Vancouver, December 5 2011 Canasil Resources Inc. (Canasil, TSX-V: CLZ, DB Frankfurt: 3CC) is pleased to report that MAG Silver Corp. (MAG, TSX: MAG, NYSE.A: MVG) has started the planned diamond drill program at the La Esperanza silver-lead-zinc project in Durango and Zacatecas States, Mexico. The drill program is planned for up to 5,000 metres in 16 drill holes to test two of the veins in the project area, including extensions of the La Esperanza vein previously drill tested by Canasil with encouraging results. MAG is earning a 60% interest in the property from Canasil under an option agreement dated August 19, 2010. Expenditures on the project reported by MAG up to September 30, 2011, were $831,681.
As a result of reconnaissance of the areas surrounding the project, MAG has also added, through direct staking, an additional 50,000 hectare claim block to the project area. The new claim will become part of the project within the framework of the option and joint venture agreement between Canasil and MAG. The project area now covers 68,954 hectares.
About La Esperanza:
The La Esperanza project covers 18,954 hectares, located within the Mexican Silver Belt in northern Zacatecas and southern Durango States. It has been expanded to 68,954 hectares with the recent addition of adjacent claims. This recognized world class silver belt hosts a number of active mines such as Pan American Silvers La Colorada and First Majestic Silvers La Parrilla mines. The La Esperanza project covers under-explored multiple vein occurrences and alteration zones over a 20 kilometre strike length along a prospective SE-NW trend.
The property hosts quartz breccia epithermal veins with silver, lead and zinc mineralization associated with argentiferous galena, silver sulfosalts and sphalerite. The La Esperanza Vein has been traced by mapping of the collapsed workings over a strike length of 260 metres. Significant alteration zones are observed along strike extensions of this vein for over five kilometres on a northwest-southeast trend. Additional vein outcrops and mineralized structures are also observed to the northwest of the extended claim area at the Fatima vein zone, approximately 15 kilometres northwest of the La Esperanza vein, indicating the potential for a large district scale epithermal system.
Canasil previously drilled nine diamond drill holes on the La Esperanza vein outcrop for a total of 1,432 metres. 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 vein and a hanging wall vein over significant widths The weighted average grade of mineralization intersected in the La Esperanza vein is 330 g/t (9.62 opt) silver, 0.93% zinc and 1.57% lead over an average width of 4.21 metres.
In October 2010 MAG conducted a 1,330 line-kilometre ZTEM Airborne Geophysical survey over the project area which highlighted several geophysical anomalies associated with known mineralization and significant geological features. MAG has also conducted geological mapping and surface rock and stream sediment sampling focused on four known vein systems that have been traced over variable strike lengths ranging from 300 metres to over 1.9 kilometres, and completed upgrades to over 30 kilometres of access roads within the project area.
Under the option agreement, MAG can earn 60% interest in the La Esperanza project by completing CAD$5,000,000 exploration expenditures and CAD$500,000 cash payments to Canasil over a period of four years, including a first year expenditure commitment of CAD$750,000 with a minimum of 1,500 metres of drilling.
About MAG Silver and Canasil:
MAG is a leading silver exploration and emerging development company in Mexico, with considerable experience and a very successful track record of high-grade silver discoveries in epithermal vein systems of the Fresnillo Silver Trend, as well as a number of other large development stage and exploration projects in Mexico.
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 Companys 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:
Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
www.canasil.com
