CONFEDERATION MINERALS LTD.
Confederation Minerals Ltd.: Drilling intersects more high grade gold
Confederation Minerals Ltd. / Key word(s): Drilling Result CONFEDERATION MINERALS LTD. PRESS RELEASE June 21, 2012 TSX-V Symbol: CFM Drilling intersects more high grade gold. Confederation Minerals Ltd. (‘Confederation’) (TSX.V:CFM) is pleased to announce results from the first two diamond drill holes from 2012 summer program at the Newman-Todd property in Red Lake, Ontario. Summary of Results: Drilling Highlights: – NT-111 intersects 45.0 metres of 1.21 g/t gold including 13.10 g/t gold over 1.0 metre – NT-110 intersects 1.0 metre of 5.84 g/t gold Complete results can be found in Table 1. Table 2 in Appendix A shows all results from drilling on Cross Section 1700. Discussion of Results: Lawrence Dick, CEO of Confederation states: ‘Drilling on section 1700, which is one of our more detailed sections, clearly shows continuity of the gold mineralization between drill holes. It is our belief that with additional drilling this continuity of gold mineralization exists on every cross section throughout the Newman Todd Structure. For reference of scale, section 1700 represents a 50 metre thick slice through a 1.8 km long zone. The zone has been traced to a vertical depth of 600 metres and there is regional geological evidence that suggests it may be several kilometres deep. It is management’s belief that this Red Lake type system will extend to significant depth. Deeper drilling is planned.’ 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. 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. The 2012 drill program will initially focus on the central part of the Newman Todd Structure (‘NTS’), termed the ‘Hinge Zone’. A minimum 5000 metre drill program is planned to follow-up significant results returned from the 2011 drill program. In 2011 a total of 56 holes, totaling 24,707 metres were drilled into the Newman Todd Structure (NTS) along a strike length of 1.8 km (of the total 2.2km-long mineralized NTS). All of these holes intersected gold mineralization and over 40% of the holes intersected gold mineralization grading greater than 20g/t gold. NTS is a large scale gold bearing structure, with significant widths of iron-carbonate alteration, silicification, sulphide and magnetite replacement zones which can contain high-grade gold mineralization. This style of alteration is recognized at the major producing mines in the Red Lake camp, and other important gold districts, as one of the main geological criteria associated with the formation of these gold deposits. Within the large scale structure of the NTS, several zones of higher grade gold mineralization have been identified along discrete structural corridors, the Hinge Zone being one of these corridors. This phase of drilling will test several key geological and structural concepts identified in recent 3D modeling completed by the company. A successful drill program will assist with further targeting of discrete high grade structures along the entire strike length of the NTS. At present, the structure remains open both along strike, to surface and at depth. Bob Singh P.Geo is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh has been engaged through a third party service provider by Confederation Minerals Ltd. to manage the project, and is also the Canadian Exploration Manager for Redstar Gold Corp. About Confederation Minerals Ltd. On Behalf of the Board: ‘Brian Bapty’ Brian Bapty, Ph.D. CORPORATE INQUIRIES Forward-Looking Information APPENDIX A Table 2: Significant results from cross section 1700, including previously reported results from holes NT-071 and NT-072.
*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. End of Corporate News 22.06.2012 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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