Vancouver, B.C., April 8, 2013: Confederation Minerals Ltd.
(TSX.V: CFM): ("Confederation" or the "Company") is pleased to
announce the retention of Mining Plus Ltd. to carry out a
Preliminary Economic Assessment (PEA) for a component of the 1.8 km
strike length of currently identified gold mineralization at the
Newman Todd gold project. Additionally, the Company is pleased to
announce the most recent drill results from 11 diamond drill holes
of the ongoing winter program.
For comprehensive descriptions of the Newman Todd project, along
with all previous press releases, and a complete list of assay
highlights for every hole completed on the property, please refer
to the Company's website at www.confederationmineralsltd.com.
Preliminary Economic Assessment and Related Studies
Confederation is pleased to announce that Mining Plus Ltd. has
been contracted to prepare a NI 43-101 compliant Preliminary
Economic Assessment (PEA) supported by current results from the
Newman Todd property. Under the terms of the Option Agreement with
Redstar Gold Corporation (TSX.V: RGC), Confederation Minerals can
increase its earned interest in the Newman Todd Property from 50%
to 70% by providing a Preliminary Economic Assessment (as the term
is defined in National Instrument 43-101) and issuing to Redstar
500,000 shares of Confederation prior to November 19, 2016. A
resource estimate is part of the work to be done. This must be
completed before the economic analysis can be disclosed.
The highest diamond drill density and most defined geological
data is from an area comprising the Newman Todd gold mineralized
system locally known as the "Hinge Zone", a zone of approximately
200 meters in strike length where the structural orientation of the
overall structural-alteration zone bends slightly. It is
anticipated that the majority of the PEA and the resource that will
support the report, will be generated from this localized region.
The PEA is anticipated to be completed this calendar year. Company
management views the PEA as a significant component of the
advancement of the Newman Todd project.
Within the Hinge Zone are a number of significant gold-bearing
mineralized zones. Drill data extending laterally along the 1.8km
strike length, and to a depth of approximately 1km, suggests a
significant number of additional zones and that these zones extend
laterally and "stack" vertically. Assessing the structure, geologic
controls, tonnage and average grade of candidate mineralized zones
within the Hinge region, in the context to the PEA, should provide
clear metrics for the evolution of the Newman Todd project and
significantly influence project development.
It is anticipated that extrapolation of information generated by
the PEA, along strike and to depth in a sequential, rational and
progressive fashion, will ensure shareholders are provided with a
clear understanding of the significant potential of Newman Todd in
the context of a business plan that significantly de-risks the
advancing exploration of the property.
Concurrently, Stantec Consulting Ltd. continues with
environmental baseline studies, while preliminary metallurgical
studies are being carried out by SGS Canada Inc.
The Newman Todd structural/alteration system, up to
approximately 200 meters in width, has returned gold grades in
nearly every hole drilled by Confederation, the gold hosted by
silicified, stromatolite-bearing carbonate breccia. The alteration
zone, which hosts the gold mineralization, has been intersected at
depths of up to approximately 1 kilometer and significant gold
intercepts were returned from depths of approximately 850 meters
below the surface. Therefore, a very large volume of Newman Todd
alteration (the host of all gold mineralization intersected to
date) is present on the property and remains open to depth.
Focusing the PEA on one component of the property, specifically
larger, well defined, near surface mineralized zones in the
vicinity of the "Hinge Zone", will provide an indication of what
will be required for the project to become economic. One objective
of the PEA will be to determine if the shallow part of the
mineralized system could be amenable to the development of a small,
starter open pit or whether underground mining would be the primary
alternative.
States Brian Bapty, President of Confederation: "Our plans are
to continue drilling, as infill, to depth, and along strike, with
the objective to sequentially expand the resource. We believe the
significant dimensions of the Newman Todd Structure, as defined by
the strike length and depth, will enable us to add many more
economically and geologically relevant mineralized zones such that
multiples of the initial resource are contemplated through
increasing the drill density and extending existing structures. As
the PEA will provide us with early-stage economic metrics, we will
use this data to guide the continuing exploration, and plan for
sensible advancement of the project. Start small, grow rationally,
and focus on adding shareholder value."
In summary, business development initiatives at Newman Todd for
the remainder of 2013 include:
-
1)Continue winter diamond drill program.
-
2)Initiate a spring/summer program after spring break-up,
designed to further extend the lateral extent of the current well
defined mineralized zones in the Hinge region.
-
3)Release PEA, inclusive of a resource estimate, which is biased
to a small but relevant component of the property.
-
4)Design and implement further project development plans, in the
context of the PEA, that add to both the number and dimensions of
economically relevant mineralized zones.
Most Recent Drill Results
Tabulated below are the results from diamond drill holes NT-130
to NT-141. A large proportion of these holes were drilled on frozen
swamp with the objective of determining the tenor of gold
mineralization at relatively shallow levels below the surface. One
hole, NT-139, was abandoned because of unsuitable ground
conditions, while NT-137, NT-140 and NT-141 returned only
geochemically anomalous gold values. Most of the holes reported on
below intersected gold mineralization at elevations of
approximately 50 to 300 meters core length below surface (with
occasional deeper intercepts).
