Review of Drilling and Sampling Results Demonstrate Extensive Silver Mineralized System at La Esperanza Project in Durango and Zacatecas States, Mexico
Suite 1760 – 750 West Pender Street
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NEWS RELEASE TSX-V: CLZ
June 14, 2017 www.canasil.com
Review of Drilling and Sampling Results Demonstrate Extensive Silver Mineralized System
at La Esperanza Project in Durango and Zacatecas States, Mexico
Vancouver, June 14, 2017 - Canasil Resources Inc. ( TSX-V: CLZ , DB Frankfurt: 3CC, “Canasil”) has
completed an initial review of the results from the recently completed 2016 - 17 drill program together
with the results from past drilling and surface sampling from the multiple silver-zinc-lead mineralized veins
at the La Esperanza project in Durango and Zacatecas States, Mexico. The drill results from the La Esperanza
vein, located in the southeast of the project area, together with high silver-zinc-lead values from rock chip
and dump samples from four veins located in the northwest of the project area, suggest the potential for
an extensive silver mineralized system within the La Esperanza project area. These veins occur within a
target area of approximately 75 square kilometres with a northwest-southeast dimension of over 15
kilometres. A map showing the vein zones with details of past drill and sampling results is attached below.
Of particular note are the higher grade intercepts from drilling to date and high grade rock chip and dump
samples from the four principal veins in the northwest of the project area.
Bahman Yamini, President and CEO of Canasil, commented: “We are very pleased with the results from the
recent drill program on the La Esperanza vein returning several intercepts of high grade silver
mineralization, and particularly the last drill hole which included high gold values as well. The La Esperanza
project covers a district scale land package located in a highly recognized silver district known for high grade
silver deposits. It is close to several active mining operations, 35 km from Pan American Silver’s La Colorada
mine and 80 km from the Fresnillo mine, both recognized for high silver grades and low costs of silver
production. We look forward to further exploration and drilling to advance this highly prospective project.”
The results of the 2016 - 17 drilling on the La Esperanza vein are particularly encouraging as all eight drill
holes intercepted the vein. These results extend the known mineralized envelope with intercepts over
appreciable widths and high silver-gold-zinc-lead grades over a strike distance of 400 metres and to a depth
of 350 metres, which is open in both directions to the northwest and southeast along strike and to depth.
Alteration of the volcanic host rocks extending along strike from the La Esperanza vein outcrop, the spatial
association with a discrete broad magnetic anomaly (possibly an igneous intrusion at depth), as well as local
drainage patterns has outlined a target extending for over 5 kilometres in this area. The Company is
currently undertaking a surface geochemical sampling and mapping program along this trend aimed at
identifying additional extensions of the vein itself. This work is an important step in preparation for the next
phase of drilling, which would be aimed at extending the known mineralized envelope. A plan map and
cross section showing drilling to date on the La Esperanza vein is attached, as well as a table with complete
results from the 2016 - 17 drill program, all of which have been previously announced.
There has been relatively little exploration and drilling on the four veins located in the northwest of the
project area, Los Alamitos, San Pasqual, San Felipe and Fatima. There is evidence of past artisanal mining
activity at the Los Alamitos, San Pasqual and San Felipe veins. Surface sampling along the strike of these
veins, and from mineral dumps from past mining activity, has returned high silver-zinc-lead values
indicating the potential for high grade mineralization associated with these veins. These veins will be the
subject of further investigation and provide multiple targets for future drilling.
Canasil Resources Inc.
News Release, June 14, 2017 page 2/6
The drill and sampling programs were implemented by the Company’s exploration team under the direction
of Eng. Erme Enriquez (CPG), Director of Exploration and Development of Minera Canasil S.A. de C.V., the
Company’s wholly owned Mexican subsidiary. Additional drilling and sampling was carried out by Mag
Silver Corp. (Mag) under an option agreement from 2010 to 2013. All samples from the Canasil programs
were prepared and logged at the Company’s core storage facility in Durango, Mexico. Drill core samples are
cut by diamond saw, with half being sent for assay and half secured for reference. Samples are 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.
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.
About La Esperanza
The La Esperanza silver-lead-zinc project covers 14,916 hectares, located 100 km SSE of the city of Durango
in southern Durango and northern Zacatecas States. The project is easily accessible from Canasil’s operating
base in Durango with excellent infrastructure. The project is located on the well-recognized world class
Fresnillo silver belt, hosting a number of prominent silver mines such as the San Martin-Sabinas mines of
Grupo Mexico and Penoles, the La Colorada mine of Pan American Silver and La Parrilla and Del Toro mines
of First Majestic Silver and Fresnillo PLC’s Fresnillo mine.
A series of silver-zinc-lead epithermal veins are observed over a northwest-southeast striking zone
extending over approximately 15 kilometres hosted in the Lower Volcanic Group. Mineralization occurs in
low to intermediate sulphidation veins, primarily striking northwest and dipping southwest. The main La
Esperanza vein is a banded and cockade white to grey quartz breccia epithermal vein with silver, lead and
zinc mineralization associated with argentiferous galena, silver sulfosalt minerals and sphalerite. Prior to
the current 2016 - 17 drill program drilling on this vein was focused along an approximate strike length of
250 metres and to a relatively shallow depth of approximately 250 metres and returned consistent high-
grade silver-zinc-lead intercepts from the main La Esperanza vein and an associated Hanging Wall vein at
the upper levels. The average true width of intercepts from 8 drill holes on the main La Esperanza vein was
4.21 metres returning 330 g/t silver, 0.93% zinc and 1.57% lead. The average true width of drill intercepts
from 5 drill holes which intersected the Hanging Wall vein was 1.53 metres returning 324 g/t silver, 1.37%
zinc and 1.80% lead (details listed under the La Esperanza project profile on the Company’s website
www.canasil.com, and previously reported in the news release dated November 6, 2006).
