Creso Exploration Inc.
TSX VENTURE : CXT
FRANKFURT : C3X
OTCQX : CRXEF

Creso Exploration Inc.

January 31, 2012 11:37 ET

Creso Announces 3.04 g/t Au Over 15.7m Intersection Starting at 27.5m From Results of Tyranite Diamond Drill Program

MONTREAL, QUEBEC--(Marketwire - Jan. 31, 2012) - Creso Exploration Inc. ("Creso" or the "Company") (TSX VENTURE:CXT)(OTCQX:CRXEF)(FRANKFURT:C3X) is pleased to announce assay results from the diamond drill program conducted on its 100% owned Tyranite Gold property in the Shining Tree district, Ontario. Hole TY11-04 intersected 15.7m of 3.04 g/t Au at a depth of only 27.5 metres confirming the near surface mineralization and open pit potential. Also highlighted from the results is the intersection in hole TY11-12 of 1.68 g/t Au over 39.9m from 222.9 to 262.8m, including the intercept 3.99 g/t Au over 4.0m from 229.0 to 233.0m. The current drilling campaign along with historical drilling now confirms the mineralization over a strike length of 1200 metres in a North--South direction and to a depth of 550 metres. The mineralization remains open along the North--South strike and at depth. (Please refer to the attached North-South section in Figure 1).

The 12 hole program, totalling 2,225m, was designed to confirm the results of historic drill holes in the Tyranite Main Zone and to test targets to the east and west of that zone by drilling locations selected on the basis of IP criteria confirmed by surface exposures of pyrite mineralization. The significant intercepts encountered in the drilling are shown in Table 1. Information concerning the location and orientation of holes completed is presented in Table 2. Figure 2 is a plan map that shows the outline of select historic drill holes as well as the recent drill holes completed by Creso.

Holes TY11-04 and TY11-05 were designed to test the near surface mineralized extensions to the Tyranite Main Zone as indicated by both ore pillars exposed at surface between open stopes and gradient IP Chargeability anomalies on the west side of Zone 2. As shown in Table 1, both successfully encountered gold intercepts, including the result from hole TY11-04 of 13.15 g/t Au over 1.1m from 27.5 to 28.6m. Hole TY11-06, a 60m step-out to Zone 3, to the west of hole TY11-05, encountered no significant intercepts.

Hole TY11-07 was designed to test for a deeper extent to the gold mineralization intercepted in historic holes 1316-29 and 1316-31, which had dips of -50 deg. Historic hole 1316-30B, drilled with a dip of -70 deg. recorded no significant intercepts; however, Insight Geophysics' DC/IP vertical section in this vicinity suggested the anomaly extended at least as deep as hole 1316-30B, and hole TY11-07 with a dip of -70 deg. was successful in confirming that gold mineralization extends approx. 20m deeper than previously demonstrated, at approximately 350m south of the historic shaft. Hole TY11-15, designed to intersect IP Zones 2 and 3 deeper than historic hole 1316-32 and hole TY11-07, had an intercept grading 1.11 g/t Au over 4.45m from 306.8 to 311.25m.

Hole TY11-08 tested an IP Chargeability high location co-incident with a mineralized surface vein at the intersection of the western projection of the IP Zone 2 and the eastern projection of IP Zone 3. This hole, drilled some 83m further south and 100m further west than prior southernmost historic drill holes 1316- 23/24, successfully intercepted gold mineralization grading 3.17 g/t over 0.85m from 264.9 to 265.75m and 1.61 g/t Au over 0.5m from 281 to 281.5m, increasing the previously known southern extent of gold values encountered in Zone 2. This is approximately 590m south of the historic shaft. Holes TY11-09 and TY11-10 tested the eastern extension of the Tyranite Main Zone, south of historic drilling, but did not encounter any significant intercepts in chemical sediment.

Holes TY11-11 and TY11-12 were designed to confirm historic drill results at the northern extension of IP Zone 1 and the western extent of Tyranite Main Zone at IP Zone 7. Both intercepted significant gold values. Hole TY11-12, located approximately 90m east of historic hole 96-87, encountered two distinct zones with elevated gold mineralization. These intercepts confirm the extension to the north of the intercepts encountered in previous Creso holes TY11-01, TY11-02 and TY11-03b. Additionally, a sectional view of holes TY11-11, TY11-12 and historic hole 96-87 plotted to show intersections of gold values greater than 1 g/t indicates a possible near-surface exposure may be found at the location that coincides with the IP Chargeability high in Zone 10. This projection of mineralization to surface will need to be confirmed in future exploration activity. The mineralized zone comprises a N--S structure (steeply dipping to West) with continuous anomalous gold mineralization 10 to 50 times background (0.05 to 0.5 g/t Au, average 0.1 g/t Au) open in the N--S direction and at depth. Structural offsets are common and localized high grade pods characteristic. Both High chargeability and High resistivity IP reflect the mineralized trend, reflecting both sulphide mineralization and altered host rock.

Finally, Creso is pleased to announce the filing on SEDAR of an updated NI 43-101 report on the Shining Tree project, Tyrrell and Knight Townships, Larder Lake Mining Division, Ontario prepared by G.A. Harron, P.Eng.

