Redstar Gold’s Recent Geophysics Program Successfully Extends Shumagin Fault Southwest Towards Orange Mountain; Discovers New Parallel Structure in Footwall of the Shumagin Gold Zone at the Unga Gold Project
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Redstar Gold’s Recent Geophysics Program Successfully Extends Shumagin
Fault Southwest Towards Orange Mountain; Discovers New Parallel
Structure in Footwall of the Shumagin Gold Zone at the Unga Gold Project
May 4th, 2017: Redstar Gold Corp. (TSX.V: RGC, OTCQB: RGCTF, FRA: RGG)
("Redstar" or the "Company") is pleased to announce results from the Company’s recently
completed surface geophysical (Induced polarization -resistivity ( “IP”) and ground magnetic
(“MAG”)) program at the Shumagin Gold Zone within the high-grade Unga Gold Project.
Geophysical results from the Orange Mountain Gold Zone are still being compiled and drilling
will commence in May 2017.
Redstar’s President & CEO, Peter A. Ball, stated, “The ground based geophysical program
has successfully traced the Shumagin Fault for at least 600m from the most southwest drill hole
towards the Orange Mountain Gold Zone, and in addition has yielded the discovery of a second
parallel structure approximately 400m to the north in the footwall of the Shumagin Gold
Zone. It is exciting that the Unga Gold Project continues to yield new untested structures with
very similar geological characteristics as the high-grade Shumagin Gold Zone. Drilling of the
Shumagin Gold Zone will re-commence later this month.”
Highlights of Geophysical Results:
• Recently completed geophysical surveys completed over the Shumagin Gold Zone have
defined multiple blind/hidden structures with the potential to host additional high-grade
gold mineralization.
• IP and MAG surveys have successfully:
o Traced the Shumagin Fault which was previously identified by surface mapping,
trenching, rock sampling and drilling, and has defined a “geophysical fingerprint”
for the structure (Figs 3 & 4).
o Extended the geophysical fingerprint of the Shumagin Fault and located a new
significant footwall splay for an additional minimum strike length of 600m to the
southwest.
o Discovered a second parallel structure in the footwall north of the Shumagin Gold
Zone (Figs 3, 4, 5).
Geophysics Program
• Completed an approximate 15.5 line -km MAG survey over the Shumagin Fault
comprised of a:
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o 21-line survey grid over 1.6 km , spaced 50 m to 100m apart and ranging from
550m to 950m long, oriented perpendicular to the Shumagin Fault.
o Grid which was extended for an additional 600m along strike to the southwest
towards Orange Mountain where the Shumagin Fault is not exposed at the surface
(Figs 3-4).
• Completed an approximate 8.7 line -km IP survey was performed over the Shumagin
Fault over an 11-line survey grid.
Detailed Geological and Geophysical Review
Target: Southwest Extension of the Shumagin Fault
High-grade gold-silver mineralization at Shumagin occurs within steeply-dipping breccia bodies
localized along syn-mineral NE -EW oriented dilation jogs that are part of the N60E trending,
steeply SE dipping Shumagin Fault, a significant extensional structure that juxtapose s coherent
footwall basalt/andesite against hangingwall pyroclastic tuffs and overlying epiclastic sediments
(Fig 1). The Shumagin Fault is part of a regional structural corridor that crosses Unga Island
from coast-to-coast for approximately 9.5 kms, and is interpreted to have localized epithermal
alteration and mineralization along the Shumagin Trend (Fig 2).
Previous surface sampling, geological mapping and drill testing at Shumagin has defined a near
continuous zone of quartz -adularia-carbonate breccias, veins & stockwork for approximately
950m of strike , and to depths of approximately 330 m below the surface that remains open at
depth and along strike towards the southwest (see Long Section L-L’). Drill hole 16SH019,
drilled during November 2016, is the deepest most southwest drill hole collared at Shumagin.
