Redstar Gold Corp.
TSX VENTURE : RGC

Redstar Gold Corp.

August 16, 2011 08:00 ET

Redstar Gold Corp.: High-Grade Drill Results From Red Lake; 1.0 Metre of 58.88 g/t Gold Including 0.50 Metre of 117.0 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2011) - Redstar Gold Corp. (TSX VENTURE:RGC) is pleased to report additional results from drilling at the Newman Todd property in the Red Lake Gold District, Ontario. These latest results are from an on-going drill program using two drill rigs, and include a highlight hole that returned 1.0 metre of 58.88 g/t gold including 0.50 metre of 117.0 g/t gold.

Highlights:

  • Continue to intersect high-grade gold across the entire Newman Todd Structure ("NTS")
  • Drilling in 2011 returns some of the highest grade gold values ever returned from the NTS
    • From holes announced in 2011, 3 of 13 returned values greater than 100 g/t gold
  • The zone remains open along strike and at depth
  • Drilling to date has only tested to a vertical depth of approximately 400 metres
  • A total of 57 holes have been drilled into the NTS, of these 40 have been released and all of them hit the NTS zone and encountered gold mineralization
  • There are currently 17 holes in the lab with assays pending

Scott Weekes, President of Redstar Gold states: "We are very pleased to continue to intersect high-grade gold from our on-going drilling at the Newman Todd project. 2011 has been our most aggressive drill program ever at Newman Todd and our most successful. We continue to be impressed by the overall gold content within the NTS as we continue to intersect gold over the entire two kilometer strike of the structure. Our understanding of the high grade zones has increased and we continue to demonstrate continuity of the zones both along strike and down dip.

There are approximately 3000 metres of drilling remaining in the current phase of work which is expected to be completed by the end of September. Due to the success of the current drilling an additional 10,000 metres of drilling is being planned to be completed early in 2012."

Highlights from the recent results include Hole NT-067 which returned multiple zones of high-grade gold. The first zone contained 58.88 g/t gold over 1.0 meters, including 117.0 g/t gold over 0.5m, in a previously untested area located approximately 175 metres northeast of the centre of the Heath Bull Zone. Previous drilling in the Heath Bull Zone returned values up to 42.84 g/t gold over 3.0 metres, including 122.0 g/t gold over 1.0m (see news release dated March 14, 2011).

Highlights from recently completed drilling:

  • NT-064 intersected 8.25 g/t gold over 1.0 metre including 15.10 g/t gold over 0.50 metre
  • NT-067 intersected 58.88 g/t gold over 1.0 metre including 117.0 g/t gold over 0.50 metre and 2.08 g/t over 29.0 metres, including 5.98 g/t over 5.0 metres, and including 19.30 g/t gold over 1.0 metre
  • NT-068 intersected 7.88 g.t gold over 1.0 metre including 14.30 g/t gold over 0.50 metre

Table showing significant results for drill holes NT-064 to NT-068

Hole From
(m)
To
(m)
Width*
(m)
Gold
(g/t)
Section**
NT-064 84.50 85.50 1.00 8.25 1425
NT-064 incl. 85.00 85.50 0.50 15.10 1425
NT-064 and 302.00 303.00 1.00 3.59 1425
NT-065 295.00 297.00 2.00 3.21 1550
NT-065 incl. 296.50 297.00 0.50 6.93 1550
NT-065 362.00 364.00 2.00 4.38 1550
NT-065 incl. 362.00 363.00 1.00 6.91 1550
NT-066 and 361.50 365.00 3.50 2.55 1425
NT-066 incl. 361.50 362.00 0.50 6.85 1425
NT-066 and 364.50 365.00 0.50 7.33 1425
NT-067 164.00 165.00 1.00 58.88 1550
NT-067 incl. 164.00 164.50 0.50 117.00 1550
NT-067 incl. 164.50 165.00 0.50 0.76 1550
NT-067 and 175.00 176.00 1.00 5.56 1550
NT-067 incl. 175.50 176.00 0.50 9.70 1550
NT-067 292.00 321.00 29.00*** 2.08 1550
NT-067 incl. 292.00 296.00 4.00 3.20 1550
NT-067 and incl. 294.00 295.50 1.50 6.66 1550
NT-067 and incl. 294.00 294.50 0.50 8.00 1550
NT-067 and incl. 295.00 295.50 0.50 9.39 1550
NT-067 and incl. 300.50 301.00 0.50 5.32 1550
NT-067 and incl. 316.00 321.00 5.00 5.98 1550
NT-067 and incl. 317.00 321.00 4.00 7.34 1550
NT-067 and incl. 317.00 318.00 1.00 19.30 1550
NT-067 and incl. 320.00 321.00 1.00 8.63 1550
NT-067 and incl. 320.50 321.00 0.50 11.30 1550
NT-067 and 324.00 325.00 1.00 4.08 1550
NT-067 and 405.50 406.50 1.00 3.76 1550
NT-067 incl. 406.00 406.50 0.50 5.91 1550
NT-068 202.00 203.00 1.00 7.88 1325
NT-068 incl. 202.00 202.50 0.50 14.30 1325

