Creso Exploration Inc.

Creso Exploration Inc.

May 11, 2011 12:21 ET

Creso Drills 5.04 g/t Au Over 24 Meters in Minto Zone at Shining Tree Project

MONTREAL, QUEBEC--(Marketwire - May 11, 2011) - Creso Exploration Inc. ("Creso" or the "Corporation") (TSX VENTURE:CXT) (OTCQX:CRXEF) (FRANKFURT:C3X) is pleased to announce the results of six diamond drill holes totaling 2,228 meters completed at the Minto (4 holes totaling 1,333m) and the adjoining Athena (2 holes totaling 895m) zones in the Shining Tree project in NE Ontario. The highlight of this drill program is the intercept of 5.04 g/t Au over 24.4 meters in breccia, beginning from 145.9 meters in Hole MC11-11, which significantly extends the Minto Upper Zone mineralization (18.2 g/t Au over 65.7m reported in June 9, 2010 press release) to the east. Note that the intercept reported here occurs within a broader lower grade area of mineralization showing 1.01 g/t Au over 192 meters, beginning at 28 meters and open toward the east-southeast.

Other results from these six drill holes are shown in Table 1 below. The drill holes completed in this program at the Minto Zone were designed principally to test the extents of the Upper Zone as well as to test for a feeder zone between the Upper and Lower zones (Figures 1 & 2: Hole MC10-10 was specifically meant to test for the presence of the feeder structure interpreted to be present in mafic units between the Upper and Lower Zones, but it encountered only low grade mineralization.

Table 1. Drill Hole intercepts from the Minto Zone, Shining Tree Project, NE Ontario.

NumberMetersMetersMetersAu gptAu gpt
MC10-093.4152.0148.60.170.1Upper Zone
including68. cutoff, large low-
93.595. halo breccia
MC10-10231.3239. zoneDesigned to test for the feeder structure between the Upper and Lower Zones
MC11-1128.0220.0192.01.010.1Upper Zone
including108.0109.51.54.671.0Designed to test
136.2178.942.73.941.0eastern extent
145.9170.324.45.041.0of breccia zone;
182.9185.72.81.311.0open to the east.
MC11-12no significant interceptsUpper ZoneDesigned to test the western extent of the upper breccia

Note: True width of the intercepts reported in the Minto Zone are uncertain, but considered to be approximately 65% of the intercept reported.

The data shows that a significant low grade gold halo is present adjacent to the Upper Zone, as shown in drill holes MC10-09 and MC11-11. The mineralized zones contain anomalous arsenic, bismuth, silver, molybdenum and tellurium. The overall form of the Upper Zone is believed to be an irregular pipe-like body. The dimension of the Upper Zone varies from about 40 meters to about 20 meters in diameter. However, much more drilling is needed to fully define the Upper Zone. The form is largely controlled by a combination of faults and stratigraphy. The pipe generally plunges to the south-southeast at about 79 degrees. The main controlling fault strikes N10W, with a near vertical dip. This structure is the same fault that controls mineralization at the Tyranite mine, 2.5 km to the north.

Upper Zone mineralization begins at the surface (330 meters MSL) and continues to 120 meters (MSL) elevation and has a known true vertical extent of 210 meters. This zone is cut by a NE-trending (west dipping) post-mineral mafic dike that varies from 5 to 10 meters in thickness. The intercept reported in MC11-11 cut the Upper Zone on the footwall side of the unmineralized dike.

The Upper and Lower Zones are separated by a series of mafic flows and possibly shallow mafic intrusions that are about 100 meters in thickness. These flows are mineralized, as shown by a gold intercept in MC09-02 from 368.8 meters to 369.4 meters (0.6m, with true width uncertain) that runs 78.35 g/t Au. This high grade zone, and possibly others of lower grade, likely served (at least in part) as the connection/feeder between the Lower and Upper Zones and was the target of MC10-10. The lack of significant volume of mineralized breccias found to date within the mafic units in the Transition Zone between the Upper and Lower Zones could be a result of a combination of: a) an irregular shape to the breccia pipe structure; b) a narrowing, and possibly more tabular nature, of the fractures cutting the mafic units; and c) possible post-mineral offsets on re-activated NS, NE, and EW controlling faults.

The Lower Zone has been intercepted by drill holes MC09-01 and MC10-03B. The top of the zone begins 390 meters below the surface (-60m MSL), with the deepest intercept in MC10-03B at 850 meters below the surface (-520 m MSL). The known vertical extent of the Lower Zone is therefore 460 meters, and it is open at depth. Unlike the Upper Zone, the Lower Zone is spatially associated with a mineralized intrusion of syenodioritic composition. The form and dimensions of the Lower Zone are not well understood at this time. Creso geologists conclude from this program that additional gold mineralization is likely to be found in the Upper Zone and the Transition Zone, but deeper extensions of the Lower Zone will most likely provide the greatest potential for expanded areas of mineralization.

Drilling on the Athena Option was designed to test a N-S trending magnetic linear that parallels a similar structure some 300 meters to the west-northwest at Minto, as well as eastern extensions of chargeability anomalies observed in a gradient array IP/Resistivity survey done over the Minto Pit. The Athena drill holes showed local narrow zones with low-level gold values (up to 0.15 g/t Au), although no significant gold intercepts were observed. However, noteworthy mineralization in a quartz-carbonate vein from 44.5 meters to 44.9 meters (0.4m, true width uncertain) in Hole AT10-01 returned 0.134 g/t Au, 43.1 g/t Ag, 24.5 g/t Te, and 57 g/t Bi. This mineralization is thought to be structurally linked to the Minto hydrothermal system, and the geochemical signature of anomalous silver, tellurium, and gold is consistent with the presence of sylvanite ((Ag,Au)Te4), previously reported from the Minto Pit (see Press Release dated February 9, 2011).

Creso is planning to begin drilling on the Matona and Porphyry Lake properties shortly. Geologists are presently re-logging and selectively re-sampling old core from different properties at Shining Tree, and are also tabulating and evaluating all drill and geophysical data that has been collected over the past several months. Additional exploration targets are being developed from this data review, and new drill programs are being planned in the near future for the Minto and Tyranite zones.

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

Creso Exploration Gold 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 Creso 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 ISO 9000 series of Quality Management standards. All samples are analyzed for gold and other trace elements at ALS Canada Ltd. laboratories in North Vancouver, British Columbia by standard industry procedures. These procedures include gold by fire assay-AAS finish, with follow-up gold analyses by fire assay-gravimetric finish and/or metallic screen. Multi-element analysis is done by ICP (ME-MS61) using a four-acid digestion.

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.

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, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements in this press release may be identified by the words "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", and the negative thereof or other variations thereon or comparable terminology. 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 Company'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 the suggested work program for 2011.

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.

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