Confederation Minerals Ltd. Continues to Intersect Wide Zones of Gold Mineralization, Including Multiple Zones of High-grade Gold, at its Newman Todd Project, Red Lake District, Ontario
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/12/12 -- Confederation Minerals Ltd. ('Confederation') (TSX VENTURE: CFM) is pleased to report continued high grade gold assays from the 2011 drilling program at the Newman Todd property, located in the Red Lake Gold District, Ontario. These additional high-grade intervals of gold mineralization are confirming the existence of a major new Red Lake-style, high-grade gold discovery. The year 2011 witnessed the most extensive drill program on the property to date where 24,707 metres were drilled in 56 holes. Drilling has focused on the Newman Todd Structure (NTS) where several zones of high grade gold mineralization have been drill traced for over a strike length 1.8 kilometres. A geological mapping program was also undertaken during 2011, the results of which led to the discovery of high- grade gold mineralization in the NTS at surface. It is important to note that every hole drilled into the NTS to date has intersected the gold-bearing structure. All work on the Newman Todd project is being funded by the operator, Confederation Minerals Ltd. (Confederation) (TSX VENTURE: CFM). For a summary of results to date, refer to the Company's website at www.confederationmineralsltd.com.
Highlights from the latest drilling include
-- NT-096 intersected 2.0 metres of 15.58 g/t gold including 1.0 metres of
29.80 g/t gold
-- NT-097 intersected 59.0 metres of 1.04 g/t gold including 5.0 metres of
4.74 g/t gold and including 0.50 metres of 39.50 g/t gold
-- NT-102 intersected several zones including:
- 15.0 metres of 3.27 g/t gold including 1.0 metres of 36.15 g/t gold
- 47.0 metres of 2.17 g/t gold including 3.0 metres of 19.42 g/t gold
and including 1.0 metres of 56.80 g/t gold
- 42.0 metres of 1.52 g/t gold including 1.0 metres of 17.10 g/t gold.
Significant milestones successfully completed and identified on the project to date include:
-- Confirmation of the existence of a large-scale, open-ended, gold-bearing
hydrothermal system(approximately 2.2km long and over 500 meters of
depth extent indicated by drilling);
-- Confirmation of the continuation of high-grade gold in structurally-
controlled zones from the surface to a depth of 500 metres;
-- Identification of key ore controls of high-grade gold mineralization
within the NTS;
-- Establishment of an all-season exploration camp to continue year-round
exploration;
-- Recognition of the deposit type as being similar to that of the high-
grade zone at the Red Lake Mine.
Discussion of Results:
Gold mineralization continues to be associated with veining and silica/sulphide replacement zones within the widespread Iron-carbonate alteration system of the NTS. These zones continue to be intersected in drilling along the entire drilled strike length of the NTS - now approximately 1.8 km of the total projected 2.2 km strike length. The current interpretation suggests that there are over 20 individual high-grade zones along the current strike length of the NTS. These zones are interpreted as near vertical to steeply plunging structurally-controlled bodies.
Surface Sampling program:
Recent geological and structural mapping has indentified a surface exposure of the NTS which was washed and sampled across gold-bearing zones. The sampling occurred on a stripped outcrop towards the southwest portion of the property where 18 channels were cut for a total of 166.5 meters and 170 samples. The exposed area of the NTS is approximately 100 m by 30m wide. Channels were oriented parallel to and cross cutting the current drill direction in order to define the trend of mineralization. Several short sample intervals were also collected to characterize gold mineralization associated with visible gold in quartz veins, magnetite replacement zones, shear zones and sulphide replacement zones. Approximately 24% of the samples returned 0.50 g/t gold or higher with a high value of 0.5m of 40.3 g/t gold. These data indicate that the gold-bearing system comes to surface and opens the possibility of discovering a near-surface resource, in addition to the multiple, high-grade zones known to have open-ended down-plunge potential.
