Confederation Minerals Ltd.
TSX VENTURE : CFM

Confederation Minerals Ltd.

May 01, 2013 08:30 ET

Confederation Drills 7 Metres Grading 32.57 g/t Gold in Shallow (Approximately 150 Metres Below Surface) Drilling at the Newman Todd Gold Project

(Under 70% Option Agreement From Redstar Gold), Red Lake District, Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 1, 2013) - Confederation Minerals Ltd. (TSX VENTURE:CFM) is pleased to report results from the latest drill holes from the Newman Todd gold project, located in the Red Lake mining district. The interpretation of the geological controls affecting mineralized zones is now beginning to demonstrate continuity along strike and down dip, resulting in a high success rate in recent targeted drilling. The wide, 7 metre intersection grading 32.57 g/t gold, just approximately 150 metres below the surface, is an example of results based on our current geological model.

Confederation has the option to earn a 70% interest in the Newman Todd prospect from Redstar Gold Corp. (TSX VENTURE:RGC). To date, Confederation has drilled 96 diamond drill holes for a total of 38,987 metres since the Company initiated drilling in 2011. Results from the drilling have demonstrated the continuous nature, both along strike and to depth, of gold- and sulphide-bearing, quartz-carbonate breccia which varies in width from approximately 70 metres to over 200 metres. Gold-bearing intervals have been intersected in drill holes along approximately 1.8 kilometres of strike within the carbonate breccia host rock. The zone remains open for an additional 400 metres to the SW where the continuation of the breccia has yet to be drill tested, and continues to depths in excess of 1.0 km. The volume of gold-bearing carbonate host rock, and the strike length and depth of gold intersections within the host rock, indicate the potential for a very large volume of gold-bearing mineralization.

The most recent results returned from our winter drilling program, tabulated below, are from drill holes NT-142 to NT-148. These holes are targeting a short, 200 metre-long strike length of the gold-hosting carbonate breccia known locally as the Hinge Zone. The objective of the close-spaced drilling (approximately 25 metres between drill hole collars) is to gain detailed information regarding the shape, and strike and depth extent of individual gold-bearing zones. This information is to be used to identify controls on gold mineralization which can be extrapolated along the much longer strike length (approximately 1.8 kilometres) of the entire Newman Todd structural-alteration zone, localized within the carbonate breccia.

The second objective of the current phase of winter drilling is to test the potential for significant gold mineralization at shallow depths. The results tabulated below show that the gold-bearing system begins at shallow depths below the surface. For example, hole NT-142 returned a 6 metre interval grading 13.19 g/t gold between 52.0 and 58.0 metres core length (approximately 41.5 to 51.5 metres below surface).

The most significant assay interval returned is from hole NT-148, which is located on the northern-most section of holes, grading 32.57 g/t gold over a core interval of 7.0 meters, approximately 168 to 175 metres below surface. Deeper in the same hole, a 1.0 metre interval, between 229.0 and 230.0 metres core length assayed 174.11 g/t gold, including a 0.5 metre section grading 342.0 g/t gold. This is one of numerous holes in the Hinge Zone and elsewhere on the property that demonstrate the presence of multiple zones of gold mineralization.

