Vancouver, September 4, 2012 - Canasil Resources Inc.
("Canasil", TSX-V:
CLZ , DB Frankfurt: 3CC) announces that MAG Silver
Corp. (TSX: MAG, NYSE-A: MVG, "MAG") has received the
drill permit for the planned Phase 2 drill program at
Canasil's La Esperanza silver-zinc-lead project in
Durango and Zacatecas States, Mexico. MAG has also
completed the required CAD$150,000 option payment to
Canasil for the third year of the option agreement and
will now be required to spend an additional CAD$1,500,000
in exploration expenditures from September 1, 2012, to
September 1, 2013, in order to maintain the agreement in
good standing. A final option payment of CAD$200,000 will
be required on September 1, 2013, together with
additional exploration expenditures of CAD$1,750,000 by
September 1, 2014, should MAG decide to continue and
complete the earn-in of a 60% interest in the project
under the agreement. MAG reported that drilling is
expected to resume at La Esperanza during the third
quarter 2012 to test the Fatima, San Pascual and Los
Alamitos veins in the north-western part of the project
area.
Bahman Yamini, President and CEO of Canasil commented:
"We are very pleased with MAG's continued commitment
to the La Esperanza project and plans to start the Phase
2 drill program during this quarter now that the required
permits are in place. We look forward to positive results
from this drill program and to further expenditures by
MAG over the next twelve months to complete the
requirements under the La Esperanza option
agreement."
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 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 indicate potential for hosting a very large
mineralized system.
Drilling conducted by Canasil and MAG on the La Esperanza
vein has confirmed a high-grade silver-zinc-lead
mineralized panel along a strike distance of over 250
metres and to a depth of 300 metres, which is open in all
directions, with mineralized vein intercepts of up to
10.30 metres. Recent drilling by MAG intersected a 10.15
metre intercept carrying 98 g/t (2.86 opt) silver, 2.42%
zinc and 1.16% lead, including 2.42 metres with 278 g/t
(8.10 opt) silver, 5.82% zinc and 2.84% lead. The La
Esperanza vein includes several intercepts with very high
silver grades of up to 2,144 g/t (62.53 opt) silver over
0.75 metres.
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 in cash payments 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.
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.
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