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Creso Resources Inc. (“Creso”) is a private minerals exploration company that was incorporated on February 22, 2005 under the Canada Business Corporation Act. The company is based in Montreal, Canada. Creso’s principal mining exploration holdings are located in the Shining Tree mining camp of northern Ontario.
[sound]www.youtube.com/watch?v=eOGK40Y9-68&feature=related[/sound]
1. Just started trading on the TSX Jun 10, 2010
2. NO Company debt
3. 4.6 million dollars in financing just in place
4. Committed 600 thousand dollars to this years projects
5. Best n1 came March 31 2010
6. CEO is a certified Geologist
7. The drill bit never lies look at the last PR yesterday
8. Outstanding shares are only 63 million
9. Market Cap is at 31 millions
10. Company opened trading with their N1403 with drills like this. 18.2 g/t Au over 65.7 meters from 49.3m to 115m, (7.9 g/t Au if cut at31.1 g/t) including:33.2 g/t Au over 25.7 meters from 49.3m to 75m, (10.4 g/t Au if cut at31.1 g/t) and2. 4.61 g/t Au over 79.6 meters from 132.4m to 212m, (3.35 g/t Au if cut at31.1 g/t); including:20.7 g/t Au over 10.0 meters from 202m to 212m, (11.5 g/t Au if cut at31.1 g/t).
TECHNICAL REPORT ON CRESO’S DUGGAN, TYRANITE & MINTO PROPERTIES KNIGHT AND TYRELL TOWNSHIPS, SHINING TREE DISTRICT, ONTARIO For WILLOWSTAR CAPITAL INC.
Gerald A. Harron, M.Sc. P.Eng G.A. Harron & Associates Inc.
M.V. White, M.Sc. P.Geo M.V. White & Associates Ltd.
Effective Date: March 23rd, 2010i
1.0 Summary
PAGE
1 12 18 20 24
27 27 28
7.1 Regional Geology 8.0 Deposit Types
9.0 Local Geology 10.0 Mineralization
34 38 39 43 46
Table of Contents
2.0 Introduction and Terms of Reference
3.0 Reliance on Other Experts
4.0 Property Description & Location
5.0 Physiography, Access, Climate, Local Resources & Infrastructure
6.0 History of Exploration 6.1 Duggan Zone / Tyranite Mine 6.2 Minto Property
7.0 Geological Setting 34
11.0 Exploration 12.0 Drilling 50
Duggan Zone Tyranite Mine 51
12.1 12.2 12.3
50 51
Minto Zone 13.0 Adjacent Properties
51
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14.0 Sampling method & Approach 52 15.0 Sampling Preparation, Analyses and Security 53 16.0 Data Verification 55 17.0 Mineral Processing & Metallurgical Testing 55 18.0 Mineral Resources & Mineral Reserve Estimates 55 19.0 Other Relevant Data & Information 56 20.0 Interpretation & Conclusions 56 21.0 Recommendations 61
References 63 Writers Qualifications 68
List of Illustrations
Fig. 1. Fig. 2. Fig. 3. Fig. 4 Fig. 5. Fig. 6. Fig. 7 Fig. 8
Location Map Local Geology, Property Locations Property Location and Regional Geology Duggan Drill Hole Plans - Geology Minto Drill Hole Plan Local Verticle Derivative Magnetics, Property Locations Local Potash (K2O), Property Locations Minto Drill Hole Geology, and Gold values
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Table 1 Table 2 Table 3 Table 4 Table 5
Summary Current Drilling, Geology, Assays Creso 2007-2009 Diamond Drill Assay Results List of Leases and Patented Claims List of Staked Claims
Cost Estimate Phase 1 Exploration Program
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1.0 Summary
Willowstar Capital Inc. (“Willowstar”) of Toronto, Ontario, has entered into an Amalgamation Agreement with Creso Resources Inc. (“Creso”) pursuant to which Willowstar has agreed to acquire, directly or indirectly, all of the issued and outstanding securities of Creso. The acquisition of Creso will be Willowstar's qualifying transaction (the "Qualifying Transaction") pursuant to the rules and policies of the TSX Venture Exchange (the "Exchange”). Following the completion of the Qualifying Transaction, Willowstar will own 100% of the issued and outstanding shares of Creso, who will continue to hold the same rights and obligation on its mineral properties.
G.A. Harron & Associates Inc.(“GAHA”) and M.V. White Associates Ltd. (“MVWA”) were contracted by Willowstar to provide a technical report on the Shining Tree Project which consists of the Tyranite, Duggan and Minto properties held by Creso Resources Inc.and located in Knight and Tyrell townships in the Shining Tree district of Northern Ontario. The Technical Report will comply with the requirements of National Instrument 43-101 and be suitable for the purpose of disclosing the Qualifying Transaction of Willowstar Capital Inc. to the public.
The three properties are located in northern Ontario near the village of Shining Tree, in the Larder Mining Division, District of Sudbury, Ontario. The properties lie within the south-west part of the Abitibi Greenstone belt (Figure 1) bordering on Proterozoic sediments of the Cobalt Embayment. The Abitibi greenstone belt is prospective for a number of mineral deposit types including mesothermal lode gold deposits, volcanogenic massive base metal sulphide deposits and layered magmatic sulphide (Ni) deposits. The properties that constitute
G.A. Harron & Associates Inc./M.V. White Associates Ltd.
the Shining Tree Project consist of two non-contiguous leased, patented and unpatented mineral claim groups including the Duggan, the Tyranite and Minto, and Burda claim groups. Each property is discussed separately below.
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The Duggan property comprises 6 claims encompassing 1.68 sq.km. Acquired in 2007, the property is 100% owned by Creso with a 3 % NSR interest of which 2% is retained by Anglo Pacific Group Plc. (Anglo-Pacific) and 1% by Pat Rosko. In 2009, 13 patented claims covering the Tyranite Mine and Minto deposits were optioned from New Texmont Exploration Ltd (Texmont) and Dalhousie Oil Company Ltd (Dalhousie) respectively. These properties comprise 2.8 sq.km. Texmont. holds a 2% NSR for the first 500,000 ounces produced from the Tyranite Mine and Minto deposits and 3% for ounces in excess of 500,000. Creso will have the option to re-purchase a 1% NSR for $1 million at any time. A further 2 claims were acquired by Creso from Mr. Dave Burda; there is no NSR attached to the latter.
On the Duggan Zone previous surface exploration and diamond drilling outlined a gold mineralized zone with a N10°W structural trend. The main stripped/trenched zone originally discovered in 1938 comprises a 100m x 250m alteration zone with anomalous gold content (>100ppb). Sporadic high gold values over narrow widths are associated with sulphide minerals, and visible gold (up to 5.93 oz per ton) have been intersected in drilling and trenching.
Previous work has indicated gold to be associated with quartz vein/ sulphide systems. Current exploration work was undertaken by Creso to expand the exploration concept to include disseminated more extensive systems. A synvolcanic/intrusive hydrothermal model would include extensive low grade structural/altered systems with erratic pods and discontinuous veins with higher grade material both within intrusive and volcanic hosts.
Lithogeochemical analysis indicated that gold is associated with alteration comprising elevated potash in the vein systems and sulphide enrichment that may or may not be present. This alteration phase appears to be elevated along structural zones that trend in several directions often accompanied by or marginal to a low magnetic response. According to lithogeochemical analysis, synvolcanic intrusive rocks ( eg: Milly Creek Pluton) appear as
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multiphase intrusives varying from Alkali gabbro ( minor peridotite component) to syenite in composition. These host the Tyranite and Duggan zones where K2O is enriched and rocks appear granophyric. Here, mineralized zones appear up to 80/100m wide with elevated gold values and narrower vein systems/sulphide breccias. Within the volcanic rocks and in addition to the above, gold is often associated with porphyries and breccia pods, locally as high grade mineralization (eg Minto).
In general mineralization is comparable to that hosted by alkali (syenite) intrusive and volcanic rocks of the Kirkland Lake and Matachewan areas to the North East and North.
In 2007, an 8-hole drill program was completed by Creso on the Duggan property.
The Tyranite zone extends along a northerly trending shear for 1km and consists of 3 lenses down to a depth of 350m. Between 1939 and 1942, 231,810 oz (7,210 kg) Au, and 4,860 oz Ag (151 kg ) were produced from 210,300 t grading 0.147 oz per ton (5.0 g/t) Au. An inferred resource of 472,000 tons (428,000 t) grading 6.9 g/t Au is estimated to exist in the underground workings (White 2007). One hole was drilled in 2009 to test geology, alteration and mineralization in the central part of the mineralized zone.
The Minto showing consists of a pod of carbonate sulphide breccias containing an estimated tonnage of 225,000 tons (204,000 t) grading 0.2 oz per t (6.8 g/t) Au to a vertical depth of 225m as determined and reported in 1984 by Duncan Gold Resources, (White 2007) Gold is related to pyrite and quartz veining trending north south and northeast southwest.
Neither Willowstar or Creso have 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 the authors are not treating this historical resource estimate as a resource or reserve within the meaning of National Instrument 43-101. The
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authors view this historical estimate as a conceptual indication of the potential size and grade of the resource.
Two holes were drilled in 2009 by Creso to test geology, alteration, structure and mineralization on the Minto property.
A 370 line km airborne magnetic, EM and radiometric survey covering the three properties and vicinity was completed in February 2008.
Duggan Zone: Diamond drilling by Creso in 2007 and 2009 has confirmed historic results on the properties and extended the Duggan zone north and south for 700 metres. The drilling has also indicated several new zones and the association of anomalous gold and potash (K2O) enrichment. Further, the association of anomalous Ni with values up to 2700 ppm has been recognized within ultramafic rock units.
