Confederation Minerals Ltd. (TSX-V: CFM) is pleased to report the results from the first two drill holes from the recently-initiated summer phase of our on-going drill program at the Newman Todd gold property in the Red Lake Gold District, Ontario. Approximately 12,000 meters utilizing two diamond drill rigs are planned in this current phase, which may be expanded depending on results.
The results of the first two holes, which are wide step-outs from earlier drilling phases, have returned similar, high-grade gold intersections of Red Lake-style gold mineralization within a major zone of quartz-carbonate alteration localized by a regional-scale, through-going zone of shearing and brecciation (the Newman Todd Zone or NTS). Both holes (NT-062 and NT-063) were drilled from the same setup, oriented perpendicular to the elongate trend of the NTS, with NT-063 the steeper hole of the two, oriented to intersect the anticipated gold-bearing structures at a deeper level.
Results as high as 18.25 g/t gold over a 5.0 meter core interval, which includes a 2.7 meter interval grading 32.43 g/t gold and including an extremely high-grade 0.7 meter interval of 103.0 g/t gold, were intersected in the shallower of the two holes, NT-062. As is the case with many other high-grade gold intersections at Newman Todd, this intersection was returned from an interval of just 170 to 175 meters, even shallower in terms of true depth below surface given the fact that all drill holes are angled. Therefore, gold mineralization at Newman Todd is being discovered at relatively shallow depths below surface.
In addition to the assay results reported above, many very highly-anomalous intersections were reported from both holes, all of which are tabulated in the table below. Examples include: 5.32 g/t gold over 19.0 m (hole NT-062); 8.86 g/t gold over 1.0 m (hole NT-062); 27.30 g/t gold over 0.5 m (hole NT-063); and 8.11 g/t gold over 0.5 m (hole NT-063). As shown in the table, 24 separate intervals assayed between approximately 2.0 and 8.0 g/t gold. The overall anomalous nature of hole NT-062 can be further illustrated by the fact that a 63.0meter long interval averaged 1.65 g/t gold. These lower-grade intersections may indicate the presence of nearby, higher-grade zones of gold mineralization.
The high grade, 103 g/t gold assay reported above is the highest-grade gold intersection returned from drilling outside of what has been referred to as the Heath Bull Zone, along the same structural-alteration zone, approximately 600 meters to the SW.
These results have been returned from the first two holes (NT-062 and NT-063) of the recently-initiated summer drilling program which will comprise at least 12,000 additional meters targeting a 2 km-long zone of alteration and deformation within the NTS. They reflect the results of two holes, both drilled from the same collar location but at different angles, as wide step outs distant from earlier holes which have returned similar high-grade gold values. The two holes are located approximately 170 meters northeast of what has previously been referred to as the Hinge Zone and 120 meters southwest of what has previously been called the NE Breccia in an area between two gold-bearing zones where no previous information has previously been gathered.
A map showing the location of holes NT-062 and NT-063, along with all previous holes drilled at Newman Todd, can be viewed on the Company’s web site at www.confederationminerals.com. The website also lists all significant assay results from previous drilling and the major characteristics of the property geology as well as all previous news releases.
Lawrence Dick, Ph.D., P.Geo., states: We are very excited to continue to intersect high-grade gold in a classic Archean, mesothermal gold environment, similar in many aspects to those of the world-class deposits in northern Canada and elsewhere. We have not failed to intersect gold mineralization in any of the 63 holes drilled to date. Sufficient data is now becoming available to begin modeling the continuity of the various vein systems in the NTS, over which we have now intersected gold over a 2.2 kilometer strike length. Both lateral and vertical continuity of the various mineralized zones, principally hosted by quartz-magnetite accumulations in sub-vertical structures, are beginning to be recognized. The two holes NT-062 and NT-063 were very wide step-outs from previously-known gold-bearing holes (see below) and the fact that we have intersected significant mineralization indicates that we are likely beginning to demonstrate an approximately 2-km long zone that is mineralized from one end to the other. Our earlier concept of “zones” was purely a matter of where earlier drills were collared. Mineralization, confined to one large and continuous zone of quartz-carbonate alteration and structural deformation, appears nearly identical from hole to hole over the entire 2.2 km strike length of the NTS adding to the current concept that the mineralized zone may be continuous along the entire strike of the zone. Our program of step-out drilling is showing our team that we have the potential for a mineralized system which may be much more continuous than we considered when much less information was available. We look forward to continuous results from our two-drill program throughout the summer; one drill expanding on known mineralized sectors, while the second drill continues step-outs along strike of the NTS at approximately 100-meter spacings”.
Gold mineralization at Newman Todd occurs within sulphide-magnetite replacement zones and along contacts with mafic and felsic volcanic units within the NTS. Lower-grade zones of gold mineralization described above also occur within wide areas of the same sulphide-magnetite style of replacement. At present high grade zones are believed to be steep to north-west dipping zones of focused fluid movement along faults, contacts and within high sulphide-magnetite zones. For example, the high-grade intercept in Hole NT-062 occurs approximately 50 meters vertically above the highest grade intercept encountered in hole NT-063 indicating, along with numerous other examples, a vertical continuity to the mineralization.
The exploration at Newman Todd is being funded by Confederation Minerals Ltd. who is optioning the project from Redstar Gold Corp. (TSX-V: RGC). Confederation can earn a 50% interest in the project by spending $5.0 million in exploration within three years, and an additional 20% by producing a Preliminary Economic Assessment (PEA) within six years. The current work program (summer 2011) includes 12,000 meters of drilling utilizing two drills. One drill is focusing on following known mineralization with 25- to 50-meter step-outs while the second drill is testing the two kilometer strike of the Newman Todd Structure (NTS) on 100-meter step-outs.
Table of Significant Assay Results from Newman Todd Holes NT-062 and NT-063
|Hole||From (m)||To (m)||Au (g/t)||Width (m)|
Bob Singh P.geo is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp. 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 in Red Lake, Ontario 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 Redstar's quality control/quality assurance program.
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,
Confederation Minerals Ltd.
Lawrence A.Dick, Ph.D., P.Geo
President, CEO, and Director
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Lawrence Dick, President
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