TSX-V: CLZ
www.canasil.com
VANCOUVER, BC, July 17, 2020 /CNW/ - Canasil Resources Inc.
(TSX-V: CLZ), (DB Frankfurt: 3CC), ("Canasil" or the "Company")
announces a non-brokered private placement (the "Placement") of up
to 5,000,000 units (the Units") at a price of $0.20 per Unit for total gross proceeds of up to
$1,000,000 to fund drill programs on
the Company's silver-gold projects in Mexico. A finder's fee may be paid with
respect to all or part of this Placement. The terms of the
Placement are subject to acceptance by the TSX Venture
Exchange.
Each Unit will consist of one common share of the Company and
one half of one non-transferable share purchase warrant. Each whole
warrant (a "Warrant") will be exercisable to purchase one
additional common share of the Company at a price of $0.25 during the first year, increasing to
$0.30 in year two following the
closing of the offering. If, commencing after the fourth month
after closing, the closing price of the Company's shares exceeds
$0.50 per share for a period of 20
consecutive trading days (the "Acceleration Trigger Date"), the
Company will have the right to accelerate the expiry date of the
Warrants to 30 days after the Acceleration Trigger Date by the
issuance of a news release announcing such acceleration within
three trading days of the Acceleration Trigger Date. The Placement
is expected to close by mid-August, 2020.
The proceeds of the Placement will be used to fund expanded
drill programs on the Company's silver-gold exploration projects in
Mexico. The Company has just
started a 1,500-metre drill program on the Candy vein at the Nora
silver-gold project in northern Durango State. This Placement will
allow the program to increase to 2,500 metres and to include drill
testing of a second prospective epithermal vein target, the Nora
vein, at this project (see details below). In addition the
Company plans to start a 2,500 metre drill program at the
La Esperanza silver-gold project
in Durango and Zacatecas States in September/October 2020, following completion of the Nora
drill program in August 2020.
Proceeds of this Placement will mean that both these additional
programs are fully funded and will result in 5,000 metres of
drilling on the two projects between now and December 2020. Overviews of both projects are
included below for reference.
Canasil President and CEO, Bahman
Yamini, commented: "We look forward to the possibility of
expanding this phase of drill funding, which will result in a very
active program of discovery drilling on two projects in the heart
of the Mexican silver belt. Drilling is already in progress on the
Candy vein at the Nora project, and the possibility to expand the
program to include testing of the Nora vein significantly increases
the discovery potential of this prospective silver-gold epithermal
vein system, which has not been previously drill tested. Planned
drilling at La Esperanza will
focus on step outs from previously drilled and identified
silver-gold ore shoots on the main La
Esperanza vein to expand the envelope along strike and to
depth, as well as to test new targets. Both projects present
exciting discovery potential which merit active and continued drill
programs."
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 mines and
deposits in the region include SSR Mining's La Pitarrilla deposit
located 50 km east of the Nora project.
About La Esperanza Silver-Gold-Zinc-Lead Project, Durango and
Zacatecas States, Mexico
The La Esperanza
silver-gold-zinc-lead 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 La
Colorada mine of Pan American Silver, La Parrilla and
Del Toro mines of First Majestic
Silver, the San
Martin-Sabinas mines of
Grupo Mexico and Peñoles, and Fresnillo PLC's Fresnillo mine and Juanicipio joint venture
with MAG Silver.
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, located in the southeast of
the project area, is a banded and cockade white to grey quartz
breccia epithermal vein with silver, gold, zinc and lead
mineralization associated with argentiferous galena, silver
sulfosalt minerals and sphalerite. Drilling to date on this vein
has outlined a mineralized envelope over a strike distance of 425
metres and to a depth of 350 metres that is open in both directions
to the northwest and southeast along strike and to depth defined by
mineralized intercepts over appreciable widths and high
silver-gold-zinc-lead grades. 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.
Further details regarding both projects are listed under the
La Esperanza and Nora project
profiles on the Company's website www.canasil.com, and have been
previously reported in the company's news releases.
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 Canasil:
Canasil is a Canadian mineral exploration company with a strong
portfolio of 100% owned silver-gold-copper-lead-zinc exploration
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.
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 does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale
of any of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. The securities have not been and will not be
registered under the United States Securities Act of 1933 (the
"1933 Act") or any state securities laws and may not be offered or
sold within the United States or
to, or for account or benefit of, U.S. Persons
(as defined in Regulation S under the 1933
Act) unless registered under the 1933 Act and applicable state
securities laws, or an exemption from such registration
requirements is available.
SOURCE Canasil Resources Inc.
