Confederation Minerals Acquires Bull and PCM Projects in Arizona
TSX VENTURE: CFM
Vancouver, British Columbia, Canada / TheNewswire / July 5, 2017 - Confederation Minerals Ltd. (TSX-V: CFM) ("Confederation" or the "Company") has signed binding letters of intent ("LOI's") to add two additional exploration projects to their expanding portfolio of high quality assets. The Bull and PCM Projects are both located near the Arizona-California-Nevada border in Mojave Co., Arizona, approximately 20 to 40 km west of Kingman, Arizona. The LOI's call for an initial 30 day due diligence period followed by cash and share payments, escalating annually as described below.
The Bull Prospect consists of 6 existing unpatented claims and 86 recently staked unpatented claims, all on Bureau of Land Management (BLM) land. The Bull claims cover an area of silicified breccia and quartz-calcite stockwork zones at the low angle contact between Pre-Cambrian Granite and Tertiary volcanic rocks, a classic detachment environment. Surface sampling at Bull has returned grades of up to 3.54 g/t Au and drill results up to 18.2 m of 1.71 g/t Au, (complete results report below).
The PCM Project is located about 45 miles to the east-northeast of Bull with 21 unpatented claims that lie on strike to the north-northwest of the historic Hackberry Mine, a high grade, underground silver mine. Chip and grab sampling of outcropping veins and small prospect pits returned results of up to 12.53 g/t Au and 933 g/t Ag, (complete results report below).
Carl Hering, President and CEO of CFM said "The minimal drilling that has been completed to date at Bull has returned consistent grades and widths and is open to expansion. Limited surface sampling rarely returns values this impressive in an unexplored terrain such as at PCM."
The Bull claims cover areas of silicified breccia with quartz-calcite stockwork zones at the low angle contact of Pre-Cambrian Granite and Tertiary volcanic rocks, a classic detachment environment. Surface rock chip sampling by the owner and check sampling by a geologist returned strong gold values from two areas on the Property, the Bull North, in the northern portion of the Property and the Roadside area, which lies near the southern end of the large claim block. Both areas have seen limited drilling in the 1980's, but no recent work has been recorded. The two areas lie approximately 2 kilometers apart and are separated by an area of predominately shallow alluvial cover, and has not been explored.
Eighteen rock chip samples collected in the Bull North and Roadside areas assayed from 0.01 to 3.54 g/t Au, with 6 of the 18 samples returning values of 0.46, 0.66, 1.39, 2.01, 2.12 and 3.54 g/t Au. About a dozen historic drill holes are scattered over a 400 metres by 400 metres area in the Bull North area. The drilled area appears wide open to the south where the two southern most drill holes encountered 18.2 m of 1.71 g/t Au and 12.2 m of 0.58 g/t Au. Another drill hole, located over 150 metres to the east of the above two holes, and collared in shallow alluvium, returned 16.7 m of 0.62 g/t Au. To the south, at the Roadside area, again about a dozen historic drill holes were drilled in a roughly 50 metres by 100 metres target area. Reported intercepts from this drilling include 16.7 m @1.10 g/t Au and 18.2 m @ 1.27 g/t Au. One hole drilled in the southeastern portion of the area, within the granitic basement rocks, returned 3 m of 3.98 g/t Au. Scans of historic results from the Bull North and Roadside project have been sourced from Arizona Geological Society Mining Data - on line data base. Data includes previous operators drill logs, assay certificates and various maps.
The second block of claims covers the PCM Project and is located about 45 miles to the east-northeast of the Bull Project. CFM has the Option to Purchase 100% of a total of 21 unpatented claims that lie on strike to the north-northwest of the historic Hackberry Mine, a high grade, underground silver mine. The Hackberry Mine produced from quartz veins in granitic gneiss, typically 1.2 to 1.5m wide. Early production was from oxidized, near surface enriched ore that averaged 200 oz/ton Ag, and production in the late 1880's totaled US$ 3,000,000 in 1884 dollars. Later production averaged 150 to 180 opt Ag during the early to mid 1900's (total recorded production of $4,000,000 in 1917 dollars). At the 600 foot level of the principle decline, the main vein breccia zone of the Hackberry lode was 5 to 21 m wide assaying from 25 to 100 oz/ton Ag. (source: "HACKBERRY SILVER PROPERTY MOHAVE COUNTY, ARIZONA, USA NI 43-101 TECHNICAL REPORT, March 28, 2017)
Surface rock chip and grab sampling 4 to 6 km north, along strike of the Hackberry vein system, on the PCM claims, returned excellent high grade results along this untested portion of the vein zone. Samples consisted of outcropping vein or were selected from small dumps. 16 samples returned values ranging from 0.01 to 12.53 g/t Au and 0.15 to 933 g/t Ag. 8 of the 16 samples ran > 2 g/t Au and 10 of the 16 ran > 90 g/t Ag. 7 of the higher Ag samples ran from 369 g/t Ag (10.8 oz/t) to 933 g/t (27.2 oz/t). This sampling was not comprehensive in nature but gives the tenor of mineralization found on the project. (source: current project vendor)
The two LOI's give CFM the right to purchase 100% of the two projects, subject to a retained 2% NSR, which can be bought down during the first year of commercial production for US$ 1M per 1% NSR. The initial cash and share payments for the Bull Project calls for US$ 10,000 and the issuance of 150,000 CFM shares, with the total payments over 4 years being US$ 1.5M and 750,000 shares. The PCM Project has similar terms, following a 30 day due diligence period, with initial payments being US$ 15,000 cash and 50,000 CFM shares, and total payments over 4 years to purchase 100% of the claims totals US$ 1.5M and 200,000 shares. The PCM Project is subject to a separate Finder's Fee agreement (the "FF Agreement") which would pay the Finder 100,000 CFM shares initially and 100,000 shares 12 months after the initial share issuance, subject to Exchange approval.
Drill results and grab samples reported here are historic in nature and have not been verified by the Company. Michael Collins, P.Geo. and V.P. Exploration and Development for Confederation Minerals has reviewed and approved this news release.