Confederation Minerals Continues to Intersect High-Grade Gold at Newman Todd: 10.0 Metres Grading 9.0 g/t Gold and 2.5 Metres Grading 32.65 g/t Gold
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/20/12 -- Confederation Minerals Ltd. (TSX VENTURE: CFM) ("Confederation" or the "Company") is pleased to announce additional high-grade gold results from the ongoing 2012 diamond drill program at the Newman Todd gold property near Red Lake, Ontario. Since the inception of the drill program, a 1.8 kilometre-long zone of intense alteration, reaching widths in the hundreds of metres, has produced significant gold intercepts along its entire length. Results from these latest holes reflect the high gold tenor of the Newman Todd mesothermal gold system and continue to add potential to this large, mineralized zone.
Drill Highlights (see Table 1 for a complete list of significant results)
-- Hole NT-123 intersected 2.5 metres of 32.65 g/t gold including 158 g/t
gold over 0.5 metres
-- Hole NT-124 intersected 8.0 metres of 3.80 g/t gold including 18.0 g/t
gold over 1.0 metres
-- Hole NT-125 intersected 10.0 metres of 9.0 g/t gold including 60.70 g/t
gold over 1.0 metres
For a complete list of assay results from all drill holes completed to date, along with detailed geological information, maps and cross-sections regarding the Newman Todd project, please refer to Confederation's web site at www.confederationmineralsltd.com.
Discussion of Results
A total of 7,745 metres have been drilled in 2012, and drilling is still ongoing. Drilling has been carried-out primarily in a fan-shape pattern, spaced on 25 metre centres along a 200 metre-long section of the Newman Todd Structure (the "NTS"). This drilling follows up on 50 metre-spaced fans which were completed along 1.8 kilometres of the structure during 2011 and early 2012. The more recent, closer-spaced drilling, located approximately in the centre of the structure within the property, has the objectives of identifying structural controls and continuity of the gold-bearing zones. Gold mineralization occurs disseminated within silica-sulphide and magnetite replacement zones within the structure and is associated with multi-phase brecciation and iron-carbonate veining.
The gold tenor of the Newman Todd structural/alteration zone is illustrated by the results of the 2011 drilling program where, of the 54 drill holes completed over the 1.8 kilometre strike length, 97% of the holes intersected zones grading 3 g/t gold or higher, 85% encountered intersections of at least 5 g/t gold, and 42% of the holes intersected grades of at least 20 g/t gold.
Dr. Brian Bapty, President of Confederation, states, "These latest results, which include wide high-grade intervals, further support our geological interpretations and show significant continuity to the gold mineralization. While the structural controls are complex, each new hole is providing the information required for a more coherent picture of the style of gold mineralization in this very large mineralized system. Most importantly, results from drilling at Newman Todd have consistently supported management's opinion that Newman Todd possesses the geological and geochemical criteria to potentially evolve into a significant mesothermal-class gold deposit."
Ongoing Exploration
Confederation, through its contractor Pamicon Developments Ltd., has retained Chibougamau Drilling Ltd. of Chibougamau, Quebec, to complete 3,000 metres of drilling in the 2012 program. The Company anticipates that up to an additional 5,000 metres will be contracted, and believes this will provide sufficient geological and geochemical data to form the basis for a Preliminary Economic Assessment ("PEA"). The Company believes the PEA is critical towards the evolution of the business plan for the Newman Todd property.
Confederation is working with consulting geologist Ralph Bullis (see brief biography below (i)) to coordinate the planning and execution of activities in support of this PEA and to provide additional expertise for exploration and interpretive activities. Meanwhile, Stantec Consulting Ltd. continues with field-based environmental baseline studies and data gathering at the site to enable future permitting requirements to progress the project, including activities post surface drilling stage (see news release of September 19, 2012).
The current drill program includes at least one deep hole (currently underway) to test a target depth of at least 800 metres below the surface. Further deep drilling will be based on information gathered from the results of this hole.
Drilling will continue at Newman Todd throughout 2012 and into 2013, with a short hiatus during the winter freeze-up. During early 2013, drilling will focus on the shallow, near-surface, upward extension of the mineralization from swampy areas which can only be drilled when frozen. Confederation is sufficiently funded for continuous drilling through 2013.