Of particular interest, historical drill hole # 97-225 indicated a gold zone with sporadic high gold sections over 76 metres, Hole D3-07 showed a quartz/syenite breccia zone with abundant disseminated sulphide, and Hole D9-07 intersected the same zone over 93m, 220 metres north of hole D3-07
Whole rock geochemistry indicates the Milly Creek Pluton to comprise three compositional phases consisting of syenite with an average of 60% SiO2 and a gabbroic-diorite phase averaging 53% SiO2 and a granitic phase averaging 67% SiO2. All phases contain elevated alkalis.
The Duggan zone alteration zone occurs within syenodiorite and is part of the Milly Creek pluton, a felsic-intermediate stock with a low to high airborne magnetic response It also sits at
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the margin of a potash/airborne radiometric high probably representing increased sericite/K- feldspar content. Alteration is pervasive and varies from pink, to black to greenish mineral assemblages). A north-northwest trending structural/schist zone also seems to have some control of alteration and mineralization (Also of interest and possible mineralizing significance, is the presence of angular mafic blocks within the syenodiorite indicating the occurrence of explosive activity in the geological formation process, further suggested by a circular magnetic feature (high magnetic boundary with central magnetic low) in the southwest part of the property. This is possibly a primary volcanic feature. Alteration in the syenodiorite comprises quartz, sericite, feldspar and contains abundant disseminated sulphide. Whole rock chemistry indicates strong potash enrichment or potash enrichment and soda depletion. Sulphur and carbon enrichment is also noted.
Gold mineralization occurs along the north-northeast structure in two altered rock types. South of 5279600m N, 498000m E (UTM NAD 83) gold generally occurs in altered ultramafic rocks within shear zones up to several metres wide. North of this coordinate, gold occurs in altered syenodiorite in zones averaging 1.0g/t Au over approximately 100m wide containing narrow high grade gold (with visible gold) quartz sulphide zones. This alteration zone is associated with a magnetic low, bordering a magnetic high (and continues north, suggesting significant additional and untested mineral potential. An airborne radiometric survey K (potassium) response also outlines this potential trend.
Historic drill sections indicated an alteration/gold anomaly zone possibly extending northward and to depth. Testing was limited to a depth of about 100m. However, the Creso diamond drilling has indicated continuity of the gold mineralization along a pyritized shear/alteration zone of trending in a north-northwest direction for 700m and to a vertical depth of 240m.
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Tyranite Zone: The Tyranite Mine gold structure consists of 3 northerly trending lenses extending over 1km and to a vertical depth of 350m with an historical estimated inferred resource of 472,000 tons (428,000 t) grading 6.9 g/t Au. Gold occurs as 2 types: 1) vein deposits over widths up to 4.5m; 2) disseminated low grade zones over widths of 15m with sporadic high grade lenses. Gold zones appear to be controlled by a steeply westerly dipping shear and occur in intrusive and extrusive rock types.
Minto Zone Several gold bearing rock types were intersected varying from rhyolitic flows and breccias to dacitic flows and breccias and also a basaltic breccias/quartz carbonate unit.
Again ore grade gold zones are related to areas of K (potassium) enrichment. Visible gold was noted in several locations associated with quartz veining with a core angle of 15° corresponding to steeply dipping surface quartz veining trending in a northerly direction.
Hole M0902 crossed the mineralized zone at a 70 degree angle but indicated a gold zone about 30m in width down to a depth of 190 m. Because of the limited extent of previous exploration, the gold zone is open north-south and to depth. The geology of the drill holes completed in 2007 and 2009 are graphically portrayed in Table 1. This presentation indicates that all drilling occurs in similar lithologies.
A compilation of significant analytical results for gold are presented in Table 2, which shows that small volumes of high grade mineralization are interspersed with larger volumes of low grade gold mineralization.
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Table 2 Creso 2007-2009 Diamond Drill Assay Results To
Diamond Drill Hole # Duggan Zone D1-07
D2-07 D3-07
D4-07 D9-07
D10-07 D11-07 D12-07 Minto Zone Mc09-01 Mc09-02
incl.
incl.
Tyranite Mine
TYR09-01
From (m)
136.0 145.5 333.0 303.0 84.0 111.5 119.5 131.0 148.0
(m)
137.0 146.5 334.0 305.0 86.0 112.5 120.5 133.0 149.0
Interval Au (g/t) (m)
1.0 6.1 1.0 5.5 1.0 6.1 2.0 2.1 2.0 4.6 1.0 10.1 1.0 17.3 2.0 10.1 1.0 4.3
2.0 3.3 2.5 1.8 0.5 3.6 1.0 3.0 1.0 2.6 1.0 7.1 4.0 2.4
no significant values
87.0 146.0 176.0 192.5 207.0 222.0 227.0
89.0 148.5 176.5 193.5 208.0 223.0 231.0
no significant values no significant values no significant values
31.6 4.8 49.3 49.3 132.4 202
84.8 101.6
32.1 0.5 5.9 1
115 65.7 75 25.7 212 79.6
212 10
92.7 7.9 107 5.4
10.4 2 18.2 33.2 4.61 20.7
2.5 1.3
11
The ultramafic volcanic rocks on the Duggan property show consistent enrichment in Ni (over 400 ppm and up to 2700 ppm, indicating potential for contact style nickel mineralization.
Interpretation of the airborne geophysical data indicates that the Milly Creek stock illustrated is more extensive than previously thought and extends north and northwest under the Huronian sediments at the northern boundary of the property. Gold mineralization also appears related to lower magnetic response marginal to zones of higher magnetic response.
The current program has indicated significant gold associated with extensive zones of altered syenodiorite specifically showing enriched potassium (K), carbon and sulphide mineralization. On the Duggan property narrow altered ultramafic zones enriched in Ni and platinum group element mineralization suggest a potential to discover Ni sulphide mineralization within and marginal to komatitic ultramafic flows.
The results achieved to date indicate that the three properties in the Shining Tree Project warrants additional exploration to further define the gold and possibly the nickel potential. In the Duggan Zone bore hole geophysical techniques such as induced polarization and pulse EM surveys can be effectively to define off-hole drill targets. Similar surveys should be completed on the Tyranite Zone, possibly using existing deep drill holes, to search for other parallel zones. Very close spaced surface geophysical surveys coupled with bore hole geophysical survey will be required to probe the lands surrounding the Minto Zone.
Considerable core re-logging of cores archived from previous operators is warranted and compilation of the results may indicate additional gold targets.
A $600,000 budget is proposed to allow for these exploration activities in the coming year.
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2.0 Introduction and Terms of Reference
At the request of Willowstar Capital Inc.(“Willowstar ”), G.A. Harron & Associates Inc. (“GAHA”) and M.V. White & Associates Ltd.(“MVWA”) have been contracted to prepare an up-dated Technical Report on the Duggan and Minto gold zones plus the Tyranite Mine collectively known as the Shining Tree Project as of January 20, 2010. Sections 7 through 12 and sections 20, 21 and 22 of this report were written by Michael V. White M.Sc., P.Geo. and the balance of the sections were written by Gerald Harron, M.Sc., P. Eng., both of whom are qualified persons. Gerald Harron of GAHA is the independent qualified person and accepts responsibility for the entire report.
The Project is located in, the townships of Knight and Tyrrell in the Larder Lake Mining Division, Ontario. GAHA and MVWA were also requested to qualify the proposed exploration program and budget for the on-going development of the major mineralized quartz veins on the project. The project is considered to be at an “advanced” stage of exploration, as new and existing drill targets have been selected and a historical inferred resource has been identified as a drill target. The Project is material to the corporation as it represents the most significant asset.
Creso Resources Inc. (“Creso”) is a private minerals exploration company that was incorporated on February 22, 2005 under the Canada Business Corporation Act. The company is based in Montreal, Canada. Creso’s principal mining exploration holdings are located in the Shining Tree mining camp of northern Ontario.
Willowstar is a private Capital Pool Company whose Qualifying Transaction is the acquisition of Creso Resources Inc. To effect the transaction, Willowstar has entered into an arm’s length binding letter agreement on June 10, 2009 to acquire directly and indirectly all of the issued and outstanding securities of Creso on terms announced June 11, 2009 and revised December 23, 2009 and filed on Sedar.com. The corporation is to be listed on the TSX
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Venture Exchange, and under the jurisdiction of the Ontario Securities Commission. The shares have been cleared for trading in Alberta, British Columbia and Ontario. The address of the corporation is 45 Allanhurst Drive, Toronto, Ontario, Canada, M9A 4J9.
It is understood that this report will be used to provide first disclosure of the Shining Tree Project to the Willowstar Board of Directors and to support future listing and financing activities of the Company.
This technical report is to conform to National Instrument 43-101 standards. Terms of engagement are in a letter from GAHA to Willowstar dated March 12, 2010. MVWA works on a long term contract with Creso.
Prior to this assignment GAHA has not provided any technical services to the Company. GAHA has managed exploration programs on neighbouring properties owned by competitors. MVWA has managed Willowstar’s exploration programs over the past three years. Core logging and sampling in 2009 on the project was under the supervision of MVWA.
GAHA has conducted many site visits in the Shining Tree area in past 10 years, including the area of the subject properties. The objective of the site visits was to assess the mineral potential of various properties including the subject properties. The latest visit to the area of the Shining Tree Project was on July 17, 2009.
The information herein is derived from a review of documents listed in the Section 21.0, and private files maintained by GAHA, MVWA and the company.
There were no limitations put on the author s with respect to technical information by Willowstar’s management in the preparation of this report.
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This report contains details of the land tenure, a summary of previous exploration and development work, a compilation and synthesis of geology, geophysics and historical inferred resource data. The report also contains recommendations for further exploration and development of the property.
Cost data used to create proposed budgets to support the proposed work programs are based on a general knowledge of current costs in northern Ontario.
