Vancouver, Canada - TheNewswire - September 10, 2020 - Redstar Gold Corp. (TSXV:RGC) US (OTC:RGCTF) (FRA:RGG) ("Redstar" or the "Company") is pleased to announce that drilling has commenced at its flagship Unga project in Alaska. The company is planning to complete a C$6,000,000 exploration program on the property from September to late November, 2020.
Redstar CEO, Charles Funk, commented "Commencing drilling at Unga is another significant milestone for Redstar Gold as we complete our transformation into a leading exploration company. A field camp has been established and the company will use three drill rigs to complete an 8,000 metre program expanding the SH-1 resource area and test three other attractive gold targets, namely Apollo, Centennial and Aquila. The company looks forward to providing consistent news flow over the coming months as we test the potential of Unga to host a large high-grade gold resource."
With an exploration camp established, one drill rig on site and two more arriving next week, Redstar has commenced its 2020 exploration program at Unga. The company has designed the program to meet all COVID-19 guidelines and protocols, and is committed to safely managing the exploration program with a focus on health and safety for our employees, contractors and local communities.
In August the company entered into a new surface access agreement, for a three year period, with the Unga Corporation to allow for the continuation of exploration on Unga Island.
Four targets will be drilled during the 2020 exploration program (Figure 1).
Figure 1: Unga project with 2020 drill targets marked with green boxes and labelled.
SH-1 Resource area
The SH-1 target has been the focus of significant drilling in recent years, with wide veins and high gold grades intersected. Initial drilling will be shallow to infill gaps between the first down-dip intersections and the surface (Figure 2).
Figure 2: Longitdunal section through SH-1 Resource area with infill targets show in green boxes and expansion areas with green arrows.
Outside of the main mineralized zone, drill spacing varies between 100-300 metres which is too sparse for drill definition of a higher confidence mineral resource in an epithermal vein system. Infill holes will be completed to improve estimation of a future resource.
The deepest holes at SH-1 show significant mineralization, and extension drilling is planned to add further depth and strike extent to these open intersections.
The Apollo gold mine was Alaska's first underground gold mine and operated until 1922. The mine is reported to have produced an estimated 150,000 ounces of gold at approximately 10 grams per tonne, although this has not been verified by the company. Mining took advantage of free milling gold in the first 200 vertical metres before ore transitioned, with increasing depth, from gold-dominant to gold, silver, and base metal-rich, for which processing technology of the time was not able to profitably recover the gold. The company will be the first to drill the extension of the historic orebody, where shafts and tunnels defined polymetallic ore over significant widths and strike extent (Figure 3).
Figure 3: Modified historic longitudinal section from Apollo Mine with interpreted extensions to mineralization from tunnels and shafts shown in red. These areas will be the focus of drilling in 2020.
Battle Mountain Gold discovered an outcropping, flat-lying body of gold mineralization on Popof island in the 1980's, where permeable tuff units are a preferential host to epithermal mineralization. Drilling and geophysics suggest higher grade feeder zones exist within this mineralization and these feeders will be the focus of drilling in 2020.
Battle Mountain Gold also discovered mineralization at Aquila on Unga Island in the 1980's, where mapping and trenching defined gold mineralization in outcropping veins. Limited drilling was unsuccessful and abandoned in large part due to poor drill recoveries. Redstar will drill use modern drilling techniques with aim of obtaining high core recovery to better test the Aquila target.
About Redstar Gold Corp.
Redstar is a well-financed junior exploration and development company with a portfolio of high-grade projects in Alaska and Mexico. The company's flagship asset is the 100% controlled Unga Gold Project on Unga and Popof Islands in Alaska. The project hosts an intermediate sulfidation epithermal gold deposit, located within the district-scale property that encompasses 240km2 across the two islands. Additional targets on the property include porphyry, high sulphidation and intermediate sulphidation epithermal veins. On Unga Island, priority targets include: the SH-1 and Aquila high-grade gold zones, both on the Shumagin Trend, the former Apollo-Sitka mine, which was Alaska's first underground gold mine and the Zachary Bay porphyry gold-copper district. The gold mineralization at the Centennial Zone is located on neighbouring Popof Island, within four kilometres of infrastructure and services at Sand Point.
In Mexico, the company owns 100% of three early stage epithermal projects in Sonora that are highly prospective for gold and silver. Cumaro forms a key piece of the El Picacho district, while the Oso Negro and La Lola projects are also prospective for epithermal gold-silver mineralization.
Redstar is asking shareholders at the company's AGM on September 29th, 2020 to approve a 15:1 consolidation of the outstanding Redstar shares and approve a name change to Heliostar Metals Ltd.
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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". 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 "would", "may", "could" or "should" occur. Forward-looking statements in this press release include Redstar's expectations that the transactions contemplated in the Agreement will be approved by the TSX Venture Exchange and completed and that it can obtain shareholder approval for its proposed post-closing share consolidation, name change and the election of both the Redstar nominees and the Heliodor nominees at its next general meeting of shareholders, that it can successfully raise at least C$6 million and, if so, the number of Redstar shares that would be issued in the offering, and, finally, that it can commence exploration at its Unga project in late August and that it can achieve its 2020 exploration plans. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing 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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