MAG Silver Confirms Start of Phase 2 Drill Program on Canasil's La Esperanza Project in Durango and Zacatecas States, Mexico
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2012) - Canasil Resources Inc. ("Canasil") (TSX VENTURE:CLZ)(FRANKFURT:3CC) announces that MAG Silver Corp. (TSX:MAG)(NYSE MKT:MVG) ("MAG") has confirmed that the Phase 2 drill program has started and is currently in progress at Canasil's La Esperanza silver-lead-zinc project in Durango and Zacatecas States, Mexico. The planned program includes up to 3,500 metres of diamond drilling to test silver-lead-zinc veins in the northwest of the project area. This drill program will be part of the CAD$ 1,500,000 exploration expenditures required between September 2012 and September 2013 under the option agreement for MAG to earn a 60% interest in the La Esperanza project.
About La Esperanza:
The La Esperanza project covers 68,954 hectares, located in the Mexican Silver Belt in northern Zacatecas and southern Durango States. This recognized world-class silver belt hosts some of the world's largest and highest grade silver deposits and operating mines. The La Esperanza project is close to a number of active mines such as Pan American Silver's La Colorada and First Majestic Silver's La Parrilla mines. The project covers multiple vein occurrences and alteration zones over a 20 kilometre strike length along a prospective SE-NW trend where the results of an airborne geophysical survey conducted by MAG and drilling to date by MAG and Canasil indicate potential for hosting a very large mineralized system.
The project is under an option agreement whereby MAG can earn a 60% interest by completing CAD$ 5,000,000 in cumulative exploration expenditures by September 1, 2014, (CAD$ 1,624,393 completed to June 30, 2012) and making a further CAD$ 200,000 cash payment to Canasil by September 1, 2013.
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 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canasil Resources Inc.
President & CEO