Vancouver, B.C.; April 11, 2011: Confederation Minerals Ltd. (TSX.V:CFM) and partner Redstar Gold Corp. (TSX.V;RGC) are pleased to announce a major expansion of the drill program at the Newman-Todd gold property, located in the Red Lake area of Ontario. A minimum of 12,000 meters of diamond core drilling are planned.
The reason for the expansion is the return of extremely encouraging assay results from the first six hole diamond drill hole program recently completed on the property and reported on in recent press releases (see also Confederation Minerals Ltd. web site at www.confederationmineralsltd.com). As a result, a second drill will be added to the program when drilling resumes after spring break-up. Initial results from the 2011 first phase drill program (completed in March, 2011) included significant results, including a 3.0 meter intersection that graded 42.84 g/t gold, including 1.0 meters grading 122.0 g/t gold (see press release dated March 14, 2011).
Exploration work at Newman-Todd is being funded by Confederation Minerals Ltd, who can earn a 50% interest in the project by spending $5.0 million within three years, and can earn an additional 20% (for a total of 70%) by producing a Preliminary Economic Assessment (PEA) within six years. The increased expenditures will likely see Confederation Minerals expend $5.0 million over a significantly shorter time period than anticipated.
Bob Singh, the Newman-Todd project manager comments: “ to date we have drilled 33 holes into the Newman-Todd structure (NTS),along a strike length approaching two kilometers, with gold mineralization intercepted in every drill hole, including high-grade intercepts that are proving to be robust zones with width potential. High-grade intervals are hosted within wide sections of lower grade gold mineralization, often associated with silica-sulphide-magnetite replacement zones. We are currently modeling the entire geochemical database, with the objective of determining lateral and vertical trends of the mineralized zones. Our 3-D modeling is showing multiple, sub-parallel, steeply-dipping high-grade zones, within the widespread alteration of the NTS. We look forward to further drilling which will include in-fill drilling in the known mineralized areas, and to determine the true geometry of the gold zones discovered thus far. In addition to the infill drilling, we will also test along the strike of the minimum 2 kilometer NTS, where step-out drilling of over 1 kilometer has intersected gold mineralization.”
Lawrence Dick, Ph.D., P.Geo., President and CEO of Confederation adds: “The spring, 2011 drill program, which will employ two drills, rather than the originally anticipated one drill, will continue to focus on the NTS, the change being that previous results require follow-up to determine geometry of the ore shoots, while the second drill will target the multiple targets over approximately 2 kilometers of potential ground, and where previous drilling has intersected significant gold zones. The style of alteration and mineralization at the NTS is similar to that recognized at the major mines in the Red Lake Camp. To date, most of the drilling has taken place in three areas along the NTS: the Heath Bull Zone, the Hinge Zone, and the NE Breccia. The majority of the drilling has been completed on the Heath Bull Zone, where several intercepts grading above 60 g/t have been discovered. It is now time to step up our activities on this promising discovery, and focus on two fronts: determine continuity and morphology of the known zones of mineralization, and step out to explore the entire NTS. For this we will require two drills at a minimum”.
Planned 2011 Program
The Newman-Todd camp is currently being expanded to accommodate two drills and additional geological personnel. Drilling will resume once break-up has ended, likely during the first days of May. One drill will focus on following up on known mineralized zones, while the second drill will continue to step out along the NTS between previously-discovered zones of known gold mineralization. Detailed structural mapping will assist in drill hole placement. A minimum of 12,000 meters of diamond drill core is planned between the spring and the onset of winter condition making this the most comprehensive drill program ever carried out on the property.
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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