Confederation Minerals Ltd.
TSX VENTURE : CFM

Confederation Minerals Ltd.

June 28, 2011 19:36 ET

Confederation Minerals Ltd.: Newman Todd Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2011) - Confederation Minerals Ltd. (TSX VENTURE:CFM) is pleased to report a summary of their on-going, 2011 diamond drill program at their Newman Todd property in the Red Lake Gold District, northern Ontario.

The drill program has been highly successful and continues to expand the known sectors of gold mineralization across the property and identify new mineralized areas/zones through step-out drilling in previously untested areas. Current and historic drilling at Newman Todd now totals 69 holes, 40 of these completed tested the zone and all of them have intersected gold mineralization, with results indicating the gold-bearing nature of the Newman Todd Structure (NTS) along the entire length of the property.

Confederation Minerals completed an initial phase of drilling in winter 2010-2011, consisting of 6 holes totaling 2,166 m and was terminated due to inclement weather conditions. Drilling was subsequently recommenced in a second phase in May 2011 and is currently continuing, with an aggressive program of +12,000 m underway utilizing two diamond drill rigs.

Phase 1 Drilling – Winter 2010 - 2011

Four of the six holes drilled in early 2011 were collared in the the SW sector of the NTS, within a previously-drilled gold-bearing zone referred to as the Heath Bull Zone. These holes tested below and within known high-grade mineralization (NT-056 and NT-057), as well as a 25 m step-out northeast of previous drilling (NT-058 and NT-059), and demonstrated on-strike and depth extensions of previous, highly anomalous results.

Drill hole NT-056 intersected three high-grade, gold-mineralized zones, as well as additional zones of lower grade, yet highly-significant mineralization. Key intersections include 7.0 m grading 18.87 g/t gold; 3.0 m grading 42.84 g/t gold; 1.0 m grading 122.0 g/t gold; 3.0 m grading 22.49 g/t gold; 1.0 m grading 63.60 g/t gold; 8.6 m grading 5.03 g/t gold; 1.10 m grading 32.60 g/t gold and 0.5 m grading 62.90 g/t gold.

Drill hole NT-057 was drilled much shallower, and from the same drill platform as the first hole. Three anomalous intervals, each of 1.0 meter length, returned 9.27, 4.03, and 3.77 g/t gold between 155.0 and 195.0 m core lengths.

Drill holes NT-058 and NT-059 were drilled on a 25 meter step-out from the NT056-NT057 section, with highlights including 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.

Drill holes NT-060 and NT-061 were drilled over 1.0 kilometers to the northeast of the NT-056 to NT059 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 wide 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.

Results from this initial phase of drilling clearly indicated the gold-bearing nature of the NTS structure along the entire length of the Newman Todd property.

Phase 2 Drilling – Summer, 2011 (ongoing)

A second phase, aggressive drilling program is now underway to further delineate the mineralization throughout the NTS and to add to the highly-successful results obtained from the first six holes drilled in early 2011. Approximately 12,000 meters utilizing two diamond drill rigs are planned in this current phase, which may be expanded depending on results.

Since May, eight holes have been completed for a total of 3,375 m. Assays have so far been reported on two drill holes (NT-062 and NT-063) which have successfully identified similar, high-grade gold intersections of Red Lake-style gold mineralization to the earlier drilling. These two holes are wide step-outs from earlier drilling phases, located approximately 170 meters northeast of the Hinge Zone and 120 meters southwest of the NE Breccia Zone, in an area between these two gold-bearing zones previously untested by drilling. Both holes were drilled from the same collar location but at different angles, with NT-063 the steeper hole of the two, oriented to intersect the anticipated gold-bearing structures at a deeper level.

Results as high as 18.25 g/t gold over a 5.0 meter core interval (which includes a 2.7 meter interval grading 32.43 g/t gold and an extremely high-grade 0.7 meter interval of 103.0 g/t gold) were intersected in the shallower of the two holes, NT-062. As is the case with many other high-grade gold intersections at Newman Todd, this intersection was returned from a down hole interval of just 170 to 175 meters, which reconfirms that gold mineralization at Newman Todd is being discovered at relatively shallow depths below surface.

