1.65 Metres of 246 g/t Gold and 136 g/t Silver
Redstar Gold Corp. (TSX.V: RGC) is pleased to report results from the final three holes of the ten hole program completed on the Unga Project in Alaska. The holes tested the bonanza grade Shumagin Vein that has remained unexplored since the 1980's. Results from the first seven holes (announced November 28, 2011) indicated strong continuity of the high-grade gold-silver mineralization down dip, and indicted the presence of wide zones of gold-silver mineralization around the core high-grade veins. Highlights from the latest three holes, include a bonanza grade interval of 246 g/t gold and 136 g/t silver over 1.65 metres (7.2 ounces/ton gold and 4.0 ounces/ton silver over 5.4 feet).
Scott Weekes, President of Redstar stated: "These latest results confirm the bonanza grade nature of the Shumagin Gold system with multi-ounce gold-silver intercepts, and importantly the system remains open in all directions. The presence of wide zones of lower grade gold-silver mineralization around these high-grade intervals is very encouraging, as it indicates the system has potential to also host bulk tonnage mineralization, significantly increasing the size potential. Drill hole 11SH010 returned the highest grades ever intersected on the property, and was drilled below the historical resource calculated from 1980's drilling. Drilling has also demonstrated the continuity of the vein system over at least 800 metres of strike, indicating the potential for additional discoveries. The Shumagin Vein is only one of a number of high priority gold-silver targets within the Unga Project and we are planning an aggressive drilling program in 2012 that will target Shumagin as well as other priority targets."
Table of Drill Hole Assays
|Hole||From (m)||To (m)||Width (m)*||Gold (g/t)||Silver (g/t)|
* Width is calculated as core length and does not imply true width of the zone. Weighted average gold intervals apply a 0.20 g/t Au cutoff with a maximum 4 meters of internal waste unless otherwise indicated.
Discussion of phase one drilling at the Unga Project
Previous drilling at the Shumagin Vein led to a historic resource estimate of 254,000 tonnes (280,000 tons) grading 27.4 g/t (0.80 ounces per ton) gold and 127 g/t (3.7 opt) silver (SRK Consulting, 2000). The resource was based on shallow drilling in the late 1980's that was within about 150m (500 feet) of surface. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. The current drilling was designed to confirm and expand on this historical resource. Drill hole 11SH010 was drilled down plunge of the historical resource and returned the highest gold grades on the property (0.55 m of 738 g/t gold - 1.8 feet of 21 oz/t gold) within a broad interval of lower grade. The wider interval includes 9.9 metres of 3.2 g/t gold and the entire 29.7 metre interval averages 15.0 g/t gold (97.4 feet of 0.44 oz/t gold). Drill sections, a drill plan and long section can be found on the company's web site, www.redstargold.com.
Due to the presence of visible gold in some sections, Redstar is currently reassaying a number of lower grade intervals using a metallic screen technique. Metalic screen assays will allow for a refinement of the gold assays, where coarse gold is present, and will assess the coarseness of the gold.
The Shumagin Vein occurs along a northeast-trending fault zone within volcanic rocks and is at least 1.3 km long; high-grade mineralization has been discovered along at least 800m of the vein zone. Exploration to date has not defined the limits to mineralization along strike and at depth. The epithermal gold-silver vein mineralization occurs within steeply-dipping quartz/carbonate veins and breccias at the faulted contact between andesite flows and a crystal-lithic tuff. The vein system lies within a much broader structural corridor which is about 1.5 km wide and 9 km long. There are other mineralized vein zones within this corridor that have seen only limited exploration. For example, the Aquila vein system is 6 km southwest of the Shumagin Vein and has been traced for over 2 km. Limited shallow drilling returned values up to 113 g/t gold over 0.4m. There has been no drilling on the Aquila system since the early 1980's.
The Unga Project covers approximately 250 square km and contains numerous gold occurrences. In addition to the Shumagin Vein, the project contains the historic Apollo-Sitka mine area, where approximately 150,000 oz of high-grade gold was produced between 1891 and 1922, and the Centennial disseminated gold deposit, which contains a non NI 43-101 compliant resource of 4.35 million tonnes grading 1.5 g/t gold. The Unga Project consists of two properties acquired by Redstar in 2011: the Shumagin Property and the Unga-Popof Property. Redstar is purchasing a 100% interest in the Shumagin Property from Magnum Hunter Resources. The mineral rights to the Unga-Popov Property are held by Full Metal Minerals Inc. under a lease agreement with The Aleut Corporation, an Alaska Native Regional Corporation headquartered in Anchorage, Alaska. Redstar has signed an agreement with Full Metal, giving Redstar the right to earn a 60% in the property by completing $5 million in exploration expenditures by August 1, 2015, making cash payments of $300,000 by August 1, 2014, and issuing 1,000,000 shares by August 1, 2014. Redstar has the option of earning an additional 15% interest by producing a bankable feasibility study and issuing an additional 1 million shares to Full Metal. Redstar will issue an additional 1 million shares in the event of commencement of commercial production.
Quality Assurance / Quality Control
Core samples were cut in half using a diamond saw, with one half placed in sealed bags that were delivered to ALS Minerals, an accredited mineral analysis laboratory, in Fairbanks, Alaska. All samples were analyzed for gold utilizing standard fire assay methods. A sample quality control/quality assurance program utilizing standards and blanks has been implemented and reviewed by qualified persons prior to release of analytical data.
Dr. Jake Margolis and Bob Singh P.Geo are the qualified persons as defined by National Instrument 43-101 and have reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp. and Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp.
About Redstar Gold Corp.
Redstar has fourteen gold projects in Nevada, the Unga project in Alaska and the Newman Todd project in the Red Lake district, Ontario. The Unga Project in Alaska includes the high-grade Shumagin gold deposit, the Centennial disseminated bulk-tonnage gold deposit and the Apollo-Sitka high-grade gold vein system, which produced approximately 150,000 oz of gold in the early 20th century. The Newman Todd project contains a 2 km-long corridor of high-grade gold vein mineralization that is similar to the nearby world-class Red Lake Mine, and has been the focus of an aggressive drilling campaign in 2011. In Nevada, several projects are undergoing active exploration by partners including Newmont Mining Corp. and Centerra Gold Inc.
On Behalf of the Board,
Redstar Gold Corp
800 WEST PENDER STREET
Redstar Gold Corp.
Tim Mikula, Business Development
Forward-Looking Information 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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