Creso Exploration Inc.
TSX VENTURE : CXT

Creso Exploration Inc.

June 22, 2010 08:00 ET

Creso Exploration Acquires the Matona Gold Property and Expands to a 7km E-W Strike Width its Holdings in the Shining Tree Area

MONTREAL, QUEBEC--(Marketwire - June 22, 2010) - Creso Exploration Inc. ("Creso" or the "Corporation") (TSX VENTURE:CXT) is pleased to announce the conclusion of an option agreement with SAFE Resources Ltd. The new property is located 3.5 km west of the Minto (100% owned by the Corporation) where the 2009 campaign diamond drilling program gave the best following result from Hole #2: 18.2 g/t Au over 65.7 meters from 49.3m to 115m (see press release of June 9, 2010 for further details).

The Matona Project has two shafts and two mineralised zones trending in a north-west / south-east direction with the west zone being characterised by heavily brecciated host rocks with historical samples as high as 0.785 oz/tons (26.8 g/t) over 2.0 ft (0.65m)**. Two thousand feet to the northwest, similar geological setting to that of the Main Zone along with surface and diamond drilling work done in 1988, indicate potential for additional gold mineralisation. The second zone , the Hare Creek Zone located 450 ft east of the Main Zone was similarily explored and established the gold mineralised zone over 1400 ft with a value up to 0.634 oz/ton Au over 4.0 feet (21.7 g/t over 1.3m)**. Matona acquisition follows the 2009 acquisitions of the Porphyry Lake group of claims, of the Minto property, of the Tyranite Mine, of the Goldeye Athena and the Hare Lake group of claims, all located east of the Matona. These five groups of claims form a continuous 7 km (E-W) x 4 km (N-S) area where gold-bearing carbonate-sulphide breccias are commonly found and form a host that contains primary sulphide and graphite fragments and deformed lenses of same and secondary quartz veining with visible Au and sulphide.

The Porphyry Lake has reported a historical assay result from drill core of 36.1 g/t Au over 1.5m **; the Tyranite Mine is reported as a gold structure consisting of 3 northerly trending lenses extending over 1km and to a vertical depth of 350m with an historical estimated inferred resource of 428,000 tons grading 6.9 g/t Au**; a Hare Lake property historical report mentions "altered porphyries and volcanics, which contain up to 3.24 g/t Au…and quartz veining, which contains up to 9.693 g/t Au…**".

The last available assessment report on the gold potential of Matona dates back to March 1989 and was written by K. Johnson, project geologist of J.L. Tindale & Ass for Asquith Resources Inc. The property contains a shaft going down to 75m, and two levels at depths of 40m (193.5m long) and 69m (105m long). Along the 40m level, the report "notes the presence of a continuous gold mineralization over a strike length of 90 ft (29m) and yields a weighted gold average of 0.146 oz/ton Au (5.0 g/t) over a width of 3.2 ft (1.0m). Superimposing the surface survey plan upon that of the 125 foot level (40m), indicates that at least 100 ft (32m) of mineralization has been outlined beyond that exposed on surface, which extends under heavy overburden cover to the northwest. The northwestern strike extension of the structure appears to lie some 2000 ft from the mine workings**."

The report of historical value only concludes "Significant occurrences of gold have also been encountered within both crystalline quartz-carbonate veins and graphitic shales, along a trend known as the Hare Creek Zone. Values ranging to 0.634 oz/ton Au over 4.0 feet (21.7 g/t over 1.3m) have been derived from quartz-carbonate breccia zones. Such zones of gold mineralization have been encountered along the entire trend of the Hare Creek Zone and generally appear to be of narrow widths and discontinuous configurations. The presence of gold-bearing graphitic shales similar to that within the Main Zone has been encountered south of the North Hare Creek Zone. Although generally narrow in width, high-grade gold values have been indicated through drilling, where the last hole of Asquith's program yielded an assay value of 0.417 oz/ton Au over a width of 0.8 ft (14.3 g/t over 0.26m)" **

The Matona property is comprised of 19 mining licences located in Tyrrell Township, Larder Lake, Mining Division, Shining Tree Area, Ontario and covers approximately 791 acres. Access to the site is provided by a bush road extending south from Highway 560. The option agreement calls for an earn-in of 100% in favour of Creso for an upfront cash payment of $70 000 and 100 000 common shares of the Corporation and the following conditions:

  Cash payment Share capital equivalent (1) Exploration work commitment
  $ $ $
In June 2011 100,000 100,000 100,000
In June 2012 100,000 150,000 100,000
In June 2013 100,000 200,000 100,000

(1) Equivalent number of share capital based on the Corporation's stock price on the issuance date as per TSX Venture Exchange policies.

The issuance of these common shares of the Corporation is subject to regulatory approval. Safe Resources will retain a 3% NSR and Creso will have the option to buy back a 2% for an amount of $2 million.

This acquisition consolidates Creso's already large position in the Shining Tree Area where exploration work is currently concentrated on the Duggan Zone, the Tyranite Mine and the Minto Zone. For additional information on the Minto, Tyranite and Duggan properties, please refer to the 43-101 technical report available on www.sedar.ca .

The Corporation's principal mining exploration holdings are located in the Shining Tree mining camp of Northern Ontario within 100 km of the Timmins and Kirkland mining camps and additional interests are held in base metal properties in Guatemala. Creso has approximately $4 million in working capital with no debt.

** Creso has not analyzed the assay results of the previous exploration results to verify the resource database and therefore, this historical estimate should not be relied upon. The previous estimate is not a current estimate made in compliance with National Instrument 43-101 and Creso is not treating this historical resource estimate as a resource or reserve within the meaning of National Instrument 43-101. Creso views this historical estimate as a conceptual indication of the potential size and grade of the resource.

This press release was prepared by Dr. Marc Filion, Geol. Eng, President of Creso Exploration Inc., the Qualified Persons under National Instrument 43-101.

This release contains forward-looking statements that are based on beliefs of its management as well as assumptions made by and information currently available to management of the Company. When used in this release, the words "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", and the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in this release. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Creso disclaims any intention or obligation to update or revise such information, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information