MAG Silver Proposes 3,000 Meter Drill Program at Canasil's Salamandra Project in Durango State, Mexico
November 07 2013 - 12:28PM
Marketwired Canada
Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ)(FRANKFURT:3CC) ("Canasil" or
the "Company") announces that MAG Silver Corp. (MAG) (TSX:MAG)(NYSE MKT:MVG) has
defined drill targets and proposed an initial 3,000 meter diamond drill program
at Canasil's Salamandra silver-copper-zinc-lead project in Durango State,
Mexico. The required drill permits are in hand and the drill program is planned
to start after preparation of drill access roads and drill pads, within the next
three to four weeks. MAG and Canasil entered into a binding Letter Agreement on
May 27, 2013, providing for MAG to earn up to a 70% interest in the Salamandra
project.
MAG has recently carried out a surface sampling and geological mapping program
and completed a detailed review of geological data and drill core from Canasil's
past exploration programs, including prior surface sampling and geological
mapping, surface and airborne geophysical surveys and 3,500 meters of diamond
drilling in 12 drill holes. This has confirmed 12 out of 13 common indicators of
large Carbonate Hosted Replacement Deposits ("CRD") at Salamandra, which
represents 5 more indicators than at MAG's Cinco di Mayo project at the time of
acquisition.
Common features of all large known CRD deposits(i) Salamandra(i)
1. Location - main street CRD belt Yes
2. Ag (+400 g/t), Au, Zn, Pb, Cu, + Mn, As, W .... Yes
3. Multiple mineralization and alteration stages Yes
4. Large scale zoning Yes
5. Located on top of carbonate section (room to grow) Yes
6. Presence of Felsite dykes Yes
7. Presence of Skarn Yes
8. Discordant geometry (not syngenetic) Yes
9. Replacement mineralization Yes
10. High Iron Sphalerite Yes
11. Pyrite pseudo-morphs and pyrrhotite Yes
12. Molybdenum mineralization
13. Granitic Stock Contact Skarn = Target Yes
(i) Information from MAG Corporate Presentation - November 2013
Canasil-MAG Salamandra agreement:
Under the agreement, MAG will have a first option to earn 55% interest in
Salamandra by incurring C$5,500,000 exploration expenditures and making
C$750,000 cash payments to Canasil over four years. The first year expenditures
of $1,000,000, which must include at least 3,000 meters of diamond drilling,
will be a firm commitment. Upon completion of the first option, MAG will have a
second option to earn an additional 15% interest, for a cumulative 70% interest,
by either preparing and delivering a NI43-101 compliant feasibility study within
four years, or by incurring an additional C$20,000,000 in exploration
expenditures over four years, with a minimum annual expenditure of C$2,500,000.
Salamandra silver-copper-zinc-lead project, Durango, Mexico:
The Salamandra project is located 35 km to the northeast of the City of Durango
and covers 14,719 hectares (over 140 square kilometres), with excellent access
and infrastructure. The project is strategically located on the major
silver-gold trend running through Durango and Zacatecas States, and is directly
on trend with a number of important operating mines and recent discoveries,
approximately 80 km northwest of, and within a similar geologic environment, to
the San Martin mine of Grupo Mexico. The San Martin mine is the largest
underground silver-copper-zinc mining operation in Mexico, producing at
approximately 6,000 tonnes per day.
The exploration programs to date indicate the potential for a large buried
intrusive and carbonate hosted massive sulphide skarn/manto replacement system.
Initial ground geophysics and diamond drilling identified significant
silver-zinc mineralization, including 7.45 meters of 50 g/t silver and 12% zinc
and 10 meters of 71 g/t silver, 3.48% zinc and 1.26% lead, associated with
skarn, hydrothermal breccias, sulphide rich veins and quartz porphyry dykes.
Preliminary metallurgical tests indicate high zinc and silver recoveries to
clean concentrates.
A ZTEM airborne geophysical survey completed in 2011 outlined a large complex
response area covering 2.5 km by 3.5 km. Detailed surface sampling in this area
led to the discovery of a high grade vein outcrop, carrying 2,150 g/t silver,
5.39% copper, and 1.89% zinc over 0.90 metres. Further surface sampling has
outlined extensive areas of anomalous silver-copper-arsenic-antimony with
peripheral lead and zinc anomalies, which is similar to the surface signature of
the San Martin mine. The significant silver-zinc drill intercepts from prior
drilling, plus results of both airborne and surface geophysical surveys and the
high grade silver-copper-zinc vein outcrop within an area of widespread
geochemical anomalies indicate the potential for a large silver-copper-zinc-lead
mineralized system.
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. 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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canasil Resources Inc.
Bahman Yamini
President and C.E.O.
(604) 708-3788
(604) 708-3728 (FAX)
admin@canasil.com
www.canasil.com
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