Canasil Resources Inc.
TSX VENTURE : CLZ

Canasil Resources Inc.

July 18, 2007 21:00 ET

Canasil Phase 1 Diamond Drilling Discovers Significant Mineralized System at the Salamandra Zinc-Silver Project in Durango, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2007) - Canasil Resources Inc. ("Canasil") (TSX VENTURE:CLZ) is pleased to report the assay results from the last 5 drill holes (SA-07-04 to SA-07-08) of the Phase 1 diamond drill program at the Salamandra zinc-silver project in Durango, Mexico. The drill program has defined a possible series of up to 5 parallel sub-vertical zinc-silver mineralized zones, which form part of a potentially large mineralized system. The zones have been traced along strike for a minimum of 500 metres, and are open along strike and to depth. Individual mineralized drill intervals range from 5 to 44 metres, with total combined mineralized true thickness on each drill section of 51 to 90 meters.

Assay results for drill holes SA-07-02 were announced on 30 April 2007 and for SA-07-03 on June 11 2007, Drill holes SA-07-04 to SA-07-08 all intersected generally broad zinc-silver mineralized zones, which include zones of higher-grade mineralization. SA-07-08 intersected 3.51% zinc, 29 g/t (grams per tonne) silver and 0.42% lead over 10.00 metres, including 4.75% zinc, 72 g/t silver and 1.03% lead over 3.53 metres. SA-07-06 intersected 4.05% zinc, 13 g/t silver and 0.03% lead over 13.00 metres, and 6.12% zinc, 20 g/t silver and 0.05% lead over 4.70 metres.

The Phase 1 diamond drill program at the Salamandra zinc-silver project included a total of 2,280 meters in 8 drill holes. Seven out of the eight drill holes intersected zinc-silver mineralized zones with a total combined width of 489.07 metres. Six of the eight drill holes returned higher grade zones with a total combined width of 56.26 metres. A table showing the significant mineralized intercepts from all the drill holes is attached below.

At Salamandra zinc-silver mineralization is associated with fracture controlled and disseminated replacement zones in hornfelsed limy sediments in contact with a quartz porphyry intrusive. Zinc-silver mineralization consists of higher grade sections from 5 - 10 meters in width grading between 2% - 12% zinc and 10 g/t - 70 g/t silver, within wider mineralized sections of 20 - 45 metres in width grading from 0.32% - 1.08% zinc and 2 g/t - 45 g/t silver. The weighted average of all 489.07 metres of mineralized drill intersections is 1.09% zinc and 12.65 g/t silver, and the weighted average grade of 55.26 metres of higher grade intercepts is 4.73% zinc and 54.73 g/t silver.

Canasil is highly encouraged with the discovery of a potentially large zinc-silver mineralized system, including sections of high grade mineralization, at the Salamandra Project. Soil and rock geochemical sampling indicate the mineralized trend extends on strike for an additional 1,000 meters, and additional drilling is planned to test the strike extent, as well as infill drilling in the existing drill defined areas. Metallurgical testing is planned to test recoveries of both the high grade and lower grade zones, as well as an additional 20 kilometres of 3-D IP/Resistivity surveys to test the entire contact of the quartz porphyry intrusive.

The Phase 1 drill program tested one of the target areas indicated by surface geochemical sampling and 3D-IP geophysics over a strike length of 500 metres with 5 drill holes (SA-07-01 to SA-07-05) collared at 100-metre to 200-metre intervals along a NW-SE line. The remaining 3 drill holes (SA-07-06 to SA-07-08) stepped out laterally by 50 metres in the central area of this zone. This systematic drill pattern provided a basis for the initial evaluation of this prospective mineralized zone. Higher grade mineralization was intersected towards the center of this area in drill holes 02, 03, 06, 07, & 08. Lower grades were intersected at the outer edges in drill holes 01, 04 and 05. The position of the 8 drill holes in the Phase 1 diamond drill program is indicated on the map attached. To view this map, please click on the following link: http://www.ccnmatthews.com/docs/Canasil.pdf.

The Salamandra project covers 2,900 hectares (7,163 acres), located 35 kilometres NE of the city of Durango in Durango State, Mexico, with good access via paved and gravel roads. The access, infrastructure, climate and topography at the Salamandra project provide favourable conditions for exploration and development. The Salamandra project is located on the mineral-rich Fresnillo geologic trend, approximately 80 kilometres northwest of the San Martin mine of Grupo Mexico, which is the largest underground zinc-copper-silver producer in Mexico operating at approximately 6,000 tonnes per day.

