Confederation Minerals Ltd.
TSX VENTURE : CFM

Confederation Minerals Ltd.

January 18, 2013 08:00 ET

Deep Hole at Newman Todd Intersects 100 Meter-Wide Depth Extension of Newman Todd Gold-Bearing Structure to 932 Meters True Depth: New Winter-Spring Drilling Program Initiated

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2013) - Confederation Minerals Ltd. (TSX VENTURE:CFM) -

Highlights

  • Gold mineralization intersected at 832 meters true depth below surface
  • Gold-hosting Newman Todd structure exhibits true width of 100 meters at 932 meters true depth
  • Potential volume of gold-hosting Newman Todd structure significantly increased
  • New drill program underway which will focus on determining shape and continuity of mineralized zones, selected for gold content and a size conducive to mining, and to test continuity both to depth and towards surface.

Confederation Minerals Ltd. ("Confederation" or the "Company") announces that final results from the fall drilling program have been received and as part of its ongoing drilling program at their Newman Todd gold project, located near Red Lake, Ontario, the winter program has been initiated. The fall program included the first deep hole, NT-129, on the property to test the depth extension of the gold-hosting Newman Todd structure (NTS) which has been shown by drilling to date to host gold mineralization over a strike length of 1.8 kilometers, and remains open to the south. This deep hole is in contrast to drilling to date that has targeted a corridor, along the entire strike of the system, between 200 and 400 meters depth (refer to the Company's website at www.confederationmineralsltd.com for summaries of all holes drilled to date including detailed maps of hole locations and significant intersections.)

Deep Test

Drill hole NT-129, was drilled contrary in direction to the majority of previous holes, that is from the hanging wall towards the footwall of the NTS, and was completed to a drilled depth of 1024 meters, or 982 meters true depth below surface. The hole entered the host rock, a carbonate breccia which can reach hundreds of meters wide at surface, at a depth of 787 meters below surface and exited the unit at 932 meters below surface. Thus the Newman Todd structure maintains its substantial width, along with its strongly altered character, and therefore its potential to continue hosting gold mineralization, for nearly 1 kilometer below surface. The structure remains open to depth. At 832 meters true depth the hole intersected 7.89 grams per ton (g/t) gold over 2.0 meters, including 1.0 meters grading 10.60 g/t gold, and including three other one meter intersections grading between 4.06 and 8.01 g/t gold (see Table 1 below). Therefore, hole NT-129 has also shown that the gold mineralizing processes were operative to a depth of at least 832 meters below the surface, and approximately 500 meters below the majority of the drill intersections obtained to date. (Great depth continuity is a characteristic of mesothermal gold deposits such as Campbell Red Lake and others in northern Canada, where ore bodies may continue to depths exceeding 2 kilometers below surface). Figure 1. Is a cross section through the Newman Todd deposit showing deep hole NT-129.

To view the map accompanying this press release, click on the following link: http://media3.marketwire.com/docs/c117m.pdf

Lawrence Dick, CEO of Confederation states, "The dimensions of the Newman Todd gold-hosting structural/alteration system keep growing. Within its present lateral and vertical dimensions, the Newman Todd structure contains a very significant volume of potential gold-bearing host rock, making it a very significant gold-bearing project, with gold mineralization already identified along 1.8 kilometers of strike length, and over 800 meters true depth beneath the surface."

Brian Bapty, President of Confederation states, "Hole NT-129 completed all of its objectives. Adding to its strike potential, we now have confidence that the Newman Todd gold project has great depth, while the project has the size and tenor of gold mineralization to justify aggressive drilling. In addition Confederation has the preliminary metallurgical, engineering and environmental studies to begin activities towards producing a Preliminary Economic Analysis (PEA) during the 2013 calendar year. The goal of 2012 was defining structure, for 2013 our goal is adding 43-101 compliant mineable ounces."