This Press Release has been reviewed and approved by Mr. Mike White, M.Sc., P.Geo., the Qualified Person under National Instrument 43-101.

Creso Exploration QA/QC procedures follow standard industry practices. Sealed core boxes are transported twice daily from the drill rig to the core logging facility by qualified drill contractor personnel. Core is logged and prepared for sampling in a secure building. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration. Drill core is cut along a center line using a typical circular rock saw designed for core cutting. Sampled core is placed into sample bags, sealed and shipped to an assay lab that follows the ISO 9000 series of Quality Management standards. All samples were analyzed for silver, gold and other trace elements at ALS Group Ltd. laboratories by standard industry procedures. These procedures include silver and gold by fire assay-AAS finish, with follow-up silver and gold analyses by fire assay-gravimetric finish and/or metallic screen. Multi-element analysis is done by ICP (ME-ACD81) using a four-acid digestion. Whole rock analysis is done by ICP-AES (ME- ICP06) using a lithium metaborate fusion.

Blank and certified standard samples are routinely submitted with all sample batches sent to the lab for assay. In addition, replicates, duplicates, and field duplicates are routinely included in sample batches. Samples with visible gold are analyzed with procedures designed to reduce the variability of the sample results. And finally, samples are routinely sent to other labs for additional checks.

Table 1. List of Significant Drill Intercepts From Current Program at the Tyranite Property, Ontario

Hole
Number
From
(m)
To
(m)
Length*
(m)
Grade
Au (g/t)
Target Comment
TY11-04 27.5 43.2 15.7 3.04 test western extent of
including 27.5 36.0 8.5 4.45 historic open stope gradient IP survey Zone2
including 27.5 28.6 1.1 13.15
and 50.0 53.2 3.2 2.10
TY11-05 13.0 27.0 14.0 1.31 test western extent of
including 13.0 15.0 2.0 4.03 historic timber raise IP Zone 2
TY11-06 no significant values IP Zone 3 50m step-out west from
timber raise
TY11-07 109.2 110.0 0.8 1.57 test historic intersection of
and 122.0 123.0 1.0 1.75 confirm historic DDH 1316-30B extent at depth
TY11-08 264.9 265.75 0.85 3.17 IP Zone3 test western extent Tyranite
and 281.0 281.5 0.5 1.61 main zone at surface vein
TY11-09 no significant values IP anomaly test eastern extent Zone 1,
south of historic drilling
TY11-10 no significant values IP anomaly test eastern extent Zone 1,
south of historic drilling
TY11-11 85.3 87.2 1.9 1.20 IP Zone 1 test north extension to
and 94.3 99.4 5.1 1.00 Zone 1
and 151.6 153.6 2.0 1.07
and 174.15 174.55 0.4 1.66
TY11-12 222.9 262.8 39.9 1.68 IP Zone 7 confirm mineralization
including 222.9 241.0 18.1 2.70 continuity between historic
including 229.0 233.0 4.0 3.99 holes 91-78 and 91-85
and 270.9 277.0 6.1 1.90
TY11-13 98.7 107.1 8.4 0.28 IP Zone 5 test IP anomaly 400m west
TY11-14 no significant values IP Zone 5 test IP anomaly W to E
TY11-15 306.8 311.25 4.45 1.11 IP zones 2,3 deeper than historic 1316-32
* Length intervals are actual core length. The true thickness of mineralized intervals has not been estimated.

Table 2. Drill Hole Location and Collar Information

Hole
Number
Easting
(m)
Northing
(m)
Elevation
(m)
Length
(m)
Azimuth Dip
TY11-04 499596 5279214 351 53.2 80 -60
TY11-05 499618 5279159 352 51 80 -60
TY11-06 499572 5279157 353 57 270 -45
TY11-07 499501 5278875 358 231 90 -70
TY11-08 499415 5278632 358 300 90 -65
TY11-09 500033 5278675 366 162 270 -45
TY11-10 500034 5278674 366 111.3 90 -45
TY11-11 499598 5279444 349 176 90 -45
TY11-12 499391 5279439 338 389 90 -58
TY11-13 499084 5278901 374 161.5 90 -58
TY11-14 499084 5278901 374 173.8 270 -60
TY11-15 499326 5278906 358 360 90 -53

Figure 1 is available at the following link: http://media3.marketwire.com/docs/cxtfigure1.pdf

Figure 2 is available at the following link: http://media3.marketwire.com/docs/cxtfigure2.pdf

About Creso

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 Lake mining camps, and additional interests are held in base metal properties in Guatemala.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements that address future events and conditions, which are subject to various risks and uncertainties. Actual results could differ materially from those anticipated in such forward- looking statements as a result of numerous factors, some of which may be beyond the Corporation's control. These factors include: results of exploration activities, general market and industry conditions, and other risks disclosed in the Corporation's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Corporation's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Depending on exploration results and available financing, the Corporation may at any point modify its work program.

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

  • Pierre Gauthier, Chairman
    Director and Acting President and CEO
    (514) 866-6001 # 239
    (514) 866-6193 (FAX)
    info@creso.ca
    www.creso.ca

    Douglas Murray
    Investor Relations
    (613) 220-0569 / (613) 882-7295
    dmurray@creso.ca