CONFEDERATION MINERALS LTD.
Confederation Minerals Ltd.: 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
Confederation Minerals Ltd. / Key word(s): Drilling Result 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, B.C., November 20, 2012: Confederation Minerals Ltd. (TSX.V: CFM; Frankfurt: 070): (‘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 *) 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>
*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-V: 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 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 CORPORATE INQUIRIES 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.’ Forward-Looking Information Figure 1: Newman Todd Plan Map Figure 2: Newman Todd Cross-Section Looking North-East / End of Corporate News 20.11.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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