Redstar Gold Corp.
TSX VENTURE : RGC

Redstar Gold Corp.

May 24, 2012 08:00 ET

Redstar Gold Corp.: Drilling Commences at Newman-Todd

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2012) - Redstar Gold Corporation (Redstar) (TSX VENTURE:RGC) is pleased to announce that the exploration camp at the Newman-Todd property in Red Lake, Ontario, is fully operational and the 2012 drill program has now begun. A minimum 5,000 metre drill program is planned to follow-up significant results returned from the 2011 drill program. In 2011 a total of 56 holes, totaling 24,707 metres were drilled into the Newman Todd Structure (NTS) along a strike length of 1.8 km (of the total 2.2 km-long mineralized NTS). All of these holes intersected gold mineralization and over 40% of the holes intersected gold mineralization grading greater than 20 g/t gold.

Highlights of the 2011 program include:

  • NT-103: 60.60 g/t Gold over 1.0 metres,
  • NT-104: 21.60 g/t Gold over 1.5 metres,
  • NT-105: 1.34 g/t Gold over 46.0 metres,
  • NT-105W1: 1.56 g/t gold over 38.0 metres including 3.83 g/t gold over 11.0 metres,
  • NT-108: 3.41 g/t gold over 27.50 metres including 145.0 g/t gold over 0.50,
  • NT-109: 7.11 g/t gold over 13.0 metres including 114.0 g/t gold over 0.50 metres.

For a complete listing of drill results, please refer to the company website at www.redstargold.com.

Exploration work at the Newman-Todd project is funded by the operator, Confederation Minerals Ltd. Pursuant to an option agreement with Redstar, Confederation can earn a 50% interest in the project by spending $5.0 million on exploration, paying Redstar a total of $250,000, and issuing Redstar 500,000 shares by November 2013. To date, Confederation has spent in excess of $5.0 million dollars on exploration of the project, paid Redstar $100,000 and issued 200,000 shares. Confederation can earn an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016.

The 2012 drill program will initially focus on the central part of the Newman-Todd Structure ("NTS"), termed the "Hinge Zone". NTS is a large scale gold bearing structure, with significant widths of iron-carbonate alteration, silicification, sulphide and magnetite replacement zones which can contain high-grade gold mineralization. This style of alteration is recognized at the major producing mines in the Red Lake camp, and other important gold districts, as one of the main geological criteria associated with the formation of these gold deposits. Within the large scale structure of the NTS, several zones of higher grade gold mineralization have been identified along discrete structural corridors, the Hinge Zone being one of these corridors.

This phase of drilling will test several key geological and structural concepts identified in recent 3D modeling completed by the company. A successful drill program will assist with further targeting of discrete high grade structures along the entire strike length of the NTS. At present, the structure remains open both along strike, to surface and at depth.

Bob Singh, P.Geo, is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp. Core samples from the program were cut in half using a diamond cutting saw and were sent to ALS Laboratory Group, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing fire assay methods. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream as part of Redstar's quality control/quality assurance program.

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.

Contact Information