Confederation Minerals Ltd. Intersects 27.00 Metres of 5.95 g/t Gold Including 1.0 Metre of 139.0 g/t Gold; 17.53 g/t Gold Over 5.0 Meters Numerous Additional Significant Gold Intercepts at Its Newman Todd Project, Red Lake District, Ontario
Numerous Additional Significant Gold Intercepts at Its Newman Todd Project, Red Lake District, OntarioVANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/23/12 -- Confederation Minerals Ltd. ('Confederation') (TSX VENTURE: CFM) is pleased to report continued high-grade drill results from the Newman Todd Property, an emerging, high-grade gold discovery in the Red Lake District of Ontario. High-grade gold mineralization has been identified at surface and down to a depth of approximately 500 metres and over the 1.8 km strike length tested to date.
During 2011, 56 holes (totaling 24,707 metres) were drilled into the Newman-Todd structural-alteration zone (NTS) resulting in the discovery of many zones of high-grade gold mineralization over the 1.8 kilometres strike length enveloped by much wider zones of lower-grade gold mineralization. Significantly, every drill hole completed during the program intersected gold mineralization. The NTS is open at depth and along strike and a further approximately 400 metres of the NTS on Confederation's ground has yet to be tested.
Geological similarities between the Campbell-Red Lake gold deposit and the Newman Todd discovery, both situated in the same greenstone belt, are being recognized as more data and interpretation become available.
Exploration work on the Newman Todd project is being operated and funded by Confederation, which has a current cash position of $9 million available for further exploration and general expenses.
Highlights from the latest set of assays received are listed below:
-- NT-103 intersected 60.60 g/t Gold over 1.0 metres (400m below the
surface)
-- NT-104 intersected 21.60 g/t Gold over 1.5 metres
-- NT-105 intersected 1.34 g/t Gold over 46.0 metres
-- NT-105W1 intersected 1.56 g/t gold over 38.0 metres including 3.83 g/t
gold over 11.0 metres.
-- NT-108 intersected 3.41 g/t gold over 27.50 metres including 145.0 g/t
gold over 0.50 metres and 5.94 g/t gold over 27.0 metres including 139.0
g/t gold over 1.0 metres
-- NT-109 intersected 7.11 g/t gold over 13.0 metres including 17.53 g/t
gold over 5.0 metres and including 114.0 g/t gold over 0.50 metres.
For a detailed description of the project geology and infrastructure, and a complete listing of all drill results to date, along with drill collar locations, plan views, sections, etc., please refer to the Company's web site at www.confederationmineralsltd.com
Lawrence Dick, Ph.D., P.Geo, President and CEO of Confederation Minerals states: 'These latest eight holes have returned some of the best gold intercepts from our outstandingly successful drill program which began approximately one year ago. All of the holes reported in this press release have been drilled along a corridor within a portion of the Newman Todd alteration-structural zone (the NTS) measuring approximately 800 metres long between the Hinge and Heath Bull Zones (refer to web site for geographic locations and drill hole collars). Results to date show that high-grade gold zones are often associated with much wider zones of lower-grade mineralization. The data are showing us that often multiple shoots of high-grade gold occur within 30 to 40 metre-wide zones of 1-2 g/t gold material. We are now observing several areas with wide zones of lower-grade gold and in each case there are multiple, high-grade intercepts within them.
'Drilling has been very successful in identifying the gold bearing structure and intersecting high-grade gold mineralization. The drill hole hit/miss ratio (ie. the number of holes drilled relative to the number of holes which intersected gold values) is 100 percent, which indicates an extremely high gold provenance for the NTS and bodes very positively for the future of the project.'
Discussion of Results:
Gold mineralization is associated with veining and silica/sulphide replacement zones within the widespread iron-carbonate alteration system of the NTS. These zones are interpreted as near-vertical to steeply-plunging, structurally-controlled bodies which come to surface and have been traced to at least 500m below the surface. The zone remains open along strike and at depth.
Geological characteristics of the gold mineralization are similar from hole-to-hole across the entire drilled area. High-grade gold zones typically occur within wider zones of more disseminated gold mineralization. The area between the Hinge and Heath Bull zones appears to be a favorable structural and geological trap for gold-bearing hydrothermal fluids resulting in higher grades and wider zones of gold mineralization, as determined from results to date, along this 800 metre to 1 kilometer-long segment.
