Canasia Industries Ltd. (“CAJ”–TSX-V), Silver Grail Resources Ltd. (“SVG”–TSXV; “KD7”-Frankurt) and Teuton Resources Corp. (“TUO”:TSX–V; “TFE”- Frankfurt) are pleased to announce final drilling results from a recently completed program on the Clone gold property, located southeast of Stewart, BC. The Clone property is jointly owned by Silver Grail and Teuton and is currently under option to Canasia which can earn a 50% interest in the property by spending $1,800,000 in exploration over a five year term. To date, Canasia has spent in excess of $400,000 on airborne geophysical surveys and diamond drilling.
Significantly, all 7 holes of the 3,240 foot, 2006 drill program cut gold-bearing intercepts, varying in length from 3 to 35.5 feet, as follows:
The 2006 drill program was designed to shed further light on the attitude of the gold-bearing “H” (hematite) and “S” (sulfide) structures/horizons identified within the 1,600 foot long Main Zone by trenching and drilling in 1996-8 and 2003.
Three holes were drilled from the first collar to test the principal H-1 structure. The first two of these holes did not intersect the H-1 zone where expected, possibly due to faulting. However, after adjusting the azimuth, H-1 type gold mineralization was successfully intercepted at shallow depth in the third hole. Deeper, gold-bearing intersections obtained in the first two holes are interpreted to be from parallel shears.
Holes CL06-4 & 5, collared above Trench #10, successfully tested the S-1 horizon. The final two holes drilled from the third collar tested the H-1 zone at moderate depth, each encountering two separate gold-bearing zones. True widths of the intervals are not known at this time.
A lingering snowpack at higher elevations precluded a thorough investigation of the many EM conductors discovered throughout the Clone property by Aeroquest earlier in the year. These targets, along with several Induced Polarization anomalies detected by ground surveys in 1997, remain to be tested by diamond drilling. Canasia geological personnel intend, during the winter months, to study the large database established by previous and recent work on the Clone property. Priority targets identified during this review will be followed up by a diamond drilling program in 2007. The scope of this program will be announced at a later date.
Dave Derby, president of Canasia, stated: “I am very encouraged that all 7 holes drilled in the 2006 program intersected gold-bearing mineralization in the Main Zone. It appears we are one step closer to fully understanding the structural controls for this intriguing highgrade gold system.” Derby added, “It should also be emphasized that we have nearly doubled the size of this outstanding property by way of additional staking in preparation for renewed exploration in the 2007 field season”.
Pioneer Laboratories of Richmond, British Columbia, an accredited facility, performed all of the analyses. A quality control/quality assurance protocol was used in this program including blanks, duplicates and reference standards. Geologist, K. Mastalerz, Ph.D., was responsible for verification and quality assurance of analytical results.
“Dave Derby”, President
“D. Cremonese, P.Eng,”,
President CANASIA INDUSTRIES CORP.
TEUTON RESOURCES CORP.
SILVER GRAIL RESOURCES CORP.
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