Creso Announces Acquisition of Past Producing Mann Silver Mine, Milner Township, Ontario
MONTREAL, QUEBEC -- (Marketwire) -- 09/01/11 -- Creso Exploration Inc. ('Creso' or the 'Corporation') (TSX VENTURE: CXT) (OTCQX: CRXEF) (FRANKFURT: C3X) is pleased to announce the acquisition of an option to purchase the Mann silver mine located in Milner Township. The property produced 178,000 ounces of silver from some 8,000 tons of ore for an average grade of over 21 ounces per ton (720.3 grams per tonne) of silver. The property has five shafts, the deepest of which (No. 3) is 200 vertical feet.
A ramp was also driven to the 210-foot level (from Report by L.J. Cunningham, Manridge Explorations Limited, February 11, 1985). The Corporation's objective at the Mann mine will be to confirm targets in the D-zone, which was partially mined and had intersections of up to 506 ounces per ton (17,356 grams per tonne) of silver over 9 feet, as well as 495 ounces per ton (16,978 grams per tonne) of silver over 7 feet, and numerous other veins reported.
The Corporation cannot yet confirm the grades and thicknesses reported in the historic literature. The Mann property is contiguous to the Corporation's claims in the Milner Township.
From 1968 to 1970, 8,096 tons of ore were treated at the Mann mine with an average grade of 21.5 ounces (609 grams) of silver per ton. From 1983 to 1984 1,000 tons of ore were processed from the ramp and produced approximately 30,000 ounces of silver. Operations ceased on December 1984. The Mann property is located 'in the Gowganda Region of the famous Temiskaming Silver Area, from which 570,000,000 ounces of silver have been produced, including 60,000,000 ounces produced in the Gowganda Region. All of the silver production shows a close spatial and genetic relationship to the Nipissing diabase, which has intruded older rocks from a number of points to form a series of arches, basins and irregular forms. In the Gowganda Region over 95% of the silver produced has been obtained from the Nipissing diabase within basin structures. Elsewhere in the Temiskaming Silver area, much of the silver produced has been derived from intruded rocks'.1
The Purchase Option Agreement provides for the payment by the Corporation of $50,000 cash and the issuance of 500,000 common shares of the Corporation and a further payment of $50,000 cash and issuance of an additional 500,000 common shares six months later. The closing of the transaction to acquire the Mann silver mine are subject to regulatory approval and completion of due diligence by the Corporation.
The Corporation is also planning to launch a drill program on the Minto and Tyranite properties, details will be provided shortly.
On another matter, Mr. Richard Groome has resigned from the Board of Directors of the Corporation The Board of Directors acknowledges the contribution of Mr. Groome to the Corporation's success and wishes him continued success.
This Press Release has been reviewed and approved by Mr. Mike White, M. Sc, P. Geo. the Qualified Person under National Instrument 43-101.
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 the work program for 2011.
1 Extract from a report prepared for Manridge Explorations Limited by L.J Cunningham,.Sc., P. Eng. Dated February 11, 1985
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.
Contacts:
Robert Casaceli, President and CEO
(514) 866-6001 # 239 / Fax: (514) 866-6193
scarrasco@creso.ca
www.creso.ca
Douglas Murray, Investor Relations
(613) 220-0569 / (613) 882-7295
dmurray@creso.ca
www.creso.ca