In addition to the assay results reported above, many very highly-anomalous intersections were reported from both holes, with examples including: 5.32 g/t gold over 19.0 m (hole NT-062); 8.86 g/t gold over 1.0 m (hole NT-062); 27.30 g/t gold over 0.5 m (hole NT-063); and 8.11 g/t gold over 0.5 m (hole NT-063). In these two holes, 24 separate intervals assayed between approximately 2.0 and 8.0 g/t gold. The overall anomalous nature of hole NT-062 can be further illustrated by the fact that a 63.0 meter long interval averaged 1.65 g/t gold. These lower-grade intersections may indicate the presence of nearby, higher-grade zones of gold mineralization.

The high grade, 103 g/t gold assay reported above is the highest-grade gold intersection returned from drilling outside of what has been referred to as the Heath Bull Zone, along the same structural-alteration zone, approximately 600 meters to the SW.

Table of Significant Assay Results from Newman Todd Holes

HoleZoneFrom (m)To (m)Width (m)Gold (g/t)
NT-031HB124.50136.0011.501.94
NT-031HBincl.127.00128.001.008.73
NT-031HB209.50228.0018.504.62
NT-031 HBincl.225.00228.003.0024.89
NT-031 HBincl.226.00227.001.0069.02
NT-035 NE Bx6.007.001.009.28
NT-036 NE Bx13.0014.001.006.67
NT-036 NE Bxand231.00256.4325.431.46
NT-036 NE Bxincl.231.00233.002.0012.08
NT-036 NE Bxincl.232.00233.001.0016.35
NT-037 HB46.0059.0013.001.12
NT-037 HBand175.00175.700.705.27
NT-038 HB244.00249.005.002.44
NT-038 HBand248.00249.001.006.20
NT-039 NE Bx158.00160.002.007.60
NT-039 NE Bxincl.158.00159.001.0014.00
NT-039 NE Bxand217.00218.001.007.34
NT-040 HB131.00144.0013.002.15
NT-040 HBincl.139.00140.001.0014.30
NT-040 HB197.00264.0067.001.76
NT-040 HBincl.219.00221.002.009.88
NT-040 HBincl.220.00221.001.0015.00
NT-040 HBand258.00263.005.0014.23
NT-040 HBincl.258.00259.001.0061.20
NT-042 Hinge249.00294.0045.001.50
NT-042 Hingeincl.250.00251.001.0025.70
NT-043 NE Bx88.0097.009.002.96
NT-043 NE Bxincl.91.0093.002.006.24
NT-046 Hinge160.50191.0030.501.85
NT-046 Hingeincl.169.00174.005.007.78
NT-046 Hingeincl.171.00174.003.0010.87
NT-046 Hingeincl.173.00174.001.0023.50
NT-046 Hinge233.70234.901.204.31
NT-046 Hingeincl.234.60234.900.3015.70
NT-047 HB359.00363.004.004.42
NT-047 HBincl.360.70362.001.3012.84
NT-047 HBincl.360.70361.350.6524.86
NT-047 HBincl.361.00361.350.3545.30
NT-048 HB167.00190.5023.502.01
NT-048 HBincl.167.00180.0013.003.41
NT-048 HBand167.00168.501.5026.80
NT-048 HB240.00242.002.006.75
NT-048 HBincl.240.00241.001.0012.05
NT-049 HB289.00289.700.703.52
NT-050NE Bx159.00160.001.002.77
NT-050NE Bxand250.00251.001.003.90
NT-050NE Bxand268.00270.002.003.06
NT-051HB298.00299.001.004.46
NT-051HBand356.00357.001.002.91
NT-052NE Bx346.00346.600.604.55
NT-053Hinge124.00125.001.003.61
NT-053Hingeand264.00276.0012.001.04
NT-053Hingeincl.268.00270.002.003.36
NT-053Hingeand298.00311.0013.001.00
NT-053Hingeincl.301.00306.005.002.01
NT-053Hingeand335.00338.003.003.76
NT-053Hingeincl.335.00336.601.606.56
NT-053Hingeand incl.335.50336.000.5011.60
NT-053Hingeand343.00345.002.005.13
NT-053Hingeincl.343.00344.001.006.96
NT-054NE Bx37.0038.001.003.40
NT-054NE Bxand99.70100.600.903.20
NT-054NE Bxand234.90235.901.005.32
NT-054NE Bxand275.00282.107.101.36
NT-054NE Bxincl.276.00278.002.003.68
NT-054NE Bxand incl.276.00276.500.506.61
NT-054NE Bxand incl.277.50278.000.506.52
NT-055HB55.0057.002.003.13
NT-055HBincl.56.0057.001.005.68
NT-055HBand196.60200.003.401.47
NT-055HBincl.198.00199.001.003.77
NT-055HBand292.00293.001.0024.00
NT-056HB116.00117.001.007.470
NT-056HBand129.00130.001.005.080
NT-056HBand175.00177.002.001.446
NT-056HBand197.00213.0016.008.633
NT-056HBincl.199.50211.0011.5011.775
NT-056HBand incl.204.00211.007.0018.873
NT-056HBand incl.208.00211.003.0042.842
NT-056HBand incl.208.00209.001.00122.000
NT-056HBand249.00260.0011.001.537
NT-056HBincl.249.00254.005.002.275
NT-056HBand incl.252.00253.501.502.917
NT-056HBand incl.253.00253.500.504.410
NT-056HBand275.00278.003.0022.492
NT-056HBincl.275.00276.001.0063.600
NT-056HBand366.55387.5020.952.453
NT-056HBincl.366.55379.5012.953.686
NT-056HBand incl.366.55377.5010.954.163
NT-056HBand incl.370.90379.508.605.030
NT-056HBand incl.370.90372.001.1032.595
NT-056HBand incl.370.90371.400.5062.900
NT-057HB115.00116.001.006.860
NT-057HBand147.00148.001.004.030
NT-057HBand194.00195.001.003.770
NT-058HB182.00184.502.502.46
NT-058HBincl.183.00184.001.004.61
NT-058HB283.00286.503.5015.48
NT-058HBor283.50286.503.0017.94
NT-058HBincl.284.00286.002.0025.55
NT-058HBand incl.284.00284.500.5075.80
NT-058HBand incl.285.50286.000.5023.30
NT-059HB68.0070.002.003.60
NT-059HBincl.68.0069.001.005.84
NT-060New102.00103.001.005.21
NT-060Newand174.00175.001.004.83
NT-060Newand250.00251.001.0011.65
NT-061New53.0054.001.003.17
NT-061Newand67.0068.001.007.12
NT-061Newand237.00238.001.003.56
NT-061Newand301.00302.001.007.33
NT-061Newand307.00308.001.003.61
NT-061Newand309.00309.500.505.29
NT-061Newand406.00407.001.003.48
NT-061Newincl.406.50407.000.505.83
NT-062Hinge-NEBxincl.170175518.246
NT-062Hinge-NEBxand incl.171173.72.732.426
NT-062Hinge-NEBxand incl.173173.70.7103
NT-062Hinge-NEBxand33033118.86
NT-063Hinge-NEBx213213.50.527.3
NT-063Hinge-NEBxand243.52440.58.11
NT-063Hinge-NEBxand28828917.66

