Canasil Resources Inc.
TSX VENTURE : CLZ

Canasil Resources Inc.

June 06, 2006 20:19 ET

Canasil to Acquire 100% Interest in Mezquital Silver-Zinc-Lead Claims in Durango State, Mexico, from Oremex

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 6, 2006) - Oremex Resources Inc. (Oremex) (TSX:ORM), Minera Montana S. de R.L. de C.V. (Minera Montana), and Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ) and its wholly owned subsidiary Minera Canasil S.A. de C.V. (Minera Canasil), have signed a letter agreement providing for Canasil to acquire 100% interest in the Mezquital silver-zinc-lead claims, in which Oremex and Minera Montana have an option to earn 100% interest.

The agreement provides for Canasil to issue to Oremex 650,000 common shares of Canasil and 75,000 share purchase warrants, upon approval of the agreement by the TSX Venture Exchange and transfer of the claim titles, as full payment for 100% interest in the Mezquital claims. Each warrant will entitle Oremex to acquire one common share of Canasil at a price of $0.50 within 12 months of the approval of the final agreement by the TSX Venture Exchange.

The Mezquital silver-lead-zinc claims consist of 3 claim blocks (Los Tajos, Maria Elena and El Patrocinio) covering 161.48 hectares (399 acres) situated in the municipality of Mezquital in Durango State, Mexico. These claims are located within the boundaries of Canasil and Minera Canasil's Colibri project area. After completion of this agreement and transfer of the claims, the Colibri project area will increase from 6,413 ha (15,846 acres) to 6,574 ha (16,245 acres).

Historical records and a summary report prepared for Oremex by Dr. Peter A. Christopher, P. Eng., in April 2003 report that a number of mineralized veins are observed on the Mezquital claims. The veins follow NW and NE structures, have 60 degrees to 70 degrees southerly dip, with fault controlled mineralization consisting principally of silver, lead and zinc with minor gold and copper values. Veins are reported to range from 0.4 to 1.4 metres with workings on an individual vein extending for up to 300 metres. Rock chip and channel sampling by CRM (Consejo de Recursos Minerales - the Mexican Government Mineral and Geological Research Council) were reported to range from 102 g/t to 247 g/t silver, 0.5% to 11.79% zinc, and 2% to 8% lead for the 5 structures observed on the Mezquital claims (CRM, 1993).

Bahman Yamini, President & CEO of Canasil, commented: "The acquisition of the Mezquital claims completes the Colibri property package, and is a very positive step for the future development of this large silver-zinc-lead exploration project. A number of strong mineralized structures with high silver, zinc and lead grades are reported on the Mezquital claims, which require further investigation. The Los Angeles silver-zinc-lead structure, located in the northern sector of the Colibri project, which we are in the process of mapping and sampling (as announced on April 12, 2006), leads southwest towards the structures on the Los Tajos claim. These silver-zinc-lead structures may be related, in which case the overall strike length may extend to over 1.5 - 2.0 km."

Canasil's 100% owned Colibri project is located 70 km south-southeast of the City of Durango, and has excellent road access and good local infrastructure for supporting exploration and mining operations. The Colibri project is located within 75 km of the San Martin mine of Grupo Mexico, the La Colorada mine of Pan American Silver Corp., and the La Parrilla mine of First Majestic Resource Corp.

About Canasil:

Canasil is a Canadian mineral exploration company with interests in base and precious 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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