Redstar Gold (TSXV:RGC)
Market cap: $9.9 million
Cash estimate: $1.4 million
Country: Alaska, US
Ownership: 100 percent
Resources: 280,000 tonnes @ 27.4 g/t Au, 127 g/t Ag (non NI 43-101)
Project status: Exploration
Redstar announced the initial 2015 diamond drilling results from the Shumagin target on its 100% owned Unga epithermal gold project in the Aleutian islands of Alaska. Redstar has now consolidated the land package covering 250 square kilometres through an agreement with Full Metal Minerals (TSXV:FMM) and the Aleut and Unga Native Corporations. Highlights from the recent drilling into a known area of mineralization confirmed the high-grade potential of the Shumagin vein with intervals of 1.9 metres grading 202 g/t Au and 82 g/t Au starting from 60 metres depth. An addition hole intersected two zones of 7.3 metres of 11.8 g/t Au and 72.7 g/t Ag starting at 64 metres and 6.35 metres grading 9.45 g/t Au and 103 g/t Ag from 79 metres. True widths are expected by the Company to be approximately 70-80% of the reported core interval. The objective of the current program is to test the continuity of the veins comprising the historical (non 43-101) resource estimate. In 2000, SRK completed a pre 43-101 resource of 280,000 tonnes grading 27.4 g/t Au and 127 g/t Ag based on historic drilling from Apollo Gold Mines in the 1980's. The property hosts a number of parallel vein systems within the two main Shumagin and Apollo trends. Surface mineralization on the Shumagin vein has been traced over 1.7 km in strike length within the total 8 kilometre long Shumagin trend. Historic mining in the Apollo-Sitka mine produced 150,000 ounces of gold at an estimated grade of 10 g/t Au between 1886 and 1922. Mining ceased in 1922 when the processing techniques of the day could not extract the gold. The veins are sub vertical with gold and silver associated with typical low to intermediate sulphidation mineral assemblages and textures with banded quartz veins and vein breccias with rhodochrosite hosting minor disseminated pyrite-galena-sphalerite. The deepest hole to date includes 5.5 metres grading 13.9 g/t Au at a depth of 300 metres. The deeper holes were not included in the historical resource. Historic drilling shows that veins may be typically 7-10 metres true width.
Development history and key intervals: Past production on adjacent Apollo-Sitka Mine (1886-1922): 150,000 oz. Au @ approximately 10 g/t Au. 2000 - Engineering report (not 43-101) estimated 150,000 oz Au and 1.1 ounces Ag. Redstar acquired Shumagin in May 2011.
Current holes: 1.9 metres @ 202 g/t Au, 82 g/t Ag; 7.3 metres @ 11.8 g/t Au, 72.7 g/t Ag