Redstar Gold Corp (TSX-V: RGC) is pleased to announce the completion of a purchase agreement with AngloGold Ashanti announced January, 2005. Under the terms of the agreement Redstar acquired an extensive geological database compiled by AngloGold Ashanti on the Great Basin including Nevada as well as parts of Arizona, California, Idaho and Utah. Until the completion of the purchase agreement AngloGold Ashanti held a one-time back-in right on any project acquired by Redstar in the Great Basin. With the completion of the agreement Redstar has acquired a comprehensive database that includes geological, geochemical and geophysical data that covers an area that produces almost 10% of the world's gold.
The geological database has proven to be effective in developing projects in a variety of known gold producing regions of Nevada. This includes the Carlin Trend where the Richmond Summit and Dry Gulch properties are currently optioned to Gold Fields; the Bullfrog district where the North Bullfrog project is optioned to International Tower Hill Mines; and the Cortez Trend where Redstar still holds a 100% interest in the Cooks Creek project.
Scott Weekes, President of Redstar stated: "We are very pleased to have completed the database purchase agreement with AngloGold Ashanti, removing back-in rights on any projects Redstar now acquires within the Great Basin. Over the past two years the value of the Great Basin database has been made clear by the quality of projects Redstar acquired in the highly competitive Nevada exploration scene. We have staked ground in the major gold trends including Carlin and Cortez as well as other proven gold producing regions of Nevada and attracted high quality partners to help explore these properties. At present Redstar has two projects optioned to Gold Fields and two projects optioned to International Tower Hill Mines and we are actively seeking partners on three other projects. Our goal in 2008 is to have between $3.0 and $5.0 million spent by our partners on Redstar's Nevada properties. This will give share holders exposure to numerous Nevada exploration opportunities at minimal cost and allow Redstar to continue to advance its 100% owned Newman Todd project in Red Lake, Ontario. "
Since acquiring exclusive rights to the Great Basin database in 2005, and under the direction of its U.S. Exploration Manager, Dr. Jacob Margolis, Redstar has become a significant explorer in Nevada with over $3.5 million spent in exploration to date. Of this money, over 80% has been spent by Redstar's partners, giving Redstar shareholders exposure to numerous exploration projects at minimal expense. The acquisition of the database provides a competitive advantage to Redstar providing the ability to continuously develop a pipeline of Nevada projects.
To date Redstar has focused on projects it could acquire 100% interest in through staking or deals with private land owners. By removing the back-in held by AngloGold Ashanti, Redstar has even more flexibility in the types of properties it might acquire and in potential agreements with partners.
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