Canasil grants Pan American option on Carina property
2010-11-19 14:03 ET - News Release
See News Release (C-CLZ) Canasil Resources Inc
Mr. Bahman Yamini of Canasil reports
PAN AMERICAN SILVER OPTIONS CANASIL'S CARINA SILVER PROJECT IN DURANGO STATE, MEXICO
Canasil Resources Inc. and Pan American Silver Corp. have signed a letter agreement covering an earn-in option on Canasil's Carina project in Durango state in Mexico. The letter agreement is binding until replaced by a definitive agreement. It is understood that Pan American, the optionee, is required and wishes to offer the assignment of the agreement to the La Preciosa joint venture with Orko Silver Corp., which is advancing the adjacent La Preciosa silver project.
Canasil president Bahman Yamini commented: "This is another positive development and opportunity for Canasil to advance its silver/gold exploration projects in Mexico in cooperation with leading industry partners. Pan American and its La Preciosa joint venture partner, Orko Silver, are ideal partners for advancing Canasil's large Carina property. They are actively working on advancing the neighbouring La Preciosa silver project and have considerable technical and operating experience and capabilities in the area. We are very pleased with this opportunity to advance the Carina property and look forward to the start of the first year exploration program."
The option terms provide for the optionee to earn an initial 55-per-cent interest in Canasil's Carina property for total exploration expenditures of $3.65-million (U.S.) and total cash payments of $365,000 (U.S.) to Canasil over a period of four years. Following the initial earn-in, a 55/45 joint venture will be established with the optionee as operator. The optionee may increase its interest in the JV to 70 per cent by financing a full feasibility study within three years, and to 80 per cent by financing the project through to production. In the latter case, the optionee would be entitled to recover the Canasil portion of the capital costs financed by the optionee from 85 per cent of Canasil's portion of the project cash flow.
The Carina property covers 12,147 hectares and is located 45 kilometres northeast of the city of Durango. The claims are adjacent to the southern border of the Pan American-Orko Silver joint venture's La Preciosa silver project. Canasil's mapping and sampling have defined an area of 500 metres by 800 metres hosting multiple quartz vein structures with anomalous silver, gold and base metal values in surface samples. The large claim area requires further evaluation to explore for and identify other potential mineralized zones. |
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