Redstar Gold Corp.
TSX VENTURE : RGC

Redstar Gold Corp.

November 07, 2006 08:30 ET

Redstar Gold Corp. and Strategic Nevada Resources Intersect High-Grade Gold at Their Pine Nut Project in Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2006) - Redstar Gold Corp. (Redstar) (TSX VENTURE:RGC) and partner Strategic Nevada Resources (Strategic) are pleased to announce assay results from the phase-one drilling program at their Pine Nut project in western Nevada. The program consisted of eight diamond drill holes totaling 7,145 feet. Highlights include the highest-grade intersection yet reported for the property, with hole PNR-4 returning 0.799 ounces per ton (opt) gold (Au) over an approximate true width of 2.1 feet, within a massive vein yielding a composite of 0.373 opt gold over 5.3 feet. Under terms of an agreement announced previously, Strategic is earning a 70% interest in the project from Redstar, who is acting as operator.

All eight core holes intersected multiple quartz veins and gold mineralization exceeding 0.010 opt gold. PNR-4 tested the middle of three northerly-trending veins, which form a vein system 6,200 feet (1,900 m) long by 1,300 feet (400 m) wide. The massive vein consists of multiple-finely-banded crustiform quartz and chalcedony with local fine-grained sulfides and bladed quartz.

PNR-4 is part of a 250-foot long strike-length of the central vein where drilling by previous operators intersected shallow gold mineralization within 200 feet of surface, including 0.310 opt gold over 5 feet within 0.119 opt gold over 20 feet (hole RU-4) and 0.333 opt gold over 5 feet within 0.142 opt gold over 15 feet (hole RU-7). Surface samples along this segment of the central vein reach 1.100 opt gold over 9 feet. Hole PNR-5 also tested this shallow part of the central vein 50 feet south of PNR-4 and intersected a similar massive vein approximately 5.2 feet in width and yielding a high of 0.119 opt gold over 2.2 feet. The vein composite assayed 0.060 opt gold over 5.2 feet. Mineralization has been traced down dip for approximately 300 feet.

The remaining holes all intersected multiple veins with lower grade gold values and have delineated a large mineralized system with many untested targets. Due to drilling problems, the final hole (PNR-8) failed to reach its target depth at the south end of the vein system where surface samples assayed up to 0.91 opt Au. Redstar and Strategic are evaluating the results of the program and opportunities to expand the high-grade zone on the central vein.

Scott Weekes, President of Redstar Gold states, "Redstar is pleased with the results from the first phase of drilling on the Pine Nut project. We have demonstrated the potential for high grade results within this extensive epithermal vein system and have intersected anomalous gold in all drill holes. The Pine Nut project is the first of three projects in Nevada optioned to Strategic Nevada Resources to be drilled. The other two projects, Dry Gulch and North Bullfrog will be drilled when a drill rig becomes available. The AngloGold Ashanti database acquired by Redstar was instrumental in acquiring and developing drill targets on all three projects. This further demonstrates the effectiveness of the AngloGold Ashanti database."

SMB is currently earning up to a 70% interest in the project from Redstar by making cash payments of $90,000, issuing 450,000 Strategic shares and completing 3.0 million dollars of work expenditures over five years. Under the terms of the agreement Redstar will act as operator. Strategic also currently holds two additional Nevada projects under option from Redstar (Dry Gulch and North Bullfrog). Drill programs for Dry Gulch and North Bullfrog will commence when drill rigs become available.

The Pine Nut exploration program is under the supervision of Dr. Jacob Margolis, U.S. Exploration Manager for Redstar and a Qualified Person. Redstar and Strategic employ rigorous quality-control procedures, including the use of blanks and standards inserted into the assay sample stream. Gold analyses were completed by ALS Chemex Laboratories, an independent ISO certified analytical laboratory, using standard assay methods.

On Behalf of the Board,

Redstar Gold Corp.

Doug Fulcher, Director


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