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September 27, 2016: Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) ("Redstar" or the "Company") today announces results from it's summer Exploration Program at the Orange Mountain Zone ("Orange Mountain") at it's 100% controlled Unga Gold Project, Alaska.

Redstar's President & CEO, Peter A. Ball, commented: "Exploration work completed along strike of Orange Mountain indicates that continuity exists along regional structures that link Aquila, Orange Mountain and Shumagin and provides the structural framework for targeting, high-grade intermediate sulfidation-style breccia systems along the entire strike of the approximate 9km Shumagin trend. Based on exploration work to-date, Orange Mountain remains a exceptional exploration target, which we will look to further examine in 2017. Geoogical interpretation is that Orange Mountain may host buried intermediate epithermal vein systems rooted at depth."

Results from the summer program identified that major and subsidiary structures that radiate and cross cut Orange Mountain are anomalous in gold and pathfinder elements of "mixed" epithermal signatures indicating both high-level (As-Sb-Hg-Ba) and deeper (Pb-Zn-Cu) geochemical affinities. This relationship indicates that the structures are "long-lived" and were active fluid pathways for multiple generations of contrasting hydrothermal fluids similar to relationships observed at the Shumagin Zone, where significant high-grade gold zones have been identified.

"Major and subsidiary structures that radiate from, and cross cut Orange Mountain (such as the Master Fault - discussed later), are high-priority exploration targets. Geological mapping and trace element data indicate continuity of these major structures towards the Aquila and Shumagin Zones where structurally controlled high-grade gold veins and breccias occur. The discovery of dilational jogs resulting from syn-mineral movement along conjugate and/or subsidiary structures along the approximately 9km Shumagin Trend could potentially host late-stage intermediate sulfidation-style high-grade quartz-adularia-rhodochrosite breccias comparable to those observed at Shumagin and collectively represents a significant exploration target trend," stated Jesse Grady, Redstar's VP of Exploration.

Orange Mountain, occurs in the central portion of the Shumagin trend, located along the southeast portion of Unga Island, and is one of two partially fault-controlled, northeast to southwest oriented semi-linear trends that transects the entirety of Unga Island (Refer to Fig. 1).

The Company completed a detailed geological mapping, rock chip and talus fine sampling program including a total of 183 rock chip samples, 95 talus fine samples and ~200 gridded soil samples along a ~4.5km long segment of the Shumagin Trend, centered along Orange Mountain, and between high-grade gold prospects at the Aquila and Shumagin Zones.

Unga Gold Project: Orange Mountain - Historical Overview

Large, residual silica bodies, quartz-clay alteration and oxidation exposed for >2kms centered around Orange Mountain have been studied by various operators intermittently since 1979. Drilling, geological mapping and rock sampling from these programs collectively lead to the interpretation that Orange Mountain is a large, high-level "lithocap" and may host buried intermediate epithermal vein systems rooted at depth.

During 1983 UNC Teton Exploration Drilling, drilled three angled drill holes collared along the highest ridge of Orange Mountain at ~300m ASL for a total of ~747.6meters (Refer to Fig. 2). The drill holes were drilled to maximum depths of ~60m above sea level ("ASL") beneath areas of existing anomalous gold-in-rock chips, and to test geological models of the prospect. Drill hole data indicated that Orange Mountain is a southeast dipping package of lithic to ashflow tuffs, mostly clay altered with abundant pyrite ranging from 5-25% and narrow (~30m) interbedded crystal to lithic rich tuffs of massive silicic alteration.

In drill core, anomalous gold and pathfinder geochemistry is clearly correlated to structures that cross cut the altered volcanic stratigraphy (Refer to Fig. 2). See below for drill hole information:

  • OM-1-83 was drilled to the south parallel to, and along dip, of volcanic stratigraphy and returned little to no gold in drill core.
  • OM-2-83 was drilled to the northwest across a significant N40E fault zone that occurs along the northwest cliffs. This drill hole produced scattered gold values across the fault zone mostly ranging from 10-25ppb Au with the highest intercept of 1.22 g/t gold hosted in residual silica cut by quartz-limonite breccias.
  • OM-3-83 produced the broadest gold-in-drillcore results and was drilled towards the north across the N55E, 65SE dipping Master Fault (Refer to Fig. 2). Anomalous gold, arsenic, and copper is concentrated around this fault zone, with values of >25ppb gold, up to 355ppb Au; and up to >1000ppm arsenic; and up to >2% copper. A steel-grey metallic mineral observed near the high As-Cu interval may be an As-Cu bearing mineral such as enargite or tetrahedrite.

