Confederation Minerals Ltd.
TSX VENTURE : CFM

Confederation Minerals Ltd.

May 09, 2011 09:20 ET

Confederation Minerals Ltd. Announces Initiation of Aggressive Drilling Program for Newman Todd

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2011) - Confederation Minerals Ltd. (TSX VENTURE:CFM) is pleased to announce that crews have been mobilized to prepare for an aggressive, approximately 12,000 meter drill program at the Newman Todd gold project near Red Lake, Ontario. Two diamond drills will continue the successful drilling program (recently terminated due to snow-melt conditions) which is testing the Newman Todd Structure and Alteration Zone ("NTS"). Drilling will begin mid-May and will continue into the fall of 2011, as long as weather permits. Total drill meters may exceed that currently planned should results, and logistics, permit.

Drilling will focus on the NTS, which spans the entire length (approximately 2.2 kms) of the property. The structure has been only sparsely drilled along strike, and not tested at depths below 400 metres. Results from previous drill programs have been extremely encouraging, and complete assay results and geological information can be viewed on the Company's website at www.confederationmineralsltd.com. The current drill program will follow up on highly significant results from the winter 2011 program, which included values such as 3.0 meters grading 42.84 g/t gold, including a1.0 meters interval grading 122.0 g/t gold (see press release dated March 14, 2011).

Confederation Minerals Ltd. is funding the exploration as part of an earn-in agreement with Redstar Gold Corp. (TSX VENTURE:RGC) which allows Confederation to earn a 70% interest in the project. Confederation can earn a 50% interest in the project from Redstar by spending $5.0 million in exploration within three years and an additional 20% by producing a Preliminary Economic Assessment (PEA) within six years.

Dr. Lawrence Dick, President and CEO of Confederation Minerals states: "Our geological understanding of the Newman Todd project has increased dramatically as a result of winter 2010-2011 drilling. Gold mineralization has been intersected in every hole in the NTS, which has focused on four separate zones over the length of the structure. Gold mineralization is wide open to depth and along strike and recent high-grade results have begun to show continuity in both the vertical and lateral dimensions. The objectives of our expansive, two-drill program will be to expand known mineralization along the 2.2 kilometer strike length of the NTS zone and to probe the down-plunge continuity of high-grade, gold-bearing structures. The exceptional frequency of significant and high-grade gold intersections returned from previous drilling bodes well for the future of the program. Large sections of the 2.2 kilometer long NTS have not been drilled, while significant intersections have been returned from drilling well in excess of one kilometer of strike length within the structure."

Details of the 2011 Exploration Program

To date, four areas along the NTS containing high-grade gold mineralization have been identified; the four areas are denominated the HB, Hinge, NE and NE Breccia areas and are identified graphically on the Company's website, while drill results are recorded in past news releases. The pending 2011 drill program will have two main objectives. One drill will follow the known high-grade gold zones within the HB and Hinge areas along strike and to depth while the second drill will probe the yet-untested NTS between the known areas of gold mineralization on 100 to 200 meter spacings.

In addition to the drilling, a property-wide geological mapping and litho-geochemical sampling program will be undertaken. These activities will consist of detailed structural mapping to determine local controls on gold mineralization, and target potential gold zones outside of the NTS. The property has seen little mapping or prospecting since the 1980's, and there are several gold anomalies outside of the NTS which warrant further work. The Company has also contracted the services of a structural consultant who will assist with on-going exploration and drill hole locations.

Geological summary

The NTS is a large-scale alteration/deformation zone within the Red Lake Greenstone Belt, and is one of three principal areas within the Belt recognized for widespread iron-carbonate alteration. The other two principal areas exhibiting similar geological characteristics are the Red Lake Mine and the East Bay Deformation Zone - host to Rubicon's Phoenix zone. The scale and style of alteration within the NTS is considered to be associated with large, multi-stage hydrothermal systems with sources deep in the earth's crust. High-grade gold mineralization is associated with silica, sulphide minerals, and magnetite replacement of the iron-carbonate zones. These high-grade zones can often form distinct lenses or shoots of high-grade gold mineralization with extensive down-dip continuity and are often associated with wider zones of lower grade gold mineralization.

Significant gold intercepts (core widths) from previously-reported drilling at Newman Todd
HoleFromToWidth(m)*Au (g/t)Area
NT-060250.00251.001.0011.65NE
NT-06167.0068.001.007.12NE
NT-061301.00302.001.007.33NE
NT-036231.00233.002.0012.08NE Bx
NT-036Incl.232.00233.001.0016.35NE Bx
NT-039158.00159.001.0014.00NE Bx
NT-042250.00251.001.0025.70Hinge
NT-046171.00174.003.0010.87Hinge
NT-046Incl.173.00174.001.0023.50Hinge
NT-046Incl.234.60234.900.3015.70Hinge
NT-053335.50336.000.5011.60Hinge
NT-031Incl.225.00228.003.0024.89HB
NT-031Incl.226.00227.001.0069.02HB
NT-040Incl.220.00221.001.0015.00HB
NT-040and258.00263.005.0014.23HB
NT-040Incl.258.00259.001.0061.20HB
NT-047Incl.360.70362.001.3012.84HB
NT-047Incl.360.70361.350.6524.86HB
NT-047Incl.361.00361.350.3545.30HB
NT-048And167.00168.501.5026.80HB
NT-055292.00293.001.0024.00HB
NT-056208.00211.003.0042.84HB
NT-056Incl.208.00209.001.00122.00HB
NT-056and275.00278.003.0022.49HB
NT-056Incl.275.00276.001.0063.60HB
NT-056And370.90372.001.1032.60HB
NT-056Incl.370.90371.400.5062.90HB
NT-058284.00286.002.0025.55HB
NT-058Incl.284.00284.500.5075.80HB
NT-058and incl.285.50286.000.5023.30HB

Bob Singh P.geo is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp. Core samples from the program were cut in half using a diamond cutting saw and were sent to ALS Laboratory Group in, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing fire assay methods. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream as part of Redstar's quality control/quality assurance program.

On Behalf of the Board,

Confederation Minerals Ltd.

Lawrence 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 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.

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