Confederation Exercises First Option for 50 per cent Interest in Newman Todd Propertyadmin
Vancouver, B.C. Redstar Gold Corp. (TSX.V: RGC): ("Redstar" or the "Company") is pleased to announce that, pursuant to the previously announced "Option Agreement" of November 19, 2010, with Confederation Minerals Ltd. (TSX.V:CFM; OTCQX:CNRMF): ("Confederation") whereby Redstar granted to Confederation an option (the "First Option" ) to earn a 50% undivided legal and beneficial interest in and to its Newman Todd property in the Red Lake Mining District of Ontario, Confederation has duly exercised the First Option and now holds a 50% undivided legal and beneficial interest in and to its Newman Todd property.
The Second Option ("Second Option") to earn an additional 20% undivided legal and beneficial interest in and to the Newman Todd property following the exercise of the First Option remains. To exercise the Second Option, Confederation must prepare a preliminary economic assessment ("PEA") of the Newman Todd property and issue an additional 500,000 shares of Confederation to Redstar on or before November 19, 2016.
The Newman Todd property is high grade gold discovery in the prolific Red Lake Gold Camp. Drilling to date has outlined numerous zones of high grade gold mineralization along a 1.8km corridor within the Newman Todd Structure ("NTS"). The gold mineralization in the NTS remains open along strike and at depth.
Redstar’s Unga Project in south-western Alaska consists of two properties acquired in 2011: the Unga-Popof and Shumagin properties, which 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. Redstar has completed the purchase of 100% interest in the Shumagin and Apollo-Sitka properties from Magnum Hunter Resources.
Redstar also owns 100% of 11 gold projects in Nevada and owns the AngloGold-Ashanti Database ("Database") for Nevada and surrounding states. The Database has proven to be effective in developing quality projects in a variety of known gold producing regions of Nevada, including the Carlin Trend, Bullfrog District and the Cortez Trend.
On Behalf of the Board,
Redstar Gold Corp.
"R. Bob Singh"
R. Bob Singh, President and CEO
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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.
Posted: October 31st, 2013 under ACCESSWIRE.