Confederation Minerals Ltd (TSX.V:CFM) (www.confederationmineralsltd.com) is pleased to announce the start of a $2.0 million, 9,000 metre drilling program on its Newman Todd project near Red Lake, Ontario. Pursuant to an option granted by Redstar Gold Corp., Confederation can earn a 50% interest in the project by spending $5.0 million in exploration within three years, and an additional 20% by producing a Preliminary Economic Assessment (PEA) within six years.
Previous work by Redstar on the Newman Todd property has outlined gold mineralization, within a silicified breccia zone, that has been traced for at least two kilometres on the property. Shallow drilling has tested only a very small proportion of the structure and three zones of gold mineralization have been identified. The structure is defined by wide zones (up to 250 metres) of brecciation, with intense carbonate alteration and silica flooding. High-grade gold values are often associated with sulphide replacement zones contained within wider zones of lower grade mineralization. Drilling done by Redstar intersected values up to 61.02 g/t gold over 1.0 metre, within a wider zone of 60.0 metres grading 1.72 g/t gold in previous drill programs. A complete list of significant drill intersections of gold mineralization were tabulated in a press release dated November 22, 2010.
The Newman Todd prospect has a similar geologic setting to the major mines in the Red Lake camp, such as Goldcorp's Campbell and Red Lake mines
Dr. Lawrence Dick, Confederation’s President stated: “Our 2011 program at Newman Todd will be the most aggressive drilling program ever completed on this highly-prospective project. The first phase of drilling will total approximately 3000 meters, with a total of 9000 meters planned for 2011. Previous drilling at Newman Todd has tested only a small portion of the extensive zone of alteration and structural preparation. Past drilling results show a high frequency of significant gold-bearing intercepts, with very significant potential for expansion of the known mineralized zones”.
Lawrence Dick, Ph.D., P.Geo, President of Confederation Minerals Ltd., a Qualified Person as defined by National Instrument 43-101, has reviewed this news release.
On Behalf of the Board,
Confederation Minerals Ltd.
1075 West Georgia Street
Confederation Minerals Ltd.
Lawrence Dick, President
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 Confederation Minerals Ltd. (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.