Redstar Gold Corp. (TSX.V:RGC) ("Redstar") is pleased to announce that Gold Fields Netherlands Services BV, a subsidiary of Gold Fields Ltd. (NYSE, JSE, DIFX : GFI) ("Gold Fields") has begun field work on Redstar's 100% owned Richmond Summit and Dry Gulch projects within the Carlin Trend in Nevada, USA. Under Letters of Intent executed on 12 March 2008 Gold Fields has committed $1.4 million in exploration expenses on the projects during the first year.
The initial work program on Richmond Summit and Dry Gulch is well underway and includes geological mapping, rock-chip sampling, gravity and magnetic geophysical surveys, and trenching. The geophysical surveys are now complete and trenching is expected to begin on the Richmond Summit property before the end of the second quarter and drilling on both projects is planned after results are received from the trenching program.
Scott Weekes, President of Redstar stated: "We are extremely pleased with Gold Fields' methodical and aggressive approach to exploration on our Carlin Trend properties. The objective is to complete drill programs on both properties in 2008 and it's exciting anytime you can test targets with the potential to hit Carlin-type high grade gold ore bodies. Gold Fields brings a wealth of experience in the exploration and development of world class deposits and we are very pleased to have attracted them as partners in our exploration at Dry Gulch and Richmond Summit. So far, in 2008, we have received results from drilling on our Red Lake, Ontario project and partial results from our drilling on the North Bullfrog project in Nevada. At the Newman Todd project the results (up to 61.02 g/t gold over 1.0 metre) have increased our understanding of this new high grade gold trend in Red Lake. Results from North Bullfrog have identified a high grade near surface target at Mayflower (up to 2.02 g/t gold over 51.8 metres) and 3 km to the northwest we have added the large bulk tonnage targets at Sierra Blanca (up to 1.16 g/t over 21.34 metres). We will remain very busy in 2008, with drilling on our North Bullfrog and Carlin Trend projects in Nevada being funded by our partners and more drilling on our 100% owned Red Lake project."
The Richmond Summit property is located 4 miles northwest of the Mike deposit (8.5 million oz gold) in the Gold Quarry district and 6 miles south of the Carlin - West Leeville gold mines (>10 million oz gold production plus reserves). Surface sampling returned gold values up to 7.75 g/t and previous limited drilling encountered values up to 2.54 g/t gold over 3.05 metres at shallow depths. New detailed magnetics and gravity data help define structural targets and highlight major geologic features important to targeting gold mineralization. In particular the magnetic survey is assisting with the delineation of poorly-exposed dikes which often occur in areas of productive gold mineralization within the Carlin Trend.
The Dry Gulch property is located within 6 miles of the Gold Quarry gold mine (>15 million ounces gold) and 7 miles of the Carlin - West Leeville gold mines. Geophysics indicates that structures controlling these gold deposits can be traced to the project area, and there is evidence that favourable host rocks may underlie the area at relatively shallow depths. Preliminary results of the Dry Gulch gravity survey confirm and better define the structures and discrete gravity high which outline the conceptual exploration target.
About the option agreement between Redstar and Gold Fields
Under the terms of the Letters of Intent Gold Fields can earn a 60% interest in the respective properties by making the following payments and work commitments over four years (all amounts are in US dollars):
|Cash Payments||Work Commitments|
After earning a 60% interest Gold Fields may earn an additional 10% interest in a property (bringing the total to a 70% interest) by making additional expenditures of $7.5 million at Richmond Summit and/or $5.0 million at Dry Gulch.
About Redstar Gold Corp.
Redstar Gold Corp. is a Vancouver-based company focused on gold exploration in Nevada and Red Lake, Ontario. For more detailed information on Redstar's Nevada projects, as well as its gold projects in the Red Lake area, please visit the company's web site at www.redstargold.com.
On Behalf of the Board,
Redstar Gold Corp
|Redstar Gold Corp..
|B&D Capital Partners
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release