VANCOUVER, BC: Redstar Gold Corp. (RGC:TSX-V) is pleased to announce that exploration is underway on its recently acquired Sunshine Road projects in the Atikokan area, near Thunder Bay, Ontario. The phase one exploration program will follow up on past work at Sunshine Road, which includes grab samples grading up to 66.0 g/t gold in a quartz vein.
Budgeted at CDN $100,000, the exploration program will involve regional analysis, geological mapping, prospecting, stripping and sampling to better define the Sunshine Road showing and determine drill targets for the next phase of exploration. Results are expected in August.
"As a highly prospective property in an under explored region with good access and infrastructure, Sunshine Road presents an exciting opportunity for Redstar," said Scott Weekes, President and CEO. "With this first phase, our goal is to build on positive past results to better understand the geological environment and controls, trace the known showing on surface along strike (and at depth) and outline other areas of potentially economic gold mineralization."
In addition to the high-grade quartz vein result noted above, sampling in a road cut outside the vein returned 2.42 g/t gold. Redstar optioned the 2,000 hectare land package in March under favourable terms from a private vendor. The Company's commitment over the next 12 months is CDN $100,000.
The Atikokan area is in a geological setting similar to the prolific Red Lake gold camp, with high-grade gold values in quartz veins associated with structures in volcanic rocks. In addition to the narrow-vein, high grade discoveries that are beginning to emerge, the Atikokan area also hosts the large tonnage Hammond-Reef deposit (Kinross Gold Corp.) that has a historical published resource of 85.0 million tonnes grading 0.93 g/t gold (or 2.56 million ounces) within intrusive rocks. Management of Redstar believes that activity in the area will continue to increase this year and large land packages will become more expensive and difficult to acquire.
Redstar also announces that the private placement, previously announced on June 9, 2004, closed today. Redstar issued 2,530,000 units at a price of $0.10 per unit to raise gross proceeds of $253,000. Each Unit consists of one common share and one-half share purchase warrant. Each share purchase warrant will be exercisable into one common share at a price of $0.15 for a period of one year. Canaccord Capital Corporation received a commission of $20,240 and 506,000 Agent's warrants. The Agent warrants have the same terms as the Unit's warrants. The shares and any shares issued pursuant to the exercise of warrants have a four-month hold period expiring November 29, 2004.
Redstar Gold Corp. is a junior mining and exploration company with properties located in the prolific Red Lake Gold Camp in northwestern Ontario. Redstar is focusing its acquisition efforts on under explored gold prospects in North America, which can be acquired under competitive terms and developed by Redstar's technical team. The website for Redstar is redstargold.com.
On behalf of the Board,
REDSTAR GOLD CORP.
Linear Capital Corp.