This drill hole intersected an impressive approximate 50m thick section of phreatomagmatic
breccias and an approximate 50m thick section of gold-bearing quartz-adularia-carbonate
breccias and stockwork localized within the footwall of the Shumagin Fault (see Press Release
dated January 9th, 2017). Although strong geological evidence suggests continuation of the
Shumagin Fault to the southwest, no surface exposure of the Shumagin Fault exists to the
southwest of drill hole 16SH019. As such it was determined that geophysical survey methods
were needed to properly locate the southwest extension of this important structure prior to step-
out drilling towards the southwest.
In order to perform high -resolution ground-based geophysical surveys necessary to trace out the
southwest extension of the Shumagin Fault, a survey grid was first established by brushing out
dense alders thickets with chainsaws followed by placement of cha in-staked lath pickets every
25m along each line. The survey grid consisted of twenty-one northwest oriented lines (1700E to
3300E) spaced 50m to 100m apart and ranging from 550 m to 950m long for approximately 15.5
line-kms. The survey grid lines were oriented perpendicular to the Shumagin Fault and high -
grade breccia bodies that are exposed for approximately 950m along the structure (e.g. Rhodo
Breccia, Main Breccia, Bunker Hill). The grid was extend ed for an additional 600m along strike
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to the southwest towards Orange Mountain where the Shumagin Fault is not exposed at the
surface (Figs 3 & 4).
Geophysical Survey Results
Shumagin Fault: 2250E to 3300E
IP and MAG surveys have clearly mapped the trace of the Shumagin Fault as previously defined
by surface mapping, trenching, rock sampling and drilling between grid lines 2250E to 33 00E
and has thus defined a geophysical fingerprint for the structure (Figs 3 & 4).
Footwall basalt/andesite surveyed between lines 2250E to 3100E is highly resistive & chargeable
as compared to adjacent hangingwall pyroclastic tuffs & epiclastic sediments and defines a sharp
geophysical boundary (Fig 3). Resistivity data clearly shows contrasts between highly resistive
and competent footwall basalt/andesite from non-resistive clay-altered (conductive) hangingwall
pyroclastic tuffs & epiclastic sediments. Chargeability data is stronger in footwall basalt/andesite
as compared to hangingwall units and potentially represents areas with trace disseminated
sulfides (e.g. pyrite/marcasite = chargeable) that may be primary magmatic sulfides or
hydrothermal pyrite associated with QSP alteration halos to cross -cutting quartz -adularia-
carbonate breccias and veins.
A s trong distinctive sharp magnetic contrast exists across the Shumagin Fault be tween lines
2250E to 30 00E and clearly differentiates variably magnetic footwall basalt/andesite from non-
magnetic hangingwall pyroclastic tuffs & epiclastic sediments (Fig 4). Magnetic signatures of
footwall basalt/andesite located between grid lines 3000E to 3300E exhibit spotty strong
magnetic lows adjacent to magnetic highs that are all associated with fine grained olivine-
magnetite phyric basalts that are all highly magnetic . These data indicate that the contrasting
magnetic signatures from these volcanic units are remnant magnetic signatures caused by pole
reversals during time of volcanic eruptions and extrusion onto the surface and not from
destruction of primary magnetite caused by hydrothermal alteration.
Line 2400E was not surveyed with IP methods and as su ch, 2D and 3D inversion models exhibit
variability along this portion of the grid whereas ground magnetic data surveyed along line
2400E clearly delineates the Shumagin Fault where it has been mapped and sampled at the
surface (Figs 3 & 4).
Southern Shumagin Fault Extension and Footwall Splay: 1700E to 2250E
IP and MAG surveys have successfully traced the geophysical fingerprint of the Shumagin Fault
for an additional 600m southwest from existing drill holes along grid lines 1700E and 2250E and
have also defined a second parallel footwall splay in the same area (Figs 3, 4, 5).
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IP data has delineated the two parallel splays which are separated by approximately 125m and
appear to bound a highly resistive and chargeable geophysical body on both its southern and
northern margins (Figs 3 & 5). The resistive & chargeable geophysical anomaly is potentially an
area of weakly anomalous chalcedonic colloform sulfide (pyrite + marcasite) breccias hosted in
lithic tuff and footwall basalt/andesite that outcrops and previously sampled along grid line
1700E.