Also shown in Table 1 are the final significant assays for the year 2012, including holes NT-120, NT-126, NT-128 and the deeper hole, NT-129. Hole locations can be viewed on the company's website.

Table 1 - Significant Results
HoleID From
(m)
To
(m)
Width
(m)
Au
(g/t)
NT-120 10.0 11.0 1.0 5.47
NT-120 and 101.0 102.0 1.0 12.10
NT-120 and 194.0 196.0 2.0 7.09
NT-120 including 195.0 196.0 1.0 12.90
NT-120 and 208.5 220.0 11.5 2.62
NT-120 including 208.5 209.0 0.5 9.78
NT-120 and including 211.0 212.0 1.0 16.30
NT-120 and including 211.0 211.5 0.5 21.30
NT-120 and 266.0 273.0 7.0 2.62
NT-120 including 268.0 269.0 1.0 10.90
NT-126 252.0 270.0 18.0 1.85
NT-126 including 252.0 257.0 5.0 5.32
NT-126 and including 256.0 257.0 1.0 21.10
NT-126 and including 263.0 264.0 1.0 3.60
NT-126 and 340.0 341.0 1.0 3.16
NT-126 and 459.0 464.0 5.0 2.26
NT-126 and including 463.0 464.0 1.0 5.93
NT-128 293.0 305.0 12.0 2.07
NT-128 including 296.5 304.0 7.5 2.79
NT-128 and including 301.0 304.0 3.0 4.50
NT-129 675.0 680.0 5.0 1.98
NT-129 including 675.0 676.0 1.0 8.01
NT-129 and 862.0 864.0 2.0 7.89
NT-129 including 862.0 862.5 0.5 10.20
NT-129 and including 863.0 864.0 1.0 10.60
NT-129 and 916.0 917.0 1.0 4.06
NT-129 and 975.0 976.5 1.5 6.51
"* 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. Hole NT-127 was stopped and did not intersect the target due to excessive hole deviation."

2013 Drill Program

Several distinctive zones have been identified within the Newman-Todd structure and this detailed drill definition will be used to model the many other zones identified to date. These zones are characterized by elevated quantities of pyrite, pyrrhotite, magnetite and gold. Certain of these zones can be identified over strike lengths in excess of 100 meters and widths in excess of 5 meters. These zones appear to dip northeast within the sub-vertically dipping Newman-Todd structure and can be identified, where drill information allows, over dip-lengths in excess of 25 meters, and remaining open to depth and along strike.

One objective of the winter drill program is to test the dip and strike extensions of selected zones to determine the extent to which individual mineralized zones exhibit continuity. Recent interpretations based on over 130 drill holes are now indicating along-strike continuity measuring in the hundreds of meters, open to the east and west.

These observations, combined with the deep intersection discussed above, provide for a large volume of potentially gold-hosting structure within the Newman Todd property. In compilation the significant amount of drill data generated to date will provide important information with which to model the mineralization towards a preliminary resource calculation to accompany the Preliminary Economic Analysis (PEA) scheduled to be undertaken later in 2013.

Additional objectives of the winter drill program include:

  • drill testing the mineralized zones down their dip, providing data on continuity of gold values to depth within the mineralized zones.
  • gathering drill information from the Newman Todd structure close to surface in areas which can only be drilled during winter from the ice surface of the pond overlying the central portion of the structure.

In summary, this new phase of drilling has, as its main objective, the definition of the morphology and continuity of specific areas of mineralization. Given the very large size of the Newman Todd structure, drilling will be limited to a confined area, approximately 500 meters along the strike of the structure, and will be considered typical of the system as a whole. Data and results from this detailed drilling program will be used to extrapolate the potential form, periodicity, dimensions, and grade of individual blocks to determine mineability.

Chibougamau Drilling Ltd. will continue as the drilling contractor for a minimum of 2,000 meters with an option of an additional 5,000 meters planned to complete the winter program.

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. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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