Operations

Recent Exploration

RED LAKE, ONTARIO

The current exploration program is focusing on identifying high grade gold bearing structures within the Newman Todd Structure (NTS). The NTS is a large scale (2.2km long, up to 200 metres wide with unknown depth extent) alteration / structural corridor which has completely been replaced with gold bearing hydrothermal fluids and Iron Carbonate veining and alteration. The Gold bearing structures occur as silica-sulphide and magnetite replacement zones within the NTS. Gold mineralization also occurs as coarse visible gold within quartz veins. The work program is testing both along strike of the NTS and beneath high grade zones to determine dip, plunge and strike length of individual high grade zones.

Exploration work at the Newman Todd project is funded by Confederation Minerals Ltd. (TSX.V:CFM). Confederation can earn a 50% interest in the project by spending $5.0 million in exploration by November 2013, and an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016. During the earn-in period, Confederation is the operator of the project.

Highlights from the most recent completed drilling:

• Hole NT-087 intersects 10.60 g/t gold over 0.50 metre and 15.90 g/t gold over 1.00 metre and 11.25 g/t gold over 5.75 metres including 97.80 g/t gold over 0.50 metre and 12.80 g/t gold over 1.00 metre.
• Hole NT-087 also intersects 58.00 metres of 1.11 g/t gold.
• Hole NT-089 intersects 10.40 g/t gold over 1.0 metre
• Hole NT-090 intersects 28.80 g/t gold over 1.0 metre
• Hole NT-091 intersects 11.60 g/t gold over 1.0 metre

Drill hole NT-087, drilled into the Hinge Zone, intersected five separate high-grade gold intervals, and an additional wide interval of 1.11 g/t gold over 58.0metres.

Table of results from seven recently completed holes:

Hole	From (m)	To (m)	Au (g/t)	Width (m)	Section
NT-086	239.00	239.50	3.41	0.50	2150
and	302.00	303.00	3.33	1.00
and	337.00	340.00	2.17	3.00
including	338.00	339.00	4.66	1.00
and	367.00	372.00	1.07	5.00
including	369.00	370.00	3.98	1.00
and	428.00	429.00	3.98	1.00
and	472.00	473.00	3.15	1.00
and	486.00	487.00	3.56	1.00
NT-087	237.00	241.00	3.11	4.00	2100
including	238.50	240.00	6.97	1.50
and including	239.00	239.50	10.60	0.50
and	249.00	250.00	15.90	1.00
and	279.75	291.00	5.75	11.25
including	280.35	280.85	97.80	0.50
and including	290.00	291.00	12.80	1.00
and	354.00	412.00	1.11	58.00
including	363.00	371.00	0.04	8.00
and including	358.00	359.00	7.24	1.00
and including	379.00	380.00	6.72	1.00
and	384.00	392.00	2.23	8.00
and	396.00	403.00	2.00	7.00
NT-088	339.00	340.00	3.26	1.00	1325
and	345.00	346.00	4.20	1.00
NT-089	48.00	49.00	3.19	1.00	2450
and	187.00	188.00	10.40	1.00
and	240.00	241.00	7.65	1.00
NT-090	37.00	46.00	1.06	9.00	2450
including	38.00	39.00	4.29	1.00
and	76.00	77.00	7.08	1.00
and	86.00	97.00	1.00	11.00
and	187.00	197.00	1.02	10.00
and	255.00	262.00	1.08	7.00
and	276.00	282.00	1.84	6.00
and	314.00	315.00	28.80	1.00
and	321.00	326.00	1.64	5.00
NT-091	60.00	66.50	3.01	6.50	1325
including	60.00	61.00	16.40	1.00
and	341.00	390.00	0.97	49.00
including	377.00	380.00	3.07	3.00
and including	389.00	390.00	11.60	1.00
NT-092	weakly anomalous (drilled outside of the NTS)

* Width is calculated as core length and does not imply true width of the zone. Weighted average gold intervals apply a 0.25 g/t lower cut-off. Internal dilution within reported intervals does not exceed core lengths of two metres unless otherwise indicated.
** Cross sections are spaced 25 metres apart across the entire NTS, Section 1375 marks the centre of the Heath Bull Zone.

Discussion of Results:

This latest batch of results, are from drill holes within the Hinge Zone (NT-087 and NT-086), which continue to show wide spread high-grade gold mineralization, within the central part of the NTS. Holes 88 and 91 were drilled in the northeastern part of the NTS, approximately 400 metres northeast of the Hinge Zone; holes 89 and 91 were drilled in the southwestern part of the NTS, approximately 400 metres southwest of the Hinge Zone.

Gold mineralization continues to be associated with veining and silica/sulphide replacement zones, within the widespread Iron-carbonate alteration system, of the NTS. These zones have been intersected along the entire drilled strike length of the NTS - now approximately 1.6 km of the total projected 2.2 km strike length. The Hinge zone represents a major bend within the NTS, where it is proposed that hydrothermal fluids are more focused, and thus gold mineralization is more continuous. This same model is proposed for the NTS at depth were it is expected to be a more focused structure, and thus have an increase in gold bearing hydrothermal fluid movement.  

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