Redstar Gold Corp. (TSX.V:RGC) is pleased to announce the signing of a non binding letter agreement with Centerra (U.S.) Inc. (Centerra), a subsidiary of Centerra Gold Inc. (TSX: CG), wherein Centerra can earn a 75% interest in Redstar's Oasis project in Nevada. Under the proposed terms of the agreement, Centerra can earn a 75% interest by completing $4 million in work expenditures and paying $200,000 in cash to Redstar over five years. Centerra will act as operator. Minimum work expenditures in the first year of the agreement are $500,000.
Scott Weekes, President of Redstar states: "Redstar is extremely pleased to have Centerra advance the Oasis project. Centerra has significant international gold production experience and is active in Nevada exploration. The Oasis project appears to host a gold porphyry system and therefore has significant size potential. Centerra has the resources needed to aggressively explore this exciting prospect."
The Oasis Project consists of 100% Redstar-owned unpatented mining claims in southwestern Nevada, 26 miles southwest of the Goldfield mining district (4 million ounces of gold produced). Extensive low-grade, disseminated gold mineralization occurs in strongly-altered andesitic volcanic rocks.
Surface samples collected by exploration programs in the early 1980's returned gold values to 2.55 ppm, and Redstar's sampling has returned gold values to 5.41 ppm. The overall tenor of the disseminated gold zone at surface is in the 0.3 to 1.5 g/t range, and the zone is at least 2,000 feet in diameter. Mineralization is locally concealed by post-mineralization rocks and a silica cap, providing for significant expansion potential. Characteristics of the gold system are consistent with a porphyry gold system, and include disseminated gold in rocks containing hydrothermal biotite, "A-type" quartz-vein stockworks and elevated molybdenum and copper contents.
Drilling is currently under way on Redstar's Newman Todd project in Red Lake, Ontario and an exploration program on the Richmond Summit project on the Carlin Trend in Nevada has recently been completed. Initial assay results from the Newman Todd project have recently been announced, including high-grade gold with follow-up drilling now underway. Results on Richmond Summit will be released in the near future.
Redstar is a junior exploration company focused on gold exploration in Nevada and Red Lake. Redstar currently has 12 projects in Nevada and one in Red Lake, Ontario. For more information on these projects please visit the company's web site at www.redstargold.com.
Dr. Jake Margolis a qualified person as defined by National Instrument 43-101and has reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp.
On Behalf of the Board,
Redstar Gold Corp
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.