Redstar Acquires 100% Of The Unga High-Grade Gold Project In Alaskaadmin
Redstar Gold Corp (TSX.V:RGC) ("Redstar" or the "Company") is pleased to announce it has signed a Letter of Intent to acquire a 100% undivided interest in the Unga-Popof Property in southwestern Alaska from Full Metal Minerals (TSX.V:FMM) ("FMM"). Under the terms of the letter agreement, Redstar will issue 4,000,000 shares and pay $50,000 cash to FMM subject to Exchange approval and the completion of a definitive agreement with Full Metals and satisfying underlying agreements for the Unga Property. Redstar currently holds an option to acquire a 60% interest in the property from Full Metal (see Redstar’s news release dated June 13, 2011). Full Metals has an Exploration Agreement with Option to Lease with the Aleut Corporation, an Alaska Native-owned Regional Corporation.
This strategic transaction will complete the consolidation of the Shumagin and Unga-Popof properties, which together comprise the "Unga Project", and gives Redstar 100% control of the large exploration project covering approximately 250 square kms. The project covers portions of Unga and Popof Islands in southwestern Alaska. Redstar is the first company in over a century to control the entire land package containing Alaska’s first underground gold mine (Apollo-Sitka mines) and historic high-grade Au-Ag non 43-101 compliant resource (Shumagin vein) on the Shumagin property, and numerous high-quality exploration targets on the Unga-Popof property, including the extensions of the Apollo-Sitka and Shumagin vein systems, Centennial and Zachary Bay targets. (See figure 1 for a plan map).
R. Bob Singh President of Redstar states "we are very pleased to have entered into this transaction with FMM, owning the entire project 100% is a significant step forward for us. The Unga-Popof property together with the Shumagin property will give Redstar control of a district scale underexplored epithermal vein field. Recent drilling by Redstar (See news releases dated Nov 28, 2011 and Dec 6, 2011) confirmed that the Shumagin system contains high grade mineralization and remains open along strike and at depth. Additional work by Redstar and FMM on the entire property has identified several other targets along the trends, which collectively measure in excess of 22km.
With our Nevada and Red Lake assets being funded by other parties, Redstar’s exploration focus and efforts will be on the Unga Project."
Unga Project Mineralization Summary:
The Unga-Popof property covers the extensions to the mineralization outlined on the Shumagin property that Redstar purchased in 2013 (see news release of December 5, 2013). The Shumagin property covers the Shumagin and Apollo-Sitka Au-Ag vein systems (sees news release dated May 24, 2011). The Shumagin vein contains a non-43-101 compliant resource* of 254,000 tonnes grading 27.4 g/t gold and 127 g/t silver (SRK Consulting, 2000) based on shallow drilling in the 1980’s . The vein, at least 1.3km long, remains open along strike and at depth and lies along the 9km-long Shumagin mineralized trend which includes the Aquila vein field approximately 6 km away. Aquila drilling in the early 1980’s returned grades of up to 113 g/t gold over 0.45 m at the bottom of a shallow 49m drillhole below a trench yielding 11.5 g/t over 3.6m, and there has been no follow-up work done in this area. In addition, one deep stepout hole drilled 130m below shumagin intersected 5.5m grading 16.1 g/t gold, indicating a strong vertical extent to high-grade gold of at least 350m.
First-phase drilling by Redstar in 2011 intersected high-grade mineralization, including 21m grading 4.016 g/t Au containing 1m grading 43.9 g/t Au. Mineralization occurs within a northeast-trending steeply-dipping vein stockwork zone typically 30m in width. About 3km to the south, the parallel Apollo-Sitka vein system contains mineralization along at least 7km of an overall 11km-long structural zone. Historic shallow mining from 1891-1922 produced approximately 150,000 ounces of gold at an average grade of 10.3 g/t (0.3 opt) gold, and mineralization is known to cover a vertical extent of at least 400m. There has been very limited modern exploration along the trend.
Samples collected by Redstar from outcrops of veining at the Sitka shaft assayed 13.2 g/t Au and 398 g/t Ag over 2 metres with a separate vein returning 94.7 g/t Au and 1840 g/t Ag. A recent sample of a quartz-sulfide vein from the surface at the Apollo mine yielded 42.3 g/t Au and 1150 g/t Ag. Gold-bearing veins with up to 147 g/t gold occur at the California prospect 1.5 km southwest of the Apollo mine. The width of vein mineralization at Apollo was up to 12m in the mined zones, and geological evidence at Sitka indicates a vein system that may be as wide as 50m. The Au-Ag vein systems on the Unga Project are classified as volcanic-hosted, intermediate-sulfidation epithermal veins.
* Note that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves that is compliant with NI 43-101. The Company is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon or understood to indicate the existence of reserves or resources.
The Unga Project in south-western Alaska consists of two properties acquired by Redstar in 2011: the Unga-Popof and Shumagin properties. The Project includes the high-grade Shumagin gold deposit, the Centennial disseminated bulk-tonnage gold zone and the Apollo-Sitka high-grade gold vein system, which produced approximately 150,000 oz of gold in the early 20th century.
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. Additionally, the company has 10 properties in Nevada which it has optioned out to a partner upon which it has retained royalties and additional economic rights.
Andrea Diakow P.Geo is the qualified persons as defined by National Instrument 43-101 and has reviewed the technical disclosure in this news release.
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.
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Posted: February 19th, 2014 under ACCESSWIRE.