Confederation Minerals Ltd. (TSX.V:CFM) is pleased to announce Matrix Diamond Drilling Inc. has been contracted to undertake a minimum 5,000 metre diamond drill program at the Newman Todd property, located in the Red Lake Gold District, Ontario. Mobilization and the initiation of drilling is anticipated in mid-May.
To date, drilling has focused on the Newman Todd Structure (NTS) where several zones of high grade gold mineralization have been drill traced for over a strike length 1.8 kilometres. A detailed geological interpretation, including 3-D modeling of the 2011 program which saw 24,707 metres drilled in 56 holes, is ongoing.
The current 3-D model has identified several targets within the Newman Todd structure which have not been drill tested including:
- shallow high grade targets such has Hole NT-072 which intersected 24.1 g/t over 1.0 meter at a vertical depth of 6.0 meters
- wide spaced drilling within the Hinge Zone where several > 20 g/t intercepts have been returned with up to 100 meter spaces between them.
- several near vertical to steeply plunging Silica/Sulphide/Magnetite replacement zones which remain open in all directions.
The majority of the 2012 program will target the Hinge Zone with hole locations designed to both fill in gaps within the existing 3D model and to optimize the geological information that may contribute to the development of a Preliminary Economic Assessment (PEA).
All work on the Newman Todd project is being funded by the operator, Confederation Minerals Ltd. (Confederation) (TSX.V:CFM). For a summary of results to date, refer to the Company’s website at www.confederationmineralsltd.com.
Development work completed, and areas of interest identified, on the project to date include:
- Confirmation of the existence of a large-scale, open-ended, gold-bearing hydrothermal system(approximately 2.2km long and over 500 meters of depth extent indicated by drilling);
- Confirmation of the continuation of high-grade gold in structurally-controlled zones from surface to a depth of at least 500 metres where it remains open ;
- Identification of key ore controls of high-grade gold mineralization within the NTS;
- Establishment of an all-season exploration camp to continue year-round exploration;
- Recognition of the deposit type as being similar to that of the high-grade zone at the Red Lake Mine.
Exploration work at the Newman Todd project is funded by Confederation Minerals Ltd. (Confederation) (TSX.V:CFM). Pursuant to an option agreement with Redstar Gold Corp. (“Redstar”), 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 it 200,000 shares. Confederation can earn an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016. During the earn‐in period, Confederation is the operator of the project.
Core samples from the program were cut in half, using a diamond cutting saw, and were sent to Activation Laboratories Ltd. in Red Lake Ontario, an accredited mineral analysis laboratory, for analysis. All samples were analyzed for gold using standard Fire Assay-AA techniques. Samples returning over 3.0 g/t gold were analyzed utilizing standard Fire Assay-Gravimetric methods. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream, as part of Confederation's quality control/quality assurance program.
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.
On Behalf of the Board:
Brian Bapty, Ph.D.
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Brian Bapty, President
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 forward-looking 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 laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.