2013 News Releases

Confederation Completes Winter Phase of Drilling

Confederation Completes Winter Phase of Drilling at Newman Todd: Detailed Drilling Within Small Sector of 1.8 Kilometer Mineralized Trend Continues to Intersect Widespread Gold Mineralization at Shallow Depths

Vancouver, B.C.; July 3rd, 2013; Confederation Minerals Ltd. (TSX.V:CFM; OTCQX:CNRMF): (“Confederation” or the “Company”) is pleased to announce the final assay results from the 2012/13 winter drilling program at their Newman Todd gold project in the Red Lake District, northern Ontario. Confederation has the option to earn a 70% interest in the Newman Todd prospect from Redstar Gold Corp. (RGC:TSX.V).

As well, we report on interpretations regarding the Company’s maturing geological and geochemical understanding provided by the substantial data now available from the 150 diamond drill holes completed along the 1.8 kilometers of the Newman Todd structural-alteration zone identified to date. The Newman Todd Zone varies from approximately 70 to 200 meters in width, hosts intense iron-carbonate alteration, is gold-bearing along its entire 1.8 kilometer length within the property, and remains open to the southwest. Gold mineralization is associated with silicification, and sulphide and magnetite replacement of the iron-carbonate alteration. Detailed drilling during the recent winter program has identified lithologically-controlled zones of high-grade gold mineralization, within larger zones of lower-grade mineralization, such as that reported in the Company’s press release from May 1st, 2013 (7.0 meters grading 32.57 g/t gold).

The final two holes, NT-149 and NT-150, were drilled on section 1600 NW (refer to Figure 1), both returning significant gold intersections, such as:

  • 1.0 meters grading 17.86 g/t gold including 0.5 meters grading 26.40 g/t gold in hole NT-149
  • 1.5 meters grading 8.14 g/t gold including 0.5 meters grading 12.80 g/t gold in hole NT-150

Drilling highlights of the final two holes of the winter program are tabulated below:

Table 1: Significant Results

HoleID

From (m)

To (m)

Width (m)

Au (g/t)

NT-149

76.0

77.5

1.5

3.04

NT-149

and

84.0

86.0

2.0

3.29

NT-149

and

104.0

113.5

9.5

2.42

NT-149

including

109.0

113.5

4.5

4.53

NT-149

and including

112.5

113.5

1.0

17.86

NT-149

and including

112.5

113.0

0.5

26.4

NT-150

136.0

136.5

0.5

7.89

NT-150

and

143.5

145.0

1.5

8.14

NT-150

including

143.5

144.0

0.5

12.8

NT-150

and

190.0

191.0

1.0

3.88

NT-150

and

195.0

197.0

2.0

2.28

 

 

 

 

 

 

 

 

* 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 3 metres unless otherwise indicated

Nearly every hole drilled into the Newman Todd Structure has intersected zones of gold mineralization grading 3 g/t gold or higher, along the entire 1.8 kilometer strike length (refer to previous news releases and the Company’s website at www.confederationmineralsltd.com). The early, wide-spread (50 meter centers) drilling along the length of the 1.8 kilometer zone indicated a very voluminous gold-bearing system with gold mineralization being intersected by the drilling along its entire length.

Given the length and magnitude of the Newman Todd gold system, including the intersection of gold along the strike length of the system from near surface to over 800 meters depth (refer to previous news releases), the volume of gold-hosting rock is potentially extremely large.

Drilling during the 2012-2013 winter drilling phase focused on a restricted strike length along the Newman Todd Structure. This approximately 375 meter-long segment is referred to as the “Hinge Zone”, where geological and geophysical evidence suggest a bend in the Newman Todd structural corridor. The objectives for constraining the drilling to a restricted area, completed on tightly-controlled cross sections, were as follows:

