Redstar Options Nevada Propertiesadmin
January 27th, 2014, Vancouver, BC –Redstar Gold Corp. (TSX.V:RGC) ("Redstar" or or "the Company") is pleased to announce it has entered into an option-to-purchase agreement (the "Agreement") with True Grit Resources Ltd. (NEX-TGI.H) ("True Grit") under which True Grit can acquire 100% of Redstar’s assets in Nevada, subject to regulatory . These assets consist of a 100% interest in 10 projects (the "Projects") in Nevada as well as full access to the database purchased by Redstar in 2005. To exercise the option, True Grit will, over a three year period, make staged payments totaling $200,000, issue a total of 2,500,000 shares in its capital to Redstar, and incur exploration expenditures totaling $750,000 the Projects. The Agreement also provides for additional cash and share payments to Redstar on completion of any bankable feasibility in connection with the Projects, as well as a net smelter royalty ranging from 1% to 2.5%.
R. Bob Singh, President of Redstar states "We are very pleased to enter into this option agreement as it provides immediate value to Redstar and allows us to concentrate 100% of our efforts on our flagship high grade gold project in Alaska. In addition to cash and shares, the Agreement provides up-side for Redstar with retained NSR’s on 10 projects as well as cash payments of $0.50 per ounce for every ounce of gold defined as reserves in a bankable Feasibility Study. We look forward to continued success in Nevada."
The Unga Project in south-western Alaska consists of two properties acquired by Redstar in 2011: the Unga-Popof and Shumagin properties. The 100% owned Shumagin property hosts a historic (non 43-101 compliant) resource estimate of 254,000 tonnes (280,000 tons) grading 27.4 g/t (0.80 ounces per ton) gold and 127 g/t (3.7 opt) silver (SRK Consulting, 2000). The resource was based on shallow drilling in the late 1980’s that was within about 150m (500 feet) of surface. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
The property also hosts the three past producing mines from the Apollo-Sitka high-grade gold vein system, which produced approximately 150,000 oz of gold in the early 20th century. The mines produced from 2km of a structure which extends for at least 7km and remains open at depth.
Redstar currently holds 50% of the Newman Todd Project in Red Lake Ontario. Newman Todd, currently optioned to Confederation Minerals (TSX.V:CFM), is a new 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.
Andrea Diakow P.Geo is a qualified person as defined by National Instrument 43-101 and has reviewed this news release.
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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 Corp. (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.
Posted: January 27th, 2014 under ACCESSWIRE.