Summer Program Results: Orange Mountain

At Orange Mountain, a wide distribution of composite chip and talus fine samples were taken to cover a central area greater than one (1) square kilometer consisting of exposures of massive bodies, ribs and lithocaps of vuggy, residual silica altered lithic tuff and polymictic breccia (black-grey weathered, buff tan fresh) with additional silicic ribs ~1.5kms to the southwest just north of the Aquila Moat area (Refer to Figs. 2, 4). The silicic altered bodies are highly resistant to erosion and form prominent cliff-like relief that is haloed by areas of subdued, light-coloured quartz-alunite-clay alteration and collectively defines a large area of Advanced Argillic (AA) alteration that is interpreted as a center for early-stage hydrothermal activity localized along the Shumagin trend.

The silicic altered units dip towards the southeast beneath stacked flows of fresh basaltic andesite and are covered by similar units along strike to the northeast under Red Mountain. To the southwest, the altered units occur stratigraphically beneath polymictic breccias and interbedded lacustrine sediments of the Aquila Moat area (Refer to Fig. 3).

The silicic bodies commonly contain ~0.5-2.0% pervasive-to-patchy disseminated very fine grained pyrite ± marcasite, and within the central area of Orange Mtn., a ~500m by ~250m area of residual silica is cut by numerous crustiform-drusy wispy quartz veinlets that transition to euhedral quartz-filled cavities. Results from composite rock chip samples taken from outcrops of the vuggy, sulfide-bearing residual silica bodies are typically barren and returned scattered results of less than <25ppb gold and are also weakly anomalous in pathfinder elements (Ag, As, Sb, Hg, Pb, Zn, Cu).

Three major structural corridors and fault systems radiate from, and cross cut, residual silica bodies at Orange Mountain that include:

  1. N40W to N70W faults localized along silicic ribs (after volcanic horizons) that occur at lower elevations to the north of central Orange Mountain;
  2. a ~300m wide by ~600m long zone of residual silica-altered polymictic breccias that are further brecciated along N40E high-angle strike-slip faults that define the prominent cliff-face on the northwest side of Orange Mountain; and
  3. a N55E striking, 65SE dipping Master Fault located on the southeast side of Orange Mountain that is interpreted to be a major controlling structure that is part of the Shumagin trend that extends from the Shumagin Zone, through Orange Mountain and to the Aquila Zone (Refer to Figs. 2-4).

Along the central crest of Orange Mountain, numerous ~0.5m to >10.0m wide quartz-limonite-geotite cataclasite breccias composed of angular clasts of quartz-veined residual silica in a quartz-limonite-geotite-barite matrix (after pyrite-marcasite) are localized along reactivated major structures and subsidiary N10W oriented joints and small scale faults (Refer to Fig. 2). Composite rock chip samples from the oxidized fault breccias are anomalous in gold >25ppb, and up to 278ppb Au and are highly anomalous in pathfinder elements with a "mixed" epithermal signature including high-level signatures (As, Sb, Hg) as well as elevated lead (Pb) (values up to: 9.19ppm Ag; 1700ppm As; 89.8ppm Hg; 928ppm Sb; 7730ppm Ba; >100ppm Pb).

Erosion and downslope dispersion of the numerous oxidized quartz-limonite and polymictic breccias about the crest of the mostly east-west trending ~700m by 300m wide central zone along Orange Mountain have produced a widespread gold-in-talus fines anomaly of ~40ppb Au, and up to 193ppb Au, that has a very strong pathfinder geochemical signature similar to composite rock chip samples taken higher up slope (Refer to Fig. 2).

2016 Summer Results: Red Mountain Soil Grid

A northwest oriented soil sample grid (600m x 150m x 30m) extending for over ~1,250m of strike length and consisting of over 200 soil samples with minor rock chip samples, was taken to potentially locate the Master Fault and any other subsidiary structure radiating from Orange Mountain, along strike towards Shumagin.

Geological mapping in the grid area shows Advanced Argillic (AA) alteration mapped at Orange Mountain projects beneath stacked, gently southeast dipping basalt-andesite flows along the southern flank of Red Mountain (Refer to Fig. 3). Geochemical results from rock chip and soil samples taken from areas of exposed AA alteration extending ~500m northeast of Orange Mountain are elevated in Au, Ag, As, Sb, Hg, and Pb relative to results from soil samples taken from overlying basalt flows further along strike to the northeast (Refer to Fig. 3). Rock chip samples of exposed AA alteration exhibit elevated high-level epithermal pathfinder elements (up to 177.5ppm As; 93.4ppm Sb; 47.6ppm Hg;) and soils returned values up to 37ppb Au, 1.9ppm Ag, 244ppm As; 42.3ppm Sb; 6.9ppm Hg; 32.5ppm Pb.