A map showing the location of holes NT-062 and NT-063, along with all previous holes drilled at Newman Todd, can be viewed on the Company's web site at www.confederationmineralsltd.com. The website also lists all significant assay results from previous drilling and the major characteristics of the property geology as well as all previous news releases.

Lawrence Dick, Ph.D., P.Geo., President and Director of Confederation Minerals Ltd. states:

"The Company is extremely excited by the drilling results on the property to date, and continue to encounter high-grade intercepts in wide step-out holes from previous drilling. This indicates that the NE-SW-trending zone of structural deformation, brecciation, and intense quartz-carbonate alteration extends, within the confines of the property, for more than 2 km, with significant strike potential to this mineralized zone. In addition, the gold-bearing 'zones' defined by all drilling to date are open to depth and along strike. The Company is also looking forward to continuous results from our two-drill program throughout the summer; one drill expanding on known mineralized sectors, while the second drill continues step-outs along strike of the NTS at approximately 100-meter spacings."

Gold mineralization at Newman Todd occurs within sulphide-magnetite replacement zones and along contacts with mafic and felsic volcanic units within the NTS. Lower-grade zones of gold mineralization described above also occur within wide areas of the same sulphide-magnetite style of replacement. At present high grade zones are believed to be steep to north-west dipping zones of focused fluid movement along faults, contacts and within high sulphide-magnetite zones. For example, the high-grade intercept in Hole NT-062 occurs approximately 50 meters vertically above the highest grade intercept encountered in hole NT-063 indicating, along with numerous other examples, a vertical continuity to the mineralization.

The exploration at Newman Todd is being funded by Confederation Minerals Ltd. who is optioning the project from Redstar Gold Corp. (TSX VENTURE:RGC). Confederation can earn a 50% interest in the project by spending $5.0 million in exploration within three years, and an additional 20% by producing a Preliminary Economic Assessment (PEA) within six years.

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 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 Redstar'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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