2010 News Releases

Confederation Minerals Ltd. Options Newman Todd Project From Redstar Gold Corp.

 CONFEDERATION MINERALS LTD. OPTIONS NEWMAN TODD PROJECT FROM REDSTAR GOLD CORP.

Confederation Minerals Ltd (TSX.V:CFM) (www.confederationmineralsltd.com) and Redstar Gold Corp. (TSX.V:RGC) are pleased to announce that Confederation and Redstar have reached an agreement (the “Agreement”), whereby Redstar has granted Confederation an option to acquire up to 70% of Redstar’s Newman Todd project, located in the Red Lake Mining District of Northern Ontario. Previous work on the project has defined a gold-bearing structure that can be traced for at least 2 kilometres along strike, with extremely significant results returned from recent drilling. Potential is considered wide open along strike and to depth.

To date three gold zones have been identified on the property with gold values up to 61.2 g/t gold over 1.0 metre (within 5.0 metres of 14.23 g/t gold). Recent drilling by Hy Lake Resources - near the boundary of the Newman Todd property - confirms the continuation of the gold bearing structure(s) 800 metres north of Redstar's most northerly drilling. Posted on Redstar’s web site (www.redstargold.com) is a copy of a map showing a model of the Newman Todd structure and gold-bearing zones with the locations of Hy Lake's drilling near the claim boundary.
To exercise the option to earn an initial 50% interest, Confederation will be required to incur a cumulative of $5,000,000 of work expenditures on the Property, issue to Redstar a total of 500,000 shares of CFM and make payments to Redstar totalling $250,000 in the following manner:

(a) 100,000 shares and a $50,000 payment within 10 business days of approval of the Agreement by the TSX Venture Exchange;
(b) work expenditures of $2,000,000, issuance of 100,000 shares and a further $50,000 payment on or before the first anniversary of the Agreement;
(c) further work expenditures of $1,500,000, a further 150,000 shares and a further $75,000 payment on or before the second anniversary of the Agreement; and
(d) further expenditures of $1,500,000, a further 150,000 shares and a further $75,000 payment on or before the third anniversary of this Agreement.

To exercise the option to earn a further 20% interest, thereby increasing its overall interest to 70%, Confederation will be required to produce, at its own cost, a preliminary assessment of the Property and issue a further 500,000 shares to Redstar on or before the sixth anniversary of the Agreement, subject to minimum annual expenditures of $250,000 during the last three years of the option period. The parties also have agreed to form a joint venture following the exercise of the option by Confederation. The Property is subject to a two percent net smelter return and a fifteen percent net carried interest. The latter interest does not receive payment until capital expenditures have been recovered with interest. A finder’s fee is payable by Confederation with respect to the deal. Exercise of the option is subject to regulatory approval.

High-grade gold mineralization, within the Newman Todd Structural Zone, is associated with quartz veining, silicification, sulphide and magnetite replacement of intensely iron carbonate-altered breccia zones. High-grade mineralization is commonly found within wide zones of lower grade mineralization (e.g. NT-048: 26.8 g/t over 1.5 metres within 23.5 metres of 2.01g/t gold) and occurs as multiple, steeply dipping, parallel lenses.

Table of Significant Results


Hole

Zone

From (m)

To (m)

Width (m)

Gold (g/t)

NT-031

Heath Bull Zone

124.50

136.00

11.50

1.94

NT-031

Incl.

127.00

128.00

1.00

8.73

NT-031

209.50

228.00

18.50

4.62

NT-031

Incl.

225.00

228.00

3.00

24.89

NT-031

Incl.

226.00

227.00

1.00

69.02

NT-037

46.00

59.00

13.00

1.12

NT-037

and

175.00

175.70

0.70

5.27

NT-038

244.00

249.00

5.00

2.44

NT-038

and

248.00

249.00

1.00

6.20

NT-040

131.00

144.00

13.00

2.15

NT-040

Incl.

139.00

140.00

1.00

14.30

NT-040

197.00

264.00

67.00

1.76

NT-040

Incl.

219.00

221.00

2.00

9.88

NT-040

Incl.

220.00

221.00

1.00

15.00

NT-040

and

258.00

263.00

5.00

14.23

NT-040

Incl.

258.00

259.00

1.00

61.20

NT-047

359.00

363.00

4.00

4.42

NT-047

Incl.

360.70

362.00

1.30

12.84

NT-047

Incl.

360.70

361.35

0.65

24.86

NT-047

Incl.

361.00

361.35

0.35

45.30

NT-048

167.00

190.50

23.50

2.01

NT-048

Incl.

167.00

180.00

13.00

3.41

NT-048

And

167.00

168.50

1.50

26.80

NT-048

240.00

242.00

2.00

6.75

NT-048

Incl.