Table 1: Assay Highlights from Latest Drilling
Hole ID From
(m)
To
(m)
Width
(m)
Au
(g/t)
NT-142 52.0 58.0 6.0 13.19
NT-142 including 55.0 56.0 1.0 17.30
NT-142 and including 57.0 58.0 1.0 36.40
NT-142 and 79.0 97.0 18.0 3.11 1
NT-142 including 83.0 93.0 10.0 4.45 2
NT-142 and including 83.0 87.0 4.0 4.69
NT-142 and including 83.0 84.0 1.0 10.40
NT-142 and including 91.0 93.0 2.0 11.50 3
NT-143 Anomalous Gold
NT-144 No significant results. Hole missed structure
NT-145 74.0 75.0 1.0 3.18
NT-145 and 124.0 134.0 10.0 3.82
NT-145 including 126.0 129.0 3.0 9.50
NT-145 and including 126.0 126.5 0.5 26.50
NT-145 and including 128.0 129.0 1.0 7.69
NT-145 and 176.0 177.0 1.0 4.21
NT-146 Assays reported separately in Table 2 due to highly variable core recovery
NT-147 91.0 95.0 4.0 3.49
NT-147 91.0 93.0 2.0 5.40
NT-147 91.0 92.0 1.0 6.31
NT-147 220.0 221.0 1.0 4.32
NT-148 10.0 18.0 8.0 3.27
NT-148 including 13.0 16.0 3.0 7.45
NT-148 and including 13.0 14.0 1.0 16.40
NT-148 and 193.0 200.0 7.0 32.57
NT-148 including 193.0 194.0 1.0 34.90
NT-148 and including 195.0 196.0 1.0 25.20
NT-148 and including 198.0 199.5 1.5 89.07
NT-148 and including 199.0 199.5 0.5 104.00
NT-148 and 229.0 230.0 1.0 174.11
NT-148 including 229.0 229.5 0.5 342.00
NT-148 and including 229.5 230.0 0.5 6.22
NT-148 and 275.0 280.0 5.0 3.02
NT-148 including 278.0 279.0 1.0 11.60
* 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
1. Approximately 39% Core recovered over this interval
2. Approximately 30% Core recovered over this interval
3. Approximately 50% Core recovered over this interval
Table 2: Non-Composited Assays, Hole NT-146
Hole ID From
(m)
To
(m)
Width
(m)
Au
(g/t)
Core
Recovery %
NT-146 96.0 99.0 3.0 6.02 40%
NT-146 99.0 105.0 6.0 16.50 13%
NT-146 105.0 111.0 6.0 6.19 13%
NT-146 111.0 117.0 6.0 2.05 16%
NT-146 117.0 123.0 6.0 0.20 19%
NT-146 123.0 126.0 3.0 2.45 55%
NT-146 126.0 129.0 3.0 0.23 33%
NT-146 129.0 130.0 1.0 0.04 100%
NT-146 130.0 132.0 2.0 0.71 70%
NT-146 132.0 135.0 3.0 4.00 53%
NT-146 135.0 136.0 1.0 4.36 100%
NT-146 136.0 138.0 2.0 11.80 60%
NT-146 138.0 139.0 1.0 1.34 100%
NT-146 139.0 141.0 2.0 0.36 70%
NT-146 141.0 142.0 1.0 8.72 100%
NT-146 142.0 143.0 1.0 9.91 100%
NT-146 143.0 144.0 1.0 0.06 100%
NT-146 144.0 145.0 1.0 3.59 100%
NT-146 145.0 147.0 2.0 0.03 50%
NT-146 147.0 150.0 3.0 1.27 40%
NT-146 150.0 153.0 3.0 0.96 27%
NT-146 153.0 156.0 3.0 1.01 47%
NT-146 156.0 157.0 1.0 1.87 100%
NT-146 157.0 159.0 2.0 1.55 50%

Brian Bapty, President of Confederation Minerals Ltd. States:

"Our consistent ability to identify high grade gold within sizable mineralized structures is exciting. Prior drilling suggested multiple mineralized zones that potentially extended the entire 1.8 km length of the Newman Todd structure.

"By focusing our exploration efforts during the winter program on a small area in the center of the property we were able to better understand the geologic controls, confirm the local dimensions of these structures and begin to extend them along strike and to depth. In Red Lake it is well understood that mineralization will likely extend to depth with relatively modest lateral dimensions. However, within that context, our 1.8km strike length at Newman Todd is simply immense.

"The current results, in particular the 7 metre-wide zone, continue to indicate that wide, high-grade zones exist within the system. Adding further high grade near surface intercepts, thereby increasing the potential for something of both significant size as well as significant economics, is our near term exploration agenda.

"After spring break-up, drilling will resume as step-outs guided by our evolving exploration criteria. With our Preliminary Economic Assessment underway, and Environmental Baseline Studies well advanced, the remainder of 2013 will be a very active one for Confederation Minerals."

For a summary of the geological characteristics of Newman Todd, and a complete list of all gold-bearing intersections drilled by Confederation to date, refer to the Company's web site: www.confederationmineralsltd.com.

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 relating to the disclosed drill results in 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 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.

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