Canasil and MAG Sign Binding Letter Agreement for MAG to Earn Up to 70% Interest in Canasil's Salamandra Project in Durango

Canasil and MAG Sign Binding Letter Agreement for MAG to Earn Up to 70% 
Interest in Canasil's Salamandra Project in Durango State, Mexico 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/28/13 -- Canasil
Resources Inc. (TSX VENTURE:CLZ) (FRANKFURT:3CC) ("Canasil" or the
"Company") announces that the Company and MAG Silver Corp. (TSX:MAG)
(NYSE MKT:MVG) have signed a binding Letter Agreement providing for
MAG to earn up to a 70% interest in Canasil's Salamandra
silver-copper-zinc-lead project in Durango State, Mexico. The project
is located close to the city of Durango and 80 kilometres on trend
northwest of the San Martin-Sabinas mining district, the largest
underground silver-copper-zinc deposit in Mexico, owned by Grupo
Mexico and Penoles. 
Under the agreed terms, MAG will have a first option to earn 55%
interest in the Salamandra project by incurring C$5,500,000 in
exploration expenditures and making C$750,000 cash payments to
Canasil over four years, including payment of C$150,000 upon
signature of the Letter Agreement. The first year exploration
expenditures of $1,000,000, which must include at least 3,000 metres
of diamond drilling, will be a firm commitment. Upon completion of
the first option, MAG will have a second option to earn an additional
15% interest, for a cumulative 70% interest in the Salamandra
project, by either preparing and delivering to Canasil a NI43-101
compliant feasibility study within four years, or by incurring an
additional C$20,000,000 in exploration expenditures over four years,
with a minimum annual expenditure of C$2,500,000. 
MAG has also informed Canasil of its intention to withdraw from the
current La Esperanza option agreement and concentrate on advancing
the exploration program on the Salamandra project.  
Bahman Yamini, President and CEO of Canasil, commented: "We are very
pleased to have reached agreement with MAG on the terms of an earn-in
option on the Salamandra project. We regard MAG as an excellent
partner for this project which has the potential for hosting a large
carbonate hosted replacement system with silver, copper, zinc and
lead mineralization, and look forward to the start of the exploration
program under this agreement as soon as possible. The project, which
is located 35 kilometres northeast o
f the City of Durango with
excellent access and infrastructure, has returned highly promising
results from exploration work to date. We would also like to thank
MAG for their work in advancing the La Esperanza project with
significant exploration expenditures including over 6,000 metres of
drilling. We believe there will be a number of other companies
interested in cooperation to advance the La Esperanza project." 
Salamandra silver-copper-zinc-lead project, Durango, Mexico: 
The Salamandra project is located 35 km to the northeast of the City
of Durango and covers 14,719 hectares (over 140 square kilometres),
and benefits from excellent access and infrastructure for mineral
exploration and development. This large claim area is strategically
located within the major silver-gold trend running through Durango
and Zacatecas States, and is directly on trend with a number of
important operating mines and recent discoveries. The project is
located on the mineral-rich Fresnillo geologic trend, approximately
80 km northwest of, and within a similar geologic environment, to the
San Martin mine of Grupo Mexico. The San Martin mine is the largest
underground silver-copper-zinc mining operation in Mexico, producing
at approximately 6,000 tonnes per day. 
The exploration programs to date at the Salamandra project indicate
the potential for a large buried intrusive and carbonate hosted
massive sulphide skarn/manto replacement system. Initial ground
geophysics and diamond drilling identified significant silver-zinc
mineralization at Salamandra, including 7.45 metres of 50 g/t silver
and 12% zinc and 10 metres of 71 g/t silver, 3.48% zinc and 1.26%
lead. This mineralization is associated with skarn, hydrothermal
breccias, sulphide rich veins and quartz porphyry dykes. Preliminary
metallurgical tests indicate high zinc and silver recoveries to clean
A subsequent ZTEM airborne geophysical survey completed in 2011
outlined a much larger complex response area covering 2.5 km by 3.5
km. Detailed surface sampling in this area led to the discovery of a
high grade vein outcrop, carrying 2,150 g/t silver, 5.39% copper, and
1.89% zinc over 0.90 metres. In addition, sampling has outlined
extensive areas of anomalous silver-copper-arsenic-antimony with
peripheral lead and zinc anomalies, which is similar to the surface
signature of the San Martin mine. The significant silver-zinc drill
intercepts from prior drilling, plus results of both airborne and
surface geophysical surveys, and the discovery of a high grade
silver-copper-zinc vein outcrop within an area of widespread
silver-copper-zinc-lead-arsenic-antimony geochemical anomalies
indicate the potential for a large silver-copper-zinc-lead
mineralized system. 
About MAG: 
MAG is focused on district scale projects located within the Mexican
Silver Belt. MAG's mission is to become one of the premier companies
in the silver mining industry. MAG is conducting ongoing exploration
of its portfolio of 100% owned properties in Mexico including a
silver, lead and zinc discovery and a moly-gold discovery at its 100%
owned Cinco de Mayo property in Chihuahua State. MAG and Fresnillo
plc are jointly developing the Valdecanas Vein and delineating the
Desprendido and Juanicipio discoveries on the Juanicipio Joint
Venture in Zacatecas State. MAG is based in Vancouver, British
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.  
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. 
Canasil Resources Inc.
Bahman Yamini
President and C.E.O.
(604) 708-3788
Press spacebar to pause and continue. Press esc to stop.