Vancouver, March 22, 2011 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that the Company has signed a contract covering an initial 1,500 metre diamond drill program on the Sandra-Escobar silver-gold project in northern Durango State, Mexico. The drill will be mobilized and the program is expected to start by the end of March 2011. The drill program will test high grade silver-gold veins and the possibility for disseminated silver-gold mineralization in the project area.
Bahman Yamini, president of Canasil, commented: “We are very pleased with the arrangements to start the drill program at the Sandra-Escobar project. This is a potentially large project with surface indications of hosting both high-grade and disseminated silver-gold mineralization. The drill program will provide the opportunity to test this system and will be expanded as required following results from the initial drill holes.”
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. Canasil’s prior mapping and surface sampling programs and historical data have also identified a number of high-grade silver-gold veins surrounding the dome area, as previously reported in Canasil’s news release dated May 03, 2010.
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 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.
For further information please contact
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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.