Redstar Gold Announces 395,825 Gold Eq1 Ounce Resource grading 14.2 g/t Gold Equivalent on Part of the SH-1 Gold Zone at the Unga Project, Alaska
409 West Granville Street, Suite 1500, Vancouver, BC V6C 12M, Canada -- Tel 604.488.0051 | Toll Free 1.877.488.0046
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Redstar Gold Announces 395,825 Gold Eq1 Ounce Resource grading 14.2 g/t Gold
Equivalent on Part of the SH-1 Gold Zone at the Unga Project, Alaska
HIGHLIGHTS:
• 395,825 Oz Gold Eq1 maiden resource grading 14.2 g/t gold equivalent reported on the SH-1 Zone.
• The inferred resource is contained in 866,015 tonnes at a 3.5g/t Au cut-off consisting of: 384,318oz of
Gold at an avg. grade of 13.8g/t Au; and 986,321oz Silver at an avg. grade of 35.4g/t Ag.
• The mineralization outrops at surface for 450m along strike and has been drilled to 310m down dip
at the eastern end the 9.5km long Shumagin Trend.
• The SH-1 Zone’s mineralization remains open along strike and at depth.
• Further targets on both the Shumagin Trend and parallel Apollo-Sitka Trend to be drill tested.
Vancouver, Canada, February, 10th 2020 - Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG)
("Redstar" or the "Company") announces the completion of a Mineral Resource Estimation that has resulted in a
Maiden 43-101 Compliant Resource within a portion of the SH-1 Zone (formerly known as the Shumagin Zone)
as presented in Table 1 below. The SH-1 Zone is a sub-section of the overall 9.5km long Shumagin Trend which
is characterized by multiple, high-grade gold zones and occurs in the south of Unga Island. This resource derives
from the centre of the SH-1 Zone which has been traced by diamond drilling for a total of 1.7 km of strike. SH-1
is a high-grade gold zone and displays all the features of an intermediate sulfidation system including bonanza
gold grades and crustiform vein textures . It is one of several known , high-grade gold occurrences on the Trend.
The resource cut-off grade is based on a gold price of US$1,450/ounce and preliminary metallurgical testing that
yielded recovery rates of 87.8% for gold. The deposit is open at depth and in both directions along strike
(Figure 1).
Mineral Resource Estimate Summary SH-1 (formerly the Shumagin Zone)
February 07, 2020 (Table 1)
Gold Price
USD
Cut-off
Au (g/t)
Preliminary Inferred Resource2, SH-1 Zone within Shumagin Trend
Tonnes Au (g/t) Au (oz) Ag (g/t) Ag (oz) AuEq1 AuEq (g/t)1
$ 2,600 2.0 1,534,645 9.0 442,673 25.6 1,264,364 457,424 9.3
$ 2,075 2.5 1,355,789 9.9 429,721 26.3 1,147,353 443,107 10.2
$ 1,675 3.0 993,817 12.4 397,613 32.5 1,039,231 409,737 12.8
$ 1,450 3.5 866,015 13.8 384,318 35.4 986,321 395,825 14.2
$ 1,290 4.0 797,237 14.7 375,940 36.9 946,724 386,985 15.1
$ 1,150 4.5 761,720 15.2 371,039 38.2 936,160 381,961 15.6
$ 1,035 5.0 724,495 15.7 365,352 39.4 917,812 376,060 16.1
Redstar President John Gray said the following: “This is the first NI 43-101 Mineral Resource Estimate for the
Unga Project and summarizes the achievements of both Redstar and earlier exploration work on the SH-1 Zone.
This maiden resource is a milestone in achieving our strategic objective of identifying an economically minable
resource at the Project. Systematic exploration of the Unga project including extensive geophysics, soil and rock
geochemistry, trenching and drilling has identified over 40 gold and/or copper prospects on Unga Island
allowing Redstar to prioritize future exploration. Six of the highest priority targets (including Aquila, Orange
Mountain, Pray’s Vein and Bloomer Ridge) lie either on the Shumagin Trend or within 1,000m of the SH-1 Zone.
Redstar plans to test for additional resources along strike and down dip of SH-1 as well as testing these other
highly prospective zones with the objective of developing the Unga Project into a long -life, low cost gold and
base metals producer”.
