Canasil Resources (TSX-V: CLZ) CEO Bahman Yamini on Drilling for High-Grade Gold & Silver in Mexico
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Canasil Resources, Mr. Bahman Yamini. Bahman, how are you today?
Bahman Yamini: Great. Thank you very much, Gerardo. Good to be with you.
Gerardo Del Real: It's great to have you back on. Happy new year. I know that we're three weeks into it, but it seems like, and we talked a bit off air, it seems like it's still fresh enough and appropriate enough to say, right?
Bahman Yamini: Absolutely. Likewise, and we're looking forward to a positive year this year.
Gerardo Del Real: Agreed. And I think a large part of why Canasil shareholders are excited is because of the recent review that you outlined in a release of the potential for a significant high-grade mineralized system at the Nora Silver-Gold Project, which of course is in Durango State, Mexico. I would love for you to provide some context on what you learned from the program, the results, and then what we can look forward to hear in the next several months. I got to believe you have a lot of interest on these projects that you have in the portfolio.
Bahman Yamini: Well, of course Gerardo. And Nora's building up to be a very exciting project. There was a maiden drill program on it in 2020, in the third quarter of 2020. And we were extremely pleased with the results. They were beyond expectations. All the six drill holes on the Candy vein intersected the vein, of course, as is normal with these epithermal veins with narrower and wider intercepts, depending on where we're hitting the vein, but all of them and particularly holes four and six coming back with extremely high, gold and silver grades and we're hitting intervals up to 30 grams gold and 1.2 kilos silver.
So this is a real confirmation that the Candy vein can return very significant high grade gold-silver mineralization across multiple intercepts. And what we have to remember is we are right at the top of the vein, and we're drilling just below surface, so that means there's a lot of room to depth to expand the system. And also we've been testing about 500 meters of the three kilometer strike of the Candy vein that we trace on surface, so a lot of room along strike as well. The vein in itself as a high grade silver-gold epithermal vein has tremendous potential. We thought it did, and now with the drill program, we know that it does. So that really justifies a much larger follow up drill program to explore the Candy vein at the Nora project.
Gerardo Del Real: The high grade results from the veins obviously are exciting, but I also am excited about the Breccia targets. You have one called Cerro Los Torunos and that is a bulk tonnage disseminated, silver-gold target. Can you tell me a bit about that? Because I believe this is the first time that you and I discuss this publicly.
Bahman Yamini: Yes, that's correct. And this is all also part of the recent news release that you mentioned with the wider zones of potentially disseminated mineralization that we see at Nora. The news release with the geochem sampling results includes 1,200 soil samples over an area of about two and a half by three kilometers covering the entire central zone of the project. And there are strong geochemical soils signatures over the whole project area, particularly very elevated, gold soil geochem over the entire area, that's extremely pronounced over the Candy vein. And there is strong silver geochem as well all over the area, over the Candy vein strike, leading Southwest from the Candy vein to the South, into the Cerro Los Torunos area that you mentioned, and then all over the Eastern sector of the project area. So over almost the entire two by three kilometer zone the samples are lighting up both for precious metal, gold and silver, base metals, copper, lead, and zinc, and also very importantly lined up with all the indicator minerals, arsenic, antimony, bismuth, molybdenum, manganese, cadmium, et cetera.
So everything is lining up to indicate that this is a potentially very large silver mineralized system, which we suspected, but it's not unexpected because of the location, because you're in the world's premier silver belt, very close to some large producing mines and very large deposits, so it's very encouraging. So there is a lot more than just the high-grade vein to look at, at Nora. And of course it needs further detailed geological work on the ground, additional sampling, potentially some geophysics, et cetera. But the particular one, Cerro Los Torunos, that you mentioned is an interesting one because it is a topographic feature, a hill, in the Southwest of the project area where we noticed the Breccia outcrop on its Western side.
So we went to investigate the Breccia outcrop and the conclusion was it appears that the entire hill may be a Breccia formation. It's not just a discreet pipe, but much wider and this needs to be looked at in more detail. This is what we're suspecting now, and it just shows that the project overall has much bigger potential, including the Southwest trending silver-gold geochem anomaly coming off the Candy vein to the Southwest on the West side of Cerro Los Torunos is also a very interesting target as well. So there is really a lot of smoke at Nora, which is building up to be a very, very interesting and exciting project.
Gerardo Del Real: When do you anticipate we'll know how you're going to follow up the recent drill program at Nora?
Bahman Yamini: You know, we're working on those plans actively. Of course, we are now focusing on the drill program at La Esperanza, which again, we know is a very large target, a lot of potential there, and we're drilling on the La Esperanza vein, so we're fairly busy on that. But at the same time, we're doing these reviews and evaluations on Nora to put together the program for a phase two program, which would cover additional drilling on the Candy vein, and also looking at a lot more detail at these disseminated targets
Gerardo Del Real: Both of these properties are within an area of excellent, excellent infrastructure. That's important because if you can prove a resource of significance here, you're going to attract a lot of attention from producers in the area. And there are many that want access to a project with great infrastructure in a great jurisdiction with labor that is experienced in mining. Of course, Zacatecas where my parents and my family comes from is known for having the world's richest silver mines. You have to be excited Bahman about 2021 because it could be a make or break year for both La Esperanza, which has a more robust history, and now Nora, which obviously is an exciting new discovery.
Bahman Yamini: That's correct. And you know, a lot depends on the silver prices, and silver-gold precious metal prices, resource market conditions. Of course in the last few months, and also last couple of weeks, there has been a bit of a flat-lining of the precious metals prices and heading a bit lower, just bouncing around. In August of last year, we were up to close to $30 an ounce of silver, and then we headed down to around $24 and there was a bit of a pickup around $26 and now we're back around $25. So I think with everything settling down in 2021, this should start heading higher with the economic conditions, with the stimulus packages coming through, et cetera. And then that has a tremendous impact on our work, and of course the share price as well. So I think 2021 is going to be an exciting year and hopefully we'll have the opportunity to expand on these programs.
We are working on the drill program currently in progress on the La Esperanza vein at the La Esperanza project. And again, we have to bear in mind, as you mentioned, it's in the world's premier silver district with world class silver mines and deposits, the largest and lowest cost silver mines in the world are located within a 75 kilometer radius of La Esperanza. And this is a large project where we have five high grade silver vein systems. We are currently working on the La Esperanza vein, where we've been drilling before, to expand the mineralized envelope there. But yes, you're absolutely right, good results on these projects and moving forward should generate a lot of interest.
Gerardo Del Real: A lot to look forward to. You mentioned the gold and silver prices. I'd like to remind everybody that it was just, in March, April, where we hit a low in the silver price of $11.94 an ounce. $25 today seems like a really, really good base given the amount of money printing, not just here in the US, but globally and the coordinated effort by central bankers to reinflate basically every single asset class out there. I think it bodes well for gold and for silver. And I think the consolidation is welcomed. And I'd be very surprised if in a couple of months, we weren't breaching that $30 level. We shall see, and then we shall see the results from the program. I'm excited to hear about it, Bahman thank you so much for coming on. I appreciate your time.
Bahman Yamini: Thanks so much Gerardo, likewise, have a great day.
Gerardo Del Real: And watch out too. And like you mentioned, drills are turning at La Esperanza, so I'm looking forward to that.
Bahman Yamini: Absolutely.
Gerardo Del Real: Thanks again.
Bahman Yamini: Bye bye now.