Metric units of measure are used in this report. References to dollars in the report are to Canadian currency, unless otherwise indicated.
The following list shows the meaning of the abbreviations for technical terms used throughout the text of this report.
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AFRI AAS AEM Au cm EM ft
g/t
GPS
Hwy
ICS
IP
K2O
km
LOI
m
mm
MNDM
Na2O
Ni
OBM oC
oz Pd ppb ppm Pt SiO2 sq.km or km2 T
Assessment File Research Imaging Atomic absorption spectrography Airborne electro-magnetic survey Gold
Centimeter Electro-magnetic Feet Gramme per metric ton General positioning system Highway Inductively coupled plasma mass spectrometry Induced polarization Potassium oxide Kilometer Lost on ignition Meter Millimeter Ministry of Northern Development Mines and Forestry Sodium oxide Nickel Ontario Based Map Degree centigrade Troy ounces Palladium Part per billion Part per million Platinum Silica oxide square kilometer Short ton of 2000 pounds
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List of abbreviations
16
t vg VLF XRF
Metric ton of 2204 pounds Visible gold Very low frequency X-ray fluorescence
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Detailed project information was derived from a) a compilation review (White 2007) of AFRI exploration assessment data, previous work reports, Government geological maps and reports, and airborne magnetic, AEM and satellite image data from the OGS and GSC. Pertinent data includes a review of previous and current drilling from logs, plans and sections provided by Rosko and Creso and illustrated on compiled plans, and c) drill logs, assays and whole rock chemistry etc. from 3,654m of diamond drilling performed on the Duggan Zone in 8 drill holes from August to December 2007, 159m in 1 hole from the Tyranite zone and 2 holes for 573m from the Minto gold zone performed from October to December 2009.
This report reviews previous work on the properties, regional geology and features within the area as well as current work performed from August 2007 to January 2008 and August to December 2009. An initial visit by MVWA was made to the Duggan property on June 29 to 30, 2007. The historic surface workings were examined and a number of representative photos taken. The visit was followed by an exhaustive examination of assessment files and Government reports of the property and of the Tyrell/Knight townships area (White 2007).
In 2008, an aerial geophysical magnetic, VLF, radiometric survey by Terraquest Ltd., or Toronto, Ontario was completed and interpreted.
In 2007, eight drill holes were completed on the Duggan property. In 2009, 1 hole on the Tyranite property and 2 holes on the Minto property were drilled.
In 2007, drilling was performed by Foramex Drilling of Rouyn-Noranda, Quebec and supervised by K. Murricane, BSc (Geology), MSc. Mr. Murricane was also responsible for logging and sampling the core, under the supervision of M.V. White, P.Geo. The airborne geophysics was provided by Terraquest Ltd. In 2009, drilling was executed by Rosko Mining Equipment and Resources Inc. and by Larry J. Salo. The programme was supervised and core logged and sampled by D. Robinson, P.Eng of Kirkland Lake, Ontario.
Information was derived from a compilation review (White 2007) of AFRI exploration
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assessment data, previous work reports, Government geological maps and reports, and airborne magnetic, AEM and satellite image data from the OGS and GSC. Pertinent data was converted into a GIS compilation. The report also includes a review of previous and current drilling from logs, plans and sections provided by Rosko and Creso, and drill logs, assays and whole rock chemistry etc. from 3,654m of diamond drilling performed on the Duggan property in 8 drill holes from August to December 2007, 159m in 1 hole from the Tyranite and 2 holes for 573m from the Minto performed from October to December 2009.
3.0 Reliance On Other Experts
Land tenure information for staked claims has been obtained from the MNDM web site, which contains a disclaimer as to the veracity of the data. However the information posted on the web site is taken at face value. In addition, the existence and validity of any un-registered agreements between parties are not reflected in the MNDM land management system. Information concerning patented and leased lands was also obtained from the MNDM web site.
GAHA prepared sections 1 through 6 and 13 through 19 and section 23 of the report, and MVWA prepared sections 7 through 12 and sections 20, 21 and 22. The report is based upon information believed to be accurate at the time of certification, but which is not guaranteed. The author has relied on three principle sources of information for the data contained in this report as follows; (1) Creso’s private technical files, (2) government assessment and geological reports, and (3) Creso press releases. Therefore in writing this technical paper the authors rely on the truth and accuracy of the data presented in these sources documents.
This report has been prepared by GAHA and MVWA for Willowstar Capital Inc.. The information, conclusions, opinions, and estimates contained herein are based on: a: Information available to the writer at the time of preparation of this report,
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b: Assumptions, conditions, and qualifications as set forth in this report, and c: Data, reports, and other information supplied by Creso and other third party sources.
For the purpose of this report, the writer has relied on ownership information provided by Creso, and the MNDM web site. MVWA and GAHA have not researched property title or mineral rights for the three material properties, and they express no legal opinion as to the ownership status of the property.
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4.0 Property Description and Location
The Tyranite and Duggan properties and the Minto property are located in Knight and Tyrrell townships in the Shining Tree area of northeastern Ontario (Figure 2). The two properties combined consist of 21 claims, for an area of 4.5 sq. km. The Tyranite and the Duggan properties form a contiguous block of claims comprised of 9 surveyed patented claims and 8 un-surveyed staked claims covering a nominal 369 hectares. The Minto property is a contiguous block of 4 surveyed patented claims covering an area of 56.33 hectares, and includes both surface and mining rights.
Access to both properties is provided by provincial highway # 560 which traverses the Minto property approximately 18 km west of Gowganda. The Tyranite Mine Road departs to the north near this location. The Duggan property is located 1 km west of the main Tyranite shaft on the NE shore of McIntyre Lake. The western part of the Duggan zone can be accessed by driving an additional 4 km to the west on highway 560, then departing north along a network of gravel roads.
Leased and patented claims including surface and mining rights covering the Tyranite Mine and Minto property were optioned from New Texmont Exploration Ltd. (“Texmont”) and Dalhousie Oil Company Ltd (“Dalhousie”) respectively. Leased claims GG5840, GG5909 and CC5910 are in the process of being transferred to Creso.
A further 2 claims including both surface and mining rights are in the process of being optioned by Creso from Mr. Dave Burda.
The Duggan zone is located 1 km west of the main Tyranite shaft on the northeast shore of McIntyre Lake and is 100% owned by Creso since 2007 with a 3% NSR retention by Anglo Pacific (2%) and by Pat Rosko (1%). Both surface and mining rights are attached to these claims. As of February 26, 2010, assessment work was filed on the Duggan staked claims,
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extending tenure for an additional year. The 13 patented claims comprising the Duggan and Tyranite properties require the payment of annual rent of approximately $1,005 ($ 5.00 per ha) payable to the Ministry of Northern Development Mines and Forestry. Creso also holds the surface rights on the Minto and Tyranite properties.
Table 3 List of Leased and Patented Claims
Leased / Patented Lands Lease No. Parcel No.
Claim No.
GG5800 GG5801 GG5802 GG5803 GG5804 GG5805 GG5815 GG5816 GG5817
GG5840 GG5841 GG5909 GG5910
Expiry Date dd-mm-yy 12/15/2015 12/15/2015 12/15/2015 12/15/2015 12/15/2015 12/15/2015 12/15/2015 12/15/2015 12/15/2015
12/31/2016 12/31/2016 3/31/2028 3/31/2028
Area Ownership (ha)
Rights
MR&SR MR&SR MR&SR MR&SR MR&SR MR&SR MR&SR MR&SR MR&SR
MR&SR MR&SR MR&SR MR&SR
Township
Knight Tyrrell Tyrrell Tyrrell Tyrrell Tyrrell Knight Knight Tyrrell
Tyrrell Tyrrell Tyrrell Tyrrell
Tyranite 19503 19504 19505 19510 19509 19511 19506 19507 19508
Property 4059LT
4063 LT 4064 LT 4079 LT 4056 LT 4065 LT 4060 LT 1661 LT 4062 LT
Creso Creso Creso Creso Creso Creso Creso Creso Creso
Creso Creso Creso Creso
20.388 17.017 13.828 14.302 10.081 20.307
9.385 18.049 21.481
144.838
15.499 16.956 9.915 13.963 56.333
Minto Property
19512 19513 19571 19670
4264 LTIM 4265 LTIM 4307 LT 4308 LT
Note 1: Leased claims are not subject to assessment work filings to maintain tenure. Leases have a 10 year term and are renewable.
Note 2: MR means mineral rights, and SR means surface rights.
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Table 4 List of Staked Claims
Staked Claims
Claim Township No.
Duggan Property Tyrrell
Claim Work Units Req'd ($)
Banked $
Ownership
Knight
Grand Total
4 1,600 371,181 3 1,200 0 1 400 0 1 400 0
~64 Creso ~48 Creso ~16 Burda ~16 Burda
~224 425.17
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In Ontario tenure of staked claims is maintained by annual filings of $400 per claim unit commencing in the second year of ownership. Excess annual expenditures can be banked for future use. The quantity of “Banked $” are sufficient extend tenure for at least 15 years.
Creso management warrants that the corporation has not received from any government authority any notice of, or communication relating to, any actual or alleged breach of any environmental laws, regulations, policies or permits regarding exploration activities on the properties. No permits issued by municipal, provincial or federal governments are required to undertake low impact exploration activities on the subject properties.
Cresco management further warrants that there are no current or pending challenges to ownership of the staked, leased and/or patented claims comprising the Shining Tree Project.