Although buried beneath overlying basalts, continuation of altered volcanic horizons and structures towards the northeast are indicated by:

  1. thin, interbedded tuffaceous units altered to quartz-alunite-clay (kaolinite) assemblages;
  2. fresh, basaltic andesite cut by narrow silicic structures and quartz-carbonate veinlets; and
  3. multiple outcrops with N55-65E shearzones cutting silicified and pyritized blue-grey basalts that are cut by micro sulfide veinlets (~2% py-mar).

Soil samples to the west of exposed AA alteration return scattered values of low-level gold (~8ppb Au; up to 94ppb Au), silver (~110ppb Ag) and pathfinder elements that further indicate leakage along blind structures cutting overlying basalt-andesite flows.

Historical Results: Aquila Zone

The Aquila Zone consists of generally flat-lying fresh basaltic-andesite, interbedded at depth with variably clay altered ash-flow tuffs and pyroclastic flows, that are transected by three parallel, northeast trending stream valleys that are regional structures linked with structures mapped at Orange Mountain (Refer to Fig. 4). Exposures of sub-vertical, narrow, N50-N80E trending sheeted and stockwork quartz-adularia cockscomb textured veins occur along subdued ridges along the flanks of the NE trending stream valleys and define structurally controlled vein systems and are the main target areas of the prospect (e.g. Aquila, Ankle, and Amethyst Creeks). Stream sediment sampling by previous operators along the stream valleys returned highly anomalous stream sediment values with numerous samples over >1 g/t Au and up to 19g/t Au.

Rock chip samples from surface trenches cross cutting veined exposures along Amethyst creek returned values of ~11g/t Au over 2m and ~10g/t over 4m. The previous surface results prompted the drilling of 12 shallow drill holes totaling ~1,355 meters during 1980 and 1981. Drilling encountered extensions of the vein system at depths of ~30-60m below the surface with grades of 1-2g/t gold over >1m and AQAME-2-80, returned the highest intercept of ~0.5m at 113.5 g/t Au at ~60 meters below the surface exposures along Amethyst Creek (Refer to Fig. 4).

2016 Results: Aquila Moat Area

To the north of the Aquila Zone, the Aquila Moat area consists of a ~ 0.5 square kilometer area of weakly sorted and bedded, polymictic fragmental units interbedded with poorly-sorted, laminated (lacustrine?) sediments (Refer to Fig. 4). The fragmental units are observed to contain rounded clasts of vuggy residual silica, lacustrine sedimentary fragments and clay-altered clasts that were likely juvenile magmatic in origin. Rock chip sampling from the polymicitic fragmental units returned values up to 50ppb Au, 427ppm As, and 4100ppm Ba. The fragmental units are identical to those localized along NE structures at Orange Mountain and are interpreted to be syn-hydrothermal in origin and deposited in a phreatomagmatic eruption crater that was water-filled at times and were silicic-altered prior to brecciation, deposition and subsequent silicic alteration.

Implications for Exploration of Intermediate-Sulfidation Vein Systems

Numerous prospects hosting gold-silver bearing veins, breccia and stockwork occur along regional trends that transect the southern portion of Unga Island from coast to coast (e.g. Shumagin & Apollo-Sitka trends) and are the focus of exploration efforts at the Unga Gold Project. Recent field work and geologic models suggest magmatic, hydrothermal, structural and perhaps temporal similarities exist amongst the prospects and provides exploration criteria to target blind, high-grade structurally controlled intermediate sulfidation-style breccia systems along regional and subsidiary structures.

Early, Advanced Argillic alteration and associated syn-hydrothermal phreatomagmatic eruption breccias are exposed and have been drilled along major prospects that are part of the ~ 9km long Shumagin trend and also along segments of the Apollo-Sitka trend (e.g. Empire Ridge to Heather). The large bodies (up to ~600m) of residual vuggy silica flanked on either side by lithic tuffs of opposing dips at Orange Mountain suggest that it may be the center for early hydrothermal activity along the Shumagin trend and possibly a coherent lava dome with protracted syn-hydrothermal phreatomagmatic eruptions occurring along major regional structures radiating from the hydrothermal center.

