Redstar Gold Corp. (the "Company") is pleased to announce the acquisition of the Pine Nut project in the Walker Lane Belt of north western Nevada. The project represents the first property acquisition made as a result of an exploration partnership between the Company and AngloGold Ashanti North America Inc. (AngloGold Ashanti). Under the terms of the partnership agreement (previously announced January 13, 2005) the Company has exclusive rights to AngloGold Ashanti's Nevada database.
The Pine Nut property covers a large, under explored, epithermal gold system. Surface mapping has identified multiple gold bearing quartz veins within a zone that has been traced over an area approximately 3000 meters north-south by 300 meters east-west. Quartz stringer zones up to 30 meters wide have been mapped with individual veins up to 3.0 meters wide. Previous, wide spaced reverse circulation drilling, intersected gold values up to 11.5 g/t over 1.52 meters within quartz veins. Surface sampling identified numerous gold values over 10 g/t with the best value being 37.7g/t over 3.0 meters.
The primary target at Pine Nut is high grade gold bearing quartz veins similar to the Midas (+5,000,000 ounces) or Bullfrog (+3,000,000 ounces) deposits. Redstar believes there is significant potential to develop numerous high grade ore shoots within the Pine Nut epithermal system. A program of detailed surface sampling, structural mapping and diamond drilling is planned. The quality of the AngloGold Ashanti database will allow the Company to progress to the drill ready stage very quickly.
The Pine Nut property consists of 53 staked mineral claims and six parcels (totalling approx. 1040 acres) of private land. The private land is held under 6 lease and lease to purchase arrangements with total payments in the first year of $57,325. The lease to purchase agreements gives Redstar the ability to purchase both mineral and surface rights for some of the parcels.
Scott Weekes, president of Redstar Gold states:"Redstar is very pleased to have acquired such a large under explored gold system in Nevada. This acquisition shows the value of the AngloGold Ashanti database and provides a great first step for Redstar's move into the Nevada exploration scene."
On Behalf of the Board,
REDSTAR GOLD CORP.
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