* Width is calculated as core length and does not imply true width of the zone. Weighted average gold intervals apply a 0.25 g/t lower cut-off. Internal dilution within reported intervals does not exceed core lengths of two metres unless otherwise indicated.
** Cross sections are spaced 25 metres apart across the entire NTS, Section 1375 marks the centre of the Heath Bull Zone.
*** includes 5.0 metres of 0.12 g/t gold internal dilution.

The current work program includes 12,000 metres of drilling using two drill rigs, to date a total of 23 holes have been completed during this phase. Two holes were recently announced (see news release dated June 20, 2011) and this release reports on an additional five holes within the southwestern part of the Newman Todd Structure ("NTS"). There are currently 17 completed holes in the lab awaiting analysis, all of which have intersected the NTS.

Discussion of Results

Holes NT-065 and NT-067 were drilled on Section 1550, which is approximately 175 metres northeast of the center of the Heath Bull Zone. This section is approximately 200 metres southwest of the Hinge Zone, and remains open in both directions along strike and at depth. The geological characteristic of the mineralization in these holes is similar to other gold bearing intercepts across the property, reinforcing the predictability of high-grade gold within the NTS. At present, gold mineralization has been identified in silicified zones, sulphide and magnetite replacement zones, near lithological contacts and within quartz veins. Technical crews have been able to identify several field relationships which may assist with identifying gold bearing structures and zones which will assist with drill hole targeting. The following features are recognized:

  • Wide spread deformation within the NTS (brecciation, hydrothermal alteration, faulting and folding
  • Wide spread Iron-Magnesium carbonate alteration (recognized in the Red Lake district as an early stage alteration preceding the major gold events)
  • Multi-stage gold mineralization associated with hydrothermal events (silicification, sulphide / magnetite replacement, quartz veining, rheology (lithogical relationships)
  • Faulting and folding to further concentrate gold mineralization into high-grade corridors

Exploration work at the Newman Todd project is being funded by Confederation Minerals Ltd. (Confederation) (TSX VENTURE:CFM). Confederation can earn a 50% interest in the project by spending $5.0 million in exploration by November 2013, and an additional 20% by producing a Preliminary Economic Assessment (PEA) by November 2016.

Core samples from the program were cut in half, using a diamond cutting saw, and were sent to Activation Laboratories Ltd. in Red Lake, Ontario, an accredited mineral analysis laboratory, for analysis. All samples were analyzed for gold using standard Fire Assay-AA techniques. Samples returning over 3.0 g/t gold were analyzed utilizing standard Fire Assay-Gravimetric methods. Certified gold reference standards, blanks and field duplicates were routinely inserted into the sample stream, as part of Confederation's quality control/quality assurance program.

Bob Singh, P.Geo., is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Mr. Singh has been engaged through a third party service provider by Confederation Minerals Ltd. to manage the project, and is also the Canadian Exploration Manager for Redstar Gold Corp.

About Redstar Gold Corp.

Redstar recently acquired a high-grade epithermal gold district in Alaska that is a good complement to the high-grade gold discovery in Red Lake, Ontario. The Shumagin project in Alaska, includes a high-grade gold deposit with a non 43-101 compliant resource, a bulk tonnage non 43-101 compliant resource, a historic high-grade gold mine, and numerous high priority exploration targets. At the Shumagin project in Alaska a drilling program is currently being planned, and an aggressive drill program is underway on Redstar's high-grade gold discovery at the Newman-Todd project in Red Lake, Ontario. Along with the high-grade gold projects in Alaska and Red Lake, the company also has a total of 14 gold focused projects in Nevada.

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.

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