VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2012) - Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ)(FRANKFURT:3CC) announces completion of the $1 million expenditure requirement to earn 51% interest in Pan American Silver's (Pan American) Escobar claims at the Sandra-Escobar silver-gold project in Durango State, Mexico. As required under the option and joint venture agreement dated March 24, 2009, Canasil has delivered to Pan American a formal notice of earn-in on June 22, 2012, based on expenditures under the agreement of $1,107,008. Data and reports covering the exploration programs up to December 2011 were delivered to Pan American in January 2012, and the final reports and data covering the exploration work from January to June 2012 were delivered on July 20, 2012.
Following the exercise of the earn-in by Canasil, Pan American has advised Canasil that it will not exercise its back-in right to form a 51% Pan American 49% Canasil joint venture covering the project, and has elected to sell its remaining 49% interest in the Escobar claims to Canasil as provided for in the agreement. If Canasil elects not to buy Pan American's 49% interest in the Escobar claims, Canasil's 51% interest in the Escobar claims will be reduced to 40%.
Bahman Yamini, President and CEO of Canasil, commented: "While we would have been very pleased to advance this large high priority silver-gold project in cooperation with Pan American, Canasil will now retain 100% interest in the majority of the project area and principal targets, as well as a significant interest in Pan American's Escobar claims. This is a positive outcome for Canasil providing us the opportunity to maintain this large silver-gold-base metal project with excellent location and infrastructure in our project portfolio. We will actively pursue opportunities for comprehensive drill testing of the principal mineralized zones, either directly by Canasil or through other cooperation agreements with high quality partners."
The Sandra-Escobar project is located in northern Durango State, Mexico, 200 kilometres northwest of the city of Durango with excellent access and infrastructure, on an important mineral trend with many past and presently producing silver-gold mines and deposits. The project area hosts a mineralized system centered on a large altered rhyolite dome complex, with surrounding geological formations, alteration patterns, and extensive evidence of gold, silver and base metal mineralization indicating the potential for hosting a large disseminated gold-silver-base metal mineralized system. A number of high-grade silver-gold veins surround the dome area. Canasil holds 100% interest in the 7,451 hectares Sandra project claims, and has earned 51% interest in Pan American's adjoining 634 hectares Escobar project claims.
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. The Company's directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of its mineral properties.
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