Nordin, P. Geo. British Columbia, 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.

To view the figure of the Brenda Gold-Copper Porphyry Project Vertically zoned gold-copper mineralized structure with increasing Gold and copper grades at depth and open to depth, please click on the following link: http://www.ccnmatthews.com/docs/clz1106fig1.jpg

To view the figure of the Brenda Gold-Copper Porphyry Project Chargeability Section 10600N and Plan View at 400m below surface Showing Porphyry Gold-Copper Zone flanked by Pyritic Halos, please click on the following link: http://www.ccnmatthews.com/docs/clz1106fig2.jpg

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