June 27, 2006
VANCOUVER, BC, June 27, 2006 — Cresval Capital Corp. (CRV.P - TSX Venture Exchange) the Company has entered into a property acquisition agreement dated June 27, 2006 with Frobisher Securities Ltd. (the “Vendor”) to acquire an undivided 100% interest in 16 mineral claims located in the Lillooet Mining Division, B.C., known as the Bridge River Project. The Company can acquire the Bridge River Project by reimbursing the Vendor’s costs of $38,223 and issuing to the Vendor a total of 1.1 million shares (the “Shares”). The Shares will be subject to escrow release restrictions providing for a timed release in installments to the Vendor over the next 6 years in accordance with the policies of the TSX Venture Exchange.
The above described property acquisition is a non-arm’s length transaction (the Vendor being a private company owned and controlled by Louis Wolfin, the President of the Company), and accordingly must be approved by a majority of the minority shareholders, and is also subject to the acceptance of the TSX Venture Exchange as the Company’s Qualifying Transaction. The acquisition is also subject to Company’s receipt of satisfactory evidence that proposed short form offering described below can be completed forthwith after the closing of the acquisition.
The Bridge River Project comprises a total area of 7,212 hectares more or less, located 40 kms west-northwest of Goldbridge, BC. The property is accessible from Goldbridge by the Bridge River Forest Service Road. The Bridge River Project is primarily underlain by the probable early Tertiary granitic Bridge River Pluton, which intrudes Late Cretaceous quartz diorite to the south and east and adjoins a larger, similarly aged granodiorite body, the Lord River Pluton, to the north, west and southwest. The intrusive rocks are locally overlain by flat lying Miocene aged plateau basaltic flows and intruded by related basaltic feeder dykes and felsite and quartz porphyry dykes.
The Bridge River Project cove rs the Nichol, Russnor and BR porphyry copper showings, with associated gold, silver and molybdenum values, hosted by the granitic Bridge River Pluton. The Nichol showing, in the eastern project area, covers a 600X400m zone of copper bearing quartzsulphide and sulphide “veins”, pods, fracture fillings and disseminations hosted by phyllic to locally potassic altered granite. Previous work concentrated on the individual veins, which may represent silica-sulphide mineralization in the core of a porphyry system.
The current 2005 program involved a geological and geochemical evaluation of the Nichol and Russnor showings on the Copper 1 to 11 claims, with the collection of 40 rock samples, 35 core samples, 26 soil samples and 26 stream sediment samples.
Historical results from the Nichol showing include, but are not restricted to, 4.73% Cu, 32.8 g/t Ag, 0.16 g/t Au, 0.015% Mo over 1m from Vein 1 in Trench 5, 8.91% Cu, 33.1 g/t Ag, 0.043% Mo over 0.6m from Vein 2 in Trench 9 and 2.08% Cu over 4.5m from the mineralized wallrock in Trench 1. Only 412m of diamond drilling has been undertaken on the Nichol showing in 10 holes yielding significant results including, 3.50% Cu, 1.00 oz/t Ag, 0.079% Mo over 8.5m in 79-S1. The vein type mineralization may represent silica-sulphide mineralization in the core of the porphyry system and deeper holes are necessary to explore the bulk tonnage potential. The Nichol showing remains open to the north, south, west and to depth.
The Russnor showing contains economic grades of mineralization. The Russnor adit contains an average of 1.38% Cu over the inner 30.5m, the portal zone, 1.19% Cu over 12.2m, the cliffs south of the portal, 0.57% Cu over 60m, the cliffs 60m northeast of the portal, 1.00% Cu over 16.2m and an open cut 25m north of the portal, 0.94% Cu over 12.8m, with minor values in gold, silver and molybdenum. A maximum of only 790 metres of diamond drilling in 11 holes, with a maximum depth of 163m, has been conducted on the showing. Significant copper values were obtained from the past drill programs, some with anomalous copper throughout the entire hole or the entire sampled interval of core, yielding 0.30% Cu over 36.6m from DDH 61-5, including 0.51% Cu over 15.2m, 0.30% Cu over 26.5m from DDH 69-1 and 0.074% Cu over 69.3m, including 0.09% Cu over 48.0m from DDH 61-3. Anomalous results were obtained in 2005 from unsampled intervals of the core from the 1961 drill program. The Russnor showing is open in all directions. An open ended untested soil anomaly with results up to 915 ppm Cu and 47 ppm Mo extends 600m north of the adit. Anomalous stream sediment samples were obtained from 200m to 400m southwest of the adit, containing from 60 to 551 ppm Cu.
Previous results from the BR showing include 1.08% Cu, 0.05% Mo across 1m from quartzsulphide veins, 0.14% Cu over 17m from trenching and 0.134% Cu over 9m ± molybdenum from the bottom of DDH 71-1.
The Bridge River Project has potential for the discovery of a bulk-mineable plutonic hosted, calcalkaline porphyry copper±molybdenum±gold deposit. The project area encompasses three copper porphyry showings, the Nichol, Russnor and BR, all hosted by the 12x5 km granitic Bridge River Pluton. The widespread copper mineralization within the Bridge River Pluton, the occurrence of mineralized and hydrothermally altered intrusive breccia bodies, the presence of potassic and phyllic alteration, the presence of silica-sulphide alteration and stockwork mineralization and the location within a known porphyry belt are all favourable for the discovery of a deposit of this type.
A four phase exploration program is recommended on the Bridge River Project. The priority initial phase (Phase 1) should consist of a 150 line km helicopter supported multi-parameter (radiometric, electromagnetic and high resolution magnetic) airborne geophysical survey over the Bridge River Pluton and surroundings, followed by an initial field evaluation (Phase 2) of the targets and additional showings not previously evaluated at an approximate cost of $50,000 for each phase. Phase 3 (non-contingent on but guided by the results of Phases 1 and 2) would consist of detailed follow up involving the implementation of soil, ground magnetic and induced polarization surveys over the priority targets at a cost of $280,000. This would be followed by a 2,000m diamond drill program (Phase 4) at an estimated cost of $500,000. The Company plans to carry out the first three phases of recommended work for a total estimated cost of $380,000.
The Bridge River Project is the subject of a technical report dated March 22, 2006 prepared by Jean Pautler, P. Geo., the Company’s qualified person under NI 43-101 with respect to the technical disclosure concerning the property.
The Company intends to finance the first three phases of the recommended exploration work by a short form offering of 3.0 million units (the “Units”) at a price of $0.15 per Unit to raise gross proceeds of $450,000. Each Unit will consist of one common share and one-half of a nontransferable share purchase warrant, each whole warrant being exercisable to purchase an additional common share at $0.25 for one year. The offering will be conducted by Leede Financial Markets Inc., as agent for the Company, who will receive a sales commission of 10% on the gross proceeds of the offering and an agent’s option to purchase Units equal in number to 10% of the Units sold, exercisable at $0.15 per share for one year, plus an administrative fee of $10,000 plus GST.
Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and pursuant to Exchange Requirements, and the majority of the minority shareholders’ approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.
ON BEHALF OF THE BOARD OF DIRECTORS
Louis Wolfin, President
This release has been prepared by Management — the TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation’s to be materially different from the results, performance or expectation implied by these forward looking statements.
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