Ground MAG surveys that cover the same area along grid lines 1700E and 2250E , have traced
subtle magnetic anomalies along the footwall splay, but magnetic signatures along the Shumagin
Fault are less straight forward yet are clearly defined by IP data (Figs 3, 4, 5 ). A very subtle
magnetic destruction signature traces th e Rhodo Breccia (QRA) north and westward away from
the Shumagin Fault across line 2250E where sharp contrasting magnetic signatures document
contrasting lithologic units across the structure (e.g. footwall basalt/andesite from hangingwall
tuff). The subtle magnetic destructive signature measured towards the southwest along the
footwall splay potentially documents QSP alteration associated with breccia veins wholly within
structures that cut footwall basalt/andesite. Subtle magnetic destructive signatures similar to the
footwall splay signature have been measured along grid lines 2400E to 2600E and result from
narrow breccia veins exposed at the surface that cut footwall basalt/andesite and have
approximately 1m to 3m wide quartz-sericite-pyrite alteration halos (Fig 4).
Northern Footwall Anomaly: 2300E to 3000E
Grid lines brushed through dense alder thickets north of the Shumagin Fault have allowed access
deep into footwall basalt/andesite for approximately 1,000m along strike between grid lines
2100E and 3300E (Figs XYZ). As a result, IP and MAG have discovered a significant 600m long
and other minor N60E trending geophysical anomalies, that are parallel to the Shumagin Fault
along the northern portions of lines 2300E to 3000E , and are potentially mineralized structures
within the footwall (Figs 4 & 5).
The anomalies occur as sharp breaks in contoured resistivity data and are also associated with
weak variability in chargeability signatures along strike (Fig. X). Zones of subtle magnetic
destruction are associated with the IP anomalies and are similar to those observed along portions
of the Shumagin Fault that document magnetic destructive signatures (Fig. X). Prospecting along
the geophysical anomalies have discovered broad areas of strong quartz-sericite-pyrite alteration
of footwall basalt/andesite units, multiple occurre nces of quartz-adularia-carbonate boulders in
small drainages, and an outcrop consisting of a narrow EW striking crustiform quartz -adularia-
carbonate (Rhodochrosite ) vein cutting altered andesites along the northern portions of line
2350E (Figs 3, 4, 5).
Future Work & Exploration Discussion
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Newly acquired geophysical survey s performed over the Shumagin Gold Zone have defined
multiple blind-structures with the potential to host high-grade gold mineralization.
IP and MAG surveys have successfully:
1) Produced a geophysical fingerprint of the Shumagin Fault;
2) Traced its extension and located a significant parallel footwall splay to the southwest
for 600m;
3) Discovered a 600m long geophysical anomaly that occurs 400m away from the
Shumagin Fault within footwall basalt/andesite that is associated with broad zones of
QSP alteration and outcrops/float of quartz-adularia-carbonate veining.
The newly defined approximate 1.6 k m trace of the Shumagin Fault and footwall splay
further strengthens the exploration potential along this long -lived structure that has
experienced multiple epithermal mine ralizing events. The sulfide-rich mineralization that
outcrops along 1700E is a well-documented early hydrothermal-mineralization event. This event
is cross-cut by high-grade multi-stage quartz-adularia-carbonate breccias that are localized
within syn -mineral NE -EW oriented structures ( dilation jogs ) localized along the Shumagin
Fault and subsidiary structures (Figs 3, 4, 5) . No bedrock exposures exist in the area between
1700E and 2250E, yet float occurrences of altered basalt/andesite, altered lithic tuff and cobbles
of quartz-adularia-carbonate breccia located along strike of the newly defined southern extension
and footwall splay indicate that a strong potential exists for the discovery of high-grade quartz-
adularia-carbonate vein/breccias along the structures.
Drilling of the geophysical anomalies will commence in May 2017, with a main goal to initially
trace the occurrence quartz-adularia-carbonate breccias along strike of the Shumagin Fault and
the footwall splay along approximate 100m centers. Coincident with drilling, detailed
prospecting and soils sample grids will cover the entire footwall basalt/andesite within the areas
of the Northern footwall anomalies to located geochemically anomalous areas along the
structures that can be drill tested later during the summer.