Creso is currently staking additional claims in the Shining Tree area, which are not the subject of this technical report. The only leased, patented and staked claims considered in this report
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3006759 4210174 3008013
4215039
1242759 3008011 4225011 4245744
1 400 0 2 800 0 1 216 54,058
~16 Creso ~32 Creso ~16 Creso
Creso
1 400 0 ~16
Area (ha)
Expiry Date
mm-dd-yy 08/6/2013
05/25/2013 08/1/2012 10/22/2014
05/6/2013 12/31/2014 12/10/2011 10-16-2011
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are listed above.
5.0 Physiography, Climate, Access, Local Resources and Infrastructure
The map-area is one of moderate relief, the maximum being 152 m encountered in terrain underlain both by metavolcanic rocks and Middle Precambrian Huronian rocks and diabase sills. The Middle Precambrian rocks form elongated, north-south ridges reflecting the prevailing strike. In some areas there are large extensive areas covered by glacial and swamp deposits. Sand and gravel cover more or less extensive areas.
Drainage is easterly in Natal Township into Pigeon and Duncan Lakes located in Knight Township, thence northerly and easterly via the West Montreal River in eastern Knight Township to the Montreal River, which drains ultimately into the St. Lawrence River.
The Boreal Forest vegetation comprises stands of spruce, jackpine, aspens and local stands of white pine. Much of the area has been cut over and now contains some conifers and mixed vegetation at various stages of growth.
The Creso properties can be reached by traveling east or west along Hwy 560 (Figure 3) from Temiskaming Shores (Hwy 11) or Shining Tree (Hwy 144). The report area centres on Highway 560 and is 18km west of the village of Gowganda and 23 km east of the village of Shining Tree. Logging roads and all-terrain vehicle trails provide additional access throughout the properties. The climate in the region is suitable for year round operations in exploration and mining development. The average winter temperature (December to February) is -9° C and the average summer temperature (June to August) is +16°C. The average annual winter snowfall is 285 cm and the average annual rainfall is 805 mm.
Local resources include abundant fresh water, aggregate, timber. Commercial activity in the
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area is related to various tourism operations that can supply meals and accommodation. Infrastructure consists of various access trails and a main hydro line several kilometres to the west of the property. The Tyranite mine property has infrastructure, such as a tailings pond that could possibly be revived. The mining facilities of Kirkland Lake and Sudbury are 100km northeast and south respectively, and are a source of skilled exploration and mining labour.
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6.0 History of Exploration
Recorded exploration activity in the map area began in 1930 in Knight Township, and in 1945 in Natal Township. This continued up to 1967 in Natal Township, but extended up to 1971 in Knight Township, with a lull in activities from 1940 to 1943. Exploration in Knight Township was carried out primarily for gold in the early years, but later, from 1965, nickel was actively sought. In Natal Township exploration activity was mainly for copper.
6.1 Duggan Zone/Tyranite Mine
The first recorded exploration work was for gold, and was carried out by McIntyre Porcupine Mines Limited in 1930, with trenching a metavolcanic-granodiorite contact on their nine-claim property in the southwestern part of Knight Township at the northern end of McIntyre Lake. Part of the property was later trenched by a Mr. Duggan in 1937, and later diamond drilled in 1938, when 13 holes totaling 596 m (1,955 feet) were put down.
In 1931, the L.O. Hedlund property, one mile (1.6 km) to the east of the former McIntyre Porcupine Mines Limited property, Knight Township, was staked by L.O. Hedlund and optioned to Waite where later, trenching and diamond drilling for gold were carried out on the property which extends into Tyrell Township to the south. In 1936, it was taken over by Tyranite Mines Limited who sank a three-compartment shaft in Tyrell Township to the south, where all major development was carried out. Between 1936 and 1942 some 31,352 oz gold and 4,860 oz silver were extracted from 231,810 tons of ore grading 0.147 oz/T Au.
There is little recorded work on the properties until 1986. From 1986 to 1988, Tyrell Holdings, Dalhousie Oil Company and Norwin Resources (Gunnar Gold/Mill City) performed bedrock stripping, geological mapping, magnetometer, VLF and IP surveys along with 43,135 ft of diamond drilling in 94 holes within the Tyranite Mine area and the Duggan
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Zone (11 holes, 2001-01 to 11), and 7 short holes through the mineralized zone (1316-33 to 39). In 1991, Northfield Minerals performed 2,153 ft of diamond drilling and in 1995-1996, Haddington Resources drilled 10,433 ft. In 1997, Tyranex Gold Sydicate/Mill City Gold drilled 12 holes for 12,882 ft on the main shear zones of the property including 4 holes on the Duggan Zone (97-223 to 226).
Some 50 holes were drilled on the property between 1937 and 1997 (Figure 4). Only drill logs of geology were found for 11 holes and 37 for gold assays.
In 1987, Mill City Gold Inc. conducted a tailings reprocessing test on the 220,000 tons of tailings grading 0.034 oz per ton (1.2 g/t) Au. The results were not economically favourable.
In 2007, the drilling of 8 diamond drill holes on the Duggan property was performed by Foramex Drilling of Rouyn-Noranda, Quebec and supervised by K. Murricane, BSc (Geology), MSc. Mr. Murricane was also responsible for logging and sampling the core, under the supervision of M.V. White, P.Geo. The airborne geophysics was provided by Terraquest Ltd. In 2009, drilling was executed by Rosko Mining Equipment and Resources Inc. and by Larry J. Salo. The programme was supervised and core logged and sampled by D. Robinson, P.Eng of Kirkland Lake, Ontario.
In 2008, an airborne geophysical survey by Terrequest Ltd. collecting magnetic, VLF-EM and and radiometric data was completed and interpreted
In 2009, 1 diamond drill hole was completed on the Tyranite property and 2 diamond drill holes were completed on the Minto property.
6.2 Minto Property
In 1936, a Noranda Mines Ltd. exploration program indicated an inferred resource of 80,000
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tons (72,500 t) with an average grade of 0.207 oz/t (11.7 g/t) Au to a depth of 350 feet (107m) now referred to as the Minto deposit, or zone. A program of prospecting, geological mapping, trenching, sampling and diamond drilling was conducted by Noranda. Seventeen holes were diamond drilled of which nine in the immediate vicinity of the deposit. Magnetic and electromagnetic geophysical surveys were conducted prior to the drilling.
Neither Willowstar or Creso have independently 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 estimates made in compliance with National Instrument 43-101 and the authors are not treating this historical resource estimate as a resource or reserve within the meaning of National Instrument 43-101. The authors view this historical estimate as a conceptual indication of the potential size of the resource.
A diamond drill program on the Minto zone by Duncan Gold Resources, supervised by H.A Pearson (1983 and 1984) has increased the reserve to 225,000 tons of 0.2 oz/t (6.9 g/t) Au to a depth of 750 feet (229m). Gold was then related to a more or less circular breccia pipe and associated with quartz-carbonate veining and disseminated pyrite.
Neither Willowstar or Creso have independently 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 estimates made in compliance with National Instrument 43-101 and the authors are not treating this historical resource estimate as a resource or reserve within the meaning of National Instrument 43-101. The authors view this historical estimate as a conceptual indication of the potential size of the resource.
The rocks in the vicinity of the deposit are described as Precambrian in age and consisting of
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andesite, rhyolite, acid volcanics intruded by diorite, syenite, feldspar porphyry, lamprophyre and diabase.
During 1984, a program of stripping by bulldozer, bulk sampling, percussion drilling and diamond drilling was conducted in the vicinity of the breccia pipe.
The purpose of this work was to obtain a more accurate outline of the gold-bearing breccia; to establish grade for mining purposes (particularly in the top 400 feet (122m) of the deposit); to increase the ore reserves by extending the deposit to depth and to provide bulk samples for metallurgical purposes.
Milling tests by Diepdaume Mines (Pearson, H, A, 1984) indicated that the gold occurs closely associated with the pyrite. After fine grinding and cyaniding the concentrates, only 50% gold extraction could be achieved. The milling tests proved conclusively that the sulphide concentrates would have to be treated at a smelter.
There is considerable visible gold, particularly in the rhyolites immediately adjacent to the breccia pipe, and this can be recovered by gravity methods.
The stripping by bulldozer removed approximately 5,900 cubic yards of overburden. A total of 59 percussion holes, 12 Winkie drill holes (AX size core) and 6 diamond drill holes of BX size core were completed during the period July 26, 1984 to December 23, 1984. In addition, a limited IP survey was conducted in the vicinity of the breccia pipe, to look for extensions of the mineralization (sulphide) in the adjacent rhyolite. The results of this work did not yield a coherent gold deposit
A 3,000 pound (1,360 kg) bulk sample was taken by trenching with a plugger. This sample was shipped to a smelter for metallurgical testing. The results of this work are unknown
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A limited IP survey was conducted by Phoenix Geophysics Ltd. of Toronto in the immediate vicinity of the breccia pipe. Results indicated that the data was compromised by difficult electrode grounding conditions. However, the survey successfully outlined the gold- bearing sulphide mineralization in the deposit.
An air-track drill percussion drilled 59 holes for a total of 2,098 feet (639m). The drill operators were Paul Perreault and Phillip Carter of Diepdaume Mines, Timmins, Ontario. Sampling was done at approximately 5-foot (1.5m) intervals.
In addition, 800.1 feet (244m) were diamond drilled in 12 Winkie drill holes (Nos. 84DG1 to 84DG12 inclusive). AX core size was employed in this drilling. The core was sampled at approximately 5-foot intervals within the breccia zone.
Diamond drilling employing BX core size amounted to 3,648 feet (1,112m) in six holes (84-1 to 84-6, inclusive). The location of these drill holes is indicated on the surface plan, (Figure 5).
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7.0 Geological Setting 7.1 Regional Geology
Regional geology is summarized from Carter, 1977, 1981, 1983, and Johns, G. W. 2003 and illustrated in (Figure 3) after Johns, 2003.
