Canasil Resources (TSX-V:CLZ) CEO Bahman Yamini on Drilling 3,671 g/t Ag Eq at the High-Grade Silver-Gold Discovery Nora Project

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 this morning?

Bahman Yamini: Great. Thank you very much, Gerardo. Good to be with you.

Gerardo Del Real: It's good to have you back. The last time you and I chatted, we talked about how we thought that the market wasn't recognizing the discovery hole that you had drilled from the Candy vein at the Nora silver-gold project in Durango State, Mexico. I'm happy to say that it appears you were absolutely correct. You just intercepted up to 3,671 grams per ton silver equivalent. If you want to break that down, it's 36.7 grams per ton gold and 1,010 grams per ton silver. Those are, I mean, just absolutely spectacular numbers. Can you provide an overview of the news today? The market seems to really like it. You're up 20% today.

Bahman Yamini: Of course, Gerardo. We're very excited about this intercept in hole 06 on the Candy vein. It's about 100 meters further North than hole 04, which was the last one we talked about, where we also have excellent results. That was the start of the discovery, and I think this one in number six is confirming it. The grades are spectacular. We're very pleased. They're very high gold numbers, as well as very high silver numbers, so it's great to see both occurring together. More importantly, we have multiple bands of mineralization over nice widths. Of course, those very high numbers that we're talking about are in the core of the mineralized bands over, let's say, a 50 centimeter to a meter interval, but all three bands carry very high grades of 26 grams, 30 grams, 15 grams gold, and 500 to over a kilo silver. These are fabulous.

I mean, these are excellent grades and to have them in three bands, there's one narrow one at the bottom which is only about 30 centimeters, but then the middle one about 1.65 meters, and then the higher one 2.65 meters is a very nice width and good to see these multiple intercepts in the one hole.

Gerardo Del Real: The widths are extremely important, right? Because oftentimes you'll see a news release and it'll be 2 centimeters of 1,000 grams per ton silver and gold in it. It really doesn't matter because they're not mineable widths. They'll never turn into an economic deposit. The widths that you're starting to see here, while narrow, do encourage the thesis that you could very well be on to something that has minable widths, correct?

Bahman Yamini: You're right. Just for reference, because this is a question with different types of deposits, and every one is different. But these epithermal vein systems, if you take the world-class mines like a Pan-American Silver’s La Colorado mine, or Fresnillo PLC's Fresnillo mine, or the new Fresnillo/Mag Silver joint venture at Juanicipio, the average width of the veins is around two meters. Now, of course, these vein systems, they can have zones where you go up to 10 to 15 meters or more, and then you can have spots which are much narrower, but that's the average width. So these widths, 1.65 meters, 2.65 meters, are well within what you see in world-class mines. They're music to the mining engineers’ ears. So they're definitely mineable widths, and these are excellent grades over those widths.

Gerardo Del Real: Can we talk about hole five? I'll play devil's advocate a bit and say your hole six was absolutely bonanza grade numbers, right? Hole five, a lot more moderate, right? You had 1.46 grams per ton gold down at 151.5 meters over a true width of 0.72 meters. Can you explain the difference in location and orientation, and why you think there was such a variance there between the grades from hole five to hole six?

Bahman Yamini: Of course. Hole five is about 200 meters further North than hole six, so hole six is actually closer to hole four. It's about 100 meters North of hole four, and then hole five is about 200 meters North of that. I mean, we drilled them in that order because interestingly enough, on hole five, we have a higher gold number on surface. In the surface sample, we had 15 grams gold, and in hole six on the surface sample, we only have six grams gold, so we drilled that one first. These systems, as we mentioned, they tend to pinch and swell. There are cracks in the rock that the fluids are coming up in, and it could be pinching at the top at that level.

So we’re just hitting a narrow intercept with lower grades, but the fact that the vein is there and we are locating it is very promising. This opens up drilling below this intercept on hole five and also opens up the whole section, the 200 meter section between five and six for further drilling, as it does also the section between four and six. So it really opens up the whole vein for drilling along strike and to depth. I think we're really onto something here, and it warrants a lot of further attention and further drilling.

Gerardo Del Real: Let's talk about that further drilling. Obviously, you're still in the midst of this program here. What plans are being made to further explore this discovery?

Bahman Yamini: Well, we see a lot of silver everywhere on this property. We have about 1,200 surface samples. There's disseminated silver everywhere. All of the pathfinder elements are showing signs of a very large system. We knew that we were onto something at Nora, but the key was to drill this vein below the old artisanal mine workings and below some of the high grade surface samples we have to make sure that the vein is there and it returns high grade mineralization, which now that's confirmed. So that's extremely exciting for the project as a whole and for plans for further drilling. This is definitely a discovery in progress and warrants going back with a bigger drill program and continue working on the project. So we're very excited about that.

Gerardo Del Real: Excellent. You mentioned in the release that two additional drill holes have been completed to test the Nora vein 600 meters Northeast of the Candy vein. Can you provide some context there?

Bahman Yamini: Yes, that's a very high level outcrop. They are very low grades on the surface, but we just saw a wide structure there, and it looked like an interesting structure. So that was just really prospecting more than anything else. It warrants testing. We had to look at that, so we'll wait to see what results those give.

Gerardo Del Real: Excellent. Well, again, the market's excited. I'm excited. Congratulations. Phenomenal results. Is there anything else that you'd like to add, Bahman? I know you have a stable of very attractive projects, especially in light of the current precious metals and base metal prices, right? For a bit there, we had the base metal suffering, and copper's at $3.47, zinc is at $1.28 a pound, lead is at $0.94 a pound. So you have other projects in the portfolio that I have to believe companies are inquiring about.

Bahman Yamini: That's right. We're busy and we're following the game plan. We had said that we would drill Nora, which we have done now. We have completed the holes on the Candy vein, which are very important. We've tested the Nora veins, which we said we would do. We're going on now to test and continue drilling on our La Esperanza project, which is a flagship project which has had a lot of drilling in the past. We're very excited about getting to work on that. These are projects that really now we can see have great potential. La Esperanza, we knew from before, but now Nora as well is a project that warrants having a drill rig on there and moving forward, whether funded directly by Canasil or with a joint venture partner. So we are looking forward to those prospects going forward.

Gerardo Del Real: Excellent. Bahman, thank you for the update. I appreciate it.

Bahman Yamini: Perfect. Thank you very much, Gerardo. Have a great day. Thank you.

Gerardo Del Real: You as well. Stay safe out there.

Bahman Yamini: Will do. Likewise. Bye bye.