Confederation Completes Winter Phase of Drilling at Newman Todd: Detailed Drilling Within Small Sector of 1.8 Kilometer Mineralized Trend Continues to Intersect Widespread Gold Mineralization at Shallow Depths
(via Thenewswire.ca)
Vancouver, B.C.; July 3rd,
2013; Confederation Minerals Ltd. (TSX.V:CFM; OTCQX:CNRMF):
("Confederation" or the "Company") is
pleased to announce the final assay results from the 2012/13 winter
drilling program at their Newman Todd gold project in the Red Lake
District, northern Ontario. Confederation has the option to earn a 70%
interest in the Newman Todd prospect from Redstar Gold Corp.
(RGC:TSX.V).
As well, we report on interpretations regarding the Company's maturing
geological and geochemical understanding provided by the substantial
data now available from the 150 diamond drill holes completed along
the 1.8 kilometers of the Newman Todd structural-alteration zone
identified to date. The Newman Todd Zone varies from approximately 70
to 200 meters in width, hosts intense iron-carbonate alteration, is
gold-bearing along its entire 1.8 kilometer length within the
property, and remains open to the southwest. Gold mineralization is
associated with silicification, and sulphide and magnetite replacement
of the iron-carbonate alteration. Detailed drilling during the recent
winter program has identified lithologically-controlled zones of
high-grade gold mineralization, within larger zones of lower-grade
mineralization, such as that reported in the Company's press release
from May 1st, 2013 (7.0 meters grading 32.57 g/t
gold).
The final two holes, NT-149 and NT-150, were drilled on section 1600
NW (refer to Figure 1), both returning significant gold intersections,
such as:
1.0 meters grading 17.86 g/t gold including 0.5 meters grading 26.40
g/t gold in hole NT-149
1.5 meters grading 8.14 g/t gold including 0.5 meters grading 12.80
g/t gold in hole NT-150
Drilling highlights of the final two holes of the winter program are
tabulated below:
Table 1: Significant Results
---------------------------------------------------------
|HoleID|? |From (m)|To (m)|Width (m)|Au (g/t)|
|-------------------------------------------------------|
|NT-149|? |76.0 |77.5 |1.5 |3.04 |
|-------------------------------------------------------|
|NT-149|and |84.0 |86.0 |2.0 |3.29 |
|-------------------------------------------------------|
|NT-149|and |104.0 |113.5 |9.5 |2.42 |
|-------------------------------------------------------|
|NT-149|including |109.0 |113.5 |4.5 |4.53 |
|-------------------------------------------------------|
|NT-149|and including|112.5 |113.5 |1.0 |17.86 |
|-------------------------------------------------------|
|NT-149|and including|112.5 |113.0 |0.5 |26.4 |
|-------------------------------------------------------|
|NT-150|? |136.0 |136.5 |0.5 |7.89 |
|-------------------------------------------------------|
|NT-150|and |143.5 |145.0 |1.5 |8.14 |
|-------------------------------------------------------|
|NT-150|including |143.5 |144.0 |0.5 |12.8 |
|-------------------------------------------------------|
|NT-150|and |190.0 |191.0 |1.0 |3.88 |
|-------------------------------------------------------|
|NT-150|and |195.0 |197.0 |2.0 |2.28 |
---------------------------------------------------------
* 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 3 metres unless otherwise indicated
Nearly every hole drilled into the Newman Todd Structure has
intersected zones of gold mineralization grading 3 g/t gold or higher,
along the entire 1.8 kilometer strike length (refer to previous news
releases and the Company's website at www.confederationmineralsltd.com). The early, wide-spread
(50 meter centers) drilling along the length of the 1.8 kilometer zone
indicated a very voluminous gold-bearing system with gold
mineralization being intersected by the drilling along its entire
length.
Given the length and magnitude of the Newman Todd gold system,
including the intersection of gold along the strike length of the
system from near surface to over 800 meters depth (refer to previous
news releases), the volume of gold-hosting rock is potentially
extremely large.