Lawrence Dick, Ph.D, P.Geo., CEO of Confederation states, 'We are extremely pleased with results from the 2011 drill program. Although in early stages of drilling, the data to date have shown an incredible continuity of the gold mineralizing system along the entire drilled area. With the recent discovery of high-grade mineralization at surface and the depth of the current drilling, we are confident that the depth extent of the NTS far exceeds 1km and may continue up to several kilometers in depth, in keeping with the characteristics of other, major mesothermal gold deposits in the Canadian Archaean. Gold mineralization is thought to occur as individual, near-vertical to steeply-plunging zones which can have substantial down-plunge continuity. Our geological team has proposed at least 20 individual high-grade zones based on results from the 2011 widely-spaced drilling. For perspective, consider the current Mineral Resource Estimate at the Red Lake Mine where 32 zones where used to determine the gold resource. Confederation management is of the opinion that the results of 2011 drilling at Newman Todd represent a significant gold discovery. Gold-bearing veins at the Red Lake Mine average 1.5 - 1.8 metres in width and extend over strike lengths between 30 to 300 metres. Sulphide replacement zones at the Red Lake Mine vary from 3-12 metres wide and extend between 120 - 180 metres in strike length. (Gold Corp NI 43-101 report dated January 15, 2011).' Thus vein and mineralization width, strike length of the mineralized system, and the open-ended down-plunge character of the mineralization within the NT structure, give optimism for the potential presence of Red Lake-style mineralization at Newman Todd. We feel very proud of these accomplishments during the 2011 drilling campaign.
Table of results from nine recently completed holes
---------------------------------------------------------------------------
Hole From (m) To (m) Gold (g/t) Width (m)
---------------------------------------------------------------------------
NT-093 102.00 104.50 7.07 2.50
---------------------------------------------------------------------------
NT-093 including 102.00 102.50 9.14 0.50
---------------------------------------------------------------------------
NT-093 and including 104.00 104.50 25.80 0.50
---------------------------------------------------------------------------
NT-093 and including 144.00 157.00 0.79 13.00
---------------------------------------------------------------------------
NT-093 including 144.00 145.00 4.82 1.00
---------------------------------------------------------------------------
NT-093 and including 201.00 205.00 3.01 4.00
---------------------------------------------------------------------------
NT-093 including 203.00 204.00 11.10 1.00
---------------------------------------------------------------------------
NT-095 308.00 313.00 1.07 5.00
---------------------------------------------------------------------------
NT-095 including 308.00 309.00 3.56 1.00
---------------------------------------------------------------------------
NT-096 79.00 87.00 1.21 8.00
---------------------------------------------------------------------------
NT-096 including 80.00 82.00 4.03 2.00
---------------------------------------------------------------------------
NT-096 and including 239.00 244.00 1.01 5.00
---------------------------------------------------------------------------
NT-096 including 240.00 241.00 3.23 1.00
---------------------------------------------------------------------------
NT-096 and 251.00 252.00 3.15 1.00
---------------------------------------------------------------------------
NT-096 and 280.00 284.00 1.27 4.00
---------------------------------------------------------------------------
NT-096 including 282.00 282.50 7.89 0.50
---------------------------------------------------------------------------
NT-096 and 319.00 320.00 4.06 1.00
---------------------------------------------------------------------------
NT-096 and 443.00 445.00 15.58 2.00
---------------------------------------------------------------------------
NT-096 including 443.00 444.00 29.80 1.00
---------------------------------------------------------------------------
NT-097 274.00 303.00 1.11 29.00
---------------------------------------------------------------------------
NT-097 including 275.00 287.00 2.09 12.00
---------------------------------------------------------------------------
NT-097 and including 275.00 277.00 3.87 2.00
---------------------------------------------------------------------------
NT-097 and including 281.00 282.00 6.49 1.00
---------------------------------------------------------------------------
NT-097 and including 285.00 287.00 4.19 2.00
---------------------------------------------------------------------------
NT-097 and 375.00 379.00 1.66 4.00
---------------------------------------------------------------------------
NT-097 including 376.00 377.00 4.93 1.00
---------------------------------------------------------------------------
NT-097 and 392.00 392.50 3.92 0.50
---------------------------------------------------------------------------
NT-097 and 417.00 419.00 3.98 2.00
---------------------------------------------------------------------------
NT-097 including 418.50 419.00 12.10 0.50
---------------------------------------------------------------------------
NT-097 and 485.00 544.00 1.04 59.00
---------------------------------------------------------------------------
NT-097 including 488.00 490.00 7.73 2.00
---------------------------------------------------------------------------
NT-097 and including 489.00 490.00 13.20 1.00
