Canasil Reports 3.73 Metres of 3.71 g/t Gold, 489 g/t Silver, and 0.53% Copper from the Candy Vein at the Nora Silver-Gold Project, Durango, Mexico
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NEWS RELEASE TSX-V: CLZ
October 21, 2020 www.canasil.com
Canasil Reports 3.73 Metres of 3.71 g/t Gold, 489 g/t Silver, and 0.53% Copper
from the Candy Vein at the Nora Silver-Gold Project, Durango, Mexico
Vancouver, October 21, 20 20 - Canasil Resources Inc. (TSX-V: CLZ , DB Frankfurt: 3CC, “Canasil” or the
“Company”) announces initial results from two additional drill holes, NRC-20-03 and NRC-20-04, from the
on-going, fully -funded core drill program on the Candy and Nora veins at the Nora silver-gold project in
north-central Durango State, Mexico.
Nora Silver-Gold Project, Durango State, Mexico – Candy Vein Initial Drill Results NRC-20-03 & NRC-20-04
Vein/Structure From To Width TW Gold Silver Copper Lead Zinc Ag. Eq.*
Metres Metres Metres Metres g/t g/t % % % g/t
NRC-20-04
CANDY VEIN 139.52 143.25 3.73 3.05 3.71 489 0.53 0.14 0.16 798
Including 139.52 140.00 0.48 0.39 4.29 690 0.69 0.43 0.48 1,053
And 140.00 140.50 0.50 0.41 6.27 1925 0.60 0.21 0.21 2,425
And 140.50 141.00 0.50 0.41 1.14 181 0.03 0.07 0.12 254
And 141.00 141.50 0.50 0.41 2.41 82.5 0.47 0.05 0.12 292
And 141.50 142.00 0.50 0.41 0.33 34.1 0.02 0.05 0.05 58
And 142.00 142.45 0.45 0.37 2.65 147 0.26 0.07 0.05 359
And 142.45 142.75 0.30 0.25 9.89 414 1.675 0.10 0.10 1,258
And 142.75 143.25 0.50 0.41 5.09 373 0.94 0.10 0.10 813
NRC-20-03
CANDY VEIN 171.82 172.18 0.36 0.36 8.69 116 0.199 0.39 0.46 761
*Silver Equivalent calculated based on metal prices below and assuming 100% recoveries for all metals
Au US$ 1,935/Oz, Ag US$ 28/Oz, Cu US$2.95/lb, Pb US$ 0.86/lb, Zn US$ 1.09/lb ; Pb & Zn less than 1% not included
Additional samples from both drill holes have been submitted for assay and will be announced when results
are received and interpreted. NRC-20-04 was collared on the same section and targeted to intersect the
Candy vein at a lower elevation than NRC -20-01, and NRC-20-03 was collared on the same section and
targeted to intersect the Candy vein at a lower elevation than NRC-20-02, as shown on the drill plan map
below. Drill holes NRC-20-05 and NRC-20-06, collared 200 metres and 400 metres respectively north of the
section hosting NRC-20-01 and NRC-20-04, have been completed and samples submitted for assay.
The current drill program at the Nora project is the first pass at systematic, property-wide exploration. All
four initial drill holes have intersected the Candy vein at depth and returned high gold and silver grades,
with a notably thicker and higher grade intercept in NRC -20-04. The Candy vein is open to expansion along
strike to the north and south, and to depth, and these results confirm the potential for further exploration.
Canasil President and CEO, Bahman Yamini, commented: “The strong high grade intercept from NRC -20-04
is very encouraging at this early stage of drill testing at the Nora project . This relatively wide intercept with
high gold and silver grades confirms the potential of the project, and also for continued drilling of the Candy
vein. We have now completed the six planned drill holes on the Candy vein and moved to drilling at the Nora
vein as planned. The positive progress under current conditions is excellent, and we would like to thank our
team, the drill contractors and local communities for their collective efforts to make this program a success.”
Canasil Resources Inc.
News Release, October 21, 2020 page 2/3
The drill program is being implemented by the Company’s exploration team in Mexico under the direction
of Eng. Erme Enriquez (CPG). All core samples are logged at the Company’s core storage facility in Durango,
Mexico. Samples are prepared and sent to the ALS Laboratories in Zacatecas, Mexico , for preparation and
then on to ALS Global in Vancouver for gold and silver analyses by fire assay with an atomic absorption
finish (“FA -AA”) on a 30 gram split, and for silver, copper, lead, zinc and trace elements by ICP analysis
following digestion of 0.50 gram sample in aqua regia. Overlimit silver and copper are assayed using an aqua
regia digestion, followed by ICP-AES or AAS finish.
About Nora Silver-Gold-Copper-Zinc-Lead Project, Durango State, Mexico:
The Nora project is located approximately 200 km north -west of the City of Durango, with good access and
infrastructure. The geological setting is a Tertiary -aged volcanic flow -dome complex. Gold -silver
mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora. Mineralization
is typical of that found at many mines in the region, with gold and silver associated with galena, sulfosalt
minerals and lesser pyrite, sphalerite and chalcopyrite. There is evidence of some historical mining activity
on the Candy vein, which is exposed in discontinuous outcrops for over 900 metres . The fault structure
hosting the Candy vein has been traced for a distance of over three kilometres. Samples of vein outcrop and
mineral dumps from the Candy vein returned significant gold, silver, copper, zinc and lead values. The
second vein, Nora, is found 600 metres northeast of the Candy vein and can be traced for 230 metres with
widths of over 9.0 metres. Surface samples from this vein returned anomalous silver values associated with
trace sulphides, with a geochemical signature typical of the higher levels of epithermal vein systems in the
region.
Historical systematic grid soil sampling over an area of three kilometres by two kilometres covering the
Candy and Nora veins and projected extensions, showed elevated silver, base metal (copper, lead and zinc)
and pathfinder (antimony and arsenic) values. The combination of the vein outcrops with large areas of
anomalous silver and base metal values in soil samples may indicate additional concealed mineral systems .
Other major deposits in the region include SSR Mining’s La Pitarrilla deposit located 50 km east of the Nora
project.
About Canasil:
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 profess ionals 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.
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.
For further information please contact:
Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
www.canasil.com
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 news 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 activ ities 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
Canasil Resources Inc.
News Release, October 21, 2020 page 3/3
Company believes the expectations expressed in such forward -looking statements are based on reasonable ssumptions,
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 sta tements 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 Ca nadian 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.
Canasil Nora Silver-Gold Project, Durango. Mexico
Candy Vein Area Geological Map Showing Drill Holes NRC-20-01 to NRC-20-06