Canasil Resources Inc.
TSX VENTURE : CLZ
FRANKFURT : 3CC

Canasil Resources Inc.

June 01, 2012 13:33 ET

Canasil Discovers New Silver Zone with High Grade Surface Samples at Sandra-Escobar Project in Durango State, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2012) - Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ)(FRANKFURT:3CC) announces the discovery of a significant new silver zone at the Sandra-Escobar project in northern Durango State, Mexico. The Company's recently completed surface sampling and geological mapping program has outlined a 600 metres by 200 metres zone of stockwork and disseminated silver mineralization located 3 kilometres southeast of the previously drill tested Candelaria and San Francisco silver vein breccias. Sixteen out of twenty-one samples collected from narrow veins and mineralized dumps in this zone returned over 250 g/t silver, with eight samples returning over 500 g/t silver and four samples with over 1,000 g/t silver, as detailed in the table below. This zone is associated with a northwest southeast trending structural corridor and a small resistivity anomaly interpreted from the 2011 ZTEM airborne geophysical survey. This presumed silver trend has been traced for over 3 kilometres from the Candelaria and San Francisco vein breccias, where drill hole SE-11-11 intersected 52.5 metres of 19 g/t silver (previously announced on October 17, 2011), and could host significant bulk mineralization. Further rock sampling and a ground geophysical survey will be conducted to define this zone.

Gary Nordin, Director of Canasil, commented: "We are very pleased with the continuing development and identification of further disseminated and high grade stockwork silver potential at the Sandra Escobar project. Together with the comprehensive 2011 exploration program we have identified 5 target zones over a very large area along a series of trends surrounding the central intrusive centre. This continues to indicate the potential for a very large mineralized system at the Sandra-Escobar project for further exploration."

Sandra-Escobar 2012 Surface Samples - Southeast Silver Zone
Sample East North Elev M Width M Ag g/t Cu % Pb % Zn %
812 433479 2834190 2299 0.50 19 0.0010 0.0953 0.0111
813 433551 2834247 2283 0.50 292 0.0147 0.3750 0.0293
814 433541 2834294 2274 Dump 143 0.0136 0.0143 0.0517
815 433524 2834283 2258 Dump 295 0.0136 0.0372 0.0308
816 433574 2834167 2308 Dump 279 0.0974 0.1260 0.0720
817 433587 2834164 2315 Dump 260 0.0413 0.2070 0.0479
818 433595 2834148 2317 Dump 300 0.0351 0.2610 0.0355
819 433617 2834147 2319 Dump 616 0.0793 0.7040 0.1055
820 433632 2834110 2317 0.25 91 0.0100 0.6460 0.0518
1901 433172 2834325 2236 0.30 1,050 0.0054 0.0418 0.0141
1902 433178 2834328 2237 0.25 1,465 0.0071 0.0635 0.0133
1903 433175 2834330 2238 0.25 1,440 0.0133 0.1005 0.0185
1904 433185 2834328 2237 0.20 862 0.0124 0.3440 0.0235
1905 433177 2834344 2236 Dump 768 0.0106 0.0495 0.0080
1906 433186 2834353 2237 Rock 53 0.0003 0.0064 0.0086
1907 433524 2834284 2269 Dump 265 0.0220 0.0485 0.0323
1908 433545 2834260 2275 0.40 1,090 0.0259 0.0082 0.0151
1909 433350 2834286 2252 0.30 387 0.0081 0.2840 0.0138
1910 433350 2834285 2252 0.50 58 0.0007 0.0674 0.0149
1911 433340 2834302 2241 Dump 509 0.0066 0.0483 0.0160
1912 433192 2834349 2242 0.40 374 0.0018 0.0421 0.0050

The mineralization in this zone is found in narrow carbonate-barite veins varying in width between 0.25 metres to 0.90 metres. Ten samples of vein material carried between 19 g/t silver to 1,465 g/t silver, with an average grade of 707 g/t silver over an average width of 0.335 metres. Two samples of vuggy porous volcanic tuff host rock peripheral to the veins returned grades of 53 g/t and 57.8 g/t silver, indicating potential for disseminated silver mineralization. Nine dump samples from historical workings in this area grade from 143 g/t silver to 768 g/t silver, with an average of 381 g/t silver.

The collection of the surface samples was supervised and carried out by the Company's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V., under the direction of Erme Enriquez CPG, Director of Exploration and Development. Samples were sent to ALS Chemex Laboratories in Zacatecas, Mexico, for preparation and on to ALS Chemex in North Vancouver, B.C. Canada, for 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 in accordance with National Instrument 43-101.

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. These features indicate 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 entered into an option agreement with Pan American Silver to earn 51% interest in Pan American's 634 hectares adjoining Escobar project claims. Canasil's exploration expenditures will go towards completing the initial $1,000,000 work commitment to earn 51% interest in the Escobar claims. Pan American will then have a back-in right to acquire a 51% interest in the combined claims by paying three times exploration expenditures incurred. Canasil has recorded over $975,000 expenditures to date under the agreement.

To view accompanying maps, visit the following link: http://media3.marketwire.com/docs/CLZmapsNR12_2012.pdf

About Canasil:

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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