Table 1: Significant Results
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From To Width Au
Hole Number (m) (m) (m) (g/t)
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NT-119 87 88 1 2.17
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NT-119 and 154 155 1 2.64
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NT-119 and 187 188 1 4.14
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NT-119 including 187.5 188 0.5 7.57
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NT-121 12 16 4 5.73
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NT-121 including 14 16 2 10.65
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NT-121 and including 15 16 1 18.8
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NT-121 and 64 66 2 2.92
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NT-121 and 70 81 11 1.57
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NT-121 including 73 79 6 2.16
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NT-121 and 306 312 6 4.58
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NT-121 including 306 308 2 10.14
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NT-121 and including 306 307 1 14
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NT-121 and 330 331 1 10.4
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NT-121 and 408 409 1 3.5
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NT-122 89 102 13 1.14
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NT-122 including 89 90 1 6.25
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NT-122 and 175 176 1 4
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NT-123 104 113 9 2.11
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NT-123 including 105 106 1 5.7
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NT-123 and 121 133 12 1.75
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NT-123 including 123 128 5 2.64
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NT-123 and including 127 128 1 4.17
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NT-123 and 183 186 3 2.78
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NT-123 and 216 218 2 4.43
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NT-123 and 275 289 14 1.96
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NT-123 including 279 285 6 3.61
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NT-123 and 293 295.5 2.5 32.65
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NT-123 including 294.5 295.5 1 80.38
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NT-123 and including 295 295.5 0.5 158
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NT-124 117 118 1 3.46
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NT-124 and 159 160 1 9
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NT-124 and 182 183 1 3.12
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NT-124 and 286 287 1 10.8
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NT-124 and 381 389 8 3.8
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NT-124 including 382 385 3 8.95
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NT-124 and including 382 383 1 18
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NT-125 259.5 262 2.5 1.23
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NT-125 including 259.5 260 0.5 4.07
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NT-125 and 304 305 1 8.97
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NT-125 and 366 368 2 3.19
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NT-125 and 403 413 10 9
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NT-125 including 407 412 5 16.92
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NT-125 and including 408 411 3 25.95
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NT-125 and including 410 411 1 60.7
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(i) 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. Results for NT-120 are pending.
Confederation is funding, and is the operator of, the exploration work at Newman Todd. Pursuant to an option agreement with Redstar Gold Corp. (TSX VENTURE: RGC) ("Redstar"), Confederation can earn a 50% interest in the project by spending $5.0 million on exploration, paying Redstar a total of $250,000, and issuing to Redstar 500,000 shares by November 2013. To date, Confederation has spent in excess of $5.0 million dollars on exploration on the project, paid Redstar $175,000 and issued 350,000 shares. Confederation can earn an additional 20% interest by producing a PEA by November 2016.
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.
- Ralph Bullis, B.Sc., Professional Geologist
Mr. Bullis has been a member of the Northwest Territories Association of Professional Engineers and Geoscientists since 1982. He was a past member of the association council, and is a current member of the Discipline Committee. Mr. Bullis is a Qualified Person as defined by National Instrument 43-101, and has been self-employed as a geological consultant from 2003 to present, specializing in 43-101 related activities and exploration/development projects for various clients. From October 1995 to September 1998, Mr. Bullis was Director, Resource Evaluation for Echo Bay Mines and from September 1998 to February 2003, he was Director of Exploration, retaining responsibilities for resource/reserve reporting for Echo Bay. Mr. Bullis has extensive experience in Archaean Geology from his time serving as Chief Geologist of the Lupin Mine from 1986 to 1994, and Exploration Geologist at Cominco's Con Mine from 1981 to 1986.
About Confederation Minerals
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. Confederation owns 56% of Magna Resources Ltd., a company which trades on the Canadian National Stock Exchange under the symbol "MNA" and is dedicated to the acquisition and development of potash mineral deposits in the USA and elsewhere. American Potash, a Nevada limited liability corporation, is a wholly owned subsidiary of Magna Resources Ltd. and holds certain potash leases and an option in respect of certain potash lease applications in the State of Utah that constitute the Green River Potash Project.
On Behalf of the Board,
Lawrence Dick, Ph.D., P.Geo, CEO & 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.
To view Figures 1 and 2, click on the following link: http://media3.marketwire.com/docs/c1119m.pdf
Neither 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.
Contacts:
Confederation Minerals Ltd. - Corporate Inquiries
Brian Bapty
President and Director
604-652-3950
brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com
