Confederation Minerals Ltd.

Confederation Minerals Ltd.

April 05, 2011 08:31 ET

Confederation Minerals Ltd. Intersects Additional High-Grade Gold at Newman Todd

- 2.0 Meters Grading 25.55 g/t Gold Including 0.50 m Grading 75.8 g/t Gold

- Wide Step-Out Drilling (Over 1 Km North) Identifies New Gold Zone With Up to 11 g/t Over 1.0 m

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 5, 2011) - Confederation Minerals Ltd. (TSX VENTURE:CFM) and joint venture partner Redstar Gold Corp. (TSX VENTURE:RGC) are pleased to report additional drill results from their on-going diamond drill program at the Newman Todd property in the Red Lake Gold District, in northern Ontario. Confederation Minerals Ltd., who is funding the exploration, can earn a 70 percent interest in the project by funding $5.0 Million in exploration within three years, and producing a Preliminary Economic Assessment (PEA) within six years.

The drill program continues to expand the known sectors of gold mineralization and has identified yet an additional gold-bearing zone, located over 1.0 kilometers north of the current drilling. Currently, gold mineralization has been intersected by drilling over the entire length of the gold-bearing zone of quartz-carbonate alteration known as the Newman Todd Structure (NTS), which spans the entire property for a strike length of approximately 2.8 kilometers, and has been only sparsely drilled along its strike length.

An intersection of 2.0 meters grading 25.55 g/t gold, including a higher-grade interval of 0.50 meters grading 75.8 g/t gold, expands on high-grade results from two additional holes NT 056 and NT 057 previously reported on (see press release dated March 14, 2011) which were concentrated within a zone occurring within the southern part of the property, and intersected multiple gold-bearing zones with results such as: 3.0 meters grading 42.84 g/t gold including 1.0 meters grading 122.0 g/t gold. The currently reported results are from NT058 and NT059 which were drilled on a 25 meter step-out from the 056-057 section, in an area called the "Heath Bull" Zone to test for lateral and vertical continuity with earlier, historic results.

Drill holes NT060 and NT061 were drilled over 1.0 kilometers to the NE of the NT056-059 drilling, to test an area of continuing quartz-carbonate alteration, approximately 200 meters NE of an additional zone of high-grade gold intercepts from historical drilling, called the "NE Breccia Zone". In these step out holes, multiple zones of anomalous gold mineralization were intersected, including 1.0 meters grading 11.65 g/t gold and 1.0 meters grading 7.33 g/t gold.

The only criteria for citing these holes were to obtain data near the NE boundary of the claim group, and the through-going presence of the strong quartz-carbonate alteration which traverses the entire property. These results clearly indicate the gold-bearing nature of the NTS structure along the entire length of the Newman Todd property.

Most highly anomalous drill results from the final four holes of the winter program (NT58-NT61) are tabulated below:

Hole   From (m) To (m) Width (m) Au (g/t)   Area
NT58   182.00 184.50 2.50 2.46   Heath Bull
NT58 Including 183.00 184.00 1.00 4.61   Heath Bull
NT58   283.00 286.50 3.50 15.48   Heath Bull
NT58 or 283.50 286.50 3.00 17.94   Heath Bull
NT58 including 284.00 286.00 2.00 25.55   Heath Bull
NT58 and
284.00 284.50 0.50 75.80   Heath Bull
NT58 and
285.50 286.00 0.50 23.30   Heath Bull
NT59   68.00 70.00 2.00 3.60   Heath Bull
NT59 including 68.00 69.00 1.00 5.84   Heath Bull
NT60   102.00 103.00 1.00 5.21   Step Out
NT60 and 174.00 175.00 1.00 4.83   Step Out
NT60 and 250.00 251.00 1.00 11.65   Step Out
NT61   53.00 54.00 1.00 3.17   Step Out
NT61 and 67.00 68.00 1.00 7.12   Step Out
NT61 and 237.00 238.00 1.00 3.56   Step Out
NT61 and 301.00 302.00 1.00 7.33   Step Out
NT61 and 307.00 308.00 1.00 3.61   Step Out
NT61 and 309.00 309.50 0.50 5.29   Step Out
NT61 and 406.00 407.00 1.00 3.48   Step Out
NT61 including 406.50 407.00 0.50 5.83   Step Out

(Widths reported in the table above represent core length. Assays are uncut; intervals do not exceed more than 3.0 meters of core length nor contain less than 0.50 g/t within the averaged intervals).

For updated cross sections and plan maps showing the location of drill holes, both current and historic, along with the distribution of grades, please refer to Confederation Minerals Ltd. web site at

Lawrence Dick, Ph.D., P.Geo., President and Director of Confederation Minerals Ltd. states: "The results of our winter, 2011 drilling program, which has built on the historical drilling success of Redstar Gold Corp., has far succeeded our expectations. The results of our first six holes, reported in this, and our previous news release, has returned some of the highest grade gold results from exploration drilling on the project. Besides returning amongst the highest grade gold results from the Heath Bull "Zone", results continue to indicate that the entire NTS is gold-bearing. Each of the additional gold-bearing "Zones" drilled along the structure demonstrate the potential to host steeply-dipping, high-grade gold zones at shallow depths, and remain wide open both to depth and along strike.

Interpretation of results from the four holes completed this season on the Heath Bull "Zone", combined with historical drill results in the same area, show the emergence of continuity along strike, down dip, and the tendency to be open in all directions. These data have allowed for sufficient data to begin the interpretation of structural continuity, something difficult to interpret with the fewer data points available to the project prior to the current drilling.

Results from wide, step out drilling reported on in this release add further evidence that the entire zone of alteration, of which in excess of 2.5 kilometers is contained within the Newman Todd property, has the potential for hosting high-grade gold mineralization. Historic and present drilling on the property now totals 30 holes, all of which have intersected gold mineralization along the NTZ. The four gold-bearing "zones" defined by this drilling are all open to depth and along strike. Thus, results to date have significantly enhanced the potential of the project."

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, 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 the Company's quality control-quality assurance program.

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,

Confederation Minerals Ltd.

Lawrence A.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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