Table of results from eight recently completed holes
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Hole From (m) To (m) Gold (g/t) Width (m)
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NT-103 241.00 250.00 1.88 9.00
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NT-103 including 245.00 246.00 9.11 1.00
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NT-103 and 582.00 583.00 60.60 1.00
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NT-103 and 623.00 624.00 13.40 1.00
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NT-103 and 674.00 677.00 2.24 3.00
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NT-103 including 675.00 676.00 4.15 1.00
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NT-104 123.50 131.00 4.75 7.50
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NT-104 including 123.50 125.00 21.60 1.50
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NT-104 and 264.00 277.00 0.97 13.00
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NT-104 including 269.00 270.00 3.77 1.00
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NT-104 and 304.00 318.00 1.73 14.00
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NT-104 including 317.00 318.00 7.13 1.00
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NT-104 and 338.00 339.00 3.57 1.00
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NT-105 276.00 322.00 1.34 46.00
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NT-105 including 306.00 316.00 3.00 10.00
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NT-105 including 306.00 307.00 6.07 1.00
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NT-105 and including 314.00 316.00 5.52 2.00
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NT-105w1 296.00 334.00 1.56 38.00
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NT-105w1 including 302.00 313.00 3.83 11.00
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NT-105w1 and including 302.00 304.00 5.54 2.00
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NT-105w1 and including 310.00 313.00 6.92 3.00
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NT-105w1 and including 310.00 311.00 7.47 1.00
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NT-105w1 and including 312.00 313.00 9.27 1.00
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NT-106 100.00 101.00 5.46 1.00
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NT-106 and 251.00 263.00 1.58 12.00
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NT-106 including 257.00 260.00 4.25 3.00
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NT-106 and including 257.00 258.00 5.99 1.00
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NT-106 and including 259.00 260.00 5.48 1.00
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NT-107 347.00 359.00 1.14 12.00
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NT-107 and 443.00 446.00 1.83 3.00
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NT-108 229.50 257.00 3.41 27.50
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NT-108 including 229.50 231.00 49.64 1.50
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NT-108 and including 229.50 230.00 145.00 0.50
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NT-108 and including 253.00 256.00 4.26 3.00
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NT-108 and including 255.00 256.00 7.31 1.00
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NT-108 and 269.50 270.00 5.44 0.50
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NT-108 and 300.00 327.00 5.94 27.00
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NT-108 including 304.00 305.00 139.00 1.00
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NT-108 and including 318.00 322.00 2.58 4.00
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NT-108 and including 321.00 322.00 4.82 1.00
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NT-108 and 373.00 380.00 2.07 7.00
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NT-108 including 373.00 374.00 11.60 1.00
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NT-108 and 432.00 433.00 9.63 1.00
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NT-108 and 471.00 491.00 1.34 20.00
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NT-108 including 472.50 473.00 7.15 0.50
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NT-108 and including 490.50 491.00 17.30 0.50
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NT-108 and 517.50 518.00 3.65 0.50
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NT-108 and 638.00 657.00 1.22 19.00
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NT-108 including 641.00 647.00 3.20 6.00
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NT-108 and including 645.00 646.00 10.20 1.00
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NT-109 150.00 151.00 3.86 1.00
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NT-109 and 176.00 177.00 3.22 1.00
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NT-109 and 213.00 220.00 2.54 7.00
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NT-109 including 216.00 217.00 15.20 1.00
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NT-109 and 238.00 251.00 7.11 13.00
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NT-109 including 243.00 248.00 17.53 5.00
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NT-109 and including 243.00 244.00 15.20 1.00
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NT-109 and including 246.50 247.50 61.76 1.00
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NT-109 and including 246.50 247.00 114.00 0.50
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NT-109 and 266.00 278.00 1.03 12.00
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NT-109 including 271.00 272.00 6.84 1.00
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NT-109 and 303.00 303.50 5.87 0.50
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NT-109 and 347.00 348.00 3.52 1.00
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NT-109 and 501.00 517.00 1.37 16.00
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NT-109 including 514.00 515.00 10.29 1.00
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NT-109 and including 514.50 515.00 19.20 0.50
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NT-109 and 538.00 551.00 1.91 13.00
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NT-109 including 542.00 551.00 2.53 9.00
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NT-109 and including 542.00 543.00 5.02 1.00
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NT-109 and including 549.00 550.00 7.79 1.00
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(i) Width is calculated as core length and does not imply true width of the
zone. Weighted average gold intervals apply a 0.25 g/t lower cut-off.
Internal dilution within reported intervals does not exceed core lengths of
four metres unless otherwise indicated.
(ii) Cross sections are spaced 25 metres apart across the entire NTS,
Section 1375 marks the centre of the Heath Bull Zone.
Pursuant to an option agreement with Redstar Gold Corp. ('Redstar'), Confederation can earn a 50% interest in the project by spending $5.0 million on exploration paying Redstar a total of $250,000 and issuing Redstar 500,000 shares by November 2013. To date Confederation has spent in excess of $5.0 million dollars on exploration of the project, paid Redstar $100,000 and issued it 200,000 shares. Confederation can earn an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016. During the earn-in period, Confederation is the operator of the project.
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, for analysis. 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.
Bob Singh, P.Geo is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh has been engaged through a third party service provider by Confederation Minerals Ltd. to manage the project, and is also the Canadian Exploration Manager for Redstar Gold Corp.
On Behalf of the Board, Confederation Minerals Ltd.
Lawrence A.Dick, Ph.D., P.Geo, President, CEO, and Director
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 Confederation Minerals Ltd. (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:
Corporate Inquiries
Confederation Minerals Ltd.
Lawrence Dick, President
604.688.9588
lawrence.dick@barongroupintl.com
www.confederationmineralsltd.com