Vancouver, B.C. Redstar Gold Corp. (TSX.V: RGC): ("Redstar" or the "Company") is pleased to announce additional high-grade gold results from the 2012 diamond drill program at the Newman Todd property in Red Lake, Ontario.
Discussion of Results:
The 2012 drill program has seen 7745 metres of drilling and has focused on detailed drilling of the Hinge Zone. Drilling within this 200 metre long section of the Newman Todd Structure ("NTS") has identified a potential fold relationship in the hanging wall contact which is defined by the margin of the large scale hydrothermal alteration of the NTS with overlying less altered rocks (see cross at www.redstargold.com). This style of folding would make an excellent control to the gold mineralization intersected along the entire strike of the NTS. Gold mineralization occurs as silica-sulphide and magnetite replacement zones within the structure along with multi-phase brecciation and iron-carbonate veining.
Drill Highlights: (see Table 1 for a complete list of significant results)
- Hole NT-123 intersects 2.5 metres of 32.65 g/t gold including 158 g/t gold over 0.5 metres
- Hole NT-124 intersects 8.0 metres of 3.80 g/t gold including 18.0 g/t gold over 1.0 metre
- Hole NT-125 intersects 10.0 metres of 9.0 g/t gold including 60.70 g/t gold over 1.0 metre
Exploration Plans: (From Confederation Minerals Ltd. News Release)
"Confederation, through its contractor Pamicon Developments Ltd., has retained Chibougamau Drilling Ltd. of Chibougamau, Quebec, to complete 3,000 metres of drilling in the 2012 program. The Company anticipates that up to an additional 5,000 metres will be contracted, and believes this will provide sufficient geological and geochemical data to form the basis for a Preliminary Economic Assessment ("PEA"). The Company believes the PEA is critical towards the evolution of the business plan for the Newman Todd property."
R. Bob Singh P.Geo, President of Redstar states "We are very pleased that our partner is completing the work necessary to produce a PEA. A positive PEA on this project will be a significant step forward in advancing this new high-grade gold discovery. These latest results from within the Hinge Zone area have shown remarkable continuity to the gold system. We look forward to continued excellent results from drilling on this project and are excited to see it taken to the next level."
Table 1: Significant Results
|Hole Number||From (m)||To (m)||Width (m)||Au (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 lower cut‐off. Internal dilution within reported intervals does not exceed core lengths of three metres unless otherwise indicated. results are pending for Hole NT-120.
Exploration work at the Newman Todd project is funded by the operator, Confederation Minerals Ltd. ("Confederation"). Pursuant to an option agreement with Redstar, Confederation can earn a 50% interest in the project by spending $5.0 million on exploration, paying Redstar a total of $250,000, and issuing Redstar 500,000 shares by November 2013. To date Confederation has spent in excess of $5.0 million on exploration on the project, paid Redstar $175,000 and issued Redstar 350,000 shares. Confederation can earn an additional 20% interest by producing a Preliminary Economic Assessment (PEA) by November 2016.
Andrea Diakow P.Geo is the qualified person as defined by National Instrument 43-101 and has reviewed the technical content of this news release. Core samples from the program were cut in half using a diamond cutting saw and were sent to Activation Laboratories Ltd. in Red Lake, Ontario, an accredited mineral analysis laboratory. All samples were analyzed for gold using standard Fire Assay-AA techniques. Samples returning over 3.0 g/t gold were analyzed utilizing standard Fire Assay-Gravimetric methods. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream as part of Confederation's quality control/quality assurance program.
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 Mining 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
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Figure 1: Plan Map