Drilling starts at Redstar Gold's Root Spring project, Nevada
VANCOUVER, BRITISH COLUMBIA–(Marketwire – June 20, 2012) – Redstar Gold Corp. (TSX VENTURE:RGC) is pleased to announce the commencement of drilling at its Root Spring Project in west-central Nevada on Monday, June 11th, 2012. The program is being carried out by Brocade Metals Corp., which can earn a 70% interest in the Root Spring property as outlined below. Root Spring is a gold and silver bearing quartz vein system 25 km east of Coeur d'Alene Mines' operating Rochester open pit silver-gold mine, which has recorded production of more than 125 million ounces of silver and more than 1.2 million ounces of gold since production began in 1986.
Brocade's drilling program is the first modern drilling on the vein system and is expected to consist of 16 to 20 core holes with an aggregate length of 1200 to 1500 metres. This first-phase drilling will test the down-dip projection and strike extensions of mineralized veins using the surface rock geochemical sampling results and ground geophysical survey results announced on March 21, 2012. Comprehensive interpretation of drill results will follow receipt of the assay data from ALS Minerals, with final assay results expected to be announced by mid to late summer. The Root Spring project covers 1,120 hectares of unpatented mining claims on lands administered by the U.S. Bureau of Land Management (BLM). Approval for the drilling program was received from the BLM.
Gold-silver bearing quartz veins at Root Spring are hosted within a volcanic sequence believed to be equivalent to that hosting the mineralization at the nearby Rochester mine. Veins are exposed for at strike-length of 1.2km and are up to at least 4.5m thick. The mineralization occurs along a northwest-trending range-front fault zone, with the exposed veins surrounded by valley-fill alluvial cover. Recently-completed geophysics indicates that the veins extend well beyond outcrop under the alluvial cover. As reported on March 21, 2012, recent sampling by Brocade returned values reaching 1,420 g/t Ag and 7.91 g/t Au over 1.15 metres and grab samples of 635 g/t Ag and 8.8 g/t Au. Mineralization also locally occurs in the poorly-exposed wallrocks, which are silicified and contain quartz-vein stockworks.
Scott Weekes, President & CEO of Redstar, stated: "Redstar is very pleased with Brocade's aggressive program at Root Spring, beginning with the surface sampling demonstrating the high quality of the gold-silver mineralization, through the geophysical program that has shown extensions under cover, and now with the drilling program. We look forward to their continued commitment to the project and the results of the drilling."
Robert (Bob) Biagioni, President and CEO of Brocade stated: "We are extremely excited about this year's Root Spring drill program as we are looking to build upon impressive surface rock sample results and test several resistivity anomalies identified during our 2011 program. Our drill program is designed to evaluate the vein system over 1.2 kilometres of its exposed trend. It will also investigate several high priority resistivity anomalies that suggest the system continues for hundreds of metres under alluvial cover to the northwest and southeast and that additional mineralized veins and silicified zones may occur to the southwest."
Redstar Root Spring Property Option
Under terms of the option agreement between Brocade and Redstar, Brocade can earn a 70% interest in the Root Spring property by spending $3.5 million on exploration, issuing 500,000 shares and paying $200,000 to Redstar by Dec. 31, 2014. The property is subject to an underlying NSR agreement between Redstar and AngloGold Ashanti North America Inc.
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 that at 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.
About Brocade Metals
Brocade Metals Corp. is a private junior mining exploration company based in Vancouver, British Columbia. Brocade is focused on identifying and developing select high-value silver and gold prospects in North America. Brocade's Ruby property, located 320 km north of Prince George, was the first high grade silver property optioned by Brocade in 2010. Both Ruby and Root Spring properties have recent NI 43-101 technical reports available on its website www.brocademetals.com.
Dr. Jake Margolis is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp.
On Behalf of the Board,
Redstar Gold Corp.
Scott Weekes, President
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.
Redstar Gold Corp. – Corporate Inquiries
www.redstargold.com125 million ounces of silver and more than 1.2 million ounces of gold since production began in 1986.