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Bonanza Grade Intercept at Newman Todd 19.86 Ounces/t Gold Over 1.64 Feet (681 g/t Over 0.50 Metres)
July 31, 2012 by prospectingjournal · Leave a Comment
NEWS –Confederation Minerals Ltd. (“Confederation”) (TSX.V: CFM) is pleased to announce additional results from the 2012 diamond drill program holes at the Newman-Todd property in Red Lake, Ontario.
Summary of Results for hole NT-114: (See Table 1)
• 4.0 metres of 8.43 g/t gold including 1.0 metre of 19.0 g/t gold
• 31.0 metres of 12.61 g/t gold including 13.0 metres of 3.36 g/t gold and 0.50 metre of 23.0 g/t gold and including 0.50 metre of 681.0 g/t gold.
Table 1: Significant Results
| Hole | From (m) | To (m) | Width (m) | Au (g/t) | |
| NT-114 |
153.00 |
173.00 |
20.00 |
1.12 |
|
| NT-114 | including |
164.00 |
165.00 |
1.00 |
3.82 |
| NT-114 | and |
205.00 |
215.00 |
10.00 |
3.87 |
| NT-114 | including |
210.00 |
214.00 |
4.00 |
8.43 |
| NT-114 | and including |
211.00 |
214.00 |
3.00 |
10.41 |
| NT-114 | and including |
211.00 |
212.00 |
1.00 |
19.00 |
| NT-114 | and |
303.00 |
334.00 |
31.00 |
12.61 |
| NT-114 | including |
303.00 |
316.00 |
13.00 |
3.36 |
| NT-114 | and including |
306.00 |
315.00 |
9.00 |
4.14 |
| NT-114 | and including |
308.50 |
310.50 |
2.00 |
8.16 |
| NT-114 | and including |
310.00 |
310.50 |
0.50 |
23.00 |
| NT-114 | and including |
316.00 |
332.50 |
16.50 |
0.38 |
| NT-114 | and including |
332.50 |
333.00 |
0.50 |
681.00 |
| NT-114 | and |
393.00 |
400.00 |
7.00 |
1.12 |
| NT-114 | and |
480.00 |
481.00 |
1.00 |
5.19 |
| NT-114 | and |
488.00 |
489.00 |
1.00 |
4.02 |
| NT-114 | and |
511.00 |
512.00 |
1.00 |
8.89 |
| NT-114 | and |
525.00 |
529.00 |
4.00 |
2.23 |
*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.
Brian Bapty, President of Confederation, states; “We are planning to test the depth extent of these mineralized zones beyond 500m. To have such a significant intersection early in the program, and at only 250 m below surface, is very encouraging.”
Bob Singh, Project Geologist, and Exploration Geologist for partner Redstar Gold Corp (“Redstar”) (TSX.V: RCG), states “Hole 114 hits the highest grade intercept on the property to date, the hole intersects multiple high grade zones with the widest zone averaging 12.61 g/t gold over 31.0 metres. The bonanza grades occur at the margin of a wide silica-sulphide zone which contains arsenopyrite similar to the High Grade Zone of the Red Lake Mine 20 kilometres to the west. Although the silica-sulphide-arsenopyrite zone has been noted at Newman Todd in the past, it has not previously been associated with bonanza grade gold mineralization. Our on-going drill program is focused on this new and exciting high-grade gold discovery in this emerging new Red Lake deposit”.
Discussion of Results:
Hole NT-114 was drilled on section 1725, targeting gold mineralization encountered in holes NT-112 and NT-113 (reported in a news release dated July 17, 2012, see Figure 1 for plan map which is also posted at www.confederationmineralsltd.com). The hole intersects several zones of gold mineralization with the highest grade occurring at the margin of a wide zone of silica-sulphide (including arsenopyrite) replacement at a vertical depth of 250 metres.
NT-114 was targeted near the centre of the property in the Hinge Zone. This zone has returned some of the widest zones of gold mineralization on the property and continues to show continuity at the current 25 metre drill spacing. Technical staff have interpreted the Hinge Zone as a cross structure in the Newman Todd Structure (‘NTS’) where wide spread hydrothermal fluid has completely replaced original rock textures and formed silica-sulphide and magnetite replacement zones often associated with high grade gold mineralization.
Exploration work at the Newman Todd project is funded by the operator, Confederation Minerals Ltd. Pursuant to an option agreement with Redstar Gold Corp. (“Redstar”) (TSX.V: RCG), 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 Redstar 500,000 shares by November 2013. To date Confederation has spent in excess of $5.0 million dollars on exploration of the project, paid Redstar $100,000 and issued 200,000 shares. Confederation can earn an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016.
Bob Singh P.Geo and Andrea Diakow P.Geo are the qualified persons as defined by National Instrument 43-101 and have reviewed this news release. Mr. Singh and Mrs. Diakow have been engaged through a third party service provider by Confederation Minerals Ltd. to manage the project.
About Confederation Minerals Ltd.
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 two other properties in the Red Lake Mining District of Ontario.
On Behalf of the Board:
“Brian Bapty”
Brian Bapty, Ph.D.
President
CORPORATE INQUIRIES
Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street
Vancouver, B.C.
Brian Bapty, President
604.652.3950
Brian.bapty@confederationmineralsltd.com
www.confederationmineralsltd.com
