Redstar Gold Corp (TSX.V:RGC) ("Redstar") is pleased to announce the commencement of drilling on October 1, 2012, at its Baker Project in northeastern Nevada. The drilling program is being carried out by Newmont Mining Corporation ("Newmont"), who expects to complete five to six holes totaling approximately 1,000 m. Under the terms of the agreement announced previously, Newmont is leasing the Baker Property from Redstar and will pay Redstar Advance Royalty payments of US $72,500 over the first four years of the lease and is committed to spending US $225,000 on the Baker Property during the first two years. Redstar will retain a 2.5% Net Smelter Royalty. The Baker Property is located in the Pequop Mountains of northeastern Nevada, 19 km north of Newmont's recently acquired Long Canyon deposit which is currently in development.
The Baker Property is a Carlin-type sediment-hosted gold target containing multiple structurally-controlled zones of silicification (jasperoid) along north-northwest trending faults, an orientation similar to the control on many of the productive gold deposits of northern Nevada. Individual silicified fault zones are at least 1.2 km long and project into or are surrounded by valley-fill gravel (alluvium) along the northeast corner of the Pequop Range. Alluvial cover in the area appears to be thin, with jasperoids in some areas surrounded by more than 3,000 feet of cover between outcrops. There are no records of previous drilling.
Dr. Jacob Margolis, U.S. Exploration Manager for Redstar, is the qualified person as defined by National Instrument 43-101 and has reviewed the technical content of this news release.
Redstar has eleven gold projects in Nevada, the Unga project in Alaska and the Newman Todd project in the Red Lake District, Ontario. In Nevada, several projects are undergoing active exploration by partners including Newmont and others. 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 mineralization that is similar to that at the nearby world-class Red Lake Mine and has been the focus of an aggressive drilling campaign in 2012.
On Behalf of the Board,
Redstar Gold Corp
"R. Bob Singh "
R. Bob Singh P.Geo
President & CEO
800 WEST PENDER STREET
Redstar Gold Corp.
Tim Mikula, Business Development
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