MONTREAL, QUEBEC--(Marketwired - July 15, 2013) - Creso Exploration Inc. ("Creso" or the "Corporation") (TSX VENTURE:CXT)(CRXEF)(C3X.F) is pleased to announce an agreement with Nichromet Extraction Inc. ("Nichromet") to develop the Minto gold deposit using patented environmentally friendly extraction processes (the "Project"). The Project is part of a 24 million dollar demonstration plant financed by Nichromet and supported by Sustainable Development Technology Canada ("SDTC"), a not-for-profit foundation that finances and supports the development and demonstration of clean technologies, who in February of 2013, committed $5 million in support of Nichromet's gold refining process.
The Project, located within the Shining Tree district of northeastern Ontario, will use an open pit mining method to extract a 30,000 tonne bulk sample, at a projected rate of 1,200 tonnes per day ("TPD"). Crushing and stockpiling for processing will be done onsite. All cost incurred beyond the stockpiling will be incurred by Nichromet. The modular processing plant, to be built by Nichromet and at its cost, will include grinding and flotation and is planned to operate at a rate of 300 TPD. The concentrate product will be transported to Nichromet's demonstration plant in Thetford Mines, and 100% of the gold recovered will be returned to Creso.
Operations are scheduled to begin in April of 2014, once the permitting process is completed, and are anticipated to last for approximately 8 months, during which time, site will be prepared, concentrator will be built and the bulk sample will be mined and processed.
Dundee Corporation transferred to Nichromet, a private Canadian company controlled by Dundee Corporation, 19,779,000 common shares ("Creso Shares") in the capital of Creso and 9,500,000 Creso common share purchase warrants ("Creso Warrants") in exchange for Nichromet common shares. The terms of the Creso Warrants remain unchanged whereby each Creso Warrant entitles Nichromet to purchase one Creso Share at an exercise price of $0.10 per common share. An aggregate of 5,000,000 of the Creso Warrants expire July 9, 2014 and the remaining 4,500,000 Creso Warrants expire December 21, 2014.
Creso also announces that it has borrowed $500,000 from Nichromet. The loan is unsecured and bears interest at a rate of 6% per annum payable on maturity. The principal amount of the loan together with interest thereon is due and payable July 10, 2014. The loan proceeds will be used for working capital purposes.
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.
Nichromet Extraction Inc. is a private Canadian company controlled by Dundee Corporation that has developed patented precious and base metal extraction processes that are environmentally friendly in that the residues of mining operations are totally void of contaminants such as sulfur, arsenic, etc. These new processes are based on chlorination and are particularly efficient for the treatment of polymetallic ores either in the form of sulfides, oxides, or arsenides. These chloride based patented processes are in fact a substitute to cyanidation which is commonly used in the mining industry.
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.