Bonanza Grade Intercept at Newman Todd 19.86 Ounces/t Gold Over 1.64 Feet (681 g/t Over 0.50 Metres)
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/31/12 -- Confederation Minerals Ltd. ("Confederation") (TSX VENTURE: CFM) is pleased to announce additional results from the 2012 diamond drill program holes at the Newman-Todd property in Red Lake, Ontario.
Summary of Results for hole NT-114: (See Table 1)
-- 4.0 metres of 8.43 g/t gold including 1.0 metre of 19.0 g/t gold
-- 31.0 metres of 12.61 g/t gold including 13.0 metres of 3.36 g/t gold and
0.50 metre of 23.0 g/t gold and including 0.50 metre of 681.0 g/t gold.
Table 1: Significant Results
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Hole From (m) To (m) Width (m) Au (g/t)
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NT-114 153.00 173.00 20.00 1.12
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NT-114 including 164.00 165.00 1.00 3.82
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NT-114 and 205.00 215.00 10.00 3.87
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NT-114 including 210.00 214.00 4.00 8.43
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NT-114 and including 211.00 214.00 3.00 10.41
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NT-114 and including 211.00 212.00 1.00 19.00
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NT-114 and 303.00 334.00 31.00 12.61
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NT-114 including 303.00 316.00 13.00 3.36
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NT-114 and including 306.00 315.00 9.00 4.14
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NT-114 and including 308.50 310.50 2.00 8.16
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NT-114 and including 310.00 310.50 0.50 23.00
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NT-114 and including 316.00 332.50 16.50 0.38
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NT-114 and including 332.50 333.00 0.50 681.00
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NT-114 and 393.00 400.00 7.00 1.12
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NT-114 and 480.00 481.00 1.00 5.19
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NT-114 and 488.00 489.00 1.00 4.02
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NT-114 and 511.00 512.00 1.00 8.89
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NT-114 and 525.00 529.00 4.00 2.23
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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 0.20 g/t lower cut-off.
Internal dilution within reported intervals does not exceed core lengths of
three metres unless otherwise indicated.
Brian Bapty, President of Confederation, states; "We are planning to test the depth extent of these mineralized zones beyond 500m. To have such a significant intersection early in the program, and at only 250 m below surface, is very encouraging."
Bob Singh, Project Geologist, and Exploration Geologist for partner Redstar Gold Corp ("Redstar") (TSX VENTURE: RCG), states "Hole 114 hits the highest grade intercept on the property to date, the hole intersects multiple high grade zones with the widest zone averaging 12.61 g/t gold over 31.0 metres. The bonanza grades occur at the margin of a wide silica-sulphide zone which contains arsenopyrite similar to the High Grade Zone of the Red Lake Mine 20 kilometres to the west. Although the silica-sulphide-arsenopyrite zone has been noted at Newman Todd in the past, it has not previously been associated with bonanza grade gold mineralization. Our on-going drill program is focused on this new and exciting high-grade gold discovery in this emerging new Red Lake deposit."
Discussion of Results:
Hole NT-114 was drilled on section 1725, targeting gold mineralization encountered in holes NT-112 and NT-113 (reported in a news release dated July 17, 2012, see Figure 1 for plan map which is also posted at www.confederationmineralsltd.com). The hole intersects several zones of gold mineralization with the highest grade occurring at the margin of a wide zone of silica-sulphide (including arsenopyrite) replacement at a vertical depth of 250 metres.
To view Figure 1, Newmann Todd Plan Map, please visit the following link: http://media3.marketwire.com/docs/cfm731i.pdf.
NT-114 was targeted near the centre of the property in the Hinge Zone. This zone has returned some of the widest zones of gold mineralization on the property and continues to show continuity at the current 25 metre drill spacing. Technical staff have interpreted the Hinge Zone as a cross structure in the Newman Todd Structure ('NTS') where wide spread hydrothermal fluid has completely replaced original rock textures and formed silica-sulphide and magnetite replacement zones often associated with high grade gold mineralization.
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 and Andrea Diakow P.Geo are the qualified persons as defined by National Instrument 43-101 and have reviewed this news release. Mr. Singh and Mrs. Diakow have been engaged through a third party service provider by Confederation Minerals Ltd. to manage the project.
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.
Brian Bapty
President
604.652.3950
Brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com