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The Early Precambrian rocks include a suite of metavolcanic rocks and associated intrusions, metasedimentary rocks, felsic to intermediate plutonic rocks, and diabase dikes. The metavolcanic rocks belong to a subalkalic and alkalic metavolcanic rock series. Volcanic rocks include komatites, dunites and peridotites and their metasomatized equivalents, plus a mafic to felsic series consisting of calcalkalic suites. Both flows and pyroclastics are present, but pyroclastics are rare amongst the mafic rock types. The mafic and intermediate flows were extruded subaqueously as they show pillowed structures. Pyroclastic rocks occur predominantly as intermediate rocks: They are mainly tuffs and crystal tuffs that were deposited subaqueously. Well-preserved sedimentary structures comprising graded bedding, load casting and ball and flame structures are common. Some of these sedimentary rock units grade upwards into a green cherty rock which is rhyolitic in composition. The metavolcanic and metasedimentary rocks are folded about a synclinal axis which trends and plunges N50W and is located in central Natal Township. The synclinal axis is sinuous and in the northwestern part of Natal Township it swings northwards. On the basis of this structure, the rocks in Knight and northeastern Natal Townships occur on the northeastern limb of the syncline and the rocks in southwestern Natal Township occur on the southwestern limb. Stratigraphically, tholeiitic and calcalkalic metavolcanic rocks in the northeastern part of Knight Township form the lowest exposed rocks in the map-area.
These are succeeded by komatiitic ultramafic and rocks which are subsequently overlain by interlayered calcalkalic and alkalic volcanic rocks. All the rocks have been affected by regional greenschist metamorphism.
Intermediate plutonic rocks in the area occur mainly as two masses: the Lafricain pluton located in northeastern Knight Township and the Milly Creek pluton located at the middle part of the southern boundary of Knight Township. The Lafricain pluton is believed by Carter 1989 to be the southwestern end of the Round Lake batholith.
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Both plutons are elongated in the direction of the regional trend of the metavolcanic-meta-sedimentary rocks. The commonest rock types observed in both plutonic rocks are a grey, or pink to brown, medium-grained massive hornblende granitoid. The pink granitoid may be porphyritic locally, where feldspar or feldspar and hornblende occur as phenocrysts.
Matachewan diabase dikes most of which are 30-45 m wide and trend north-northwest are present in the area.
Proterozoic rocks comprise mostly sediments and are observed in east-central Knight Township where the northern end of Metikemedo Lake connects with West Montreal River. Here the slates are associated with a north-south lineament and a north south reach of the river.
The Huronian sedimentary rocks include slate, siltstone, wackes arenites, orthoconglomerates and paraconglomerates.
Nipissing-type mafic intrusive rocks occur primarily as an arcuate concave-eastwards sill about 214 m thick and dipping approximately 25° east, within the Gowganda sediments, in east-central Knight Township.
Sand, gravel and alluvium comprise the Pleistocene and Recent deposits of the Cenozoic in the map area. They occur as blanket deposits and as eskers. The blanket deposits occur in southwestern Natal Township and central and north-central Knight Township. In the latter area extensive swamp deposits occur consisting of muskeg and fine yellow silty deposits. Coarse sand and gravel occur as eskers aligned north-south in southwestern and south-central Natal Township, and in southeastern and southwestern Knight Township.
The Precambrian rocks are folded about a plunging regional synclinal axis located in Natal
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Township; the axial trace of which trends N60°W over most of the township. In the northwestern part of the township the axial trace trends generally northward, and the plunge is about northwesterly. Rocks in northeastern Natal Township and in Knight Township are on the northeastern limb of the syncline, whilst those in southwestern Natal Township are on the southwestern limb. The rocks are steeply dipping, the dip varying from 35-85degees.
Several major faults cross the map area in a northwest direction.
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8.0 Deposit Types
The mineral deposits in the area include concordant and discordant vein-type deposits of copper, silver, gold and asbestos, and concordant stratabound nickel deposits associated with ultramafic rocks. The deposits occur within Early Precambrian ultramafic rocks, mafic to felsic metavolcanics, granitoid rocks and diabase dikes, and within Middle Precambrian sedimentary and mafic igneous rocks. The quartz-sulphide lode gold mineral deposit type broadly defines the target mineralization of this project, This deposit type also applies to the significant deposits of the Timmins and Kirkland Lake areas. Exploration techniques used to discover these gold-bearing veins include induced polarization/resistivity, magnetic and rock geochemical surveys. Geochemical surveys can take the form of gaseous, mobile metal ion, and or conventional overburden heavy mineral concentrate sampling.
Within the influence of the Milly Creek granitoid pluton, in the southwestern part of Knight Township, mineralization occurs at three places: a) the north end of McIntyre Lake near its western contact with mafic metavolcanics; b) 400 m east of Spade Lake near its eastern boundary with Cobalt sedimentary rocks; and c) at a promontory on the northern shore of Pigeon Lake, at the southern end of the lake, near the northern contact of the pluton.
At the north end of McIntyre Lake the gold occurs in quartz-carbonate veinlets in fractures oriented N40W and N15W at the contact of “granodiorite and greenstone” (Graham 1932, p.57). The “greenstone” is regarded by the Carter (Carter, 1981) as a large xenolith of mafic metavolcanics in the granitoid rock. The mineralized zone itself trends N10W. East of Spade Lake, gold occurs in a fracture zone trending N10W, parallel to the contact of granitoid rocks and a basaltic xenolith enclosed in the Milly Creek Pluton.
At the northern end of the Milly Creek Pluton, gold and molybdenite occur in a quartz vein, the Hurst deposit, striking N60E in fractured granodiorite.
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9. 0 Local Geology
The Duggan-Tyranite deposit areas are (Beecham 1987) under lain by mafic and ultramafic rocks intruded by the Milly Creek Pluton (see Figure 2) a multiphase intrusion varying from alkali gabbro to syenitic rocks. This pluton is about 10 km2 in size and bounded by sedimentary rocks on the eastern and northern boundaries of the property.
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Late north-south trending Matachewan dykes crosscut the property. To the south of the Milly Creek pluton, near and within the Minto zone, volcanic rocks of intermediate to felsic composition with local basaltic flows dominate the stratigraphy. The volcanic rocks include dacitic to rhyolitic flows and breccias of similar composition to the syenitic phase of the Milly Creek stock. Locally these flow breccias are gold enriched. The Minto property itself has numerous quartz veins trending both northeast and north and steeply dipping to the west.
Locally, in the Minto deposit itself, visible gold is commonly observed and often is associated with quartz-carbonite-sulphide breccia.
The Tyranite, Duggan and Minto deposits all appear related to the north-trending steeply dipping shear zones with abundant brecciation and quartz veining. These linear features are evident in the magnetic data (Figure 6).
Generally, these zones are potassium (K) enriched reflecting the composition of pervasive Au bearing fluids. In addition, these alteration zones are reflected as north trending magnetic lows that appear to extend over several kilometers. Locally, feldspar porphyry dykes intrude the volcanic rocks (Figure 7).
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10.0 Mineralization
Gold mineralization is the only commodity sought on the property at this time. The exploration/deposit model is similar to that hosting the Matachewan deposits to the north and the deposits of Kirkland Lake to the north east. There gold is related to intrusive syenites and porphyries as veins and disseminations, and within volcanic and sediments as lode deposits and vein systems.
Within the property area, gold is related to one or more volcanic/intrusive systems in which hydrothermal fluids were active and injected over a considerable period of time resulting in the observed important alteration, sulphide and gold mineralization.
Injection was localized along structural zones and vents resulting in vein systems and breccia deposits, leaving both local high grade gold zones and larger disseminated low grade gold zones.
In the Duggan zone, mineralization is contained almost entirely within altered monzonite and diorite. Alteration comprises pervasive calcite and hematization and moderate silicification. Quartz and quartz-calcite stringers are common throughout the zone.
Fragments of mafic and ultramafic volcanic rocks have pervasive chlorite and calcite alteration with trace amounts of disseminated pyrite. Pyrite is the main sulphide mineral, with trace amounts of chalcopyrite and arsenopyrite. Visible gold occurs in small amounts throughout the zone and is also found with pyrite and chalcopyrite (Norwin Resources, 1988b).
Previous data show the zone cannot be correlated with any confidence from hole to hole and there is a strong nugget effect problem hence, bulk sampling will likely be required to
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evaluate the true grade of the zone. However, the main alteration zone trends approximately N-S and has dimensions of some 200m x 100m, with anomalous Au values (>100ppb). In 2007, diamond drilling (Holes D1-07, D3-07, D4-07 and D9-07) indicated extensions of the mineral zone 220m north-northwest and to a depth of 250m. The zone has probable extensions to the north and to depth.
In contrast to the main Tyranite shear to the east where gold is fine-grained and associated with pyrite, the Duggan Zone contains coarse visible gold thus producing a nugget effect and which means particular care has to be taken during the sampling process.
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The Tyranite Au bearing pyritic shear zone trends north –south and comprises 3 lenses consisting of both lode/vein systems several metres in width and wide zones of erratic and disseminated Au with patchy high grade pods. Mineralization has been confirmed over a 1km north-south extension and down to a depth of 350m. Creso drilled one hole for 159m in 2009 to test and confirm mineralization and geology in the central part of the zone. The hole confirmed previous gold intersections (Hole1316-13). Similar to the Duggan Zone, an association with potassium (K) enrichment is demonstrated, thus indicating hyrdrothermal/metasomatic activity and gold mineralization.
Previous work indicated a gold bearing breccia pod extending to a depth of at least 235m.. Gold, structures and alteration appears to define to a more or less circular breccia pipe and associated with quartz-carbonate veining and disseminated pyrite.