Broad, anomalous gold and enriched high-level epithermal signatures (As, Sb, Hg, Ba) of Advanced Argillic alteration at Orange Mountain is a result of moderately pervasive sulfide mineralization consisting of disseminated pyrite-marcasite in altered tuffaceous units and from cross cutting structurally controlled quartz-limonite-geotite breccias that were originally quartz-sulfide breccias, later oxidized. Broad zones of sulfide mineralization (py-mar) hosted in altered tuffaceous units and silicic bodies exposed along the sea-cliffs on the west side of Unga Island (e.g. Normandy, Heather) and on Popof Island (e.g. Red Cove) is a well documented feature of the area and is likely genetically and temporally related to early Advanced Argillic alteration and sulfide mineralization documented at Orange Mountain.

High-level epithermal geochemical signatures (Au-Ag, As, Sb, Hg, Ba) of colloform sulfide quartz-chalcedony breccias drilled and exposed in outcrops near the Shumagin Zone are identical to geochemical signatures of oxidized sulfide breccias at Orange Mountain and Empire Ridge and collectively document a wide-spread, early sulfide-rich (py+mar) epithermal event that was emplaced and cross cuts earlier Advanced Argillic alteration across the Unga Project area. In contrast, high-grade, occasionally rhodochrosite-bearing, intermediate sulfidation-style gold-silver bearing quartz-adularia-carbonate vein & breccia systems localized at Shumagin, Apollo, Sitka and Aquila represent a later-stage, less acidic and geochemicaly distinct epithermal event (Au-Ag, Pb, Zn, Cu, Mn) that cross-cuts the earlier Advanced Argillic and quartz-chalcedony-colloform sulfide epithermal events.

Major and subsidiary faults and vein-breccia-stockwork patterns mapped at Shumagin, Orange Mountain, Aquila, Sitka, Apollo, Rising Sun and Empire Ridge are all strikingly similar and indicate common, pre-existing structures existed prior to emplacement of epithermal veins and breccias across the district. The pre-existing structures were modified by syn-mineral dilation that resulted in emplacement of gold-silver bearing veins and breccias of similar orientations that were later modified by post-mineral faulting and protraced veining and brecciation. Where exposed at Orange Mountain and Empire Ridge, oxidized quartz-sulfide breccias have mixed geochemical signatures with high-level epithermal signatures (As-Sb-Hg-Ba) as well as elevated lead, zinc and rarely copper (Pb, Zn, Cu) that are common pathfinder elements in high-grade late-stage veins-breccias at Shumagin, Apollo, Sitka and Aquila. The mixed geochemical signatures are similar to those observed from cross cutting breccias of contrasting geochemisty at Shumigan (e.g. colloform sulfide breccias cut by Shumagin-style breccias) and indicates that the structures at Orange Mountain and Empire Ridge are long-lived fluid pathways similar to those observed at the Shumagin Zone.

About The Unga Gold Project

The 100% controlled Unga Gold Project covers key strategic portions of adjacent Unga and Popof Islands, approximately 900 kilometers southwest of Anchorage, Alaska. Redstar controls a 240 square kilometer land package that is host to numerous structurally controlled, volcanic hosted intermediate-sulfidation epithermal high-grade vein, breccia, stockwork and disseminated gold-silver occurrences.

The Unga Project has excellent infrastructure, including direct daily flights from Anchorage, a deep-sea port and a temperate climate. The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka Trend, was Alaska's first underground gold mine and the site of historic high-grade gold production.

Quality Control/Quality Assurance

The 2016 exploration program at the Unga Project includes a Quality Control/Quality Assurance (QA/QC) program, overseen by Jesse C. Grady, Redstar's Vice President of Exploration. All soil/talus/rock samples have been shipped to ALS Minerals for preparation and geochemical analysis.

Jesse C. Grady, MSc, CPG-11592, is a Qualified Person as defined by NI 43-101. Mr. Grady has prepared and approved the technical information contained within this release.

About Redstar Gold Corp

Redstar is a junior exploration company focused on high-grade gold exploration in North America. In Alaska, the Company is exploring the 100% controlled high-grade Unga Gold Project. In addition, Redstar recently sold its Nevada portfolio to NV Gold Corp. (TSXV: NVX), in return for two (2) board seats and 29.9% of NV Gold Corp. Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada.

On Behalf of the Board of Directors,

Peter A. Ball, President and CEO

For additional information please contact:

T: +1.604.245.5861
Toll Free: 877.310.3330
E: pball@redstargold.com

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.

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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