Confederation Minerals Ltd. (TSX VENTURE: CFM)
(www.confederationmineralsltd.com) and joint venture partner
Redstar Gold Corp. (TSX VENTURE: 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
sub-vertically. 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 gold-bearing 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, Red Star 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 Red Star 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 Red Star
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.
Forward-Looking Information
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.
Contacts: Confederation Minerals Ltd. Lawrence Dick President
604.688.9588 778.329.9361 (FAX) lawrence.dick@barongroupintl.com
www.confederationmineralsltd.com
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