Redstar Gold Files Maiden Resource Report on the SH-1 Gold Zone at the Unga Project, Alaska
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Redstar Gold Files Maiden Resource Report on the SH-1 Gold Zone at the Unga
Project, Alaska
HIGHLIGHTS:
• Maiden NI 43-101 resource report filed with regulator for 395,825 Oz Gold Eq1 grading 14.2 g/t
Gold Eq on the SH-1 Zone.
• The Technical Report demonstrates an inferred resource contained in 866,015 tonnes using a 3.5g/t
Au cut-off consisting of: 384,318oz of Gold at an average grade of 13.8g/t, and; 986,321oz Silver at
an average grade of 35.4g/t.
• 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, March, 26th 2019 - Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG)
("Redstar" or the "Company") announces the filing of a National Instrument 43-101 (NI 43-101) report with the
appropriate regulatory authorities on March , 24th 2020, which can be found on SEDAR and on t he Redstar
website ( www.redstargold.com), in compliance with IROC/TSX.V exchange listing rules for the Mineral
Resource Estimat e announced by Redstar on February, 10th 2020. The report , completed by William Burnett
CPG -1123 of Yukuskokon Professional Services LLC, details a Maiden Resource of 395,825 of gold equivalent
ounces within a portion of the SH -1 Zone (formerly known as the Shumagin Z one) 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 drilli ng 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 th e Trend , and one of
numerous gold and base metal occurrences on Unga Island . 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).
SH-1 Zone Maiden Mineral Resource Estimate Summary
Originally released February 10, 2020 (Table 1)
Gold Price
USD
Cut-off
Au (g/t)
Preliminary Inferred Resource1, 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 filing for
Redstar’s 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
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prospects on Unga Island allowing Redstar to prioritize futu re 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”.
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; 16SH023, 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).
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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.
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 U nga 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 Proj ect,
Redstar owns shares in 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)
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For additional information please contact:
John A. Gray
President
Tel: +44 747 068 6474
Email: [email protected]
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 statements that may be deemed "forward -looking statements". All statements
in this release, other than statements of historica l 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, identifi ed 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 expect ations expressed in such forward -looking statements are based on reasonable assumptions, such statements
are not guaranteeing of future performance and actual results may differ materially from those in the forward -looking statements.
Factors that could ca use 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 securi ties
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.