Confederation Minerals Clarifies Technical Disclosure for the Newman Todd Project
VANCOUVER, BRITISH COLUMBIA / TNW-ACCESSWIRE / January 13, 2015 / Confederation Minerals Ltd. (TSX-V: CFM; OTCQX: CNRMF) ("Confederation" or the "Company") announces that, as a result of a review by the British Columbia Securities Commission (the "BCSC"), the Company is issuing the following news release to correct and reconcile its disclosure regarding its previous mining technical disclosure relating to the Newman Todd Project in the press release of October 23, 2014, as discussed below. The Company also announces that an amended Technical Report (the "Updated Report") which addresses the deficiencies contained in the technical report titled "Technical Report for PEA, Newman Todd Project, Red Lake, ON, Canada" dated December 5, 2014 (the "Previous Report"), will be filed after this press release and available for viewing on the Company's website and on SEDAR.
Reconciliation of Mineral Resource Estimate
The review by the BCSC identified that the Mineral Resource Estimate within the Previous Report required revision to meet current CIM Definition Standards incorporated into NI 43-101. The Mineral Resource Estimate for the Newman Todd Project was stated in the Previous Report as 6.40Mt at 1.35g/t Au of Indicated Mineral Resources and 7.63Mt at 1.35g/t Au of Inferred Mineral Resources.
Newman Todd Mineral Resources have been re-stated within the Updated Report in 2 parts.
In the Previous Report, Mineral Resources were only constrained to a cut-off grade of 0.7g/t Au which was not able to support reasonable prospects of eventual economic extraction. Mineral Resources have now been initially stated constrained to a conceptual pit shell at a cut-off grade of 0.85g/t Au (assuming a gold price of USD1,400/oz) with support provided for the suitability of such a cut-off for an open pit resource model on this type of gold deposit. Cross sections have been included in the Updated Report to demonstrate continuity within the deposit and constrained within a conceptual pit shell, at a 0.85g/t Au cut-off. The re-stated Mineral Resources for Newman Todd that would be within a conceptual open pit and at a cut-off grade of 0.85g/t Au are as summarised in Table 1.
Table 1 Newman Todd Mineral Resource Estimate within Conceptual Open Pit
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|Resource Class |Tonnage|Au Grade (g/t)|Au Ounces|
|----------------------------------------------------------|
|Total Indicated Resources|350,000|2.76 |31,000 |
|----------------------------------------------------------|
|Total Inferred Resources |574,000|2.78 |51,000 |
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Note:
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-- Totals in above tables may differ due to rounding
-- Mineral Resources are reported at a 0.85g/t Au cut-off
-- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
-- Inferred Mineral Resources have been estimated on the basis of limited geological evidence and sampling, there has been insufficient drilling and sampling to classify these Inferred Resources as Indicated or Measured Resources. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
Mineral Resources have now also been stated for use as an underground mining resource model, exclusive of the Mineral Resources constrained by the conceptual pit shell. This underground resource model includes only material that is outside of the conceptual pit shell and at a cut-off grade of 2.2g/t Au (assuming a gold price of USD1,400/oz) with support provided for the suitability of such a cut-off for an underground resource model on this type of gold deposit. The re-stated Mineral Resources for Newman Todd that are outside of the conceptual open pit shell for reporting of open pit resources and at a cut-off grade of 2.2g/t Au are as summarised in Table 2.
Table 2 Newman Todd Potential Underground Mineral Resource Estimate
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|Resource Class |Tonnage|Au Grade (g/t)|Au Ounces|
|----------------------------------------------------------|
|Total Indicated Resources|630,000|3.36 |68,000 |
|----------------------------------------------------------|
|Total Inferred Resources |490,000|4.54 |72,000 |
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Note:
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-- Totals in above tables may differ due to rounding
-- Mineral Resources are reported exclusive of the Mineral Resources in Table 1, and at a 2.2 g/t Au cut-off
-- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
-- Inferred Mineral Resources have been estimated on the basis of limited geological evidence and sampling, there has been insufficient drilling and sampling to classify these Inferred Resources as Indicated or Measured Resources. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
The assumed gold price used for the Mineral Resource Estimates is consistent with the assumptions for the project economics base case. All references to assumed gold price have been updated throughout the Updated Report to USD1,400/oz, and QP Neil Schunke confirms that all analyses within the mining methods and economic analysis sections of the Updated Report are in accordance with this base case assumption.
Mineral Resource Estimates have not been disclosed within the Updated Report at grades lower than the respective open pit and underground cut-off grades assumed for this PEA.
Corrections have been made to cautionary language used in the Updated Report in accordance with CIM Definition Standards, specifically regarding the use of Inferred Mineral Resources and that there are reasonable expectations that the majority of this material could be upgraded to Indicated Mineral Resources with continued exploration.
QP Gary Giroux believes that the Mineral Resource Estimates (including resource classification) conform with current CIM Definition Standards incorporated into NI 43-101.
Reconciliation of other aspects between the Previous Report and the Updated Report
Several other minor aspects within the Previous Report did not comply with the requirements of NI 43-101 and Form 43-101F1 (the "Form").
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1.The Certificate of Qualified Person for Andrea Diakow has been corrected in accordance with NI 43-101. QP Andrea Diakow is deemed to be Independent of Confederation Minerals Ltd., based on the Companion Policy 43-101CP to NI 43-101.
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2.QP Tracey Meintjes accepts as suitable for the Newman Todd Project, the testing methods and conclusions based on his experience, as detailed within the report by SGS Canada Inc. titled "An Investigation Into Preliminary Metallurgical Testing On Newman Todd Samples". All reference to reliance by the QP on the SGS report has been removed from the Updated Report.
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3.Further information has been specified within the Updated Report in support of the assumed mining recovery and dilution assumptions considered as appropriate by QP Neil Schunke. This includes examples of comparable open pit mining projects where similar mining recovery assumptions have been applied.
Inconsistent statements of the mining recovery assumption used have been corrected in the Updated Report.
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4.The language used within the section on assessment of underground mining potential within the Updated Report has been revised to comply with NI 43-101.
Further to this, the high level underground assessment that was conducted as part of the PEA is based only on the Mineral Resource Estimates stated within the Updated Report and as such, satisfies the requirements of NI 43-101.
These amendments do not impact the mine design or project economics for the Newman Todd PEA.
Ralph Bullis, P.Geo, FGC, is the Qualified Person as defined by NI 43-101 and has reviewed or supervised the preparation of the technical content in this news release.
On Behalf of the Board of Directors,
Confederation Minerals Ltd.
"Lawrence Dick"
Lawrence A. Dick, Ph.D., P.Geo, Ceo, President & Director
CORPORATE INQUIRIES
Suite 1980, 1075 West Georgia Street
Vancouver, B.C.
Lawrence Dick, CEO
604.688.9588
lawrence.dick@barongroupintl.com
www.confederationmineralsltd.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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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