Vancouver, B.C.; Oct 31st, 2013; Confederation Minerals Ltd. (TSX.V:CFM; OTCQX:CNRMF): (“Confederation” or the “Company”) is pleased to announce that, pursuant to the previously announced “Option Agreement” made as of November 19, 2010, with Redstar Gold Corporation ("Redstar”), whereby Redstar granted Confederation an option (the “First Option” )to earn a 50% undivided legal and beneficial interest in and to its Newman Todd property in the Red Lake Mining District of Ontario, the Company has duly exercised the First Option and now holds a 50% undivided legal and beneficial interest in and to its Newman Todd property.
The Option Agreement also granted the Company a second option (the “Second Option”) to earn an additional 20% undivided legal and beneficial interest in and to the Newman Todd property following the exercise of the First Option. To exercise the Second Option, Confederation must prepare a preliminary economic assessment (“PEA”) of the Newman Todd property and issue an additional 500,000 shares of Confederation to Redstar on or before November 19, 2016.
With respect to the PEA, the Company continues work with the engineering firm Mining Plus to ensure the required components of a NI 43-101 compliant report are in order. One request from Mining Plus was that additional ground be acquired to ensure sufficient land for mining and processing related infrastructure. Confederation is pleased to report that approximately 64 hectares (158 acres) of suitable ground has been staked. The additional ground acquired by Confederation lies outside of the “Area of Interest” determined in the Option Agreement and therefore does not affect the agreement with Redstar.
The results of the summer 2013 drill program have yet to be included in a resource estimate and a recently commissioned final report from a structural geologist remains outstanding. These results, as well as the final report from the structural geologist, will contribute to both timing of the PEA and plans for a winter drill program.
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.
This press release was prepared by Brian Bapty, Ph.D., President and Director of Confederation.
On Behalf of the Board:
Brian Bapty, Ph.D.
President and Director
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Brian Bapty, President and Director
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.
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.