240.00

241.00

1.00

12.05

NT-051

298.00

299.00

1.00

4.46

NT-051

and

356.00

357.00

1.00

2.91

NT-055

55.00

57.00

2.00

3.13

NT-055

Incl.

56.00

57.00

1.00

5.68

NT-055

and

196.60

200.00

3.40

1.47

NT-055

Incl.

198.00

199.00

1.00

3.77

NT-055
and
292.0
293.0
1.0
24.0
NT-042
Hinge Zone
249.0
294.0
45.0
1.5
NT-042
Incl.
250.00
251.0
1.0
25.7
NT-046
160.50
191.0
30.5
1.85
NT-046
Incl.
169.0
174.0
5.0
7.78
NT-046
Incl.
171.0
174.0
3.0
10.87
NT-046
Incl.
173.00
174.0
1.0
23.5
NT-046
233.70
234.9
1.2
4.31
NT-046
Incl.
234.60
234.9
0.3
15.7
NT-053
124.00
125.0
1.0
3.61

NT-053

and

264.00

276.00

12.00

1.04

NT-053

Incl.

268.00

270.00

2.00

3.36

NT-053

and

298.00

311.00

13.00

1.00

NT-053

Incl.

301.00

306.00

5.00

2.01

NT-053

and

335.00

338.00

3.00

3.76

NT-053

Incl.

335.00

336.60

1.60

6.56

NT-053

and Incl.

335.50

336.00

0.50

11.60

NT-053

and

343.00

345.00

2.00

5.13

NT-053

including

343.00

344.00

1.00

6.96

NT-050

and

250.00

251.00

1.00

3.90

NT-050

and

268.00

270.00

2.00

3.06

NT-035

NE Breccia Zone

6.00

7.00

1.00

9.28

NT-036

13.00

14.00

1.00

6.67

NT-036

and

231.00

256.43

25.43

1.46

NT-036

Incl.

231.00

233.00

2.00

12.08

NT-036

Incl.

232.00

233.00

1.00

16.35

NT-039

158.00

160.00

2.00

7.60

NT-039

Incl.

158.00

159.00

1.00

14.00

NT-039

and

217.00

218.00

1.00

7.34

NT-043

88.00

97.00

9.00

2.96

NT-043

Incl.

91.00

93.00

2.00

6.24

NT-052

346.00

346.60

0.60

4.55

NT-054

37.00

38.00

1.00

3.40

NT-054

and

234.90

235.90

1.00

5.32

NT-054

and

275.00

282.10

7.10

1.36

NT-054

Incl.

276.00

278.00

2.00

3.68

NT-054

and Incl.

276.00

276.50

0.50

6.61

Mr. Lawrence Dick, Ph.D., P.Geo and President of Confederation, stated: “We are delighted to have joined with Redstar in the continuing, successful exploration to advance the high-potential Newman Todd gold project in the Red Lake District. Our objective is to expand on the Red Lake-style gold mineralization discovered on Redstar’s favourably-located Newman Todd project, located in a geological setting similar to that of the famous Red Lake deposits. The tenor of the gold geochemical results from recent drilling, which reach very high grades locally, bode well for the future of the project. We plan a drill- intensive program to add to the highly-favourable results obtained to date, beginning this winter.”

Scott Weekes, President Redstar stated "We are extremely pleased to have signed this agreement with Confederation which will guarantee an aggressive drill program on Newman Todd early in 2011. Redstar and Confederation are committed to aggressively exploring this developing gold system in Red Lake. The recent drilling by Hy Lake Resources - near the boundary of the Newman Todd property - confirms the continuation of the gold bearing structure 800 metres north of Redstar's most northerly drilling. Only about 40% of the 2.0 kilometre long strike extent of the Newman Todd Structural Zone that exists on the property has been tested and three gold zones have been identified. Newman Todd has advanced with every phase of drilling and this agreement facilitates the largest drill program yet on the property."

 

On Behalf of the Board,
Redstar Gold Corp

"Scott Weekes"

Scott Weekes
President

On Behalf of the Board, 
Confederation Minerals Ltd. 

“Lawrence Dick”

 Lawrence Dick 
President 

Bob Singh P. Geo., a qualified person as defined by National Instrument 43-101, has reviewed the technical aspects of this news release. Bob Singh is the Canadian Exploration Manager for Redstar Gold Corp.

Forward-Looking Information
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 Redstar Gold Corporation (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.

 

TSX.V:RGC TSX.V:CFM
www.redstargold.com www.confederationmineralsltd.com
SUITE 615 Suite 1980
800 WEST PENDER STREET 1075 West Georgia Street
VANCOUVER, BC Vancouver, B.C.
TEL: 604.488.0051 TEL: 604.688.9588
 
CORPORATE INQUIRIES CORPORATE INQUIRIES
Tim Mikula, Investor Relations Lawrence Dick. Pres.
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TEL: 604.488.0051 TEL: 604.688.9588