Canasil Resources (TSX-V: CLZ) CEO Bahman Yamini on High-Grade Discovery Hole Result at the Nora Gold-Silver Project 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 (TSX-V: CLZ)(OTC: CNSUF), Mr. Bahman Yamini. Bahman, how are you this afternoon?
Bahman Yamini: Good. Thank you very much, Gerardo. Nice to be with you. Good afternoon.
Gerardo Del Real: Thank you for coming back on. The last time you and I spoke, you had tapped into a system that you described as having intense mineralization. You liked and were encouraged by what you were seeing, but we all had hoped that you would tap into wider widths of mineralization in both the gold side and the silver side. We now know after the news today that that exists.
You reported 3.73 meters of 3.71 grams per tonne gold, 489 grams per tonne silver and 0.53% copper from the Candy vein at the Nora silver-gold project in Durango. For people that may not be geologists or familiar with the space or just new to understanding assay results, can you explain why you and I both believe this is a discovery hole?
Bahman Yamini: Absolutely, Gerardo. We are very excited with this hole. We think it's an excellent result at the Nora project on the Candy vein, particularly coming after only 4 holes in the first ever drill program on this project. It's great. The four holes we've announced to date on the Candy vein have all intersected the vein, which is in itself very encouraging on a new project. We know that we're hitting the vein at depths of between 100 to 150 meters below surface, the structure is there. In the first two holes, we had hole #1, which had a very narrow, around a 30 centimeter intercept with very high grades, exactly what we were looking for; gold, silver, copper, et cetera. And the second one, #2, had a wide intercept, up to between 4 to 8 meters, but had low grades.
What we were hoping to find is a wide intercept with high grades and here we have it in hole #4. This is an excellent width. 3.7 meters in this type of a system is a very significant structure and it's carrying high gold, it's carrying high silver and it's carrying a little bit of copper as well. Now just for information, the combined value of the 3.7 grams gold and 489 grams silver we're reporting is close to 800 grams per tonne silver, which is a extremely high grade. If you find these kinds of grades – we're in exploration stage now – but if you can find these kinds of grades in a deposit or even half of these grades, it becomes a very, very profitable mine.
Gerardo Del Real: You've now completed 6 drill holes on the Candy vein. You've moved on to drilling at the Nora vein as you had planned. Can you explain again to those not familiar with this part of Mexico and this type of system, can you explain an analog, a similar property to this now that you have tapped into the wider intercept of mineralization here?
Bahman Yamini: Well, one of the similar properties, there are many mines around us at the Nora project. One property in particular, 50 kilometers east of us is SSR Mining's Pitarrilla deposit, which is not actually currently mining, but it is a 500-million ounce silver deposit. It shows that these very big systems occur in the area. It's not unusual. These will be a combination of these high-grade veins and also disseminated silver mineralization.
Now we have the two vein outcrops that we're testing along the Candy vein where we have the longer outcrop of several hundred meters. We're testing it over 500-meter strike. The first 4 holes are on two sections, which are 100 meters apart. Then we have holes #5 and 6, which are each 200 meters and 400 meters further up. This will give a good test of the Candy vein.
The fact that we now have this intercept that we've just announced with the wide and high-grade silver and gold mineralization and within that in the table in the news release, you can see that there are smaller intercepts of very high-grade material. For example, there's one 50 centimeter section that's running 6 grams gold and 2 kilos silver for about 2.4 kilos silver equivalent. This is very, very encouraging material.
This shows you that this mineralization is coming from somewhere and now we're tapping into it. It opens up this whole vein structure for further drilling as a more aggressive drill program in the second phase of drilling. But in general, at the Nora project, we're seeing widespread anomalous geochemical silver, gold and all the pathfinder mineral signatures. We think we are sitting on top of a fairly significant system. We are just now picking away at it at the obvious points on these high-grade silver-gold outcrops, but we need to look at the whole project overall. Certainly it does open up these veins for very aggressive further drilling.
Gerardo Del Real: You have assays pending as well, correct?
Bahman Yamini: Yes. We have assays pending both on these holes because the assay labs are quite backed up. Because we like to look of this intercept, we have these processed on a rush basis, but there are more assays pending on these holes. Then there's also holes 5 and 6 that have been competed where the assays are pending. We've got quite a lot of material in labs going through right now.
Gerardo Del Real: Excellent. How is the program in the field as it relates to the COVID situation, the local community? I'm familiar with your geologist who's running the program down there and an utmost professional. How are things coming along on that front?
Bahman Yamini: We're very pleased with the progress. The drilling is going well. We're making consistent advance. We're being very careful to limit the number of people on sites. We are only drilling one shift per day. But in spite of that, we're making very good progress now, especially now that they've settled in and the drill is turning and advancing well. The 6 drill holes on the Candy vein were about 1,400 meters. We are now on hole #7 on the Nora vein. We have that plus one or two more holes on the Nora vein.
Then we plan to give everybody a break for a week or 10 days and then move onto our La Esperanza project, where we already have established high-grade ore shoots and we will be drilling besides and below those. I hope that that will be starting sometime in November and going through. We've got nonstop drilling going on for the next few months. We're progressing very well to the plan of completing 5,000 meters of drilling over this second half of 2020, probably will extend into January just to get everything completed. We will be drilling. So far we're making very good progress.
Gerardo Del Real: Congratulations are definitely in order, Bahman. I believe it's going to take the market a day or two to really take the time to digest the news today and put it in context. I think you did an excellent job summarizing and I hope that the next time you and I speak, we're talking about similar numbers, because these are really, really good numbers, especially this early in the program.
Bahman Yamini: Absolutely. Thank you very much, Gerardo, for your interest and absolutely that's what we're looking forward to.
Gerardo Del Real: Chat soon, Bahman. Thank you.
Bahman Yamini: Thanks very much. Bye bye now. Have a good afternoon.