Redstar Gold Corp. (TSX-V: RGC) (Redstar) is pleased to announce the acquisition of its 4th and 5th gold exploration projects in Nevada: Painted Hills and Eagle Basin. The acquisition of these projects demonstrates Redstar's continuing aggressive approach to Nevada exploration. The Painted Hills project consists of fifty unpatented claims (1.6 square miles) staked by Redstar covering an area of altered and mineralized volcanic rocks in northwestern Nevada, 83 miles northwest of Winnemucca. The Eagle Basin project consists of seventy-two unpatented mining claims (2.3 square miles) staked by Redstar in central Nevada, 45 miles west of Eureka.
The acquisition of the two projects is based on the presence of extensive alteration systems, favorable geology, trace element geochemistry and location. Both areas are relatively under explored with only minor shallow drilling completed on the Eagle Basin project and no drilling on the Painted Hills project.
Redstar's President, Scott Weekes, states: "Since acquiring exclusive rights to the AngloGold Great Basin database in 2005, Redstar has developed five exploration projects in Nevada and we expect to continue to develop projects at this pace. The Eagle Basin project was developed as a direct result of following up on data within the AngloGold database. This again points to the benefits and advantages this relationship with AngloGold-Ashanti has brought Redstar. Painted Hills offers us a rare opportunity in Nevada to test a well-proven exploration model in a strong epithermal system that has never been drill tested. We look forward to advancing both projects and additional property acquisitions in Nevada."
The Painted Hills Project has important geologic similarities to multi-million ounce, high-grade gold deposits of the northwestern Great Basin, notably the Sleeper (2.5 million ounces produced) and Midas (3.0 million ounces produced) deposits, and offers the potential for discovery of a new, high-grade gold vein system. The Sleeper deposit is about 50 miles to the southeast. The project lies along a regional northeast-trending fault that has localized gold mineralization at the Hog Ranch and Mountain View gold districts to the southwest, both similar in age and geologic setting to Sleeper and Midas.
Alteration and mineralization at Painted Hills are hosted in Middle Miocene volcanic rocks and are indicative of the shallow levels of an epithermal system similar to these other deposits. Mineralization and alteration exposed at Painted Hills include a mercury-bearing opal-chalcedony vein zone several hundred feet in width and strong kaolinite-opal alteration. Anomalous arsenic, antimony and gold are also present. All these features are consistent with the upper levels of an epithermal system. In these systems high-grade veins lie beneath the mercury-rich opaline alteration. This exploration model has been proven in several districts in Nevada, such as at Ivanhoe (Hollister) and Goldbanks. The Painted Hills veins and alteration are exposed along a range-front fault, and portions of the system may be concealed by the adjacent valley fill. This setting is very similar to the Sleeper deposit. There has been no previous gold-exploration drilling at Painted Hills.
The Eagle Basin Project lies along a northerly-trending corridor encompassing, with few exceptions, the largest gold (±silver) deposits in Nevada (>>2 million onces gold). This corridor is believed by Redstar to represent a major continental-scale crustal boundary along which mineralization has been focused. From south to north major gold systems/districts along this corridor include: Bullfrog, Goldfield, Tonopah, Manhattan, Round Mountain, Northumberland, Cortez-Pipeline, the Meikle-Goldstrike-Gold Quarry portion of the Carlin trend, and Jerritt Canyon. Eagle Basin lies between the Cortez-Pipeline and Northumberland portions of the corridor.
The extensive Eagle Basin alteration zone is known to cover at least 1.6 square miles (4.3 km2). Alteration consists of strong chalcedonic silicification and argillization with local quartz and chalcedony veins and disseminated sulfides. A series of northwest-trending silicified zones across a width of at least 3,300 feet occurs in the core of the system, with individual zones up to 500 feet in length and about 20 feet in width. Proprietary magnetic data indicates the Eagle Basin alteration system sits within a roughly circular feature about three miles in diameter. This feature is believed to be a caldera-like collapse feature caused by magmatic/volcanic activity. Samples collected to date indicate strongly anomalous trace elements consistent with a magmatic high-sulfidation epithermal gold system. Strongly-anomalous trace elements include arsenic, antimony, mercury and silver. Previous exploration has been limited to a single, shallow percussion drilling program in 1986-1987 by Dome Exploration. The strength and size of the alteration system, the trace-element signature and the limited drill testing present an opportunity for discovering a high-sulfidation type epithermal gold deposit or a porphyry-style Cu-Au-Mo deposit similar to the gold deposits in the Paradise Peak district in west-central Nevada (1.6 million ounces of gold produced, 1986-1994).
Jake Margolis, Redstar's U.S. Exploration Manager notes: "The scale of alteration and trace element signature at Eagle Basin is extremely encouraging. The large system at Eagle Basin with limited bedrock exposure, strong structural control and limited previous drilling further indicate the potential of the area. Painted Hills exposes a mineralized, high-level epithermal system that has never been tested at depth. A further positive aspect is its favorable structural setting. Deeper drilling at similar occurrences in Nevada has led to important gold discoveries. In all, both projects provide us with excellent exploration opportunities."
In addition to the new acquisitions Redstar currently has three projects in Nevada optioned to Strategic Nevada Resource Corp.; Pine Nut, Dry Gulch and North Bullfrog. Drilling on the Pine Nut project is currently underway and is expected to be completed within a week. Results will be released when received. Drilling is planned for late September and October on the other two projects.
On Behalf of the Board,
Redstar Gold Corp
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