Canasil Discovers New Silver Zone with High Grade Surface Samples At Sandra-Escobar Project

VANCOUVER - Canasil Resources Inc. reported the discovery of a significant new silver zone at the Sandra-Escobar project in northern Durango State, Mexico. The Company's recently completed surface sampling and geological mapping program has outlined a 600 metres by 200 metres zone of stockwork and disseminated silver mineralization located 3 kilometres southeast of the previously drill tested Candelaria and San Francisco silver vein breccias. Sixteen out of twenty-one samples collected from narrow veins and mineralized dumps in this zone returned over 250 g/t silver, with eight samples returning over 500 g/t silver and four samples with over 1,000 g/t silver, as detailed in the table below. This zone is associated with a northwest southeast trending structural corridor and a small resistivity anomaly interpreted from the 2011 ZTEM airborne geophysical survey. This presumed silver trend has been traced for over 3 kilometres from the Candelaria and San Francisco vein breccias, where drill hole SE-11-11 intersected 52.5 metres of 19 g/t silver and could host significant bulk mineralization. Further rock sampling and a ground geophysical survey will be conducted to define this zone.

Gary Nordin, Director of Canasil, said, "We are very pleased with the continuing development and identification of further disseminated and high grade stockwork silver potential at the Sandra Escobar project. Together with the comprehensive 2011 exploration program we have identified 5 target zones over a very large area along a series of trends surrounding the central intrusive centre. This continues to indicate the potential for a very large mineralized system at the Sandra-Escobar project for further exploration."

The mineralization in this zone is found in narrow carbonate-barite veins varying in width between 0.25 metres to 0.90 metres. Ten samples of vein material carried between 19 g/t silver to 1,465 g/t silver, with an average grade of 707 g/t silver over an average width of 0.335 metres. Two samples of vuggy porous volcanic tuff host rock peripheral to the veins returned grades of 53 g/t and 57.8 g/t silver, indicating potential for disseminated silver mineralization. Nine dump samples from historical workings in this area grade from 143 g/t silver to 768 g/t silver, with an average of 381 g/t silver.

The collection of the surface samples was supervised and carried out by the Company's wholly owned Mexican subsidiary, Minera Canasil S.A. de C.V..

The Sandra-Escobar project is located in northern Durango State, Mexico, 200 kilometres northwest of the city of Durango with excellent access and infrastructure, on an important mineral trend with many past and presently producing silver-gold mines and deposits. The project area hosts a mineralized system centered on a large altered rhyolite dome complex, with surrounding geological formations, alteration patterns, and extensive evidence of gold, silver and base metal mineralization. These features indicate the potential for hosting a large disseminated gold-silver-base metal mineralized system. A number of high-grade silver-gold veins surround the dome area.