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Canasil Receives Notice of 55% Option Earn-in from Orex to Form 55:45 Joint Venture at the Sandra-Escobar Project in Durango, Mexico

V.CLZ.H

Canada NewsWire

TSX-V: CLZ
www.canasil.com

VANCOUVER, Jan. 16, 2017 /CNW/ - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, "Canasil" or the "Company") announces that Orex Minerals Inc. (TSX-V: REX, "Orex") has provided notice of exercise of the first option for earn-in of 55% interest in Canasil's Sandra-Escobar Project in Durango, Mexico.  Orex also notified Canasil that it would not be proceeding with the second option to earn an additional 10% interest in the project for a total of 65%. As a result the project will proceed as a 55:45 Orex:Canasil joint venture. Orex has paid Canasil $500,000 and incurred more than US$2,000,000 expenditures to exercise the first option under the terms of an option agreement with Canasil announced on September 15, 2015. Orex exploration programs have included over 10,303 metres of core drilling in 65 drill holes, a helicopter-borne magnetic and radiometric survey and extensive surface sampling and mapping in the southeast of the project area.

Sandra-Escobar Silver-Gold Project, Durango, Mexico

Sandra-Escobar is located 200 km northwest of the city of Durango, Mexico, in the heart of the "Mexican Silver Trend", with excellent access and infrastructure.  This prolific trend hosts some of the world's largest silver camps and deposits, with many past and present producing mines and significant silver-gold deposits. The project area covers over 6,976 hectares of mineral concessions and multiple mineralized epithermal quartz veins and breccia structures. These veins and structures form high level silver-gold-base metal systems, hosted in andesitic and rhyolitic rocks, and are centered on a large rhyolite dome complex in the north and silver-dominant systems around smaller rhyolite dome complexes to the southeast.

The technical information contained in this news release is based upon the technical information provided by Orex and has been reviewed and approved by J. Blackwell (P. Geo.), a technical advisor to Canasil and a "Qualified Person" as defined by National Instrument 43-101.

About Canasil:

Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-copper-lead-zinc 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 includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The reader is referred to the Company's filings with the Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.

SOURCE Canasil Resources Inc.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/January2017/16/c3305.html



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