VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/13/11 -- Redstar Gold Corp. (TSX VENTURE: RGC) is pleased to report that drilling has begun on the Unga Project in Alaska. The project is located on Unga and Popof Islands, 10 km west of the town of Sand Point in the Aleutians Islands, Alaska. The Unga Project consists of two properties acquired by Redstar in 2011: the Shumagin Property and the Unga-Popof Property. Redstar is purchasing a 100% interest in the Shumagin Property from Magnum Hunter Resources. The mineral rights to the Unga-Popov property are held by Full Metal Minerals Inc. under a lease agreement with The Aleut Corporation, an Alaska Native Regional Corporation headquartered in Anchorage, Alaska with approximately 3,600 shareholders. Redstar has signed an Agreement with Full Metal giving Redstar the right to earn up to a 75% interest in the property. The project contains an early 1900's gold producer, two historic gold resources and numerous gold showings along three defined gold trends. The 2011 drill program will focus on confirming and expanding high-grade gold mineralization intersected in past drilling completed in the 1980's.
Drilling on the Shumagin property in the 1980's partially defined a zone of near-surface gold and silver mineralization along the Shumagin Vein that resulted in an initial historic resource of 281,000 tons at a grade of 0.80 oz/t (27.4 g/t) gold 3.7 oz/t (127 g/t) silver for a total of 225,000 ounces of gold and 1,000,000 ounces of silver (April, 2000 report by SRK Consulting). This resource was calculated from surface to a depth of only about 220 metres. A hole drilled 130 metres beneath the resource intersected 5.5 metres of 16 g/t gold (18 ft averaging 0.47 oz/t gold) and highlights the potential to expand the resource. Step-out drilling along strike from the resource intersected values up to 11.5 g/t gold over 1.3 metres and 37.8 g/t gold over 0.76 metres, and this has not been followed up. The Shumagin Vein system is at least 1.2 km long and contains muliple veins; the resource area is only a small portion of its total potential.
Note that a qualified person has not done sufficient work to classify the Shumagin Vein historic estimate as a current mineral resource or mineral reserves compliant with NI 43-101. The Company is not treating the historic estimate as current mineral resources or mineral reserves and the historic estimate should not be relied upon or understood to indicate the existence of reserves or resources.
Scott Weekes, President of Redstar Gold Corp. stated: "The acquisition of the Shumagin and Unga-Popof properties gives Redstar control of an emerging, high-grade epithermal gold-silver district which has been overlooked for the past 30 years while we have seen the gold price quadruple. The Unga project represents tremendous exploration potential, as it's the first time the entire district has been consolidated under one operator for its integrated exploration and development. The Unga Project (along with our Newman Todd Project at Red Lake) has potential to dramatically change Redstar and move the Company rapidly down the path toward mine development."
The Unga Project covers an epithermal vein field in the Aleutian Islands, Alaska, one of the best mining jurisdictions globally. The Sitka and Apollo mines, active during the early 1900's, produced approximately 150,000 ounces of high-grade gold and were among the first gold mines in Alaska. Very little work was done in the district between 1920 and 1980. Since 1980, a number of companies have conducted exploration in the district, and although new mineralized areas were discovered outside of the historic mines, land ownership was fractured, and the exploration efforts lacked focus and continuity.
Exploration since 1980 has identified three gold trends on Unga Island with a combined strike length of over 30 km. The Shumagin vein high-grade resource was discovered along with numerous other gold showings along the trends. Very little work has been completed beneath the historic workings at Sitka. The exploration potential of the Unga Island trends is considered high.
On Popof Island, work in the 1980's defined several areas of disseminated gold mineralization. Battle Mountain Gold completed 59 diamond drill holes into one of the zones, Centennial, and reported a non 43-101 compliant shallow resource of 4.9 million tonnes grading 1.4 g/t gold. Later geophysical surveys delineated undrilled features which may represent underlying feeders to the disseminated gold mineralization.
Note that a qualified person has not done sufficient work to classify the historic estimate at Centennial as a current mineral resource or mineral reserves compliant with NI 43-101. The Company is not treating the historic estimate as current mineral resources or mineral reserves and the historic estimate should not be relied upon or understood to indicate the existence of reserves or resources.
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.
About Redstar Gold Corp.
Redstar recently acquired a high-grade epithermal gold district in Alaska that is a good complement to the high-grade gold discovery in Red Lake, Ontario. The Shumagin project in Alaska includes a high-grade gold deposit with a non 43-101 compliant resource, a bulk tonnage non 43-101 compliant resource, a historic high-grade gold mine, and numerous high priority exploration targets. At the Unga Project in Alaska a drilling program is currently underway, and an aggressive drill program is underway on Redstar's high-grade gold discovery at the Newman-Todd project in Red Lake, Ontario. Along with the high-grade gold projects in Alaska and Red Lake, the company also has a total of 14 gold focused projects in Nevada.
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.
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