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 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.
For further information please contact:
Bahman Yamini
President & CEO
Canasil Resources Inc.
Tel: 604-709 0109
Canasil Resources Inc.
News Release, June 14, 2017 page 3/6
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.
Canasil Resources Inc.
News Release, June 14, 2017 La Esperanza Silver-Zinc-Lead Project, Vein System Map Page 4/6
Note: Selected higher-grade drill results are presented for reference on this map; complete drill results can be viewed under the la Esperanza page at www.canasil.com
Canasil Resources Inc.
News Release, June 14, 2017 page 6/7
La Esperanza 2016 - 17 Drill Program – December 2016 to May 2017
Hole ES-16-12
Interval - Metres Width – Metres Gold Silver Zinc Lead Copper Silver Eq*
From To Interval True Au g/t Ag g/t Zn % Pb % Cu % Ag Eq g/t
347.36 348.94 1.58 1.36 0.08 23.0 1.98 1.31 0.04 192
Including 347.36 347.83 0.47 0.41 0.08 16.5 4.81 2.89 0.02 398
And 348.47 348.94 0.47 0.41 0.16 57.9 1.74 1.45 0.11 251
368.40 370.07 1.67 1.44 0.11 5.0 3.60 0.75 0.03 309
Including 369.45 370.07 0.62 0.54 0.27 8.9 9.64 2.00 0.00 584
387.16 390.73 3.57 3.08 0.14 21.0 2.63 0.82 0.08 211
Including 387.16 389.87 2.71 2.34 0.17 26.0 2.17 1.07 0.09 206
Including 387.71 388.71 1.00 0.86 0.10 35.0 2.63 0.78 0.14 227
Including 387.71 388.01 0.30 0.26 0.12 38.2 3.57 1.43 0.14 308
And 388.01 388.35 0.34 0.29 0.08 51.5 3.31 0.66 0.20 278
And 389.36 389.87 0.51 0.44 0.54 33.2 4.38 3.64 0.13 469
Bit fused unable to complete hole, may not have intersected entire vein structure
Hole ES-17-13
421.38 422.20 0.82 0.71 0.30 131 0.64 0.23 0.84 281
Hole lost in cavity, may not have intersected or recovered entire vein structure
Hole ES-17-14
HW Vein 176.30 179.50 3.20 2.13 0.01 38 0.50 0.14 0.02 70
La Esp 187.40 190.40 3.00 2.51 0.01 63 0.50 0.15 0.03 98
Vein intercept close to fault, broken and soft material, low recoveries
Hole ES-17-15
202.90 208.32 5.42 4.14 0.10 33 1.06 0.63 0.02 122
Including 202.90 204.95 2.05 1.56 0.05 51 1.90 1.38 0.03 215
Vein intercept close to fault, broken and soft material, low recoveries
Hole ES-17-16
139.41 145.35 5.94 4.92 0.01 257 0.64 0.63 0.03 321
Including 143.00 145.35 2.35 1.95 0.03 628 0.90 1.52 0.08 750
Including 144.20 145.35 1.15 0.95 0.06 1,133 1.56 2.98 0.16 1,362
Hole ES-17-17
HW 1 Vn 240.15 242.48 2.33 2.02 0.00 89 1.82 1.00 0.01 228
HW 2 Vn 248.33 248.60 0.27 0.23 0.04 236 0.28 8.43 0.06 618
HW 3 Vn 250.02 252.00 1.98 1.71 0.03 225 1.30 0.59 0.12 332
Including 250.02 251.21 1.19 1.03 0.03 277 2.01 0.81 0.19 438
Main Vn 258.70 265.41 6.71 5.81 0.10 204 1.83 1.46 0.07 376
Including 259.25 260.60 1.35 1.17 0.03 233 0.98 1.03 0.08 338
And 261.84 262.75 0.91 0.79 0.11 347 2.98 2.20 0.02 606
And 264.51 265.41 0.90 0.78 0.10 244 3.00 2.04 0.03 498
FW Vein 272.60 272.72 0.12 0.10 0.12 30 3.61 1.84 0.04 310
Holes ES-17-18
257.49 265.31 7.82 6.77 0.04 79 0.68 0.53 0.03 141
Including 257.49 259.65 2.16 1.87 0.03 231 1.19 1.38 0.03 357
Including 258.98 259.65 0.67 0.58 0.04 358 0.70 1.85 0.03 479
Hole ES-17-19
296.44 309.41 12.97 11.23 0.74 219 0.90 0.43 0.05 382
HW Vein 296.44 298.83 2.39 2.07 0.04 261 2.09 0.92 0.15 406
Main Vn 298.33 302.01 3.18 2.75 2.76 552 1.16 0.63 0.08 850
Including 300.73 302.01 1.28 1.11 6.39 1,281 2.23 1.25 0.18 1,938
FW Vein 306.88 308.62 1.74 1.51 0.39 256 1.68 0.74 0.02 406
*Silver equivalents calculated assuming 100% recoveries (for Ag Eq calculation only – may not reflect actual recoveries)
and Ag US$17/oz, Au US$1,250/oz,Cu US$2.50/lb, Zn US$1.30/lb, and Pb US$1.00/lb
These results were announced in News Releases dated Feb. 09, Mar. 23, Apr. 5 and May 02, 2017
Canasil Resources Inc.
News Release, June 14, 2017 page 6/6
La Esperanza Project, Durango & Zacatecas, Mexico: La Esperanza Vein Drill Plan and Long Section