Redstar Gold Corp. (RGC-TSXV) ("Redstar") is pleased to announce the acquisition of a large, prospective land position along the central portion of the prolific Carlin gold trend in Nevada. The 100% owned property is approximately 5.75 square miles and is situated between property positions held largely by Newmont Mining Corporation and Placer Dome Inc. The acquisition is the second major Nevada project for Redstar resulting from the application of information in an extensive geological database obtained through its alliance with AngloGold Ashanti announced earlier this year. The Company's first acquisition was the Pine Nut project announced August 17, 2005.
The new property, called the Dry Gulch project, is located six miles southeast of the northern Carlin trend deposits (e.g., Carlin and West Leeville deposit areas hosting >9.7 Moz of gold production and reserves) and six miles northeast of the Gold Quarry deposit area hosting >15 Moz gold production and reserves. The property is located at the junction of important ore controlling structures that can be traced back to the northern Carlin deposits and the Gold Quarry deposits. The project covers an uplifted structural block containing thinly-bedded, carbonaceous silty limestones similar to units that host the productive gold systems of the Carlin trend. The project is also surrounded by intrusive rocks of Late Eocene age, known to be the drivers to the gold systems along the Carlin trend. The position of the project with respect to these igneous centers is also considered favorable.
The Dry Gulch property acquisition is based on a number of criteria:
- the location within the Carlin Trend and the proximity to over 24 million ounces of gold
- a new structural interpretation based on published data and proprietary geophysical data
- new geological mapping of the Dry Gulch area
- the ability to acquire a significant land position in the area
Scott Weekes, president of Redstar Gold states: "This is an extremely important acquisition for Redstar. The Dry Gulch property lies within the Carlin Trend and is within six miles of over 24 million ounces of gold production and reserves. The combination of structural setting, favorable host rocks, proximity to important Late Eocene igneous centers, and a large property position along the Carlin trend provides Redstar with an exciting exploration opportunity. We are pleased to be able to enter this world-class gold district with such a strong presence. The Dry Gulch project indicates Redstar's ability to generate high priority targets within the major gold trends of Nevada using the AngloGold Ashanti database."
The foregoing is subject to regulatory acceptance.
On Behalf of the Board,
REDSTAR GOLD CORP.
Doug Fulcher, Director