Redstar Gold Corp. (TSX.V:RGC) and Confederation Minerals Ltd (TSX.V:CFM) are pleased to announce that Redstar and Confederation have signed an agreement, whereby Confederation can earn an interest in Redstar's Newman Todd gold project in Red Lake, Ontario. Under the terms of the agreement Confederation has an option to earn an initial 50% interest in the project by funding $5.0 million in exploration expenditures, issuing to Redstar 500,000 shares of Confederation, and making $250,000 in cash payments over a three year period. After Confederation earns their initial interest, they have a second option to earn an additional 20% interest in the property, by issuing 500,000 shares to Redstar and funding a Preliminary Economic Assessment (PEA) on or before the sixth anniversary of this agreement. Work commitment in the first year of the agreement includes $2.0 million in exploration expenditures with drilling planned to begin in early 2011.
Scott Weekes, President Redstar stated "We are extremely pleased to have signed this agreement with Confederation, which will guarantee an aggressive drill program on the Newman Todd project early in 2011. Our past work has defined a gold bearing structure exceeding 2 km (the Newman Todd Structural Zone), with narrow steeply dipping high-grade veins. Recent drilling by Hy Lake Gold Inc. - near the boundary of the Newman Todd property - confirms the continuation of the structure 800 metres north of Redstar's most northerly drilling. Red Lake is one of the best known, high-grade gold camps in the world, with deposits extending to depths of over 2000 metres. Only about 40% of the 2.0 kilometre long strike extent of the Newman Todd Structural Zone has been tested with three gold zones currently identified and only tested to around 200 metres below surface. We are excited to have a partner that is eager to aggressively drill to extend the strike of the Newman Todd Structural Zone and also drill to test the depth potential that remains wide open."
Mr. Lawrence Dick, Ph.D., P.Geo and President of Confederation, stated: "We are delighted to have joined with Redstar, to continue the successful exploration to advance the high-potential Newman Todd gold project in the Red Lake District. Our objective is to expand the Red Lake-style gold mineralization discovered on Redstar's Newman Todd project, located in a geological setting similar to that of the famous Red Lake gold deposits. The tenor of the gold results from recent drilling, which reach very high grades locally, bode well for the future of the project. We plan a drill- intensive program to add to the highly-favourable results obtained to date, beginning this winter."
Previous work by Redstar on the Newman Todd property has outlined gold mineralization within a silicified breccia zone that can be traced for at least two kilometres. High-grade gold mineralization, within the Newman Todd Structural Zone, is associated with quartz veining, silicification, sulphide and magnetite replacement of intensely iron carbonate altered breccias zones. Drilling done by Redstar has intersected values up to 61.20 g/t gold over 1.0 metre within a wider zone of 67.0 metres of 1.76 g/t gold in previous drill programs. The property has a very similar geologic setting to many of the major mines in the Red Lake camp, such as Goldcorp's Campbell and Red Lake mines. Similarities include; large Fe-carbonate and silica alteration zones, proximity to a major structure, secondary northwest-southeast trending structures, and proximity to a folded ultramafic body.
Posted on Redstar's website (www.redstargold.com) is a map showing a model of the Newman Todd structure, with locations of Hy Lake Gold Inc.'s drilling near the claim boundary, and a summary table of all past drill results completed by Redstar.
Bob Singh P. Geo., a qualified person as defined by National Instrument 43-101, has reviewed this news release. Bob Singh is the Canadian Exploration Manager for Redstar Gold Corp.
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 Newman Todd project in the Red Lake area, please visit the company's website at www.redstargold.com.
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.
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Redstar Gold Corp.
Tim Mikula, Investor Relations
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