Canasil Resources Inc.

Canasil Resources Inc.

August 21, 2007 20:33 ET

Canasil Currently Diamond Drilling on Three Silver/Gold/Copper/Zinc Projects in Durango State, Mexico, and British Columbia, Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) - Canasil Resources Inc. ("Canasil") (TSX VENTURE:CLZ) is pleased to announce that three diamond drills are currently working on the Company's exploration projects in Mexico and British Columbia, Canada. Diamond drilling is in progress at the Colibri Silver-Copper-Zinc and the Salamandra Zinc-Silver projects in Durango State, Mexico, and on the Brenda Gold-Copper project in British Columbia, Canada. The Company's 2007 exploration programs have proceeded as planned with the completion of over 5,500 metres of diamond drilling in Mexico to date. The Company has also completed further acquisitions and expansion of the project portfolio in Mexico, with the new areas currently under evaluation for additional target zones. At the Brenda project in British Columbia, a 3-Dimensional IP geophysical survey has been completed and diamond drilling is in progress. An overview and highlights of the progress on these programs is included below for reference:

1. Colibri Silver-Copper-Zinc project, Durango, Mexico

2007 News Releases: March 19 and April 16

- Completed 1,790 metres of diamond drilling in 12 holes to date

- Discovered Linda vein silver-copper mineralized intercept with 3.49% copper, 98 g/t silver and 1.96% zinc over 3.49 metres (true width 2.83 metres)

- Drill results pending from 6 recently completed drill holes at the Linda vein

- Identified over 14 kilometres of vein structures with high grade silver values (50 samples with 151 g/t to 867 g/t silver) from surface sampling and geological mapping program

- Drilling currently in progress on potentially high grade silver-copper-zinc veins

- Expanded project area from 6,574 hect. (16,237 acres) to 16,074 hect. (39,700 acres)

2. Salamandra Zinc-Silver project, Durango, Mexico

2007 News Releases: Feb. 6, March 27, April 30, June 11, and July 18

- Identified potentially large zinc-silver target with coincident geophysical and geochemical anomalies

- Acquired 100,000 hect. (247,000 acres) claim position surrounding the Salamandra project, with prospecting on additional targets in progress

- Completed 8 diamond drill holes for 2,280 metres over a strike distance of 500 metres

- Discovered large zinc-silver mineralized system with significant higher grade zones (2.07% to 12% zinc and 18 g/t to 102 g/t silver) in 6 out of the 8 holes

- Drill results pending from 2 recently completed drill holes

- Drilling currently in progress to test for extensions of the mineralized system

3. Brenda Gold-Copper Project, British Columbia, Canada

- Exploration camp mobilized and operational beginning July 2007

- Completed 3-Dimensional Induced Polarization Geophysical survey over 30 line kilometres

- Drilling currently in progress on primary gold-copper target zones

- Geophysics and drill results expected in September and October 2007

With the recently completed drill holes and drilling in progress at the Colibri and Salamandra projects, the Company will complete and exceed the total planned 2007 drill program of over 6,000 metres of diamond drilling in Mexico. The Company is planning between 1,500 to 2,000 metres of diamond drilling in the program which is currently in progress at the Brenda gold-copper project in British Columbia, bringing the total drilling planned for 2007 to over 8,000 metres. The planned programs are fully funded from $1,600,000 proceeds of the private placement completed in March 2007 and $1,156,000 received from full exercise of outstanding warrants expiring in June 2007. The results from these programs will become available progressively over the next two to three months.

Bahman Yamini, President & CEO, commented: "We are very pleased with the progress of our exploration programs to date in 2007, in particular with the positive drill results from the Colibri and Salamandra projects. We have managed to meet and exceed our planned objectives during the first half of the year, and consider having three diamond drill programs currently in progress on our exploration projects a significant achievement. This has been possible because of the efforts of our management team in Vancouver and operating team in Durango, and the performance of our contractors. We look forward to the possibility of further positive results from these active programs during the balance of 2007."

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.

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
    Canasil Resources Inc.
    Doug Kerr
    Corporate Communications, Vancouver
    (604) 718-5454
    Canasil Resources Inc.
    Garth McTavish
    Corporate Communications, Calgary
    (403) 618-7327
    Pro-Edge Consultants Inc. - Toronto
    Tracy Weslosky
    (416) 581-0177 or Toll Free: 1-866-544-9622
    Pro-Edge Consultants Inc. - Toronto
    Fred Cowans
    (416) 581-0177 or Toll Free: 1-866-544-9622