Vancouver, B.C., March 14, 2011, Confederation Minerals Ltd. (TSX.V:CFM); (www.confederationmineralsltd.com) and joint venture partner Redstar Gold Corp. (TSX.V:RGC) are pleased to announce early drill core assay results from the first two holes of their planned 9,000 meter diamond drill program at the Newman Todd gold project, located in the Red Lake Mining District of Northern Ontario. Pursuant to an option granted by Redstar Gold Corp., Confederation Minerals Ltd. 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 first hole of the currently‐ongoing program intersected three zones of significant, high‐grade gold mineralization as well as additional zones of lower grade, yet highly‐significant mineralization. Grades such as: 7.0 m grading 18.87 g/t gold; 3.0 m grading 42.84 g/t gold; 1.0 m grading 122.0 g/t gold; 3.0 m grading 22.49 g/t gold; 1.0 m grading 63.60 g/t gold; 8.6 m grading 5.03 g/t gold; 1.10 m grading 32.60 g/t gold; 0.5 m grading 62.90 g/t gold, etc. were all obtained from the first hole.
The first two holes are collared in the SW sector of the +2 km long trend of the Newman Todd structural‐alteration zone covered by the property, variably up to 250 meters wide, and dipping subvertically. Results from the two holes have returned multiple, very high grades of gold mineralization in silicified, quartz‐carbonate altered host rocks similar to those which host other, important deposits in the district. The first two holes, presented here, form a fence collared approximately 20 meters SW of previous drilling to determine lateral and vertical continuity. The second fence, results of which are still in the assay lab, is collared approximately 20‐25 meters NE of previous drilling to determine lateral and vertical continuity in that direction.
Highlights of the three, highly‐anomalous core length assay intervals from the first hole of the current program (NT‐056) are tabulated below. For a graphic representation of the relationship between the currently‐reported results, historical results, and the depth and on‐strike extension potential of the Newman Todd discovery, please refer to the Company website (www.confederationmineralsltd.com).
Drill Hole NT‐056
First Zone (197.0 m to 213.0 m down the hole):
- 197.0 m to 213.0 m (16. m) grading 8.63 g/t gold; including
- 199.5 m to 211.0 m (11.5 m) grading 11.78 g/t gold; and including
- 204.0 m to 211.0 m (7.0 m) grading 18.87 g/t gold; and including
- 208.0 m to 211.0 m (3.0 m) grading 42.84 g/t gold; and including
- 208.0 m to 209.0 m (1.0 m) grading 122.00 g/t gold
Second Zone (275.0 m to 278.0 m down the hole):
- 275.0 m to 278.0 m (3.0 m) grading 22.49 g/t gold; including
- 275.0 m to 276.0 m (1.0 m) grading 63.60 g/t gold
Third Zone (366.55 m to 377.50 m)
- 366.55 m to 377.50 m (10.95 m) grading 4.16 g/t gold; including
- 370.90 m to 379.50 m (8.60 m) grading 5.03 g/t gold; and including
- 370.90 m to 371.40 m (1.10 m) grading 32.60 g/t gold; and including
- 370.90 m to 371.40 m (0.50 m) grading 62.90 g/t gold
** width represents core length and does not reflect true width. Assays are uncut and do not exceed
more than 3.0 metres of less than 0.50 g/t in averaged intervals.
Drill Hole NT‐057
A second hole for which assays have been returned, NT‐057, was drilled much shallower, and from the same drill platform as the first hole. Three anomalous intervals, each of 1.0 meter length, returned 9.27, 4.03, and 3.77 g/t gold between 155.0 and 195.0 m core lengths. Assay results from four additional drill holes spaced up to 1.2 kilometers towards the NE of hole NT‐056 and NT‐057, are pending.
