Confederation Minerals Ltd.: More High Grade Gold at Newman Todd-22.0 Metres of 4.31 g/t Gold Including 1.0 Metres of 78.0 g/t Gold
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/17/12 -- Confederation Minerals Ltd. ("Confederation") (TSX VENTURE: CFM) is pleased to announce additional drill results from on-going diamond drill program at Newman Todd. An additional two holes are reported in this press release where drilling is targeting shallow mineralization above the Hinge Zone area of the Newman Todd Structure ("NTS"). (See Fig. 1)
Results to date have shown continuity of high grade gold mineralization to surface and the program will now focus on testing continuity of the zones at depth. While some holes are planned to continue to test additional near-surface targets, the program will be expanded to test for high grade gold mineralization below 500 metres, where mineralization remains open.
Summary of Results:
Two drill holes, NT-112 and NT-113, were targeted on cross section 1725, a 25 metre step-out from Holes NT-110 and NT-111 (reported in Confederation's news release dated June 21, 2012) .
Drilling Highlights:
-- NT-112 intersects 22.0 metres of 4.31 g/t gold including 1.0 metres of
78.0 g/t gold, and 0.50 metres of 10.80 g/t gold
-- NT-113 intersects 1.0 metres of 8.24 g/t gold.
Complete results can be found in Table 1.
Discussion of Results:
The high grade intercept in Hole NT-112 is approximately 50 metres below and south west of the high grade intercept in hole NT-111 (13.0 metres of 5.71 g/t gold including two higher grade sections averaging 17.10 g/t gold over 1.0 metre and 49.60 g/t gold over 1.0 metre). At present, there is no drilling between these two intercepts while the mineralized corridor surrounding these holes extends for at least 150 metres vertically and remains open to surface and at depth. This corridor is just one of several interpreted across the property drilled along a strike length of approximately 1.8 km. Going forward, the objective of the current drilling program is to test this corridor, and several others which may be parallel to it, to depths below 500 metres.
Lawrence Dick, CEO of Confederation states: "Our drill plan for the 2012 season is to test for continuity of high grade mineralization with 25 metre step outs. The first four holes of this program have shown excellent continuity at this spacing and may provide keys to targeting mineralization at depths below the known high grade zones. The current plan is to continue to test for continuity on fairly close spaced (25 metre centres) drilling and then expand the depth extent of these zones beyond 500m. Considering Red Lake style gold deposits, it must be remembered that these deposits rarely show continuity at 25 metre spacing and typically require drillhole spacing of less than 10 metres in order to start to define continuity."
Table 1: Significant results
------------------------------------------------------------------------
From To Width Au
Hole (m) (m) (m) (g/t)
------------------------------------------------------------------------
NT-112 36.50 37.00 0.50 10.80
------------------------------------------------------------------------
NT-112 and 209.00 220.00 11.00 1.72
------------------------------------------------------------------------
NT-112 including 212.00 218.00 6.00 2.49
------------------------------------------------------------------------
NT-112 and including 217.00 218.00 1.00 6.48
------------------------------------------------------------------------
NT-112 and 266.00 288.00 22.00 4.31
------------------------------------------------------------------------
NT-112 including 269.00 270.00 1.00 5.39
------------------------------------------------------------------------
NT-112 and including 269.00 269.50 0.50 7.90
------------------------------------------------------------------------
NT-112 and including 287.00 288.00 1.00 78.00
------------------------------------------------------------------------
NT-113 126.00 130.00 4.00 1.79
------------------------------------------------------------------------
NT-113 including 129.00 130.00 1.00 4.37
------------------------------------------------------------------------
NT-113 and 181.00 185.00 4.00 2.30
------------------------------------------------------------------------
NT-113 and 221.00 222.00 1.00 6.42
------------------------------------------------------------------------
NT-113 and 281.00 282.00 1.00 5.55
------------------------------------------------------------------------
NT-113 and 310.00 312.00 2.00 5.51
------------------------------------------------------------------------
NT-113 including 311.00 312.00 1.00 8.24
------------------------------------------------------------------------
(i) Width is calculated as core length and does not imply true width of the
zone. Weighted average gold intervals apply a 0.20 g/t lower cut-off.
Internal dilution within reported intervals does not exceed core lengths of
three metres unless otherwise indicated.
Exploration work at the Newman Todd project is funded by the operator, Confederation Minerals Ltd. Pursuant to an option agreement with Redstar Gold Corp. ("Redstar") (TSX VENTURE: RCG), 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 200,000 shares. Confederation can earn an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016.
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.
To view Figure 1, click on the following link: http://media3.marketwire.com/docs/c716m.pdf
About Confederation Minerals Ltd.
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 two other properties in the Red Lake Mining District of Ontario.
On Behalf of the Board:
Brian Bapty, Ph.D., President
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.
Contacts:
Confederation Minerals Ltd. - Corporate Inquiries
Brian Bapty
President
604.652.3950
Brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com