Confederation Minerals Continues to Intersect High Grade Gold at Newman Todd, Retains Stantec to Support Development
Current results include 5.50 metres grading 7.48 g/t gold which include 0.5 metres of 63.3 g/t goldConfederation has retained Stantec for baseline environmental work and coordinating the permitting and development process
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/19/12 -- Confederation Minerals Ltd. (TSX VENTURE: CFM) ("Confederation" or the "Company") is pleased to announce additional high-grade gold results from the 2012 diamond drill program holes at the Newman-Todd property in Red Lake, Ontario.
Discussion of results:
Confederation is the operator on the Newman Todd Property and developing the project under option from Redstar Gold (TSX VENTURE: RGC). The 2012 drill program has totaled approximately 5300 metres of drilling to date in 14 drill holes. Holes NT-119 to NT-124 have been completed with results pending. The focus of the 2012 drill program has been to drill the Hinge Zone, one of many target zones along the 1.8 km strike length, on 25 metre centres in order to better understand geological controls of the gold mineralization which can potentially be extrapolated across the multi-target property.
An updated geological interpretation indicates that there may be significant folding within the sequence and that gold mineralization may be in part controlled by this folding. Gold mineralization occurs as silica-sulphide and magnetite replacement zones within the Newman Todd Structure ("NTS"). The NTS is a large-scale hydrothermal alteration zone with muli-phase brecciation, iron-carbonate veining and widespread gold mineralization.
Brian Bapty, President of Confederation, states, "The success rate, (in which nearly all of the over 100 holes drilled to date have intersected gold mineralization) of this program underlies both the compelling opportunity that is represented with the Newman Todd Property and confirms the Red Lake greenstone belt as a world class gold camp."
Bob Singh, CEO of Redstar Gold, states, "The current 'fold-model' interpretation highlights a key similarity to the High Grade Zone at the Red Lake Mine complex, where folding has been primarily responsible for the distribution of gold mineralization. At these shallow depths, we have just begun to scratch the surface of this impressive new gold system in Red Lake."
Drill Highlights (See table 1 for a complete list of significant results)
-- NT-117 intersected 5.5 metres of 7.48 g/t gold including 0.50 metres of
63.3 g/t gold and 3.0 metres of 7.48 g/t gold including 1.0 metre of
15.0 g/t gold
-- NT-118 intersected 1.0 metre of 43.50 g/t gold
-- NT-115 intersected 29.0 metres of 2.04 g/t gold including 1.0 metre of
13.8 g/t gold
Table 1: Significant Results
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From To Width(i) Au
Hole ID (m) (m) (m) (g/t)
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NT-115 114.00 115.00 1.00 9.35
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NT-115 and 228.00 231.50 3.50 2.36
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NT-115 including 231.00 231.50 0.50 12.40
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NT-115 and 235.00 257.00 22.00 2.22
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NT-115 including 236.00 237.00 1.00 5.80
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NT-115 and including 242.00 243.00 1.00 6.14
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NT-115 and including 250.00 252.00 2.00 11.96
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NT-115 and 283.00 312.00 29.00 2.04
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NT-115 including 293.00 294.00 1.00 5.45
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NT-115 and including 299.00 310.00 11.00 4.01
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NT-115 and including 299.00 302.00 3.00 6.90
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NT-115 and including 307.00 310.00 3.00 6.31
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NT-115 and including 307.00 308.00 1.00 13.80
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NT-116 166.00 167.00 1.00 3.23
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NT-116 and 188.00 201.00 13.00 2.07
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NT-116 and 227.00 228.00 1.00 3.58
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NT-116 and 240.00 241.00 1.00 3.12
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NT-116 and 260.00 277.00 17.00 2.03
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NT-116 including 270.00 274.00 4.00 3.03
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NT-116 and including 270.00 271.00 1.00 4.76
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NT-117 151.00 152.00 1.00 3.19
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NT-117 and 221.00 234.00 13.00 2.52
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NT-117 including 230.00 233.00 3.00 8.42
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NT-117 and including 231.00 232.00 1.00 15.00
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NT-117 and 242.00 243.00 1.00 3.07
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NT-117 and 246.00 247.00 1.00 3.08
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NT-117 and 288.00 305.00 17.00 2.88
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NT-117 including 293.00 298.50 5.50 7.48
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NT-117 and including 296.50 297.00 0.50 63.30
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NT-117 and 433.00 437.00 4.00 1.78
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NT-117 including 434.00 434.50 0.50 10.30
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NT-117 and 470.00 473.00 3.00 2.37
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NT-117 including 472.00 473.00 1.00 4.69
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NT-118 135.00 136.00 1.00 43.50
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NT-118 and 150.50 158.00 7.50 2.02
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NT-118 including 150.50 151.00 0.50 6.99
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NT-118 and including 157.00 158.00 1.00 6.53
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NT-118 and including 157.00 157.50 0.50 8.95
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NT-118 and 202.00 203.00 1.00 6.52
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NT-118 and 273.10 299.00 25.90 1.25
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NT-118 including 273.10 274.00 0.90 9.37
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NT-118 and including 276.50 277.00 0.50 6.33
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NT-118 and 295.50 296.00 0.50 8.56
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NT-118 and 307.00 312.00 5.00 2.15
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NT-118 including 308.00 309.00 1.00 3.49
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NT-118 and 465.00 467.00 2.00 2.67
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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.
Exploration work at the Newman Todd project is funded by Confederation. Pursuant to an option agreement with 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 200,000 shares. Confederation can earn an additional 20% interest by producing a Preliminary Economic Assessment (PEA) by November 2016.
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 in Red Lake, Ontario, 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.
Confederation has retained Stantec for baseline environmental work and coordinating the permitting and development process:
Confederation is pleased to announce that Stantec Consulting Ltd. ("Stantec") (TSX: STN)(NYSE: STN) has been retained to provide a variety of services in support of development at the Newman Todd Property. The scope of services includes completion of a detailed "Regulatory Roadmap" outlining steps anticipated, including permitting requirements, as the project progresses towards being an operating mine. Stantec has initiated and will coordinate environmental baseline studies and will work with Confederation in the development of a "Conceptual Project Description". As exploration continues on the Newman Todd Property, Confederation believes an active dynamic approach to ensure project development times are kept to a minimum is a prudent approach to the creation of long term shareholder value.
About Stantec
Stantec provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects. They support public and private sector clients in a diverse range of markets at every stage, from the initial conceptualization and financial feasibility study to project completion and beyond. Their services are provided on projects around the world through approximately 12,000 employees operating out of more than 190 locations in North America and 4 locations internationally.
About Confederation Minerals
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 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 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.
To view Figure 1, click on the following link: http://media3.marketwire.com/docs/c918m.pdf
Contacts:
Confederation Minerals Ltd. - Corporate Inquiries
Brian Bapty
President and Director
604-652-3950
brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com