VANCOUVER, May 11, 2016 /CNW/ - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, "Canasil" or the "Company") is pleased to announce that Orex Minerals Inc. (TSX-V: REX, "Orex") has awarded a contract to the consulting firm Mining Plus to conduct an initial Resource Estimate on the silver mineralized zone currently being drill tested in the southeastern area of the Sandra-Escobar Project. The project is being advanced by Orex under an option agreement with Canasil announced on September 15, 2015. The initial Resource Estimate will be focused on the mineralized envelope outlined by the Phase-1 and Phase-2 drill programs within this silver mineralized zone.
To date Orex has completed 38 core holes in the Phase-1 and Phase-2 drill programs, with 33 of these drill holes located in the flat-lying disseminated silver mineralized zone identified in this area of the project. A further five drill holes have been completed in three additional targets in the same area close to this zone with results to follow. The current drill zone and surrounding targets are located within an area covering less than 250 hectares of the total project area of 6,976 hectares, which hosts several other prominent targets.
Canasil President & CEO, Bahman Yamini, commented: "The awarding of a contract for an initial Resource Estimate is a significant milestone and highlights the apparent continuity and consistency of the assay results that are being encountered in this new discovery. This is a very positive development at such an early stage of the exploration programs that are testing the southeastern area of the project. While looking forward to the results of this study, we are also looking forward to continued mapping, sampling and drilling to expand this mineralized zone."
Mining Plus is a mining engineering consultancy, established in 2006, consisting of skilled experts specializing in mining engineering, geoscience, environmental science, mine safety and risk assessment.
Drilling of silver-bearing mineralization to date has been focused on the north side of a rhyolite volcanic dome located in the southeastern sector of the project area. In this area an altered and highly permeable volcanoclastic unit contains disseminations of silver bearing minerals and broadly spaced stockwork veinlets. The current working model for this zone has a porphyritic rhyolite unit as an impermeable cap, which may have focused mineralizing fluids into the host volcanoclastic unit. Reconnaissance sampling in areas surrounding the currently drilled mineralized zone indicate the potential for additional mineralized outcrops to be investigated with more detailed surface sampling and drilling.
The technical information herein has been reviewed and approved by J. Blackwell (P. Geo.), a Qualified Person as defined by National Instrument 43-101. Mr. Blackwell is a technical advisor to Canasil.
Sandra-Escobar Silver-Gold Project, Durango, Mexico:
The Sandra-Escobar project is located 200 km northwest of the City of Durango, Mexico, in the heart of the "Mexican Silver Trend", with excellent access and infrastructure. This prolific trend hosts some of the world's largest silver camps and deposits with many past and present producing mines and significant silver-gold deposits. The project area covers over 6,976 hectares of mineral concessions with multiple mineralized epithermal veins and breccia structures. These veins form a high level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centred on a large rhyolite dome complex in the north and silver systems in smaller rhyolite dome complexes to the southeast. Intense alteration zones and fluid flooding in permeable formations may also indicate the presence of bulk tonnage targets. Under the terms of the agreement dated September 15, 2015, Orex has an option to earn up to 65% interest in the project through total cash and share payments of $1,000,000 and exploration expenditures of US$4,000,000 over five years.
Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-copper-lead-zinc projects in Durango 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 through to discovery and further development. The Company is actively engaged in the exploration of its mineral properties, and maintains an operating subsidiary in Durango, Mexico, with full time geological and support staff for its operations in Mexico.
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 news release.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The reader is referred to the Company's filings with the Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
SOURCE Canasil Resources Inc.
For further information: Bahman Yamini, President and C.E.O., Canasil Resources Inc., Tel: (604) 709-0109, www.canasil.com