Canasil Resources Inc. [CLZ-TSXV, 3CC-DB Frankfurt] shares rallied in active trading Thursday after the company released drilling results from its Nora silver-gold project in north-central Durango State, Mexico.
Results released Thursday are from the first hole of he 2021 follow-up program, which is designed to test below the 2020 maiden drill intercepts on the Candy Vein. Drill hole NRC-21-09, targeted the Candy vein structure 60 metres down dip below NRC-20-06, and returned a 32-metre mineralized structure with multiple high-grade gold and silver intercepts with higher gold and silver grades over wider widths than the NRC-20-06 intercepts announced in December, 2020.
Highlights include 1.70 metres, true width 1.53 metres with 20.59 g/t gold and 1,290 g/t silver for 2,783 g/t silver equivalent (AgEq) from the Candy Vein, including 0.70 metres (TW 0.63 metres) with 43.70 g/t gold and 1,290 g/t silver for 4,458 g/t AgEq.
Canasil shares advanced on the news, rising 21.7% or $0.025 to 14 cents on volume of 565,120. The shares are currently trading in a 52-week range of 24 cents and $0.085.
Canasil is a Canadian exploration company with a portfolio of wholly-owned silver, gold, copper, zinc and lead exploration projects in Mexico and British Columbia.
The Nora project is located approximately 200 kilometres northwest of the City of Durango. Gold-silver mineralization is hosted within two structurally-controlled epithermal veins, Candy and Nora. The Candy vein is exposed in discontinuous outcrops and shows evidence of small-scale historical mining.
Previous results include drill hole NRC-20-06, which returned 1.00 metre of 19.49 g/t gold and 620 g/t silver.
“The very high-grade gold and silver values returned from the NRC-21-09 within a wide mineralized structure, and the increasing widths and grades with depth below the 2020 drill intercept are extremely encouraging,’’ said Canasil President and CEO Bahman Yamini.
“These initial results confirm continuity of mineralization to depth from the 2020 discovery drill holes on the Candy vein at the Nora project,’’ he said. “We are looking forward to results from three additional holes completed on the Candy vein structure targeted below and between the 2020 drill holes.”
Yamini said the widespread silver, gold, base metal and pathfinder minerals geochemical anomalies observed over the Nora project area also suggest the potential for larger disseminated silver-gold mineralization, which is being evaluated for additional drill targets.
He went on to say that four drill holes, NRC-21-09 to NRC-21-12, have been completed for a total of 932 metres. The target area is below and in between the 2020 drill holes NRC-20-04 and NRC-20-06. The other three drill holes have all intersected the Candy vein structure as projected and a total of 220 assay samples are currently being processed.
The 2020 and 2021 drill programs have tested the Candy vein structure over a strike distance of 500 metres and to a depth of 200 metres.