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 holes at the Newman Todd property in Red Lake, Ontario.
Discussion of results:
Drilling on the Newman Todd project is on-going and fully funded by our partners Confederation Minerals Ltd. (TSX:V: CFM). The 2012 drill program has seen approximately 5300 metres of drilling so far in 14 drill holes. Holes NT-119 to NT-124 are still pending results. The focus of the 2012 drill program has been to infill the Hinge Zone on 25 metre centres in order to better understand geological controls to the gold mineralization. An updated geological interpretation suggests that there may be significant folding within the sequence and that gold mineralization may be controlled by this folding. Gold mineralization occurs as silica-sulphide and magnetite replacement zones within the Newman Todd Structure ("NTS"). The NTS is a large scale hydrothermal alteration zone with muli-phase brecciation, iron-carbonate veining and widespread gold mineralization.
R. Bob Singh, President of Redstar states "We continue to be impressed with results from the Newman Todd project. This year's drill program has the highest success rate of any program we have had in Red Lake in the last nine years. The current 'fold-model' interpretation highlights a key similarity to the High Grade Zone at the Red Lake Mine complex, where folding has been primarily responsible for the distribution of gold mineralization. At these shallow depths, we have just begun to scratch the surface of this impressive new high grade gold system in Red Lake. "
Drill Highlights: (see Table 1 for a complete list of significant results)
- NT-117 intersects 5.5 metres of 7.48 g/t gold including 0.50 metres of 63.3 g/t gold
and 3.0 metres of 7.48 g/t gold including 1.0 metre of 15.0 g/t gold
- NT-118 intersects 1.0 metre of 43.50 g/t gold
- NT-115 intersects 29.0 metres of 2.04 g/t gold including 1.0 metre of 13.8 g/t gold
Table 1: Significant Results
|Hole ID||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.
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 dollars on exploration on the project, paid Redstar $100,000 and issued 200,000 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 is pleased to announce the appointment of R. Bob Singh P.Geo as President of the Company on August 20, 2012. Bob was previously appointed CEO of the Company on August 1, 2012.
Also, further to the Company's news release of May 24, 2011, the Company has entered into an amending agreement with Magnum Hunter Production, Inc. (formerly NGAS Production Co.) ("Magnum Hunter") for the option to explore and earn up to a 100% undivided interest in the Shumagin Property, Alaska. Pursuant to the amending agreement, Magnum Hunter has granted the Company an additional 180 days to make the payment of US $1.0 million which was due on September 1, 2012. In consideration for the 180 day extension, the Company has paid US $100,000 and issued 125,000 shares to Magnum Hunter and will be obligated to issue Magnum Hunter an additional 125,000 shares every 30 days subsequent to September 1, 2012.
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