VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/13/11 -- Redstar Gold Corp. (Redstar) (TSX VENTURE: RGC) is pleased to announce the acquisition of a large land package surrounding its recently acquired Shumagin property in Alaska (see news release May 24, 2011) from Full Metal Minerals Ltd (TSX VENTURE: FMM). The Unga-Popov property includes the extensions of the high grade vein systems defined on the Shumagin property as well as numerous other gold vein occurrences. The property is located on Unga and Popov islands in the Aleutian Islands, South West Alaska.
The completion of this agreement along with the previously announced Shumagin agreement gives Redstar control of a district scale exploration project with known high grade gold and silver mineralization. This is the first time the entire land package has been put together and can be explored by a single company. The package contains a past producer, a historic high grade resource, a historic bulk tonnage resource, numerous identified gold targets and high potential green field exploration.
Scott Weekes, President of Redstar comments: "This is an extremely important acquisition for Redstar. The Unga-Popov property together with the Shumagin property gives Redstar control of an underexplored epithermal vein field or camp. Two parallel gold bearing trends can be traced for over 10 km on the properties - this gives us a total strike length of over 20 kilometres to explore. The historic resource reported on the Shumagin property together with the exploration potential of the Unga-Popov property provides a unique opportunity for a company to control an entire epithermal district. We are also extremely pleased to have partnered with Full Metal Minerals on this project. Full Metal has extensive experience in Alaska and a very strong technical team to help advance the project."
Previous work on the Unga-Popov property has included soil geochemistry, ground geophysics, geologic mapping, alteration studies and drilling. More than eight gold showings have been identified to date including the Aguila vein system. The Aguila system is approximately 6 kilometers along strike from the Shumagin vein and has been traced through trenching and drilling for over two kilometres. The system is comprised of at least of three sub parallel near vertical veins. Initial drilling in the early 1980's returned grades up to 113 g/t gold over 0.4 m and 12.0 g/t gold over 2.74 metres. No follow up drilling has been completed under these high grade intercepts.
The Unga-Popov property covers the strike and down dip extension to the mineralization outlined on the Shumagin property acquired by Redstar (sees news release dated May 24, 2011). The Shumagin property includes a historic resource of 281,000 tons at a grade of 0.80 oz/t (27.4 g/t) gold 3.7 oz/t (127 g/t) silver for a total of 225,000 ounces of gold and 1,000,000 ounces of silver (from an April, 2000 report by SRK Consulting - Unga Island Resource and Reserve Review). The exploration potential of the zone is highlighted by a hole drilled approximately 125 meters beneath this zone that intersected 17 ft averaging 0.47 oz/t gold (5.6 metres of 16 g/t gold). In addition to the historic Shumagin resource a bulk tonnage target was identified in the 1990's on the neighboring island. During the late 1980's Battle Mountain Gold Corp. outlined 4.9 million tonnes grading 1.4 g/t (200,000 oz gold) within 50 metres of surface. Trenching and geophysics indicates the zone remains open in a number of directions.
Note that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves that is compliant with NI 43-101. The Company is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon or understood to indicate the existence of reserves or resources.
The mineral rights to the Unga-Popov property are held by Full Metal Minerals Inc. under a lease agreement with Aleut Corporation, an Alaska Native Regional Corporation. Redstar has signed an Agreement with Full Metal giving Redstar the right to earn a 60% interest in the property by; completing $5 million in exploration expenditures by August 1, 2015, making cash payments of $300,000 by August 1, 2014 and issuing 1,000,000 shares by August 1, 2014. Redstar has the option of earning an additional 25% interest by producing a Bankable Feasibility Study and issuing an additional 1 million shares to Full Metal. Redstar will issue an additional 1 million shares on the commencement of commercial production. The agreement is contingent on certain closing conditions including exchange approval.
Redstar is currently compiling all available historic data. Maps and sections will be available on the Company's web site as soon as possible.
Bob Singh P.geo is the qualified person as defined by National Instrument 43-101and has reviewed and approved the technical disclosure made in this news release based on information provided by the vendor. Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp.
On Behalf of the Board,
Redstar Gold Corp
Scott Weekes, President
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 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", "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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