  • Close spaced drilling was used to determine the morphology of high grade gold bodies (such as the 7.0 meters of 32.57  g/t gold intersection - refer to May 1st, 2013 press release);
  • Drilling on frozen terrain enabled further exploration of the Newman Todd Structure within the Hinge Zone to determine if gold mineralization continued up towards the surface, which proved positive;
  • Interpreted high-grade gold zones were followed laterally along strike, especially towards the north, where mineralization remains open;
  • The observation that a lithological control, in this case a pre-mineralization intrusive apophysis, may be acting as a fluid trap (see Figure 2). This less permeable trap caused ponding of fluids and deposition of higher-grade mineralization below it. This hypothesis was tested and proved to have significant merit, guiding the placement of subsequent, geologically placed holes;
  • The objective of restricting the drilling to a short strike length of the entire structure was to understand, on a smaller scale, the controls on mineralization that likely mimic those which acted along the entire structure within the confines of the property (over 2 kilometers). To date, the drilling has shown that gold mineralization is present from near surface (in fact, high-grade gold mineralization has been returned from surface trenches ) to the deepest hole which bottomed at approximately 1 kilometer in depth and still within the Newman Todd alteration-structural zone. This deep hole returned gold intercepts similar to those returned from much shallower mineralization intercepts, indicating that the gold mineralization is open to depth, just as it is along strike;
  • Given the potential size of the Newman Todd mineralized system, a significant amount of additional drilling would have to be completed to permit the entire system to be brought to a confidence level where a resource could be calculated. Therefore, as a first step, a detailed drill investigation of one small part of the system (the Hinge Zone) was undertaken. This spatially restricted exploration was carried out to provide geological and geochemical data from which an extrapolation of the Hinge Zone results (to depth and along the entire strike of the Newman Todd system) would provide an estimate of the quantity of gold which might be expected to be present in the system.

Future drilling will be oriented towards tight step-out drilling towards the north. In this regard, it is significant that the widest intersection (7.0 meters grading 32.57 g/t gold) was returned from a shallow hole located on the northern-most section, drilled near the end of the winter program. This zone will be followed up, and similar zones potentially identified, as the drilling progresses north.

Lawrence Dick, Phd., P.Geo., CEO of Confederation states: “As an exploration philosophy, Confederation’s management emphasizes the criteria that the ‘small scale (Hinge Zone) mimics the large (the entire Newman Todd Structure).’ Thus, by identifying controls on mineralization in the relatively small Hinge Zone area, the Company will be much more efficient in the placement and orientation of additional drilling along the entire structure.

The Newman Todd structural zone contains an immense volume of potentially gold-bearing rock, as indicated by our drill results so far, and as detailed in previous news releases and on our web site. A system of this magnitude and gold tenor, as indicated by our drill results, represents the discovery of a new gold system which contains many of the important geological and geochemical criteria of world-class gold deposits which are hosted by Archean rocks in northern Canada.” 

Other activities are progressing as planned:

  • Mining Plus Inc., a mining consulting firm, is continuing with their study, as part of a PEA using data from the Hinge Zone and elsewhere on the property, to provide guidance to the Company regarding open pit and underground options,  preliminary resource evaluations, capital cost estimates, mining costs and other aspects of project economics;
  • Management expects the PEA to include a relatively small resource as it will include only limited drilling when viewed in the context of such a large strike length of gold mineralization along the Newman Todd Structure, as indicated by previous, widespread drilling. Therefore, it must be borne in mind that this initial resource will represent only a small percentage of the entire, gold-bearing system, and will be used to extrapolate what a much larger percentage of the entire system may contain as a total gold resource;
  • Stantec Consulting Ltd. is continuing with their environmental baseline studies and a road map towards permitting the project for all eventualities regarding open pit and/or underground mining;
  • Cross section and level plan interpretations are ongoing and will form the basis of continued drilling done in 2013.

This press release was written by: Lawrence Dick, P.Geo, Ph.D.

Andrea Diakow, P.Geo, is the Qualified Person as defined by National Instrument 43-101 and has reviewed the technical content relating to the disclosed drill results in this news release. 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. 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.

About CFM

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 another property in the Red Lake Mining District of Ontario.

On Behalf of the Board:

“Brian Bapty”

Brian Bapty, Ph.D.
President and Director

CORPORATE INQUIRIES
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Vancouver, B.C.
Brian Bapty, President and Director
604-652-3950

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www.confederationmineralsltd.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news 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", “proposes”, "project", "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.

Figure 1: Cross Section 1600NW Showing Geology and Assay Highlights

 July-3rd-insert-fig-1-resized

Figure 2: Cross Section 1975NW Illustrating Possible Lithological Control on Higher-Grade Mineralization 

Figure-2-July-3rd-resized