Confederation Announces Initiation of a Preliminary Economic Assessment and the Release of the Most Recent Drill Results at the Newman Todd Gold Project, Red Lake District, Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/08/13 -- Confederation Minerals Ltd. (TSX VENTURE: 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 VENTURE: 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
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NT-130 150.00 165.00 15.00 1.15
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NT-130 including 160.00 165.00 5.00 2.59
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NT-130 and including 162.00 165.00 3.00 3.85
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NT-130 and including 164.00 165.00 1.00 6.79
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NT-130 and 202.00 221.00 19.00 2.62
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NT-130 including 209.00 220.00 11.00 3.62
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NT-130 and including 213.00 220.00 7.00 4.55
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NT-130 and including 213.00 214.00 1.00 8.80
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NT-130 and including 215.00 216.00 1.00 8.16
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NT-130 and including 218.00 220.00 2.00 6.61
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NT-130 and including 219.00 220.00 1.00 10.90
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NT-130 and 229.00 238.00 9.00 1.20
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NT-130 including 237.00 238.00 1.00 5.20
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NT-130 and 280.00 284.00 4.00 1.71
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NT-130 and 297.00 319.00 22.00 1.21
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NT-130 including 297.00 298.00 1.00 8.66
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NT-130 and including 315.00 315.50 0.50 6.14
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NT-130 and 463.00 465.00 2.00 3.95
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NT-130 including 463.00 464.00 1.00 7.02
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NT-131 53.00 69.00 16.00 1.82
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NT-131 including 54.00 63.00 9.00 2.54
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NT-131 and including 60.00 61.00 1.00 7.12
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NT-131 and 75.00 113.00 38.00 1.30
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NT-131 including 88.00 89.00 1.00 6.62
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NT-131 and including 95.00 102.00 7.00 2.01
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NT-131 and including 107.00 108.00 1.00 9.10
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NT-131 and 135.00 145.00 10.00 1.07
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NT-131 and 153.00 173.00 20.00 1.15
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NT-131 including 154.00 155.00 1.00 6.44
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NT-131 and 192.00 217.00 25.00 0.93
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NT-131 including 194.00 195.00 1.00 4.51
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NT-132 213.00 217.00 4.00 2.74
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NT-132 including 215.00 216.00 1.00 7.74
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NT-132 and 284.50 285.00 0.50 15.50
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NT-132 and 297.00 297.50 0.50 63.10
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NT-132 and 399.00 401.00 2.00 4.22
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NT-132 including 399.00 399.50 0.50 11.90
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NT-133 154.00 156.00 2.00 6.49
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NT-133 including 154.00 155.00 1.00 11.60
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NT-134 109.00 112.00 3.00 4.17
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NT-134 including 110.00 111.00 1.00 7.44
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NT-134 and 125.00 141.00 16.00 1.03
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NT-134 and 164.00 165.00 1.00 11.60
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NT-135 43.00 61.00 18.00 1.47
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NT-135 including 50.00 56.00 6.00 2.64
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NT-135 and including 55.00 56.00 1.00 5.39
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NT-135 and 71.00 84.00 13.00 1.40
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NT-135 including 72.00 73.00 1.00 12.20
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NT-135 and 103.00 139.00 36.00 1.92
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NT-135 including 103.00 111.00 8.00 3.35
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NT-135 and including 105.00 107.00 2.00 5.50
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NT-135 and including 126.00 131.00 5.00 3.77
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NT-135 and including 126.00 127.00 1.00 7.45
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NT-135 and including 130.00 131.00 1.00 7.56
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NT-136 53.00 54.00 1.00 4.34
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NT-136 and 60.00 61.00 1.00 6.33
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NT-136 and 201.00 207.00 6.00 1.31
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NT-137 No significant results
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NT-138 111.00 114.00 3.00 4.24
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NT-139 Hole abandoned
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NT-140 Anomalous gold
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NT-141 Anomalous gold
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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, Ph.D., President and Director
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.
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.
Contacts:
Confederation Minerals Ltd. - Corporate Inquiries
Brian Bapty
President and Director
604-652-3950
brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com