MONTREAL, QUEBEC--(Marketwire - Jan. 18, 2012) - Creso Exploration Inc. ("Creso" or the "Company") (TSX VENTURE:CXT)(OTCQX:CRXEF)(FRANKFURT:C3X) is pleased to announce the acquisition of an option to purchase (the "Purchase Option Agreement") a 90% interest in the Milner property located in Milner Township, Ontario. The new property, totalling 11 claim units, adjoins to the north and south of the Mann Project. A feature of the property is the sites of 9 historic shafts, including the former past producer Bartlett Mine (#1 Shaft). The results of the recently completed diamond drill program on the Mann 'D Zone' have now been tabulated, including DDH MN11-04, MN11-05, and the extension to DDH MN11-03. (see Press Releases dated September 1, November 4, December 1 and December 14, 2011). A highlight from the diamond drill program is the interval 400 g/t Ag over 1.0m at 35.4 to 36.4m from Hole MN11-04. Hole MN11-04 is located 27m west of Hole MN11-03, where a previously reported interval gave 5130 g/t Ag over 0.65m from 39.8 to 40.45m. Hole MN11-03 was designed to test the near-surface vein cluster in which historic hole 67-60 had reported 520 oz/ton over 2.9ft (17,828.7g/t over 0.88m).
Highlights from the results are the above mentioned interval from Hole MN11-04 and 39 g/t over 1.5m at 39.5 to 41.0m from Hole MN 11-05. Hole MN11-04 was designed to intercept the historically reported high grade material close to the floor at the western end of the historic drift, but a short void was encountered, hitting the previous mined area. Hole MN11-05 was designed as a 25m step-out from the western end of the historic drift, to check if vein extensions continued on strike from the known 'D Zone' vein intercepts. Hole MN11-03 was re-entered and extended from 50.0m to 209m to check if a significant intersection would be encountered below the level of the historic drift, however no significant intercepts were found. Two mineralized structures have become apparent from the drill program. East-west trending mineralized structures seen in Holes MN11-01 and MN11-03 coincide with calcite veining with widths varying up to 5 cm. A north-south trending structure was also identified in MN11-01, MN11-02 and MN11-03, characterized by mineralized calcite veins in widths of 1.4m, 0.6m and 0.9m, respectively.
Analytical results from the surface sampling program conducted at the Mann property in November 2011 from channel samples taken from a mechanically stripped and washed area including the 'D Zone', have been tabulated. The results from Channels #2 and #6 showed the presence of the 'D Zone' vein cluster at surface, where four interval lengths in Channel #2 showed silver enrichment. The highest single interval value was 36 g/t Ag over 1.06m. The channel samples were analyzed using the fire assay-Ag ore grade, gravimetric finish technique by AGAT Laboratories, Mississauga, ON.
A geophysical survey program utilizing the Induced Polarization technique has commenced in an area designed to test the vein systems in the Mann Area, which encompasses the former workings of the Mann Mine site. Approximately 9,075m of east-west linecut spaced at 50m intervals covering an area of approximately 32.5ha. was prepared in December, 2011, and an induced polarization/resistivity survey conducted by Insight Geophysics Inc. of Oakville, Ontario has commenced in January, 2012. It is intended to combine results from this survey with data obtained from the Mann diamond drilling program to design additional target areas for exploration.
The Purchase Option Agreement provides for the payment by the Corporation of $45,000 cash and the issuance of 450,000 common shares of the Corporation on approval of the transaction by the TSX Venture Exchange and a further payment of $45,000 cash and issuance of an additional 450,000 common shares six months after the first payment. The closing of the transaction to acquire the Milner Property is subject to regulatory approval.
Creso is also pleased to confirm that it exercised its option and purchased a 100% interest in the Mann silver mine located in the Milner Township as well (See press release of September 1, 2011).
This Press Release has been reviewed and approved by Mr. Mike White, M.Sc., P.Geo., the Qualified Person under National Instrument 43-101.