Two drill holes were completed in 2009 by Creso for a total of 575m (see Figures 5). Several Au bearing rock types were intersected varying from rhyolitic flows and breccias to dacitic flows and breccias and also a basaltic breccias/quartz carbonate unit. Again ore grade gold zones are related to areas of potash (K2O) enrichment. Visible gold was noted in several locations associated with quartz veining with a core angle of 15 degrees corresponding to steeply dipping surface quartz veining trending in a northerly direction.
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Hole M0902 crossed the ore zone at a 70 degree angle and indicated a gold zone about 30m in true width down to a depth of 190m. The gold zone is open in both north and south directions as well as below the depth of 190m because of the limited extent of previous exploration (Figure 8).
11.0 Exploration
Eight holes for 3,654 metres of NQ core was completed during the recent Creso exploration drill program. The geology of the drill logs are summarized pictorially in Table 1, located in the Summary section and reproduced below.
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The (2007-2008) exploration program described below has consisted of 3,654m of diamond drilling to better define geology, structure and mineralization control on the property and to test results of previous drilling. The exploration program was carried out to confirm historic geology and mineralization.
An airborne survey to collect magnetic, VLF-EM and radiometric responses over the property was completed by Terraquest in February 2008. The survey comprised 370.2 line km, flown at 100m spacings in 2 directions, 287 and 197 degrees at a height of 70m with a sample interval of 7-8m.
Compared to an earlier Ontario Government sponsored Shining Tree survey flown at wider spacings, the syenitic intrusive bodies (Milly Creek Pluton) showed as continuous magnetic highs, but in the Terraquest survey, the multiphase composition ( magnetic highs and lows) is evident and illustrates the known geological and structural features. The more magnetic alkali gabbro/diorite and less magnetic syenite rocks are well defined, as well as the granophyric alteration and structural trends associated with the Duggan and Tyrenite mineralized gold trends shown by an associated low magnetic response and potassium (K)enrichment.
During 2009, the data on the Tyranite and Minto deposits were examined in detail. All previous available drill and exploration data was examined and converted to NAD 83 UTM coordinates, where possible, and digital format.
Hole TY0901 was drilled on the Tyranite gold mineralized zone to assess and verify historical previous drilling (Hole 1316-13).
Two holes, Holes # Mc0901 and Mc0902, were also drilled on the Minto deposit to verify mineralization and geology.
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12.0 Drilling
12.1 Duggan Zone
Recent exploration on the Creso properties comprise an 8 diamond drill hole, drilling program (3,654m) completed by Foramex drilling on the property between August and December 2007. Diamond drill collar locations were sited by GPS tools in NAD 83 coordinates.
Drill hole trajectories were monitored with “acid test” methods, which yields information about inclination of the drill hole and nothing about the azimuth of the drill hole. The distance between “acid tests” was variable between 100 and 200m apart. An analysis of the inclination data indicates normal deviation (~1° per 100m).
Summary geology for holes D01-07 to D04-07 and D09-07, D11-07 to D12-07 are presented in Table 1. Composite assays considered significant (>1 g/t Au) are presented in Table 2.
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12.2 Tyranite Mine A 159 metre drill hole was drilled to test geology and mineralization in the central part of the property near historical drill hole 1316-13. Results confirmed the old data. The mineralized structure trends across both ultramafic volcanic and syenodiorite intrusive rocks and appears to dip steeply west. Mineralization is confirmed to extend to a depth of over 300m. Lithogeochemistry confirms rock types and carbonate/sericite (with elevated potassium (K) alteration associated with the ore zone.
12.3 Minto Deposit
During 2009, Creso completed 560 m of NQ diamond drilling in 2 holes. Holes were designed to test geology and previous drilling. Old drill hole data was converted to digital format and Nad83 UTM coordinates. Drill plan and section are shown in Figures 5 and 8.
13.0 Adjacent Properties
There are no adjacent properties of any significance.
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14.0 Sampling Method and Approach
In the recent drill program on the Shining Tree Project, core was stored into 1.5m long core boxes and core runs were marked by drill rig personnel. The core was picked up by personnel of a Creso contractor, Rosko Mining Inc. and transported to their secure facilities in Kirkland Lake, under exclusive lease to Creso. The core has been logged by Creso geological-geotechnical contractors at the above facilities of Rosko Mining Inc. The facilities are locked when the site is not occupied.
Current sampling involves selection of samples on the basis of visible sulphide mineral content and rock alteration. Samples containing greater than 1% sulphide or with quartz veining are sampled at 0.5 to 1.0m intervals and, where more uniform, at 1.0m to 1.5m intervals. Whole rock samples (15 cm length) are taken at approximately 10m intervals to check rock type and intensity of alteration. Selected samples are taken for petrographic analysis to confirm rock type and alteration.
All core marked for sampling is cut in half with a diamond saw by an on site technician.
In general, all sampling was performed in order to be representative of all rock types, degrees of mineralization, sulphide content and alteration zones. When sections showed visible gold, sampling was restricted to 0.5m or less.
Any rock type that was potentially considered to host gold was sampled irrespective of sulphide content or quartz veining. As such, all rocks were sampled except unaltered/massive dykes or diorite/gabbro intrusive. As such, approximately 80% of all core drilled was sampled.
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Diamond core cutting provides a full half core sample and that each half is representative (visual duplication). Potentially higher grade sections (sulphide and/or quartz veined) received closer examination prior to cutting to make sure that sampled mineralization was duplicated by each half to match the retained section.
In lithogeochemical sampling, 15cm samples were taken every 10m or less (preferably unmineralized) to identify rock type and alteration features. Duplicate samples were taken of second half of core every 10 samples.
Recorsds of the sampled intervals and sample numbers are recorded in the logs, on a sampling sheet and on the third part of a three part assay tag bearing an identical identifier number as the other two parts of the assay tag. The sampler also completes an assay requisition form describing the sample type, the identifier number and the requested assay and preparation procedures for inclusion with easch batch of 25 samples shipped to Swastika Assay Laboratories
GAHA is not aware of any drilling, sampling or recovery factors that would impact on the reliability of the core samples.
15.0 Sampling Preparation, Analysis and Security
Core marked by Creso geologists is split in half with a diamond saw and one half is bagged and sealed in 10”x12” plastic bags. Sample intervals range from 0.5 to 1m based on geology, alteration and mineral content. The remaining core is tagged and stored in core racks on the secure Rosko/Creso facilities. Core is then transported by on site personnel to the secure facilities of Swastika Laboratories of Kirkland Lake (Swastika, Ontario) a certified and
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accredited laboratory. The laboratory was visited by MVWA who is satisfied with their analytical procedures and security.
GAHA is of the opinion that the security and integrity of the samples submitted for analyses is un-compromised, given the security measures employed, adequate record keeping, prompt expediting of samples and the analytical laboratories chain of custody procedures.
Bagged samples are dried, jaw crushed and split. Approximately 450 grams are pulverized. Standard sample preparation and standard fire assay techniques for gold were performed on a 30 gm sample. The concentration of Au was subsequently determined using atomic adsorption spectrometric techniques.
Standard geochemical sample preparation involving a 20g sample being weighed, mixed in tubes and digested with a 3 acid mix followed by AAS/ICP analysis was performed for other elements.
Whole rock samples for multi-element analysis are sent from Swastika by UPS to ALS Laboratories in Vancouver. Samples were prepared using lithium metaborate fusion followed
by XRF analysis. (Quote from Lab XRF: For Whole Rock Analysis the XRF department uses a
library of internationally certified reference materials, which cover the entire spectrum of geological host matrices. Cross checks between the XRF, ICP and Assay whole rock element procedures are done routinely. Anomalous samples are verified by duplicate fusions and checks by other procedures.)
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16.0 Data Verification
GAHA has not verified any of the analytical data generated by diamond drilling in the 2007- 2009 period. Reject and pulp samples were not available for re-sampling and re-assaying. Currently Creso relies on Swastika Laboratory’s routine of re-assaying every 10th sample in an attempt to monitor analytical precision.
17.0 Mineral Processing-Metallurgical Testing
Creso has not undertaken any beneficiation studies on mineralized rock collected from any of the properties in the Shining Tree project.
18.0 Mineral Resources and Mineral Reserve Estimates
The issuer has not completed any resource or reserve estimates for this project.
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19.0 Other Relevant Data and Information
There is to the writer’s knowledge no additional data or information, of either a positive of negative aspect that would change the data presented or the contained recommended exploration program.
20.0 Interpretation and Conclusions
Previous historical work in the area has indicated extensive gold mineralization throughout the region. To date this has been almost entirely related to quartz veining with minor indications related to disseminations within volcanic rocks. Vein systems trend in various directions with the most prominent being in a north-northwest direction. Veins pinch and swell and host erratic high gold values and generally lack continuity.
The current exploration program, designed to confirm historical gold information, geology and structure, as such has succeeded. Table I summarizes the general findings, though there are still some discrepancies in the controlling geology and structure which indicate that more work will be required.
Work has indicated that although structural control is important, gold is primary and secondary, and exists in multiple rock types and various structural features. Results of lithogeochemistry, as referenced by the coloured column in Table I, show logged rock types (visual identification) to be 60-80% accurate. Gold occurs in altered rock types of all compositions other than dykes. In addition, the geology changes substantially over relatively short distances – for example, the Minto holes 09-1 and 09-2, drilled within 30m of each other, show different geology (rock compositions) suggesting that a previously interpreted east-west geological trend is locally inaccurate. Overall, the Creso work program indicates the
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property has considerable merit but that a much more detailed exploration and 3D modelling approach is needed to define ore potential, geology, structure and mineralization controls.
Also the occurrence of anomalous nickel in Holes D04-07, D10-07, D11-07 and D12-07 associated with the ultramafic flow units (400 to 2700 ppm in assay sections and whole rock samples) indicate the nickel potential of the area.
