Redstar Gold Corp. (TSX.V:RGC) and Centerra (U.S.) Inc. (Centerra), a subsidiary of Centerra Gold Inc. (TSX: CG), have finalized an agreement which allows Centerra to earn an interest in Redstar's Oasis project in Nevada. Under 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's acquisition of the Oasis project was a direct result of using the geological database acquired from AngloGold Ashanti. This database continues to give Redstar a huge advantage in acquiring projects in Nevada. Previous data and work by Redstar's geologists identified a gold porphyry system on the Oasis property. Gold porphyry systems often have significant size potential and we are extremely pleased to have Centerra advance the project. Centerra is a significant gold producer with the resources needed to aggressively explore this exciting gold project in Nevada."
The planned 2010 work program at Oasis includes airborne geophysics, geological mapping and drilling. 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 up to 2.55 ppm gold, and Redstar's sampling returned gold values up to 5.41 ppm. The exposed area of alteration and gold mineralization is at least 2,000 feet (650 metres) in diameter and the overall tenor of the disseminated gold zone at surface is commonly in the 0.3 to 1.5 g/t range. The gold mineralization is locally concealed by post-mineralization rocks and a silica cap, providing 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. Prior shallow drilling (average depth 98 m) from the early 1980's intersected anomalous to low-grade gold values to 0.85 g/t gold
Regarding other Redstar projects, Fronteer Developments Ltd. completed 3,118 metres of drilling in 2009, on Redstar's Richmond Summit project on the Carlin trend in Nevada but has elected not to continue with the option. Although Fronteer's widely-spaced deep drilling did not encounter significant gold, the roots to the two main surface gold anomalies (both with gold exceeding 3 ppm (3 g/t), have not been identified. Lower-plate carbonates and abundant intrusive rocks were intersected in the drilling.
In Canada, work will begin shortly on Redstar's Newman Todd project in the Red Lake area in Ontario. The work is being funded by Central Resources and will include structural mapping, stripping and sampling followed by a planned 5000 metre diamond drilling program.
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 is 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
|Redstar Gold Corp.
Tim Mikula, Investor Relations
|Renmark Financial Communications Inc.
Barbara Komorowski or Dan Symons
Tel: 514.939.3989 or 416.644.2020
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.