---------------------------------------------------------------------------
NT-097 and including 501.00 506.00 4.74 5.00
---------------------------------------------------------------------------
NT-097 and including 502.00 502.50 39.50 0.50
---------------------------------------------------------------------------
NT-097 and including 531.00 531.50 10.60 0.50
---------------------------------------------------------------------------
NT-098 403.00 421.00 1.75 18.00
---------------------------------------------------------------------------
NT-098 including 404.00 405.00 21.00 1.00
---------------------------------------------------------------------------
NT-098 and including 415.00 416.00 4.64 1.00
---------------------------------------------------------------------------
NT-098 and 458.00 459.00 3.26 1.00
---------------------------------------------------------------------------
NT-099 including 439.50 441.80 3.78 2.30
---------------------------------------------------------------------------
NT-099 and including 439.50 440.00 7.57 0.50
---------------------------------------------------------------------------
NT-099 and including 440.50 441.00 8.04 0.50
---------------------------------------------------------------------------
NT-100 195.00 196.00 3.79 1.00
---------------------------------------------------------------------------
NT-100 including 192.00 203.00 1.03 11.00
---------------------------------------------------------------------------
NT-100 and including 199.00 203.00 1.42 4.00
---------------------------------------------------------------------------
NT-100 and including 200.00 201.00 3.72 1.00
---------------------------------------------------------------------------
NT-101 507.00 514.50 1.35 7.50
---------------------------------------------------------------------------
NT-101 including 513.00 513.50 11.70 0.50
---------------------------------------------------------------------------
NT-101 and 535.00 536.00 7.42 1.00
---------------------------------------------------------------------------
NT-102 191.00 196.00 2.97 5.00
---------------------------------------------------------------------------
NT-102 including 191.00 192.00 11.70 1.00
---------------------------------------------------------------------------
NT-102 and 255.00 270.00 3.27 15.00
---------------------------------------------------------------------------
NT-102 including 255.00 256.00 36.15 1.00
---------------------------------------------------------------------------
NT-102 and including 255.00 255.50 42.80 0.50
---------------------------------------------------------------------------
NT-102 and including 268.00 270.00 5.23 2.00
---------------------------------------------------------------------------
NT-102 and 296.00 343.00 2.17 47.00
---------------------------------------------------------------------------
NT-102 including 300.00 303.00 19.42 3.00
---------------------------------------------------------------------------
NT-102 and including 301.00 302.00 56.80 1.00
---------------------------------------------------------------------------
NT-102 and including 311.00 311.50 37.80 0.50
---------------------------------------------------------------------------
NT-102 and including 336.00 338.00 3.02 2.00
---------------------------------------------------------------------------
NT-102 and 380.00 422.00 1.52 42.00
---------------------------------------------------------------------------
NT-102 including 408.00 414.00 0.04 6.00
---------------------------------------------------------------------------
NT-102 and including 387.00 401.00 3.02 14.00
---------------------------------------------------------------------------
NT-102 and including 393.00 394.00 6.24 1.00
---------------------------------------------------------------------------
NT-102 and including 400.00 401.00 17.10 1.00
---------------------------------------------------------------------------
NT-102 and including 420.00 421.00 9.57 1.00
---------------------------------------------------------------------------
(i) Width is calculated as core length and does not imply true width of the
zone. Weighted average gold intervals apply a 0.25 g/t lower cut-off.
Internal dilution within reported intervals does not exceed core lengths of
four metres unless otherwise indicated.
(ii) Cross sections are spaced 25 metres apart across the entire NTS,
Section 1375 marks the centre of the Heath Bull Zone. NT-094 was drilled
outside of the NTS and intersected weakly anomalous gold values.
Exploration work at the Newman Todd project is funded by Confederation Minerals Ltd. (Confederation) (TSX VENTURE: CFM). Confederation can earn a 50% interest in the project by spending $5.0 million in exploration by November 2013, and an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016. During the earn-in period, Confederation is the operator of the project.
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, 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 Confederation's quality control/quality assurance program.
Bob Singh, P.Geo is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh has been engaged through a third party service provider by Confederation Minerals Ltd. to manage the project, and is also the Canadian Exploration Manager for Redstar Gold Corp.
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 Confederation Minerals Ltd. (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.
Contacts:
Confederation Minerals Ltd.
Lawrence Dick
President
604.688.9588
778.329.9361 (FAX)
lawrence.dick@barongroupintl.com
www.confederationmineralsltd.com
