Canasil Resources Inc.
TSX VENTURE : CLZ

Canasil Resources Inc.

November 06, 2006 18:30 ET

Canasil Phase 1 Drilling Outlines High Grade Mineralized Panel at La Esperanza Silver-Zinc-Lead Project in Zacatecas State, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 6, 2006) - Canasil Resources Inc. ("Canasil") (TSX VENTURE:CLZ) is pleased to announce completion of the Phase 1 diamond drill Program of 8 diamond drill holes for a total of 1,182 metres at the La Esperanza Silver-Zinc-Lead project,. This program has outlined a mineralized panel with a strike length of over 150 metres and depth of 100 metres, which is open in all directions, with vein widths of up to 10.30 metres carrying high-grade silver mineralization. Seven drill holes intersected the main La Esperanza vein (LE) and a hanging wall vein (HW) over significant widths The weighted average grade of mineralization intersected in the La Esperanza vein is 330 g/t (9.62 oz/ton) silver, 0.93% (18.60 lbs/ton) zinc and 1.57% (31.40 lbs/ton) lead over an average width of 4.21 metres. This vein includes several intercepts with very high silver grades of up to 2,144 g/t (62.53 oz/ton) silver over 0.75 metres. Average assay results are detailed below:



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La Esperanza Project - Phase 1 Diamond Drill Program
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Grades
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Vein True Silver Zinc Lead
or Interval-Metres Width Silver oz/ton Zinc lbs/ton Lead lbs/ton
Structure From To Metres g/t (i) % (ii) % (ii)
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Diamond Drill Hole ES-06-02
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Avg. LE 100.22 107.74 5.14 210 6.13 1.25 25.00 1.03 20.60
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Incl. 101.68 107.74 3.46 249 7.25 1.48 29.60 1.22 24.20
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And 101.68 104.17 1.42 458 13.36 2.20 44.00 2.31 46.20
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And 102.60 103.75 0.66 615 17.94 3.37 67.40 2.12 42.40
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Diamond Drill Hole ES-06-03
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Avg. HW 78.90 80.66 1.44 274 7.99 0.20 4.00 0.10 2.00
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Incl. 78.90 79.74 0.69 449 13.10 0.20 4.00 0.09 1.80
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Avg. LE 102.80 104.30 1.23 287 8.37 0.38 7.60 2.12 42.40
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Diamond Drill Hole ES-06-04
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Avg. HW 88.45 90.80 1.79 142 4.14 2.32 46.40 1.07 21.40
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Avg. LE 116.83 127.25 7.52 388 11.32 1.36 27.20 1.35 27.00
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Incl. 118.92 121.58 2.09 634 18.49 1.56 29.00 1.45 29.00
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And 124.47 127.25 2.12 593 17.30 0.35 7.00 1.09 21.80
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Diamond Drill Hole ES-06-05
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Avg. HW 118.46 119.88 1.12 471 13.74 3.11 62.20 6.04 120.80
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Avg. LE 147.82 160.92 10.30 396 11.55 0.71 14.20 1.96 39.20
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Incl. 147.82 152.03 3.31 746 21.76 0.57 11.40 2.20 44.00
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And 148.22 150.15 1.52 1,360 39.67 0.38 7.60 3.40 68.00
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And 148.22 149.17 0.75 2,144 62.53 0.29 5.80 3.20 64.00
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Incl. 154.35 159.10 2.73 389 11.35 0.97 19.40 3.30 66.00
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Diamond Drill Hole ES-06-06
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Avg. HW 116.23 118.15 1.35 160 4.67 1.18 23.60 1.40 28.00
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Avg. LE 130.35 130.76 0.29 192 5.60 0.60 12.00 0.51 10.20
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Diamond Drill Hole ES-06-07
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Avg. HW 152.68 154.65 1.65 551 16.07 0.42 8.40 1.47 29.40
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Includes 152.68 153.60 0.77 945 27.56 0.35 7.00 1.95 39.00
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Avg. LE 160.02 162.40 1.99 272 7.93 0.34 6.80 0.24 4.80
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Diamond Drill Hole ES-06-08
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Avg. LE 183.85 196.40 4.69 115 3.35 1.02 20.40 1.30 26.00
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Includes 183.85 189.30 2.04 122 3.56 0.96 19.20 1.66 33.20
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And 192.63 196.40 1.41 168 4.90 1.04 20.80 1.57 31.40
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Average width and
grades HW 1.53 324 9.45 1.37 27.40 1.80 36.00
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Average width and
grades LE 4.21 330 9.62 0.93 18.60 1.57 31.40
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(i) g/t (grams per metric tonne) is converted to oz/ton (ounces per short
ton) by a conversion factor of 34.2856
(ii) % zinc and % lead is converted to lbs/ton (pounds per short ton)
using a conversion factor of 20 lbs per 1%


The first drill hole, ES-06-01, intersected the lower limit of the historic mine workings at a drill depth of 75 metres. All the remaining seven drill holes, ES-06-02 to ES-06-08, returned mineralized vein intercepts carrying high-grade silver and zinc and lead values, with minor gold and copper values. The consistency of the vein intercepts, strong widths and high silver grades observed are particularly encouraging. The vein system is open in both directions along strike and at depth, and the interpretation of the surface and down-hole geology provide further drill targets and potential for a larger mineralized system. Based on these encouraging results the Company is planning an aggressive Phase 2 drill program to further delineate the extent of this strongly mineralized system.

The widths and grades observed in the Phase 1 drill program exceed initial expectations in a strongly mineralized system, which is open in all directions with potential for delineating additional mineralized zones. There are several operating mines located close to the La Esperanza project, which provide references for local operating conditions and costs. The relatively high silver grades and zinc and lead content for in-situ mineralization observed in the veins at La Esperanza (average values of 9.45 to 9.62 oz/ton silver, 18.60 to 27.40 lbs per ton zinc and 31.40 to 36.00 lbs per ton lead), compare favourably with those at local operating mines.

Erme Enriquez, Director of Exploration and Development of Minera Canasil S.A. de C.V., the Company's wholly owned Mexican subsidiary, is responsible for the planning and implementation of the drill program. All core samples are processed at the Company's core processing and storage facility in Durango, Mexico. Samples are cut by diamond saw, and half is sent for assay and half secured for reference. Samples are sent to the SGS Laboratories in Durango for processing and 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. A duplicate set of pulp samples are also sent to ALS Chemex Laboratories in Vancouver for check assays. 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.

The La Esperanza Silver-Zinc-Lead project covers 435 hectares, located 100 km SSE of the city of Durango on the border between Durango and Zacatecas States. The project site is easily accessible from Canasil's operating base in Durango. The project is located on the border of Zacatecas and Durango States, close to a number of prominent operating silver mines - San Martin mine operated by Grupo Mexico, the La Colorada mine of Pan American Silver and La Parrilla mine of First Majestic Resource Corp.

About Canasil:

Canasil is a Canadian mineral exploration company with interests in base and precious 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 its 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.

To view the accompanying map, please click on the following link: http://www.ccnmatthews.com/docs/CLZmap.jpg.


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