409 West Granville Street, Suite 1500, Vancouver, BC V6C 12M, Canada -- Tel 604.488.0051 | Toll Free 1.877.488.0046
TSX. V: RGC www.redstargold.com
The High-Grade SH-1 Zone with On-Strike and Nearby Targets
(Fig.1)
Geological mapping, sampling, drilling and geophysics indicate expansion potential of the re source for an
additional 400m to the northeast and for an additional 3km southwest along the Shumagin Trend towards Orange
Mountain which has been interpreted as the hydrothermal centre of the Trend. The northeast expansion potential
is demonstrated by strong ground IP/Resistivity and magnetic trends that show continuation of the SH -1 Zone,
and drill results that leave the system open for further drill definition (16SH022, 1.5m @ 16.97g/t Au + 13.06g/t
Ag; 1 6SH023, 0.3m @ 34.5g/t Au + 16.45g/t Ag). The southwest expansion potential is demonstrated by
geophysics showing the trace of the Shumagin Trend which extends southwest for 600m, and a drill hole located
300m southwest of the above reported resource that contains visible gold in quartz-adularia-carbonate stockwork
veins (DDH 17SH032, 1.0m @ 2.11g/t Au + 27g/t Ag). In addition, Pray’s Vein remains a nearby target for
resource expansion of the SH -1 Zone where surface sampling has returned up to 11.8g/t Au in silicified tuff
(Figure 1).
Qualified Persons
The resource estimation in this news release has been compiled and completed by Chris topher Valorose MSc.
(Geo) of Valorose Consulting Inc. in Anchorage and overseen, reviewed and verified by William Burnett MSc .
who acts as Redstar’s General Manager in Alaska . Mr. Burnett has more than 25 years mineral exploration and
mining experience and is a "Qualified Person" as defined by National Instrument 43 -101 - Standards of
Disclosure for Mineral Projects.
409 West Granville Street, Suite 1500, Vancouver, BC V6C 12M, Canada -- Tel 604.488.0051 | Toll Free 1.877.488.0046
TSX. V: RGC www.redstargold.com
About Redstar Gold Corp
Redstar is a well -financed junior exploration and development company with a strongly supportive institutional
shareholder base, no debt, and is focused on high-grade gold exploration and advancing its Unga Gold Project in
Alaska. The 100% controlled Unga Gold Project is a high grade, intermediate sulfidation, epithermal gold
project on a district scale. The property encompasses approximately 240km 2 and contains multiple high -grade
gold zones drilled or identified at surface including the former Apollo -Sitka gold mine, located on the southerly
Apollo-Sitka Trend which was Alaska’s first underground gold mine and the site of historic high -grade (~10 g/t
Au) gold production (Figure 2).
The Unga Gold Project enjoys a moderate climate at latitude 55 degrees North next to year -round tidewater with
extensive infrastructure including a deep -water port with weekly vessels from Seattle and is served by daily
flights from Anchorage landing on a mile long, paved airstrip on Popof Island. In addition to the Unga Project,
Redstar owns approximately 5 million shares of NV Gold Corp. (TSXV: NVX) and 30% of the Newman Todd
Gold Project, in Red Lake, Ontario, Canada.
Gold and Base Metal Prospects on Unga Island and Neighbouring Popof Island
(Fig.2)
For additional information please contact:
John A. Gray
President
Tel: +44 747 068 6474
Email: [email protected]
409 West Granville Street, Suite 1500, Vancouver, BC V6C 12M, Canada -- Tel 604.488.0051 | Toll Free 1.877.488.0046
TSX. V: RGC www.redstargold.com
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.
Forward-Looking Information This release includes certain st atements 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", "estimat es", "projects",
"potential" and similar expressio ns, 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 guaranteeing of fut ure 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 explora tion 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 d evelopments
may diffe r 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 secu rities
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.
1 A Silver/Gold conversion factor of 0.011864 has been used to convert ounces of silver to gold equivalent
ounces.
2 Mineral Reserve estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
definitions standards for mineral resources and reserves and have been completed in accordance with the
Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. Reported tonnage and
grade figures have been rounded from raw estimates to reflect the relative accuracy of the estimate. Minor
variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability. Resources were constrained by a Vulcan, wire frame underground
model and based on a cut-off of 3.5g/t Au.