Redstar Gold Corp.
TSX VENTURE : RGC

Redstar Gold Corp.

June 20, 2011 08:00 ET

Redstar Gold Corp.: Newman Todd Step-Out Drilling Continues to Intersect High-Grade Gold

5.0 Metres of 18.25 g/t gold including 2.7 Metres of 32.43 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2011) - Redstar Gold Corp. (TSX VENTURE:RGC) is pleased to report results from the on-going drill program at the Newman Todd property in the Red Lake Gold District, Ontario. Work is being funded by Confederation Minerals Ltd. (Confederation) (TSX VENTURE:CFM). The current work program includes 12,000 metres of drilling using two drill rigs. One drill is focused on following known mineralization with 25 to 50 metre step-outs; the other drill is testing the two kilometre strike of the Newman Todd Structure (NTS) on 100 to 200 metre step-outs. Highlights from the recent results include a drill hole that returned 5.0 metres of 18.25 g/t gold, including 2.7 metres of 32.43 g/t gold.

Scott Weekes, President of Redstar states: "Results from the first two holes of the current program continue to demonstrate the high-grade gold potential of the NTS. The two holes were significant step-outs from known mineralization and intersected numerous gold zones, including high-grade results within broader intervals of lower grade. These results from these holes are a further indication of the significant gold endowment of the Newman Todd Structure along its entire strike length. Drill hole NT-062 contained a cumulative width of gold mineralization averaging 1.65 g/t over 63 metres including the high-grade subintervals. The fact we have now intersected high-grade gold mineralization between two existing zones, is a strong indication that the NTS should be considered a single 2.0 km long gold bearing zone."

Highlights from recently completed drilling:

NT-062

  • 2.70 metres of 32.43 g/t gold including 0.70 metre of 103.00 g/t gold, this occurs within a wider zone of 19.0 metres of 5.32 g/t gold
  • 3.00 metres of 5.56 g/t gold including 1.00 metre of 8.86 g/t gold, this occurs within a wider zone of 15.0 metres of 2.16 g/t gold

NT-063

  • 0.50 metre of 27.30 g/tgold
  • 0.50 metre of 8.11 g/t gold
  • 15.8 metres of 1.35 g/t gold

Previous drilling has identified the 2.0 km long NTS which hosts four high-grade gold zones, with little to no drilling between them. The first two holes of this program were drilled approximately midway between the Hinge and NE breccia zones; both intersected the highest grade gold values on the property outside of the Heath Bull Zone (approximately 600 metres to the southwest).

The NTS is proving to be a robust, continuous gold bearing zone, hosted within intensely altered and deformed rocks. Work to date has identified four zones of high-grade mineralization (Heath Bull, Hinge, NE Breccia, New Zone) and now with this step-out drilling a fifth zone has been discovered. Although little data exists between these zones, it would appear that the overwhelming geological similarity between high-grade intercepts across the entire NTS is not coincidental. There is a strong probability that high-grade gold mineralization exists along the entire strike length of the NTS, and naming of the individual zones is purely a results of drill hole density.

Table of Partial Results

Hole NumberFrom (m)To (m)Au (g/t)Core Length (m)
NT-062161.00180.005.3219.00
NT-062incl.170.00175.0018.255.00
NT-062and incl.171.00173.7032.432.70
NT-062and incl.173.00173.70103.000.70
NT-062and incl.178.00179.006.511.00
NT-062222.00251.001.0529.00
NT-062and incl.329.00332.005.563.00
NT-063213.00213.5027.300.50
NT-063and243.50244.008.110.50
NT-063and286.00291.001.985.00
NT-063and301.16317.001.3515.84
NT-063incl.304.00304.505.960.50
NT-063and354.00360.001.906.00

Discussion of Results

Step-out holes NT-062 and NT-063 were both drilled from the same collar approximately 170 metres northeast of the Hinge Zone, and 120 metres southwest of the NE Breccia. Gold mineralization occurs within sulphide-magnetite replacement zones, along contacts with mafic and felsic volcanic units within the NTS. In addition to high-grade mineralization, both holes also returned wide zones of lower grade gold mineralization associated with the same sulphide-magnetite replacement zones. At present high-grade zones are believed to be steep northwest dipping zones of focused fluid movement along faults and contacts, within high sulphide-magnetite zones. For example, the high-grade intercept in Hole NT-062 is approximately 50 metres vertically above the high-grade intercept in Hole NT-063. There also appears to be a relationship to gold mineralization and large scale second generation folds, commonly referred to as "F2" folds in the Red Lake District. The evidence of this folding exists both in surface map data and in airborne geophysical surveys, both of which have assisted in drill hole targeting.

Confederation can earn a 50% interest in the project by spending $5.0 million in exploration within three years, and an additional 20% by producing a Preliminary Economic Assessment (PEA) within six years.

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 Redstar'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 is the Canadian Exploration Manager for Redstar Gold Corp.

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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