The principal objectives of the current drill program are:
determine if high-grade gold mineralization intersected in previous
drill programs continues up towards surface at shallower depths
than targeted previously; to determine the morphology, depth and
strike continuity, and grade distribution within steeply-dipping
mineralized zones (candidate ore shoots) which remain open to depth
and along strike; to determine the tenor of near-surface gold
mineralization towards the evaluation (part of the PEA) of the
economics of constructing a starter open pit early in the potential
development of the project.
The majority of the drilling was carried out within a relatively
restricted area of approximately 200 meters along the strike of the
Newman Todd structural/alteration zone and a minimum of
approximately 50 meters on sections perpendicular to the strike of
the zone.
As shown in the table below, intersections closer to the surface
are generally lower grade overall when compared to deeper
intersections, but can attain much wider core length intervals. For
example: drill hole NT-131 intersected 38 meters grading 1.30 g/t
gold beginning at 75.0 meters core length below the surface; while
NT-135 returned 36.0 meters core length grading 1.92 g/t gold
beginning at 103.0 meters core length below surface. As all holes
are angled holes, the actual depths of the intersections tabulated
below are closer to the surface than indicated.
Additional assays are pending, drilling continues, and
additional drilling is planned for after spring break-up, with the
emphasis on expanding, by detailed drilling, the area from the
Hinge Zone towards the Heath Bull Zone (to the South West), which
has returned significant high-grade intersections in the past
(refer to graphics and tables posted on the Company's website).
Additionally, drilling will test the continuity along strike
towards the north of the Hinge Zone. Planned drill holes will be
positioned with the objective of adding gold ounces both to the
north and to the south of the Hinge Zone, using continually updated
sections and interpretations to most efficiently locate drill
collars and drill hole plunges.
Table 1: Assay Highlights from Latest Drilling
--------------------------------------------------------
|Hole ID| |From (m)|To (m)|Width (m)|Au g/t|
|------------------------------------------------------|
|NT-130 | |150.00 |165.00|15.00 |1.15 |
|------------------------------------------------------|
|NT-130 |including |160.00 |165.00|5.00 |2.59 |
|------------------------------------------------------|
|NT-130 |and including|162.00 |165.00|3.00 |3.85 |
|------------------------------------------------------|
|NT-130 |and including|164.00 |165.00|1.00 |6.79 |
|------------------------------------------------------|
|NT-130 |and |202.00 |221.00|19.00 |2.62 |
|------------------------------------------------------|
|NT-130 |including |209.00 |220.00|11.00 |3.62 |
|------------------------------------------------------|
|NT-130 |and including|213.00 |220.00|7.00 |4.55 |
|------------------------------------------------------|
|NT-130 |and including|213.00 |214.00|1.00 |8.80 |
|------------------------------------------------------|
|NT-130 |and including|215.00 |216.00|1.00 |8.16 |
|------------------------------------------------------|
|NT-130 |and including|218.00 |220.00|2.00 |6.61 |
|------------------------------------------------------|
|NT-130 |and including|219.00 |220.00|1.00 |10.90 |
|------------------------------------------------------|
|NT-130 |and |229.00 |238.00|9.00 |1.20 |
|------------------------------------------------------|
|NT-130 |including |237.00 |238.00|1.00 |5.20 |
|------------------------------------------------------|
|NT-130 |and |280.00 |284.00|4.00 |1.71 |
|------------------------------------------------------|
|NT-130 |and |297.00 |319.00|22.00 |1.21 |
|------------------------------------------------------|
|NT-130 |including |297.00 |298.00|1.00 |8.66 |
|------------------------------------------------------|
|NT-130 |and including|315.00 |315.50|0.50 |6.14 |
|------------------------------------------------------|
|NT-130 |and |463.00 |465.00|2.00 |3.95 |
|------------------------------------------------------|
|NT-130 |including |463.00 |464.00|1.00 |7.02 |
|------------------------------------------------------|
|NT-131 | |53.00 |69.00 |16.00 |1.82 |
|------------------------------------------------------|
|NT-131 |including |54.00 |63.00 |9.00 |2.54 |
|------------------------------------------------------|
|NT-131 |and including|60.00 |61.00 |1.00 |7.12 |
|------------------------------------------------------|
|NT-131 |and |75.00 |113.00|38.00 |1.30 |
|------------------------------------------------------|
|NT-131 |including |88.00 |89.00 |1.00 |6.62 |
|------------------------------------------------------|
|NT-131 |and including|95.00 |102.00|7.00 |2.01 |
|------------------------------------------------------|
|NT-131 |and including|107.00 |108.00|1.00 |9.10 |
|------------------------------------------------------|
|NT-131 |and |135.00 |145.00|10.00 |1.07 |
|------------------------------------------------------|
|NT-131 |and |153.00 |173.00|20.00 |1.15 |
|------------------------------------------------------|
|NT-131 |including |154.00 |155.00|1.00 |6.44 |
