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Canasil Identifies New Zone With Gold, Silver and Copper Mineralization in Surface Samples at Sandra-Escobar Project in Durango State, Mexico

Canasil Resources Inc.  announces that initial reconnaissance samples from the central zone of an area measuring 2.0 km by 1.5 km highlighted by an airborne ZTEM geophysical survey has returned high gold values, as well as silver and copper in surface samples taken from old pits and dumps of mineralized material. From a total of 15 initial samples collected to investigate this zone, 8 samples returned values ranging from 1.72 g/t to 19.95 g/t gold, 1.5 g/t to 32.6 g/t silver, and trace to 3.75% copper, with other samples returning high silver, lead and zinc values as detailed in the table below. This area is located between two separate vein systems which have returned silver, gold and copper intercepts in recent drilling. Previous soil and stream sediment sampling in this zone has returned anomalous gold and copper values. This area is on the southeast flank of a rhyolitic domal complex which may be covering a buried intrusive, and must be investigated with more detailed surface sampling to identify the possible source of mineralization observed.

The combination of the project geology, results of the airborne ZTEM geophysical survey, and significant silver, gold, copper, lead and zinc mineralized intercepts together with these surface sample results are encouraging indicators of mineralization over a very large area at the Sandra-Escobar project.

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., under the direction of Erme Enriquez CPG, Director of Exploration and Development. Samples were sent to ALS Chemex Laboratories in Zacatecas, Mexico, for preparation and on to ALS Chemex in North Vancouver, B.C. Canada, for assay analysis for gold and silver by fire assay with an atomic absorption finish (“FA-AA”) on a 30 gram split, and for copper, lead and zinc by digestion of 1.00 gram sample in aqua regia and analysis by AA. Gary Nordin, P. Geo. British Columbia and Director of Canasil, is the designated Qualified Person in accordance with National Instrument 43-101.

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.

Canasil holds 100% interest in the 7,451 hectares Sandra project claims, and has entered into an option agreement with Pan American Silver to earn 51% interest in Pan American’s 634 hectares adjoining Escobar project claims. Canasil’s exploration expenditures will go towards completing the initial $1,000,000 work commitment to earn 51% interest in the Escobar claims. Pan American will then have a back-in right to acquire a 51% interest in the combined claims by paying three times exploration expenditures incurred. Canasil has recorded over $750,000 expenditures to date under the agreement.

About Canasil:

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.

To view the map associated with this press release, please click on the following link: http://canasil.com/_resources/news/nr_2011_11_01.jpg

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Contact Information

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Canasil Resources Inc.
Bahman Yamini
(604) 709-0109
www.canasil.com