Drilling during the 2012-2013 winter drilling phase focused on a
restricted strike length along the Newman Todd Structure. This
approximately 375 meter-long segment is referred to as the "Hinge
Zone", where geological and geophysical evidence suggest a bend
in the Newman Todd structural corridor. The objectives for
constraining the drilling to a restricted area, completed on
tightly-controlled cross sections, were as follows:
-Close spaced drilling was used to determine the morphology of high
grade gold bodies (such as the 7.0 meters of 32.57 g/t gold
intersection - refer to May 1st, 2013 press
release);
-Drilling on frozen terrain enabled further exploration of the Newman
Todd Structure within the Hinge Zone to determine if gold
mineralization continued up towards the surface, which proved
positive;
-Interpreted high-grade gold zones were followed laterally along
strike, especially towards the north, where mineralization remains
open;
-The observation that a lithological control, in this case a
pre-mineralization intrusive apophysis, may be acting as a fluid trap
(see Figure 2). This less permeable trap caused ponding of fluids and
deposition of higher-grade mineralization below it. This hypothesis
was tested and proved to have significant merit, guiding the placement
of subsequent, geologically placed holes;
-The objective of restricting the drilling to a short strike length of
the entire structure was to understand, on a smaller scale, the
controls on mineralization that likely mimic those which acted along
the entire structure within the confines of the property (over 2
kilometers). To date, the drilling has shown that gold mineralization
is present from near surface (in fact, high-grade gold mineralization
has been returned from surface trenches ) to the deepest hole which
bottomed at approximately 1 kilometer in depth and still within the
Newman Todd alteration-structural zone. This deep hole returned gold
intercepts similar to those returned from much shallower
mineralization intercepts, indicating that the gold mineralization is
open to depth, just as it is along strike;
-Given the potential size of the Newman Todd mineralized system, a
significant amount of additional drilling would have to be completed
to permit the entire system to be brought to a confidence level where
a resource could be calculated. Therefore, as a first step, a detailed
drill investigation of one small part of the system (the Hinge Zone)
was undertaken. This spatially restricted exploration was carried out
to provide geological and geochemical data from which an extrapolation
of the Hinge Zone results (to depth and along the entire strike of the
Newman Todd system) would provide an estimate of the quantity of gold
which might be expected to be present in the system.
Future drilling will be oriented towards tight step-out drilling
towards the north. In this regard, it is significant that the widest
intersection (7.0 meters grading 32.57 g/t gold) was returned from a
shallow hole located on the northern-most section, drilled near the
end of the winter program. This zone will be followed up, and similar
zones potentially identified, as the drilling progresses north.
Lawrence Dick, Phd., P.Geo., CEO of Confederation states: "As an
exploration philosophy, Confederation's management emphasizes the
criteria that the 'small scale (Hinge Zone) mimics the large (the
entire Newman Todd Structure).' Thus, by identifying controls on
mineralization in the relatively small Hinge Zone area, the Company
will be much more efficient in the placement and orientation of
additional drilling along the entire structure.
The Newman Todd structural zone contains an immense volume of
potentially gold-bearing rock, as indicated by our drill results so
far, and as detailed in previous news releases and on our web site. A
system of this magnitude and gold tenor, as indicated by our drill
results, represents the discovery of a new gold system which contains
many of the important geological and geochemical criteria of
world-class gold deposits which are hosted by Archean rocks in
northern Canada."
Other activities are progressing as planned:
-Mining Plus Inc., a mining consulting firm, is continuing with their
study, as part of a PEA using data from the Hinge Zone and elsewhere
on the property, to provide guidance to the Company regarding open pit
and underground options, preliminary resource evaluations, capital
cost estimates, mining costs and other aspects of project economics;
-Management expects the PEA to include a relatively small resource as
it will include only limited drilling when viewed in the context of
such a large strike length of gold mineralization along the Newman
Todd Structure, as indicated by previous, widespread drilling.
Therefore, it must be borne in mind that this initial resource will
represent only a small percentage of the entire, gold-bearing system,
and will be used to extrapolate what a much larger percentage of the
entire system may contain as a total gold resource;
-Stantec Consulting Ltd. is continuing with their environmental
baseline studies and a road map towards permitting the project for all
eventualities regarding open pit and/or underground mining;
-Cross section and level plan interpretations are ongoing and will
form the basis of continued drilling done in 2013.
This press release was written by: Lawrence Dick, P.Geo, Ph.D.
Andrea Diakow, P.Geo, is the Qualified Person as defined by National
Instrument 43-101 and has reviewed the technical content relating to
the disclosed drill results in 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"
Brian Bapty, Ph.D.
President and Director
CORPORATE INQUIRIES
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Vancouver, B.C.
Brian Bapty, President and Director
604-652-3950
brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com
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.
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.
TO VIEW FIGURES CLICK ON URLS BELOW
Figure 1: Cross Section 1600NW Showing Geology and Assay Highlights
http://thenewswire.ca/client_files/2013-07-02-3.pdf
Figure 2: Cross Section 1975NW Illustrating
Possible Lithological Control on Higher-Grade Mineralization
http://thenewswire.ca/client_files/2013-07-02-4.pdf
Copyright (c) 2013 TheNewswire - All rights reserved.