|------------------------------------------------------|
|NT-131 |and |192.00 |217.00|25.00 |0.93 |
|------------------------------------------------------|
|NT-131 |including |194.00 |195.00|1.00 |4.51 |
|------------------------------------------------------|
|NT-132 | |213.00 |217.00|4.00 |2.74 |
|------------------------------------------------------|
|NT-132 |including |215.00 |216.00|1.00 |7.74 |
|------------------------------------------------------|
|NT-132 |and |284.50 |285.00|0.50 |15.50 |
|------------------------------------------------------|
|NT-132 |and |297.00 |297.50|0.50 |63.10 |
|------------------------------------------------------|
|NT-132 |and |399.00 |401.00|2.00 |4.22 |
|------------------------------------------------------|
|NT-132 |including |399.00 |399.50|0.50 |11.90 |
|------------------------------------------------------|
|NT-133 | |154.00 |156.00|2.00 |6.49 |
|------------------------------------------------------|
|NT-133 |including |154.00 |155.00|1.00 |11.60 |
|------------------------------------------------------|
|NT-134 | |109.00 |112.00|3.00 |4.17 |
|------------------------------------------------------|
|NT-134 |including |110.00 |111.00|1.00 |7.44 |
|------------------------------------------------------|
|NT-134 |and |125.00 |141.00|16.00 |1.03 |
|------------------------------------------------------|
|NT-134 |and |164.00 |165.00|1.00 |11.60 |
|------------------------------------------------------|
|NT-135 | |43.00 |61.00 |18.00 |1.47 |
|------------------------------------------------------|
|NT-135 |including |50.00 |56.00 |6.00 |2.64 |
|------------------------------------------------------|
|NT-135 |and including|55.00 |56.00 |1.00 |5.39 |
|------------------------------------------------------|
|NT-135 |and |71.00 |84.00 |13.00 |1.40 |
|------------------------------------------------------|
|NT-135 |including |72.00 |73.00 |1.00 |12.20 |
|------------------------------------------------------|
|NT-135 |and |103.00 |139.00|36.00 |1.92 |
|------------------------------------------------------|
|NT-135 |including |103.00 |111.00|8.00 |3.35 |
|------------------------------------------------------|
|NT-135 |and including|105.00 |107.00|2.00 |5.50 |
|------------------------------------------------------|
|NT-135 |and including|126.00 |131.00|5.00 |3.77 |
|------------------------------------------------------|
|NT-135 |and including|126.00 |127.00|1.00 |7.45 |
|------------------------------------------------------|
|NT-135 |and including|130.00 |131.00|1.00 |7.56 |
|------------------------------------------------------|
|NT-136 | |53.00 |54.00 |1.00 |4.34 |
|------------------------------------------------------|
|NT-136 |and |60.00 |61.00 |1.00 |6.33 |
|------------------------------------------------------|
|NT-136 |and |201.00 |207.00|6.00 |1.31 |
|------------------------------------------------------|
|NT-137 |No significant results. |
|------------------------------------------------------|
|NT-138 | |111.00 |114.00|3.00 |4.24 |
|------------------------------------------------------|
|NT-139 |Hole abandoned |
|------------------------------------------------------|
|NT-140 |Anomalous gold. |
|------------------------------------------------------|
|NT-141 |Anomalous gold. |
--------------------------------------------------------
This press release was written by: Lawrence Dick, P.Geo,
Ph.D.
Andrea Diakow, P.Geo, is the Qualified Person as defined by
National Instrument 43-101 and has reviewed the technical content
of this news release. Core samples from the program were cut in
half using a diamond cutting saw and were sent to Activation
Laboratories Ltd. in Red Lake, Ontario, an accredited mineral
analysis laboratory. All samples were analyzed for gold using
standard Fire Assay-AA techniques. Samples returning over 3.0 g/t
gold were analyzed utilizing standard Fire Assay-Gravimetric
methods. Certified gold reference standards, blanks, and field
duplicates were routinely inserted into the sample stream as part
of Confederation's quality control/quality assurance program.
About Mining Plus Ltd.
Mining Plus is a specialist underground & open pit mining
consulting team with global capability and local experience. Mining
Plus prides itself in combining technical expertise and practical
experience to deliver the best answers for maiden resource studies
through bankable feasibility studies to mine closure plans. We
deliver expertise in surface and underground mining engineering,
geology, geotechnical engineering, environmental science, and mine
safety and risk assessment. Located in Canada Peru and Australia
with offices in Vancouver, Toronto, Lima, Perth, and Melbourne,
Mining Plus has the expertise where you work.
About CFM
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.
On Behalf of the Board:
"Brian Bapty"
Brian Bapty, Ph.D.
President and Director
CORPORATE INQUIRIES
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Vancouver, B.C.
Brian Bapty, President and Director
604-652-3950
brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com
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.
Forward-Looking Information
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
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