Drill hole NT‐056 intersected three high‐grade, gold‐mineralized zones within a previously‐drilled goldbearing zone referred to as the Heath Bull Zone. While previous drilling was not of the tenor, nor as extensive, as the first program of 2011; the results were nonetheless significant (with individual intersections grading up to 61.2 g/t gold over a 1.0 meter length, and 14.23 g/t gold over a 5.0 meter length) and clearly warranted follow‐up (for a complete list of previous drill results on the Newman Todd property, refer to the Company’s website and previous press release dated November 22, 2010). Gold‐bearing zones are associated with visible gold, magnetite, pyrite and pyrrhotite within strongly deformed quartz‐carbonate alteration zones. Widespread iron‐carbonate and silica alteration is associated in both holes and is associated with wide haloes of anomalous gold mineralization.
Dr. Lawrence Dick, Ph.D., P.Geo, President and CEO of Confederation Minerals Ltd. states: “We are extremely excited with these outstanding results from the first two holes of our planned, 9,000 meter program to be completed this calendar year, and are very optimistic for the future of exploration of this very strongly‐mineralized, and structurally‐prepared gold system. We consider this, hole NT‐056, a truly discovery hole on the project. The Company has a cash balance of approximately $12 million, much more than sufficient for carrying out an aggressive, two‐drill program for the remainder of the year.
“The first two holes were designed to test on‐strike and depth extensions of previous, highly anomalous results from limited past drilling. Our geological model has shown positive results, with hole NT‐056, the deepest hole drilled to date which has intersected multiple gold‐bearing zones (although still relatively shallow when compared to the exceedingly deep continuity of similar systems in the Archaean gold camps) intersecting three, discrete high‐grade zones, with weaker grades forming wide haloes between them. The Newman Todd hydrothermal‐structural system, which extends along strike for over 2.0 km, has only been tested by shallow drilling over a very small portion of the potentially gold‐hosting zone, while previous, limited drilling has proven the system to be gold‐bearing over much of its length. What remains is to seriously drill test the entire prospect, using detailed geological interpretations, on a hole by hole basis, as our guide. To this extent we are fortunate to have a well‐funded treasury with which to re‐initiate drilling with two diamond rigs, once break‐up is finished. Our plans are for one drill to carry on extending the known gold‐bearing zones to depth and along strike, while the second rig probes those extensive parts of the structural‐alteration system for additional mineralized centers, and hopefully to prove continuity along significant strike lengths and depths. We are also extremely fortunate to have inherited the high quality exploration and interpretive work carried out by our joint venture partner, Redstar Gold, prior to Confederation’s involvement. With these results, the exploration at Newman Todd will become a major advanced exploration play in the Red Lake greenstone belt, home to some of the highest‐grade gold deposits on earth.”
Both holes NT‐056 and NT‐057 were drilled on Section 1375NW in the previously‐named “Heath Bull Zone” (refer to maps posted on web site) This so‐called “Zone” is so‐named only because previous logistics have dictated that drill collars be positioned in this area. In fact, the NE‐SW‐trending zone of structural deformation, brecciation, and intense quartz‐carbonate alteration extends, within the confines of the property, for at least 2 km . Previous drilling by Redstar Gold has intersected gold mineralization along the length of this trend, indicating significant strike potential to the potential mineralized zone.
Drill hole NT‐056 returned the deepest high grade intercept on the property to date. At that, total depth below surface was only approximately 300 meters. Gold deposits in the camp, for example the Campbell Red Lake deposit, maintain high gold grades many thousands of feet below surface. The shallow nature of the Newman Todd intersections bode well for lower cost exploration, using shallower drill holes, during the early stages of exploration.
Given the typical nugget‐like dispersion of gold in high‐grade Archaean gold systems, lower‐grade intersections, such as those which occur intermediate to higher‐grade intersections, could very well be indicative of the proximity to much higher‐grade gold mineralization.
On Behalf of the Board,
Confederation Minerals Ltd.
Lawrence A.Dick, Ph.D., P.Geo
President, CEO, and Director
Mr. Bob Singh, P.Geo., a qualified person as defined by National Instrument 43‐101, has reviewed the technical aspects of this news release. Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp., and has overseen the drilling on site, and carried out the required QA‐QC procedures to ensure quality control of sample handling, analyses, and reporting. Geochemical assaying and preparation were carried out by ALS Chemex in Thunder Bay, Ontario.
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Lawrence Dick, President
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 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.