On the Duggan property, current drilling for geological information has shown gold to occur within shear zones and vein systems in syenodiorite and within ultramafic volcanics. Gold intersections in Holes D01-07, D02-07, D03-07, D04-07 and D09-07, appear related to north- northwest shears that cut both rock types. Gold zones in ultramafics are anomalous over widths of several metres with sporadic 1 to 6 g/t Au sections.
In holes D03-07 and D09-07 a pink quartz-breccia system containing sporadic high grade gold (vg specks) intersections up to 33 g/t Au and averaging 1 gram over 76m and 93m illustrates the nature of alteration within the altered syenodiorite.
A new gold zone was also intersected in drill hole D02-07. Anomalous gold to several grams occurs 200m below surface entirely within syenodiorite. Shear direction is postulated to be north-northwest but not definite.
Drilling also indicates a geological break south of 5279600 N (new Grid) or 1000N (old grid) and at depth in hole D01-07. In this drill hole ultramafic rocks are more prominent and show an elevated nickel content.
Hole D01-07 was drilled to test continuity of mineralization of depth. Hole D03-07 was drilled to test gold results of previous historical drill hole 97-225. Hole D09-07 was drilled to test continuity of the structural/alteration zone 220m north. Hole D04-07 was drilled to test
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continuity of the shear zone and mineralization to the south.
Geological extrapolation of data on the Duggan Zone currently indicates a mineralized gold zone varying from a width of 5m within ultramafic rocks to 100m within altered syenodiorite along a north-northwest shear for 750m and to a depth 240m.
Whole rock analysis indicates a multi-phase syenitic intrusive rock type with anomalous gold related to a pinkish more brecciated altered phase with quartz veining and enrichment in sulphides, These altered phases appear to be broadly associated with magnetic lows contacting magnetic highs. The intrusive, as previously indicated, intrudes mafic-ultramafic volcanics and are probably the prime hydrothermal source of gold mineralization in related structures.
The syenodiorite stock appears to be comprised of three phases: A 50-56% SiO2 Phase with 4-6% total alkalis (Na2O + K2O), a 58-62% SiO2 Phase with 6-8% total alkalis and a 64-69% SiO2 Phase with 8-12% total alkalis. All phases indicate the alkali enriched nature of the intrusive stock. The intersected gold zones seem to occur in altered middle phase, showing potassium (K) enriched sections or sodium (Na) depleted K enriched zones.
The Tyranite gold mineralization is similar to the Duggan zone. Drill hole TY0901 confirms the geology, chemistry alteration and mineralization. This hole was drilled to test the central part of the Tyranite shear where gold occurs associated with sulphide mineralization in altered volcanic and a alkali gabbro to syenitic intrusion. Gold is structurally related and associated with potassium (K) enriched zones. Apparent dip on that zone is 80 degrees west.
Gold occurs both as lode veins of erratic distribution and as high grade pods in larger low grade zones. The Minto deposit has been classified as a breccia pod. Two holes were drilled in 2009.
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Mc0901, Mc0902 tested mineralization and geology. Mineralization occurs within rhyolitc to dacitic flows, porphyries and breccias as well as within an isolated mafic carbonate quartz breccia with abundant sulphide as fragments and secondary disseminations. Visible gold was observed in narrow quartz veining cutting core at 15 degrees. Mineralization associated with more felsic flows and breccias has minimal sulphide but distinct quartz veining at 45 and 15 degrees to core axis. The veining corresponds to surface veining that trends north–south and northeast-southwest and dips steeply. Gold mineralization is again associated with elevated potassium (K) alteration.
Further exploration work should focus on these structurally controlled, hydrothermal alteration systems. Lithogeochemistry shows the similarity of the alkaline gabbro-syenite intrusive with intermediate to felsic flows, porphyries and fragmentals/breccias suggesting a common genetic/volcanic-intrusive link and the controlling factor in gold mineralization.
Other Mineralization
The ultramafic volcanic rocks on the Duggan property show consistent enrichment in nickel generally over 400ppm, with a maximum of 2700ppm. This mineralization is at the contact of a komatiitic flow. Its orientation is unclear but does, along with anomalous Ni and in drill holes, indicate Ni and Pt potential for the area.
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Geophysics
Results of airborne geophysical surveys indicates the Milly Creek stock is more extensive than previously thought and extends north and northwest under the Huronian sediments at the northern boundary of the property. Gold mineralization also appears related to lower magnetic response marginal to zones of higher magnetic response.
Exploration Potential
Current exploration has indicated that gold mineralization is more widespread than originally thought. It is related to structures and intrusions. The gold mineralization appears with altered syenodiorite intrusions either at their margins or within, and also at ultramafic to mafic volcanic contacts and also in isolated breccias zones. A new more detailed airborne magnetic/radiometric/ ground IP survey and a comprehensive geological, geophysical, structural modeling study is expected to define more detailed and localized structures and more gold targets. Of particular interest, are circular multiphase magnetic features on the property indicating the possibility of intrusive-volcanic/hydrothermal centres.
Results from the current exploration program, so far define a favourable exploration potential for the Creso property for gold, nickel and platinum.
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21.0 Recommendations
Based on previous and current work, this report recommends a $600,000 exploration program, see Table 5.
A new UTM based, ground grid needs to be established over the property as positioning of old lines, grid directions and drill hole locations is not clear. OBM base maps and GPS systems have been acquired for this purpose.
A combination of a detailed airborne and surface/down-hole geophysics, EM/IP, magnetic and radiometric survey is recommended to better define geology, alteration and structure and to outline disseminated sulphides/graphite. A detailed 3D modeling/geology/structural study is also recommended. It would be derived from geophysical and satellite data, and converted digital drill hole data.
G.A. Harron & Associates Inc./M.V. White Associates Ltd.
TABLE 5 - COST ESTIMATE PHASE I EXPLORATION PROGRAM
62G.A. Harron & Associates Inc./M.V. White Associates Ltd.
Activity
Unit Cost, Quantity
Expenditure $
Remarks
Management, Old Core Logging, Data Analysis
Geologist plus 1 assistant approx 100 man days. @ $500/day
50,000
Airborne & Borehole Geophysics (BH), Modeling
350 line km, 12 DDH
350,000
AEM,Mag Radiometrics BH IP,BH Mag, BH- EM
Assaying
200 samples
10,000
Accommodation & Meals
2 persons
20,000
Hotel,camp, etc
Vehicles; Rental and Mileage costs
20,000 km
20,000
Lease and other
Field Support: Labour, Supplies & Equipment
70 man days @$500
40,000
Data Analysis 3D modeling
Geologist and Assistant
40,000
Geotechnical Assessment/report
19,000
Estimate
549,000
Contingency ~ 9%
51,000
TOTAL
$ 600,000
Ayer,J.A Trowell, N.F, Josey, S., Nevills, M.,Valade,L. (2203)
Beecham, A.W.
Beecham, A.W.
Beecham, A.W.
Beecham, A.W Nov 1997
Beesley, T.J.
Bryant, J.G.
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REFERENCES
Geological Compilation of the Matachewan Area, Abitibi Greenstone Belt; Ontario Geological Survey, Prelim. Map P.3527
Report of Diamond Drilling Nov., Dec., 1995, Tyranite Property, An Exploration Project Designated Under the Ontario Mineral Incentive,Program, Knight & Tyrrell Twps. District of Timiskaming.
Report of Diamond drilling Nov.1995-Feb.1996, Tyranite Project, Sept. 1996 Knight & Tyrrell Twps. For Haddington Resources Ltd.
Report of Diamond Drilling Tyranite Main Zone & Duggan Zone, Jan-Mar 1997 Knight&Tyrrell Twps. District of Timiskaming NE, Ont, NTS 41-P-11 For Tyranex Gold Inc. and Mill City Gold Mining Corporation.
Report of Summer 1997 Program Trenching and Mapping Follow up of 1987 B-Horizon Soil-Geochemistry, Tyranite Property Knight and Tyrrell Twps, Gowganda Area, District of Timiskaming, N.E. Ont. For Tyranex Gold Inc and Mill City Gold Mining Corporation.
Work Proposal to Accompany Ontario Mineral Incentive Program Application for Designation 1995, Haddington Resources Inc. Tyranite Joint Venture.
Report of Geochemical and Geophysical Surveys, West Montreal River, Apr 1977 Hare Lake, Cripple Lake, Foley Lake ‘A’, ‘B’ and ‘C’, Bigfour Lake and Arthur Lake Claim Groups in Knight, Tyrrell, MacMurchy and Natal Twps., Larder Lake Mining Division. For Getty Mining Northeast, Limited.
G.A. Harron & Associates Inc./M.V. White Associates Ltd.
Carter, M.V.
Carter, M.V. Carter, M.V.
Carter, M.V.
Carter, M.V.
Filo, J.K. Filo, J.K.
Filo, J.K.
Filo, J.K.
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Geology of MacMurchy and Tyrrell Twps, District of Sudbury and Timiskaming, Ontario Division of Mines, Report 152, incl. Map 2365,1977.
Geology of Connaught and Churchill Twps, District of Sudbury, Ontario 1980 Geological Survey, Report 190.
Natal and Knight Twps, Districts of Sudbury and Timiskaming, Ontario 1981. Geological Survey, OFR 5337, 160 p., 22 Tables, 17 Photos, 10 Figures and 2 Preliminary Maps. Ontario Geological Survey, Open File 5337.
Geology of Natal and Knight Twps, District of Sudbury and Timiskaming, Ontario Geological Survey, Report 225, Incl. Map 2465. 1983.
Geology of Shining Tree Area, Districts of Sudbury and Timiskaming, M.N.D.M., Ontario Geological Survey, Report 240, Incl. Map 2510 (1:50,000). 1989.
