Redstar Completes Purchase of Shumagin Project
Redstar Gold Corp. (TSX.V:RGC) ("Redstar" or the "Company") is pleased to announce that it has completed the purchase of 100% of the Shumagin Property a core land package to the Company's high-grade Unga project in south-west Alaska.
This transaction has now secured 100% of this royalty free land package which hosts a historic (non 43-101 compliant) resource estimate of 254,000 tonnes (280,000 tons) grading 27.4 g/t (0.80 ounces per ton) gold and 127 g/t (3.7 opt) silver (SRK Consulting, 2000). The resource was based on shallow drilling in the late 1980's that was within about 150m (500 feet) of surface. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
The property also hosts the three past producing mines from the Apollo-Sitka high-grade gold vein system, which produced approximately 150,000 oz of gold in the early 20th century. The mines produced from 2km of a structure which extends for at least 7km and remains open at depth.
R. Bob Singh, President and CEO of Redstar Gold Corp. comments: "We are pleased to have completed the purchase of the Shumagin Property. We look forward to Redstar's next phase of exploration of this exciting new high-grade gold-silver discovery which is one of several exploration projects planned for the Unga District in 2014."
The Company also reports that Torrey Hills Capital has been engaged for an initial term of six months at a monthly fee of US$5,000. In addition, Redstar has agreed to grant options to Torrey Hills Capital to purchase 400,000 common shares of the Company (the "Options") exercisable at a price of CDN$0.08 per common share for a period of three years from the date of grant. The Options shall be subject to the terms of the Company's stock option plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange. The appointment of Torrey Hills Capital as an investor relations consultant of Redstar and the granting of the Options remain subject to regulatory acceptance of applicable filings with the TSX Venture Exchange.
In addition, the Company reports that it has reached settlement agreements to issue 11,486,102 common shares of the Company in payment for consulting services rendered to the Company by several arms-length service providers over the past 24 months at a deemed price of $0.08 per common share, this transaction is subject to regulatory approval. In addition, the Company also reports that it has granted incentive stock options to purchase up to an aggregate of 600,000 shares to a consultant to the Company. The options are exercisable at a price of $0.20 per share for a period of one year and shall be subject to the terms of the Company's stock option plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange.
Dr. Jake Margolis and Andrea Diakow P.Geo are the qualified persons as defined by National Instrument 43-101 and have reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp. and Mrs. Diakow is the Canadian Exploration Manager for Redstar Gold Corp.
About Redstar
The Unga Project in south-western Alaska consists of two properties acquired by Redstar in 2011: the Unga-Popof and Shumagin properties. The Project includes the high-grade Shumagin gold deposit, the Centennial disseminated bulk-tonnage gold deposit and the Apollo-Sitka high-grade gold vein system, which produced approximately 150,000 oz of gold in the early 20th century.
Redstar currently holds 50% of the Newman Todd Project in Red Lake Ontario. Newman Todd, currently optioned to Confederation Minerals (TSX.V:CFM), is a new high grade gold discovery in the prolific Red Lake Gold Camp. Drilling to date has outlined numerous zones of high grade gold mineralization along a 1.8Km corridor within the Newman Todd Structure ("NTS"). The gold mineralization in the NTS remains open along strike and at depth.
Redstar also owns 100% of 11 gold projects in Nevada and owns the Anglogold-Ashanti Database ("Database") for Nevada and surrounding states. The Database has proven to be effective in developing quality projects in a variety of known gold producing regions of Nevada including the Carlin Trend, Bullfrog District and the Cortez Trend.
On Behalf of the Board,
"R. Bob Singh"
R. Bob Singh, President and CEO
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|TSX.V:RGC |CORPORATE INQUIRIES Redstar Gold|
|WWW.REDSTARGOLD.COM|Corp. Tim Mikula, Business |
|SUITE 615 800 WEST |Development Tel: 604.488.0051 |
|PENDER STREET | |
|VANCOUVER, BC TEL: |tmikula@redstargold.com |
|604.488.0051 | |
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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 Corp. (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.
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