June 21, 2017: Redstar Gold Corp. (TSX.V: RGC, OTCQB: RGCTF, FRA: RGG) (“Redstar” or the “Company”) is pleased to review its ongoing 2017 Spring Exploration Program at its 100% controlled Unga Gold Project in Alaska. The exploration program, focused on the high-grade Shumagin Gold Zone, included mapping, geochemical soil and surface rock sampling, geophysical surveys (surface MAG and IP), and most recently diamond drilling. The Shumagin Gold Zone remains open in all directions. Drill core & soil samples entered the assay lab on June 6, 2017, and the Company anticipates assay results in July 2017.
Following the successful ground based geophysical survey (MAG and IP) completed in April 2017, the Company recently completed an initial 12 drill hole program totaling 2,287.8 m of HQ & NQ diamond drilling that commenced in May 2017. Drilling was performed along approximate 100 m centers, with a goal of tracing Shumagin-style breccias/veining previously drilled at the Shumagin Gold Zone along strike to the southwest, as well as to complete additional infill drilling to further confirm continuity of mineralization. A follow-up drill program is expected to continue once assay results are received and reviewed. A more detailed geological overview and update will be made available once all assays are received and the geological modeling is complete.
Redstar’s President & CEO, Peter A. Ball, stated, “We are excited to have intersected the Shumagin vein structure along strike to the southwest, and in addition intersected the vein structure within the main breccia system to the northeast with infill drill holes. The Shumagin Gold Zone has now been traced by drilling for approximately 1,350 m, up from approximately 950 m in 2016, an increase of 42% or 400 m. The work completed this spring both confirms the extension of the vein structure and, importantly, shows that the structure remains open along strike and at depth. The geophysical surveys performed over the Shumagin Gold Zone in April 2017 defined multiple hidden/blind structures with significant potential to host high-grade gold mineralization. Redstar also completed a geochemical soil sampling survey over the recently discovered parallel footwall structure, which is located approximately 400 m to the north of the Shumagin Gold Zone. Exploration along this long-lived structure is significant and continues to yield solid results each time the drill bit turns. Once again, the methodical step-out diamond drill program southwest towards Orange Mountain has intersected the Shumagin vein structure. Historical surface sampling has shown gold showings along the 9.5 km Shumagin trend across the island, and our systematic and focused exploration programs continue to confirm this extensive trend.”
The Company intersected Shumagin-style breccias/vein systems in 10 out of 12 drill holes, with assays pending. Minor zones of alteration and stockwork veining were observed in the other two holes, and are not included as intercepts due to a probable fault offset, thus they will need to be further reviewed and modelled. In addition, approximately 600 gridded soil samples were taken to cover the strike potential of the footwall veining and associated geophysical anomalies discovered north of the Shumagin Gold Zone during March 2017 (refer to Figure 1 for Shumagin Gold Zone Plan Map).
Redstar’s VP of Exploration, Jesse C. Grady, stated, “Delineating the expansion potential of the Shumagin Gold Zone to the Southwest has been the Company’s prioritized goal for the initial 2017 Spring Exploration and Drill Program. The methodical step-out drilling, that was guided by detailed IP and MAG ground surveys, has provided us with an exploration “template” that will be utilized on the other epithermal gold prospects within the Unga Gold District. A significant panel of vein breccia at the Shumagin Gold Zone has now been defined that can be infill drilled, while regional exploration efforts can focus on the other noteworthy gold prospects. From this drill program, we have recognized that the structures that host gold-silver bearing Intermediate Sulfidation-style Breccias/Veining at Shumagin occur at the transition of Advanced Argillic Alteration assemblages to Phyllic (quartz-sericite-pyrite) & Propylitic assemblages which also occur at other gold-bearing vein systems within the District (e.g. Aquila, Empire Ride/Apollo/Rising Sun, etc…). Noting that the structural controls, gangue mineralogy, and textures are all identical amongst these prospects, we have built a significant set of exploration vectors for the District. We are excited to further explore the Unga Gold District and continue the expansion of the Shumagin Gold Zone.”
The Company commenced its 2017 Spring Exploration Program in March 2017, and initiated its diamond drilling program at the Shumagin Gold Zone, within the Unga Gold Project, in May 2017. Planning for the next drill program is currently underway and will be focused on completing a geological mineral resource and 43-101 Technical Report at the Shumagin Gold Zone where a total of 77 holes (12,840.5 m) have been drilled, with 37 completed by Redstar since 2011. Of the previous 65 drill holes drilled before the current drill program, 100% intersected gold mineralization, 38% returned intersections over 15 g/t Au, 25% over 25 g/t Au, and 12% over 50 g/t Au.
In addition, the Company is planning to also drill test other high priority gold zones such as Orange Mountain, Empire Ridge, Aquila/Amethyst, and the newly discovered footwall vein to the north of the Shumagin Gold Zone.
Jesse C. Grady, MSc, CPG-11592, Vice President of Exploration for Redstar Gold Corp. is a Qualified Person as defined by NI 43-101. Mr. Grady has prepared and approved the technical information contained within this release.
About Redstar Gold Corp.
Redstar is well-financed junior exploration company, with a very strong, supportive institutional shareholder base, no debt, and is focused on high-grade gold exploration and advancing its high-grade Unga Gold Project in Alaska. The 100% controlled Unga Gold Project is an intermediate sulfidation epithermal high-grade gold project on a district scale, with the property encompassing approximately 240 km2, and containing multiple high grade gold zones drilled or identified at surface. The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka Trend, was Alaska’s first underground gold mine and the site of historic high-grade (~10 g/t Au) gold production. The Unga Gold Project has extensive infrastructure with daily flights from Anchorage landing on a one mile long paved airstrip and a deep-water port on neighboring Popof Island, and a moderate climate noting it resides at the 55th degree latitude and next to tidewater. In addition, Redstar owns approximately 22.2% of NV Gold Corp. (TSXV: NVX). Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada.
On Behalf of the Board of Directors,
Peter A. Ball, 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.