Redstar Gold Corp (TSX.V:RGC) is pleased to announce that Centerra (U.S.) Inc. (Centerra), a subsidiary of Centerra Gold Inc. (TSX: CG), has completed its 2011 drilling program at Redstar's Oasis porphyry gold project in southwestern Nevada. The drilling was designed to test for higher-grade zones within the area of widespread low-grade gold mineralization intersected in the 2010 drilling program and to expand the mineralized area. Centerra can earn a 75% interest in the project by completing $4 million in work expenditures and paying $200,000 in cash to Redstar over five years. Oasis is a porphyry gold system with gold correlating with elevated copper and molybdenum. The gold-anomalous zone defined to date is at least 700 metres in diameter but remains open in several directions, including at depth.
Centerra completed eleven reverse-circulation drill holes for 8,030 feet (2,447.5 m) between September 25th and November 12th. Drilling focused around the eastern and western edges of the known gold system where the 2010 drilling intersected stronger disseminated mineralization with possible structural control. Redstar expects to report assay results in early 2012.
Scott Weekes, President of Redstar states: "Our primary goal, when we acquired the AngloGold Ashanti geological database for Nevada, was to find high-quality projects and joint venture them out to have them drill tested. We are pleased our partner Centerra completed a second season of drilling on the Oasis project to follow up on the encouraging drilling results from 2010. This drilling will help us better understand the bulk tonnage, low-grade gold target at Oasis. This year has been our busiest ever. Along with our efforts in Nevada an aggressive drilling program was completed on our Newman Todd gold discovery in Red Lake, Ontario, and we acquired the high grade Unga gold project in Alaska, where we recently completed our first phase of drilling. We look forward to continuing aggressive work in 2012 on our various gold projects."
Highlights from 2010 drilling
Potential ore-grade mineralized intervals are contained within extensive sections of anomalous gold. For example, from the 2010 drilling program, drill hole 16 (T.D. 1,200 ft, 365.8 m) contained a combined 153.9m (505 feet) grading 0.181 g/t (0.1 g/t cutoff) that includes higher-grade intervals, e.g., 0.322 g/t over 15.2 metres (50 feet). Additional results included drill hole 14 (96.1 metres of 0.26 g/t including 12.2 metres of 0.40 g/t), hole 15 (7.6 metres of 0.80 g/t and 10.7 metres of 0.63 g/t) and hole 10 (13.7 metres of 0.49 g/t including 3.0 metres of 1.06 g/t).
About Redstar Gold
Outside of its 14 gold projects in Nevada, Redstar has two key gold projects in Alaska and Red Lake, Ontario. The Unga project in Alaska includes a high-grade gold deposit with a non 43-101 compliant resource, a bulk tonnage non 43-101 compliant resource, a historic high-grade gold mine, and numerous high priority exploration targets. Initial drilling results from the project were reported on November 28th, with further results to be released shortly. An aggressive drill program is also ongoing at Redstar's high-grade gold discovery at the Newman Todd project in Red Lake, Ontario.
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
800 WEST PENDER STREET
Redstar Gold Corp.
Tim Mikula, Business Development
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