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

Canasil Resources Inc.

November 01, 2011 09:15 ET

Canasil Identifies New Zone With Gold, Silver and Copper Mineralization in Surface Samples at Sandra-Escobar Project in Durango State, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2011) - Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ)(FRANKFURT:3CC) announces that initial reconnaissance samples from the central zone of an area measuring 2.0 km by 1.5 km highlighted by an airborne ZTEM geophysical survey has returned high gold values, as well as silver and copper in surface samples taken from old pits and dumps of mineralized material. From a total of 15 initial samples collected to investigate this zone, 8 samples returned values ranging from 1.72 g/t to 19.95 g/t gold, 1.5 g/t to 32.6 g/t silver, and trace to 3.75% copper, with other samples returning high silver, lead and zinc values as detailed in the table below. This area is located between two separate vein systems which have returned silver, gold and copper intercepts in recent drilling. Previous soil and stream sediment sampling in this zone has returned anomalous gold and copper values. This area is on the southeast flank of a rhyolitic domal complex which may be covering a buried intrusive, and must be investigated with more detailed surface sampling to identify the possible source of mineralization observed.

The combination of the project geology, results of the airborne ZTEM geophysical survey, and significant silver, gold, copper, lead and zinc mineralized intercepts together with these surface sample results are encouraging indicators of mineralization over a very large area at the Sandra-Escobar project.

Sandra-Escobar 2011 Initial Reconnaissance Surface Samples
Sample No. East North Elev.
M
Width
M
Au
g/t
Ag
g/t
Cu
%
Pb
%
Zn
%
10501 429407 2835426 2256 1.00 0.133 2.2 0.0028 0.0344 0.0253
10502 429525 2835340 2230 0.50 3.42 8.6 0.0029 0.0308 0.0042
10503 429560 2835320 2235 0.30 19.95 11.0 0.0020 0.0752 0.0124
10504 429551 2835319 2236 Dump 7.26 17.1 0.0036 0.1435 0.0236
10505 429506 2835263 2227 0.30 2.85 28.9 0.3300 0.3370 0.0221
10506 429511 2835259 2227 0.70 0.054 22.6 0.3320 0.0544 0.0144
10507 429510 2835261 2227 Dump 1.72 19.3 0.2860 0.1935 0.0504
10508 429517 2835264 2228 Dump 1.89 32.6 3.7500 0.0462 0.0141
10509 429548 2835486 2258 Dump 4.18 1.7 0.0074 0.0561 0.0083
10510 428944 2835486 2245 Dump 7.02 1.5 0.2320 0.0454 0.1110
10511 431816 2835369 2130 Dump 0.022 210 0.0085 0.1260 0.2330
10512 431483 2835591 2131 Chip 0.022 1.0 0.0053 0.0026 0.0116
10513 431437 2835797 2138 0.50 0.005 2.0 0.0030 0.0260 0.0150
10514 429325 2838776 2098 0.30 0.005 3.3 0.0016 0.2030 0.0764
10515 429317 2838760 2099 0.50 0.037 61.9 0.0028 2.9500 1.6350

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 $750,000 expenditures to date under the agreement.

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.

To view the map associated with this press release, please click on the following link: http://canasil.com/_resources/news/nr_2011_11_01.jpg

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