Vancouver, B.C.; March 24, 2015; Confederation Minerals Ltd. (TSX.V:CFM; OTCQX:CNRMF): ("Confederation" or the "Company") is pleased to announce that it has increased its ownership in the Newman Todd property (the "Project") located in the Red Lake Mining District of Northern Ontario to a 70% undivided legal and beneficial interest. The increase came from the exercise of the final option in the previously announced Option Agreement made as of November 19, 2010 with Redstar Gold Corporation ("Redstar").
Exercise of the final option required the preparation of a preliminary economic assessment ("PEA") of the Project, which was previously announced and can be found on SEDAR, and the issue to Redstar of 500,000 shares of the Company, all of which are complete. The Option Agreement now calls for the formation of a joint venture between Confederation and Redstar to carry out further the development.
The Project contains the Newman Todd structure (the "NTS"), which is a large-scale alteration/deformation zone within the Red Lake Greenstone Belt that can reach hundreds of meters in width at surface. It is also one of three principal areas within the Belt recognized for widespread iron-carbonate alteration. The other two principal areas exhibiting similar geological characteristics are the Campbell Red Lake Mine and the East Bay Deformation Zone – host to Rubicon's Phoenix zone.
The bulk of the work to date consists of 138 diamond drill holes, totalling 51,328 m with 1,719 down hole surveys and 45,300 gold assays, testing the NTS, which accounts for most of the gold discovered on the Project. It has been tested to a strike length of 1.8 kilometers and is believed to stretch over the entire length of the Project, a distance of approximately 2.2 kilometres (see Press Release dated October 23, 2014).
Early drilling on the NTS targeted three primary gold-bearing zones (Heath Bull, Hinge, and North Breccia). However, more recent exploration suggests that there are over 20 individual high-grade zones along its current strike length. These zones are interpreted as near-vertical to steeply plunging, structurally controlled bodies. Drilling has yielded numerous very high-grade intersections, many greater than 20 g/t gold, with individual values up to 343 g/t.
Much of the drilling is wide‐spaced with the highest drilling density in the Hinge Zone and the Heath Bull Zone where drill centres are approximately 25 metres and holes run to a depth of about 300 metres. However, drill hole NT‐129 was completed to a drilled depth of 1024 meters, or 982 meters true depth below surface and confirmed that the NTS maintains its substantial width and strongly altered character for nearly 1 kilometer below surface. At 832 meters true depth the hole intersected 7.89 grams per ton (g/t) gold over 2.0 meters, including 1.0 meters grading 10.60 g/t gold, and three other one meter intersections grading between 4.06 and 8.01 g/t gold (see Press Release dated January 18, 2013). Thus, hole NT‐129 has shown that the gold mineralizing processes were operative to a depth of at least 832 meters below the surface and approximately 500 meters below the majority of the drill intersections obtained to date. Great depth continuity is a characteristic of mesothermal gold deposits such as Campbell Red Lake and others in northern Canada, where ore bodies may continue to depths exceeding 2 kilometers below surface.
Mr. Lawrence Dick stated, "We have had unprecedented exploration success with gold intercepted on almost every hole along the 1.8km NTS, including a consistent trend of increased grades along the hanging wall contact. We have a small region in the Hinge Zone at the centre of the property where drill density and grade are starting to contribute to something economically meaningful. Expanding this zone laterally and to depth is our goal and we look forward to sequential positive updates to our existing model."
For further details regarding the scientific and technical information contained herein and the data in support thereof, please see the Company's Amended & Restated Technical Report dated effective January 12, 2015 and filed on SEDAR. Lawrence Dick, Phd., P.Geo. and President of the Company, is a Qualified Person as defined by National Instrument 43‐101 and has reviewed and approved the disclosure in this press release.
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 owns 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 of Directors,
Confederation Minerals Ltd.
Lawrence A.Dick, Ph.D., P.Geo
President and Director
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Lawrence Dick, CEO
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.