Geophysical Methodologies
Ground MAG data was collected using a high resolution, GEM GSMP -35 potassium
magnetometer equipped with an integrated precision GPS unit. The unit was programmed to
read at continuous 1000ms intervals with all data being corrected for the diurnal variation in the
earth’s magnetic field utilizing a GEM GSM -19 Overhauser magnetometer set to a 3 second
sampling rate . The survey was completed over the entire gridded area and in adjacent areas
devoid of brush accounting for 15.7 line-kms. A total of 35,301 data points were collected during
the work program. Data editing was performed at the end of each survey day to remove all
suspect data points that may affect magnetic survey results.
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The IP survey was performed using a five -man crew and utilizing the pole -dipole array .
Equipment used included the Scintrex IPR -12 digital, time -domain receiver and G DD5000
square wave transmitter. The survey was performed using a two second on/off time, six dipoles
(n=6) and an “a” -spacing of 25m . This setup allows for a maximum penetration depth of 75m .
The IP survey was performed over a total of 11 gri d lines accounting for 8.7 line -kms of data
collection.
All data related to the IP and MAG surveys w ere processed using the GeoSoft Oasis Montaj
software platform. For the magnetic data, corrected and processed total field measurements were
gridded and brought into the GeoSoft MagMap extension software where the reduction to the
magnetic pole algorithm was performed. No smoothing filters were run on the data and plot s
were created using the histogram equalization coloring method. IP and resistivity data was
processed using the GeoSoft IP Extension software . All standard IP/resistivity pseudosections
and stacked section plots were genera ted and data for n=2 (approx 25m depth) gridded and
contoured for plan map display purposes.
Subsequent to the data collection and preliminary processing, 2D and 3D inversion modeling
was performed on the mag netic and IP data. The unconstrained 3D modeling for all geophysical
methods was performed using the GeoSoft Voxi inversion software . 10m cell blocks were used
for the magnetic, chargeability and conductivity models. The isosurfaces/shells for various
magnetic susceptibilities, chargeabilities and conductivities were then exported as 3D DXF files
and brought into FracSys and Adobe Illustrator for final output. UBC DCIP2D inversion
software was used to create in-house plots for the 2D IP and resistivity inversions.
Geological Highlights of the Shumagin Gold Zone and Trend
• The Shumagin Gold Zone is currently defined over a strike length of approximately 1.6 kms
by surface mapping and sampling and newly acquired geophysical surveys
• Geological mapping and sampling towards the southwest from Shumagin indicates a very
strong expansion potential along strike for an additional three (3) kms towards Orange
Mountain, the interpreted hydrothermal center along the Shumagin Trend.
• The Shumagin Trend is approximately 9.5 kms long, and is a major regional structure
responsible for the localization of epithermal mineralization and associated alteration
exposed about its strike length.
• Results from the 2016 fall drill program at the Shumagin Gold Zone, indicate that high-grade
gold-silver mineralization occurs at depth for approximately 950m of tested strike length, is
vertically extensive (to approximately 330m at depth), and remains open at depth across the
entire strike length.
About the Unga Gold Project
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The 100% co ntrolled Unga Gold Project is a low to intermediate-sulfidation epithermal district
located along the Alaskan Peninsula on adjacent Unga and Popof Islands, approximately 950 km
southwest of Anchorage, Alaska. The 240 -km2 property contains numerous volcanic -hosted,
structurally-controlled and disseminated gold -silver mineral occurrences localized along at least
two (2) regional structures (Shumagin Trend and Apollo -Sitka trends), each measuring
approximately 9.5 km long. High -grade gold zones drilled or identified at surface occur within
dilation zones along the regional and/or subsidiary structures and are the main exploration target-
type for the project. The Shumagin Gold Zone is only one of several noteworthy gold -silver
structures found on Redstar’s Unga Gold Project and is a high-priority exploration target.
Jesse C. Grady, MSc, CPG-11592, 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 i s an intermediate
sulfidation epithermal high-grade gold project on a district scale, with the property encompassing
approximately 240 km 2, 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 55 th 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
For additional information please contact:
T: 604.245.5861
TF: 877.310.3330
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the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
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developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements.
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