Confederation Minerals Ltd. (“Confederation”) (TSX.V:CFM) is pleased to announce results from the first two diamond drill holes from 2012 summer program at the Newman-Todd property in Red Lake, Ontario.
Summary of Results:
Two drill holes NT-110 and NT-111 were targeted on cross section 1700 (see cross section on company's website www.confederationmineralsltd.com). The holes were designed to test for continuity of high grade gold mineralization above hole NT-071 and NT-072 (see news release dated Sept 12, 2011) which intersected wide zones of gold mineralization with several > 10 g/t intercepts.
NT-111 intersects 13.0 metres of 5.71 g/t gold including two higher grade sections averaging 17.10 g/t gold over 1.0 metre and 49.60 g/t gold over 1.0 metre.
Complete results can be found in Table 1. Table 2 in Appendix A shows all results from drilling on Cross Section 1700.
Discussion of Results:
Cross section 1700 now has four holes completed within the upper 200 metres of the Newman Todd Structure ("NTS), at present there are several greater than 10 g/t gold intercepts on this cross section, which represents a 50 metre thick slice of the 1.8 km long NTS. The high grade is interpreted to occur within steeply plunging - northwest dipping silica-sulphide +/- magnetite replacement zones as shown on Cross section 1700. At present, these zones remain open along strike and at depth.
Lawrence Dick, CEO of Confederation states: "Drilling on section 1700, which is one of our more detailed sections, clearly shows continuity of the gold mineralization between drill holes. It is our belief that with additional drilling this continuity of gold mineralization exists on every cross section throughout the Newman Todd Structure. For reference of scale, section 1700 represents a 50 metre thick slice through a 1.8 km long zone. The zone has been traced to a vertical depth of 600 metres and there is regional geological evidence that suggests it may be several kilometres deep. It is management's belief that this Red Lake type system will extend to significant depth. Deeper drilling is planned."
Table 1: Significant results
|Hole||From (m)||To (m)||Width* (m)||Gold g/t)|
*Width is calculated as core length and does not imply true width of the zone. Weighted average gold intervals apply a 0.20 g/t lower cut---off. Internal dilution within reported intervals does not exceed core lengths of three metres unless otherwise indicated.
Exploration work at the Newman Todd project is funded by the operator, Confederation Minerals Ltd. Pursuant to an option agreement with Redstar Gold Corp. (“Redstar”) (TSX.V: RCG), Confederation can earn a 50% interest in the project by spending $5.0 million on exploration, paying Redstar a total of $250,000, and issuing Redstar 500,000 shares by November 2013. To date Confederation has spent in excess of $5.0 million dollars on exploration of the project, paid Redstar $100,000 and issued 200,000 shares. Confederation can earn an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016.
The 2012 drill program will initially focus on the central part of the Newman Todd Structure ("NTS"), termed the "Hinge Zone". A minimum 5000 metre drill program is planned to follow-up significant results returned from the 2011 drill program. In 2011 a total of 56 holes, totaling 24,707 metres were drilled into the Newman Todd Structure (NTS) along a strike length of 1.8 km (of the total 2.2km-long mineralized NTS). All of these holes intersected gold mineralization and over 40% of the holes intersected gold mineralization grading greater than 20g/t gold.
NTS is a large scale gold bearing structure, with significant widths of iron-carbonate alteration, silicification, sulphide and magnetite replacement zones which can contain high-grade gold mineralization. This style of alteration is recognized at the major producing mines in the Red Lake camp, and other important gold districts, as one of the main geological criteria associated with the formation of these gold deposits. Within the large scale structure of the NTS, several zones of higher grade gold mineralization have been identified along discrete structural corridors, the Hinge Zone being one of these corridors.
This phase of drilling will test several key geological and structural concepts identified in recent 3D modeling completed by the company. A successful drill program will assist with further targeting of discrete high grade structures along the entire strike length of the NTS. At present, the structure remains open both along strike, to surface and at depth.
Bob Singh P.Geo is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh has been engaged through a third party service provider by Confederation Minerals Ltd. to manage the project, and is also the Canadian Exploration Manager for Redstar Gold Corp.
About Confederation Minerals Ltd.
Confederation Minerals Ltd. is a British Columbia based company engaged in the business of acquisition, exploration and development of mineral properties. Its objective is to locate and develop economic precious and base metals properties of merit. Confederation Minerals Ltd. holds an option agreement to acquire up to 70% of the Newman Todd project in the Red Lake Mining District of Northern Ontario as well as 100% ownership in two other properties in the Red Lake Mining District of Ontario.
On Behalf of the Board:
Brian Bapty, Ph.D.
Confederation Minerals Ltd.
Suite 1980, 1075
West Georgia Street
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forwardlooking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities.