Confederation Minerals Ltd. (TSX VENTURE: CFM);
(www.confederationmineralsltd.com) and Redstar Gold Corp. (TSX
VENTURE: RGC) are pleased to announce that Confederation and
Redstar have reached an agreement (the "Agreement"), whereby
Redstar has granted Confederation an option to acquire up to 70% of
Redstar's Newman Todd gold project, located in the Red Lake Mining
District of Northern Ontario. Previous work on the project has
defined a gold-bearing structure that can be traced for at least 2
kilometres along strike, with extremely significant results
returned from recent drilling. Potential is considered wide open
along strike and to depth.
To date three gold zones have been identified on the property
with gold values up to 61.2 g/t gold over 1.0 metre (within 5.0
metres grading 14.23 g/t gold). Recent drilling by Hy Lake
Resources - near the boundary of the Newman Todd property -
confirms the continuation of the gold bearing structure(s) 800
metres north of Redstar's most northerly drilling. Posted on
Redstar's web site (www.redstargold.com) is a copy of a map showing
a model of the Newman Todd structure and gold-bearing zones with
the locations of Hy Lake's drilling near the claim boundary.
To exercise the option to earn an initial 50% interest,
Confederation will be required to incur a cumulative $5,000,000 of
work expenditures on the Property, issue to Redstar a total of
500,000 shares of CFM and make payments to Redstar totalling
$250,000 in the following manner:
(a) 100,000 shares and a $50,000 payment within 10 business days of approval
of the Agreement by the TSX Venture Exchange;
(b) work expenditures of $2,000,000, issuance of 100,000 shares and a
further $50,000 payment on or before the first anniversary of the
Agreement;
(c) further work expenditures of $1,500,000, a further 150,000 shares and a
further $75,000 payment on or before the second anniversary of the
Agreement; and
(d) further expenditures of $1,500,000, a further 150,000 shares and a
further $75,000 payment on or before the third anniversary of this
Agreement.
To exercise the option to earn a further 20% interest, thereby
increasing its overall interest to 70%, Confederation will be
required to produce, at its own cost, a preliminary assessment of
the Property and issue a further 500,000 shares to Redstar on or
before the sixth anniversary of the Agreement, subject to minimum
annual expenditures of $250,000 during the last three years of the
option period. The parties also have agreed to form a joint venture
following the exercise of the option by Confederation. The Property
is subject to a two percent net smelter return and a fifteen
percent net carried interest. The latter interest does not receive
payment until capital expenditures have been recovered with
interest. A finder's fee is payable by Confederation with respect
to the deal. Exercise of the option is subject to regulatory
approval.
High-grade gold mineralization, within the Newman Todd
Structural Zone, is associated with quartz veining, silicification,
sulphide and magnetite replacement of intensely iron
carbonate-altered breccia zones. High-grade mineralization is
commonly found within wide zones of lower grade mineralization
(e.g. NT-048: 26.8 g/t over 1.5 metres within 23.5 metres of
2.01g/t gold) and occurs as multiple, steeply dipping, parallel
lenses.
Table of Significant Results
---------------------------------------------------------------------------
Gold
Hole Zone From (m) To (m) Width (m) (g/t)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
NT-031 Heath Bull Zone 124.50 136.00 11.50 1.94
-------- ---------------------------------------------------
NT-031 Incl. 127.00 128.00 1.00 8.73
-------- ---------------------------------------------------
NT-031 209.50 228.00 18.50 4.62
-------- ---------------------------------------------------
NT-031 Incl. 225.00 228.00 3.00 24.89
-------- ---------------------------------------------------
NT-031 Incl. 226.00 227.00 1.00 69.02
-------- ---------------------------------------------------
NT-037 46.00 59.00 13.00 1.12
-------- ---------------------------------------------------
NT-037 and 175.00 175.70 0.70 5.27
-------- ---------------------------------------------------
NT-038 244.00 249.00 5.00 2.44
-------- ---------------------------------------------------
NT-038 and 248.00 249.00 1.00 6.20
-------- ---------------------------------------------------
NT-040 131.00 144.00 13.00 2.15
-------- ---------------------------------------------------
NT-040 Incl. 139.00 140.00 1.00 14.30
-------- ---------------------------------------------------
NT-040 197.00 264.00 67.00 1.76
-------- ---------------------------------------------------
NT-040 Incl. 219.00 221.00 2.00 9.88
-------- ---------------------------------------------------
NT-040 Incl. 220.00 221.00 1.00 15.00
-------- ---------------------------------------------------
NT-040 and 258.00 263.00 5.00 14.23
-------- ---------------------------------------------------
NT-040 Incl. 258.00 259.00 1.00 61.20
-------- ---------------------------------------------------
NT-047 359.00 363.00 4.00 4.42
-------- ---------------------------------------------------
NT-047 Incl. 360.70 362.00 1.30 12.84
-------- ---------------------------------------------------
NT-047 Incl. 360.70 361.35 0.65 24.86
-------- ---------------------------------------------------
NT-047 Incl. 361.00 361.35 0.35 45.30
-------- ---------------------------------------------------
NT-048 167.00 190.50 23.50 2.01
-------- ---------------------------------------------------
NT-048 Incl. 167.00 180.00 13.00 3.41
-------- ---------------------------------------------------
NT-048 And 167.00 168.50 1.50 26.80
-------- ---------------------------------------------------
NT-048 240.00 242.00 2.00 6.75
-------- ---------------------------------------------------
NT-048 Incl. 240.00 241.00 1.00 12.05
-------- ---------------------------------------------------
NT-051 298.00 299.00 1.00 4.46
-------- ---------------------------------------------------
NT-051 and 356.00 357.00 1.00 2.91
-------- ---------------------------------------------------
NT-055 55.00 57.00 2.00 3.13
-------- ---------------------------------------------------
NT-055 Incl. 56.00 57.00 1.00 5.68
-------- ---------------------------------------------------
NT-055 and 196.60 200.00 3.40 1.47
-------- ---------------------------------------------------
NT-055 Incl. 198.00 199.00 1.00 3.77
-------- ---------------------------------------------------
NT-055 and 292.00 293.00 1.00 24.00
-------- ---------------------------------------------------
---------------------------------------------------------------------------
NT-042 Hinge Zone 249.00 294.00 45.00 1.50
-------- ---------------------------------------------------
NT-042 Incl. 250.00 251.00 1.00 25.70
-------- ---------------------------------------------------
NT-046 160.50 191.00 30.50 1.85
-------- ---------------------------------------------------
NT-046 Incl. 169.00 174.00 5.00 7.78
-------- ---------------------------------------------------
NT-046 Incl. 171.00 174.00 3.00 10.87
-------- ---------------------------------------------------
NT-046 Incl. 173.00 174.00 1.00 23.50
-------- ---------------------------------------------------
NT-046 233.70 234.90 1.20 4.31
-------- ---------------------------------------------------
NT-046 Incl. 234.60 234.90 0.30 15.70
-------- ---------------------------------------------------
NT-053 124.00 125.00 1.00 3.61
-------- ---------------------------------------------------
NT-053 and 264.00 276.00 12.00 1.04
-------- ---------------------------------------------------
NT-053 Incl. 268.00 270.00 2.00 3.36
-------- ---------------------------------------------------
NT-053 and 298.00 311.00 13.00 1.00
-------- ---------------------------------------------------
NT-053 Incl. 301.00 306.00 5.00 2.01
-------- ---------------------------------------------------
NT-053 and 335.00 338.00 3.00 3.76
-------- ---------------------------------------------------
NT-053 Incl. 335.00 336.60 1.60 6.56
-------- ---------------------------------------------------
NT-053 and Incl. 335.50 336.00 0.50 11.60
-------- ---------------------------------------------------
NT-053 and 343.00 345.00 2.00 5.13
-------- ---------------------------------------------------
NT-053 including 343.00 344.00 1.00 6.96
-------- ---------------------------------------------------
NT-050 and 250.00 251.00 1.00 3.90
-------- ---------------------------------------------------
NT-050 and 268.00 270.00 2.00 3.06
-------- ---------------------------------------------------
---------------------------------------------------------------------------
NT-035 NE Breccia Zone 6.00 7.00 1.00 9.28
-------- ---------------------------------------------------
NT-036 13.00 14.00 1.00 6.67
-------- ---------------------------------------------------
NT-036 and 231.00 256.43 25.43 1.46
-------- ---------------------------------------------------
NT-036 Incl. 231.00 233.00 2.00 12.08
-------- ---------------------------------------------------
NT-036 Incl. 232.00 233.00 1.00 16.35
-------- ---------------------------------------------------
NT-039 158.00 160.00 2.00 7.60
-------- ---------------------------------------------------
NT-039 Incl. 158.00 159.00 1.00 14.00
-------- ---------------------------------------------------
NT-039 and 217.00 218.00 1.00 7.34
-------- ---------------------------------------------------
NT-043 88.00 97.00 9.00 2.96
-------- ---------------------------------------------------
NT-043 Incl. 91.00 93.00 2.00 6.24
-------- ---------------------------------------------------
NT-052 346.00 346.60 0.60 4.55
-------- ---------------------------------------------------
NT-054 37.00 38.00 1.00 3.40
-------- ---------------------------------------------------
NT-054 and 234.90 235.90 1.00 5.32
-------- ---------------------------------------------------
NT-054 and 275.00 282.10 7.10 1.36
-------- ---------------------------------------------------
NT-054 Incl. 276.00 278.00 2.00 3.68
-------- ---------------------------------------------------
NT-054 and Incl. 276.00 276.50 0.50 6.61
---------------------------------------------------------------------------
Mr. Lawrence Dick, Ph.D., P.Geo and President of Confederation,
stated: "We are delighted to have joined with Redstar in the
continuing, successful exploration to advance the high-potential
Newman Todd gold project in the Red Lake District. Our objective is
to expand on the Red Lake-style gold mineralization discovered on
Redstar's favourably-located Newman Todd project, located in a
geological setting similar to that of the famous Red Lake deposits.
The tenor of the gold geochemical results from recent drilling,
which reach very high grades locally, bode well for the future of
the project. We plan a drill- intensive program to add to the
highly-favourable results obtained to date, beginning this
winter."
Scott Weekes, President Redstar stated "We are extremely pleased
to have signed this agreement with Confederation which will
guarantee an aggressive drill program on Newman Todd early in 2011.
Redstar and Confederation are committed to aggressively exploring
this developing gold system in Red Lake. The recent drilling by Hy
Lake Resources - near the boundary of the Newman Todd property -
confirms the continuation of the gold bearing structure 800 metres
north of Redstar's most northerly drilling. Only about 40% of the
2.0 kilometre long strike extent of the Newman Todd Structural Zone
that exists on the property has been tested and three gold zones
have been identified. Newman Todd has advanced with every phase of
drilling and this agreement facilitates the largest drill program
yet on the property."
On Behalf of the Board, On Behalf of the Board,
Redstar Gold Corp. Confederation Minerals Ltd.
Scott Weekes, President Lawrence Dick, Ph.D., P.Geo, President
Bob Singh P. Geo., a qualified person as defined by National
Instrument 43-101, has reviewed the technical aspects of this news
release. Bob Singh is the Canadian Exploration Manager for Redstar
Gold Corp.
Forward-Looking Information
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 Redstar Gold Corporation (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.
TSX.V:RGC TSX.V:CFM
WWW.REDSTARGOLD.COM www.confederationmineralsltd.com
SUITE 615 Suite 1980
800 WEST PENDER STREET 1075 West Georgia Street
VANCOUVER, BC Vancouver, B.C.
TEL: 604.488.0051 TEL: 604.688.9588
Contacts: CORPORATE INQUIRIES Redstar Gold Corp. Tim Mikula,
Investor Relations 604.488.0051 tmikula@redstargold.com
www.redstargold.com CORPORATE INQUIRIES Confederation Minerals Ltd.
Lawrence Dick, President 604.688.9588
lawrence.dick@barongroupintl.com
www.confederationmineralsltd.com
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