VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/12 -- Canasil Resources Inc. (Canasil) (TSX VENTURE: CLZ)(FRANKFURT: 3CC) announces that Pan American Silver Corp. (Pan American) (TSX: PAA) has completed an initial Phase 1 diamond drill program at the Carina silver-gold project in Durango State, Mexico. The drill program consisted of 6 drill holes for a total depth of 1,008 metres, as part of an overall planned program of up to 14 drill holes for a total depth of up to 2,910 metres. Canasil's Carina project is subject to an option agreement providing for Pan American to earn a majority interest through staged exploration expenditures and cash payments over four years.
The option agreement was signed on November 18, 2010, and provides for Pan American to earn an initial 55% interest in Canasil's Carina property for total exploration expenditures of US$3,650,000 and total cash payments of US$365,000 to Canasil over a period of four years. Following the initial earn-in, a 55%-45% joint venture (JV) will be established with Pan American as Operator. Pan American may increase its interest in the JV to 70% by funding a full feasibility study within three years, and to 80% by financing the project through to production. In the latter case, Pan American would be entitled to recover the Canasil portion of the capital costs from 85% of Canasil's portion of the project cash flow. Pan American has assigned the agreement to the La Preciosa joint venture with Orko Silver Corp. (Orko) (TSX: OK), which is advancing the adjacent La Preciosa Silver project.
The Carina property covers 12,147 hectares and is located 45 km northeast of the city of Durango. The claims are adjacent to the southern border of the Pan American-Orko Silver joint venture's La Preciosa silver project. Canasil's mapping and sampling has defined an area of 500 metres by 800 metres hosting multiple quartz vein structures with anomalous silver, gold and base metal values in surface samples.
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. Canasil's directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. Canasil is actively engaged in the exploration of its mineral properties.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Canasil Resources Inc.
Bahman Yamini
President and C.E.O.
(604) 709-0109
www.canasil.com