The diamond drill program was supervised and implemented by Canasil's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V., under the direction of Erme Enriquez, Director of Exploration and Development. Drill core is sent from the project site to the Company's core processing and storage facility in Durango. Core samples from half of the drill core are cut by diamond saw and sent to SGS Laboratories in Durango and to ALS Chemex Laboratories in Hermosillo for processing and preparation, with sample pulps assayed by SGS Laboratories In Toronto and ALS Chemex Laboratories in Vancouver with 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 for this project in accordance with National Instrument 43-101.

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.



Salamandra Zinc-Silver Project, Durango State, Mexico
Phase 1 Diamond Drill Program, Significant Drill Intercepts

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Salamandra Project - Phase 1 Diamond Drill Holes SA-07-01 to
SA-07-08, March - June 2007
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Sample Interval Grades
- metres ---------------------
---------------- Width Silver Zinc Lead
Ref. No. Sample No. From To Metres g/t % %
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SA-07-08
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Zone 1 195.60 201.50 5.90 11 0.61 0.41
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Zone 2 209.00 231.00 22.00 6 0.28 0.10
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Zone 3 261.00 271.00 10.00 29 3.51 0.42
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Including 261.90 265.43 3.53 72 4.75 1.03
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And 267.40 269.50 2.10 4 7.91 0.04
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Zone 4 321.75 335.00 13.25 4 0.57 0.00
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SA-07-07
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Zone 1 98.00 126.00 28.00 11 0.93 0.10
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Including 98.00 99.40 1.40 30 1.28 0.08
--------------------------------------------------------------------
And 118.00 126.00 8.00 18 2.07 0.05
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Zone 2 140.10 184.00 43.90 7 0.77 0.05
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Including 140.10 152.00 11.90 9 1.36 0.05
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And 174.00 178.00 4.00 12 1.63 0.12
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SA-07-06
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Zone 1 3.40 15.00 11.60 13 4.05 0.03
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Including 3.40 8.40 5.00 7 3.42 0.03
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And 9.10 13.80 4.70 20 6.12 0.05
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Zone 2 88.00 108.00 20.00 13 0.80 0.10
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Including 100.00 106.00 6.00 2 1.34 0.04
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Zone 3 180.60 225.10 44.50 3 0.80 0.04
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Including 204.00 212.00 8.00 4 1.46 0.06
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SA-07-05
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Zone 1 212.00 256.00 44.00 2 0.32 0.02
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Zone 1 256.00 268.56 12.56 13 1.78 0.02
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Including 262.00 267.66 5.66 19 2.75 0.03
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SA-07-04
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Zone 1 48.00 88.80 40.80 15 0.32 0.21
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Zone 2 194.77 224.08 29.31 13 0.74 0.16
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Including 196.00 204.00 8.00 26 1.39 0.35
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And 214.00 222.00 8.00 9 1.04 0.11
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SA-07-03
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Zone 1 116.40 127.00 10.60 16 1.60 0.26
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Zone 2 195.00 215.00 20.00 45 2.62 0.77
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Including 195.00 205.00 10.00 71 3.48 1.26
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Zone 3 220.75 226.00 5.25 9 1.70 0.11
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Zone 4 226.00 263.00 37.00 6 0.69 0.06
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SA-07-02
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Zone 1 7.40 17.25 9.85 102 0.55 0.03
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Zone 2 27.65 35.10 7.45 50 12.00 0.06
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Zone 3 69.00 85.00 16.00 6 0.52 0.00
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Zone 4 111.00 133.00 22.00 2 1.08 0.01
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Zone 5 145.00 180.10 35.10 11 0.54 0.06
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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
    Email: info@canasil.com
    Website: www.canasil.com
    or
    Canasil Resources Inc.
    Doug Kerr
    Corporate Communications, Vancouver
    (604) 718-5454
    Email: dkerr@canasil.com
    or
    Canasil Resources Inc.
    Garth McTavish
    Corporate Communications, Calgary
    (403) 618-7327
    Email: garthmctavish@shaw.ca
    or
    Pro-Edge Consultants Inc. - Toronto
    Tracy Weslosky
    (416) 581-0177 or Toll Free: 1-866 544-9622
    Email: tracy@pro-edge.com
    or
    Pro-Edge Consultants Inc. - Toronto
    Fred Cowans
    (416) 581-0177 or Toll Free: 1-866 544-9622
    Email: fred@pro-edge.com