VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/08/13 -- Confederation Minerals Ltd. (TSX VENTURE: CFM) ("Confederation" or the "Company") is pleased to announce the retention of Mining Plus Ltd. to carry out a Preliminary Economic Assessment (PEA) for a component of the 1.8 km strike length of currently identified gold mineralization at the Newman Todd gold project. Additionally, the Company is pleased to announce the most recent drill results from 11 diamond drill holes of the ongoing winter program.
For comprehensive descriptions of the Newman Todd project, along with all previous press releases, and a complete list of assay highlights for every hole completed on the property, please refer to the Company's website at www.confederationmineralsltd.com.
Preliminary Economic Assessment and Related Studies
Confederation is pleased to announce that Mining Plus Ltd. has been contracted to prepare a NI 43-101 compliant Preliminary Economic Assessment (PEA) supported by current results from the Newman Todd property. Under the terms of the Option Agreement with Redstar Gold Corporation (TSX VENTURE: RGC), Confederation Minerals can increase its earned interest in the Newman Todd Property from 50% to 70% by providing a Preliminary Economic Assessment (as the term is defined in National Instrument 43-101) and issuing to Redstar 500,000 shares of Confederation prior to November 19, 2016. A resource estimate is part of the work to be done. This must be completed before the economic analysis can be disclosed.
The highest diamond drill density and most defined geological data is from an area comprising the Newman Todd gold mineralized system locally known as the "Hinge Zone", a zone of approximately 200 meters in strike length where the structural orientation of the overall structural-alteration zone bends slightly. It is anticipated that the majority of the PEA and the resource that will support the report, will be generated from this localized region. The PEA is anticipated to be completed this calendar year. Company management views the PEA as a significant component of the advancement of the Newman Todd project.
Within the Hinge Zone are a number of significant gold-bearing mineralized zones. Drill data extending laterally along the 1.8km strike length, and to a depth of approximately 1km, suggests a significant number of additional zones and that these zones extend laterally and "stack" vertically. Assessing the structure, geologic controls, tonnage and average grade of candidate mineralized zones within the Hinge region, in the context to the PEA, should provide clear metrics for the evolution of the Newman Todd project and significantly influence project development.
It is anticipated that extrapolation of information generated by the PEA, along strike and to depth in a sequential, rational and progressive fashion, will ensure shareholders are provided with a clear understanding of the significant potential of Newman Todd in the context of a business plan that significantly de-risks the advancing exploration of the property.
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