Final 19 Compilation On The Arthur lake Knight and Natal Twps. ZoneZone Shining Tree Area, Northern Ontario.
Progress Report On Diamond Drilling for KRL Resources Corp./Cross Lake Minerals Joint Venture Knight and Natal Twps, Arthur Lake ZoneZone, Shining Tree Area, Northern Ontario. Mar 1992.
Progress Report On Diamond Drilling For KRL Resources Corp./SEG Exploration Inc. Joint Venture Knight and Natal Twps., Decker ZoneZone Shining Tree Area, Northern Ontario, Part I of III. Apr 1994.
Progress Report On Diamond Drilling For The International KRL Resources Corp. Hemlo North Shore and Harte Resources Corp. Decker ZoneZone Joint venture In Knight and Natal Twps., Shining Tree-Gowganda Area of Northern Ontario. Apr 2004.
G.A. Harron & Associates Inc./M.V. White Associates Ltd.
Fugro
Gordon, J.B. Graham, A.R.
Johns, G.W. Johns, G.W. Johns, G.W. & Amelin Y.
Meikle, R.J. Mullen, D.V.
Norwin Res. Ltd.
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Norwin Res. Ltd.
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Report On Airborne Magnetic and Geotem Survey, Copper Hill Project, Gowganda, Ontario For International KRL Resources Corp. 2004
Gordon, J.B. & Lovell H.L. et al, 1979 Gold Deposits Of Ontario, Part 2, O.G.S. Mineral Department, Cir 18.
Tyrrell-Knight Area, Districts of Timiskaming and Sudbury, Ontario. 1932,O.D.M. Ann. Rep. XLI Pt II & Map 41b, (1:47,520).
(1999) Shining Tree area, East Half, Ont. Geol. Surv. Prelim. Map 3389.
(2003) Shining Tree area, Ontario Ont. Geol. Surv. Prelim. Map 3521
(1999), Reapraisal of the Geology of the Shining Tree area, East Half District of Sudbury & Timmiskaming in Summary of Field Work Ont. Geol. Surv. Misc. Paper 169, pp 43-50
Geophysical Report On The Tyranite Property For Gunnar/Mill City Gold Inc. 1989
Exploration Work Report Tyrrell Property Knight and Tyrrell Townships. L-1193848 et al. NTS 41-P-11, Larder Lake Mining Division District Of Timiskaming, Ontario. 2000
Progress Report June-Sept, 1987 Tyranite Propert, Knight and Tyrrell Townships, Ontario, For Gunnar Gold/Mill City Inc. 1987
Tyranite Property, Knight and Tyrrell Twps, Soil Geochemistry “B” Horizon Au, (map 1:2400)., For Gunnar Gold/Mill City Gold Inc. 1987
Tyranite Property, Knight and Tyrrell Twps, Magnetometer Survey Total Field (map 1:2400). For Gunnar Gold/Mill City Gold Inc. 1987
Tyranite Property, Knight and Tyrrell Twps, Geophysical Compilation Map (map 1:2400) For Gunnar Gold/Mill City
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Pearson, W.M.
Pearson, H.A Puskas, F. Ramsey, E
Robert, F., 1995,
Robertson D. and Associates Sial Geosc. Inc.
Syberg, F.J.R.
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Gold Inc. Norwin Res.Ltd. Summary Report On The Power Stripping Program, Tyranite Project Knight and Tyrrell Townships, For Gunnar Gold/Mill City Gold Inc. 1988
Report On The Tyranite Gold Property, Gowganda Area, Ontario. For Northfield Minerals Inc./Mill City Gold Mining Corp. Mar 1995
Report of Work on Duncan Gold Resouces Inc, Tyrell Twp Property, Ontario Dec: 1984
Proposals For Follow Up Of Soil Geochemistry and I.P. Surveys, Untitled June 1997,Internal Report.
An Investigation Into The Recovery Of Gold From The Duggan Ore Sample Labeled Property No. 2. For Mr. Raymond Belecque, Mill Superintendent Foxpoint Resources Ltd.
Quartz-Carbonate Vein Gold; in Geology of Canadian Mineral Deposit Types, Geol. Surv. Can.,Geology of Canada vol. 8, p 350-366.
The Tyranite Project. An assessment and Future Exploration Requirements. 1988.
Shinning Tree Airborne Consortium, Technical Supervision: Strategex Ltd. NTS Maps: 41P/07-10-11 and 14, Latitude 47 degrees 37 N, Longitude 8103 W. High Sensitivity Radiometric, Magnetic Gradiometric and VLF Survey, Shining Tree-Gowganda Area, Ontario. 1998
Report On Geophysical Surveys For KRL Resources Corp., Arthur Lake Property Natal and Knight Townships, Ontario. NTS 41P/11, 47 degrees 42N Latitude, 81 degrees 45W Longitude. 1992
Report On Geophysical Surveys Arthur Lake Property, Arthur Lake, Natal and Knight Townships. Shining Tree Area, Ontario For KRL Resources Corp. and SEG Explorations Inc. 1994
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Sylvanite Staff
Temmex Res. Corp.
Watkins, J.J. & Melling, D.R. et al. Jul 1998
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Plan Showing Diamond Drilling, Tyranite G.M.L., Ontario G.L.H.&D.K.B. Geological Survey, Assessment Files, Tyrrell Township. 1939
Diamond Drill Holes JU 02-01 to JU 03-20. All Holes Drilled On Ontario Mining Lease 105357, Perimeter Survey Claim 296, G 8000292. 2002-2003
The Decker Property Mine Potential and Recommendations. Natal and Knight Townships, Larder Lake Mining Division Northeastern, Ontario, NTS 41P/11 For Copper Dome Mines Ltd.
Compilation Report on Creso property area, Shining Tree District, Ontario. Internal Creso report.
G.A. Harron & Associates Inc./M.V. White Associates Ltd.
MVW WHITE & ASSOCIATES LTD Exploration Data Services (since 1989) 38 Riverside Dr., PO Box 12, Kearney, Ontario, P0A1M0
Michael V White: Professional Qualifications 1. I am a Consulting Geologist residing at 38 Riverside Dr.,Kearney, Ontario, Canada, P0A 1M0. 2. I am a graduate of McMaster University, Hamilton, Ontario, in 1968 with a Bachelor of Science degree in Geology, and McGill University, Montreal, Quebec, in 1976 with a Master of Science degree in Geological Sciences. 3. I am registered as a Professional Geoscientist (No. 1328) Association of Professional Geoscientists of Ontario(APGO).
I have worked as a geologist for a total of 40 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Twenty years experience as an Independent Exploration/Consulting Geologist across Canada and in other countries
• Preparation of numerous reviews and technical papers on exploration and mining projects around the world . • Exploration Manager for Newmont Exploration Canada Ltd (6yrs)in charge of mineral exploration in Ontario and Québec
• Senior Geologist for Gulf Minerals Canada Ltd (7yrs) in charge of mineral exploration research for Uranium and VMS Deposits. • Exploration Geologist with British Newfoundland Exploration Ltd (4yrs): Uranium exploration projects, Labrador
4. I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI43- 101") and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI43-101.
5. I have visited the project and supervised technical aspects. 6. I am responsible for the preparation of sections 7 through 12, 20, 21 and 22 the technical report titled “Technical Report on Creso’s Duggan, Tyranite & Minto Properties, Knight and Tyrrell Townships, Shining Tree District, Ontario, dated March 23, 2010” (the “Technical Report”). Most of the technical information in the Technical Report is based on examination of public and private documents pertaining to historical exploration of the three properties. The source of all information not based on personal examination or knowledge are referenced in the Technical Report. In the disclosure relating to claim status I have relied on information provided by the Provincial Mining Recorders Office. 7. Having acted as a consultant to Creso for more than 50% of my time I am not independent of the Issuer applying the test set out in Section 1.4 of National Instrument 43-101. 9. I have read National Instrument 43-101, and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1. 10. To the best of my knowledge, the Technical Report contains all scientific and technical
68G.A. Harron & Associates Inc./M.V. White Associates Ltd.
information that is required to be disclosed to make the technical report clear and not misleading.
Dated this 23rd day of March 23, 2010 (Signed & Sealed)
Michael V White
69G.A. Harron & Associates Inc./M.V. White Associates Ltd.
Gerald A. Harron
G.A. Harron & Associates Inc. Suite 501, 133 Richmond Street West, Toronto, Ontario, Canada M5H 2L3 Tel.: (416) 865-1060 Fax.: (416) 865-0213 Email: gaharron@bellnet.ca
Certificate of Author
I, Gerald A. Harron, M.Sc., P.Eng. do hereby certify that:
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2.
3.
4.
5.
6.
1. I am the President of: G.A. Harron & Associates Inc.
Suite 501, 133 Richmond Street West Toronto, Ontario, Canada M5H 2L3
I graduated with a Bachelor of Science degree in Geology from Carleton University in 1969 and also graduated from the University of Western Ontario with a Master of Science degree in Economic Geology in 1972.
I am a member of the Association of Professional Engineers of Ontario, the Association of Professional Engineers, Geologists and Geophysicists of the Northwest Territories and Nunavut.
I have worked as a geologist for over 35 years since my graduation from university and have been involved in minerals exploration for base, precious and noble metals and uranium throughout North America, South America and Africa, during which time I directed, managed and evaluated regional and local exploration programs.
I have read the definition of "qualified person" set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.
I am responsible for the overall content of all the technical report titled "Technical Report on Creso’s Duggan, Tyranite and Minto Properties, Knight and Tyrrell Townships, Shining Tree District, Ontario for Willowstar Capital Inc., dated March 23, 2010, (the "Technical Report”). Most of the technical information in the Technical Report is based on examination of public and private documents pertaining to the property. The sources of all
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