Redstar Gold Corp

Published : November 28th, 2011

Intersects High-Grade Gold in Alaska Returns 21 Metres of 4.02 g/t Gold Including 1.0 Metre of 43.90

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    Monday, November 28, 2011

Redstar Intersects High-Grade Gold in Alaska Returns 21 Metres of 4.02 g/t Gold Including 1.0 Metre of 43.90 g/t Gold

Redstar Gold Corp. (TSX.V: RGC) is pleased to report results from recent drilling on the Unga project in Alaska. The project is located on Unga and Popof Islands, 10 km west of the town of Sand Point in the Aleutians Islands, Alaska. The project covers numerous epithermal gold-silver targets that have not been drilled since the 1980's. Highlights from the drilling returned wide zones of gold mineralization, 21 metres of 4.02 g/t gold that also included bonanza grade intervals of 1.0 metre of 43.90 g/t gold. These results are from 7 of 10 holes, drilled in a phase one drilling program, with 3 holes pending. The focus of the drilling was to follow up on the historical work; it was a successful program, in that it returned high-grades, good continuity and wider zones that show bulk tonnage potential.

Scott Weekes, President of Redstar stated: "We are extremely pleased with the initial results of our first drill program on the Unga project. Past drilling, completed in the 1980's on the Shumagin vein system, resulted in a non 43-101 compliant resource of; 280,000 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 (April, 2000 report by SRK Consulting). Our results have confirmed the presence of an extremely rich high-grade vein system, and we are also impressed with the discovery of wide zones of near surface gold-silver mineralization. Our work highlights the potential for high-grade gold, and bulk mineable mineralization within the Shumagin system. We are also encouraged to have demonstrated strong continuity of the gold system with three holes drilled on the same section all intersecting high grade gold within the vein. Of particular note, the highest grades and best width occurred in drill hole SH007, which was the deepest of the three, and demonstrates that the mineralizing system is still wide open at depth."



Highlights from Phase One Drilling
  • SH001 - 0.61 metres of 16.75 g/t gold and 20.2 g/t silver
    • Within 3.66 metres of 4.14 g/t gold and 9.4 g/t silver

  • SH006 - 0.45 metres of 9.56 g/t gold and 9.2 g/t silver
    • Within 22.1 metres of 1.42 g/t gold and 9.3 g/t silver

  • SH007 - 1.0 metres of 43.8 g/t gold and 18.5 g/t silver
    • Within 21.0 metres of 4.02 g/t gold and 5.4 g/t silver
Assay results from the initial drilling on the Shumagin vein confirm the presence of high-grade gold mineralization, and indicate the potential for much greater widths than originally recognized. Holes SH001, SH006 and SH007 were drilled on the same section, and all intersected high-grade gold within broader intervals of lower grade. This section shows very strong continuity to the vein with the best grades and widths intersected in the deepest drill hole.

Table of Results

Hole From (m) To (m) Width (m) Gold (g/t) Silver (g/t)
11SH001 21.34 25.00 3.66 4.14 9.40
Including 22.39 23.00 0.61 16.75 20.20
11SH002 Drilled 500 m east of SH-001; intersected anomalous gold/silver within 9.0 m brecciated quartz vein
11SH003 28.00 31.10 3.10 1.97 16.80
11SH004 Hole lost before target at 47 metres
11SH005 Anomalous gold / silver within 60 metres of veining
11SH006 171.50 193.60 22.10 1.42 9.30
including 173.74 175.05 1.31 5.38 9.80
       and including 179.55 180.00 0.45 9.56 9.20
      and including 189.10 193.00 3.90 2.39 19.10
11SH007 223.00 244.00 21.00 4.02 5.40
Including 223.00 228.00 5.00 10.75 7.30
      and including 223.00 224.00 1.00 43.90 18.50
   and including 231.65 232.00 0.35 6.17 5.90
     and including 239.50 240.90 1.40 10.58 11.90
     and including 239.50 239.90 0.40 15.35 20.00
    and including 240.40 240.90 0.50 16.60 13.50
* Width is calculated as core length and does not imply true width of the zone. Weighted average gold intervals apply a 0.25 g/t lower cut-off. Internal dilution within reported intervals does not exceed core lengths of two metres unless otherwise indicated.

Discussion of phase one drilling at Unga Project

During the 3rd quarter of 2011, Redstar completed 10 core holes, totaling 2,062m, on the Shumagin gold-silver vein. Assay results from 7 of these ten holes are presented in this news release; results from the final three holes are pending. Holes were completed along 770m of the northeast-striking vein, all holes intersected quartz-carbonate veins, within broad stockwork-style vein zones as wide as 70 m. Gold mineralization in the veins, locally occurs as coarse visible gold. As is typical of high-grade gold vein systems, visible gold commonly causes highly-variable drill hole assay results across small areas, and this is apparently true at Shumagin. Redstar is in the process of completing metallic screen and check assays to further quantify the results.

Drill hole SH-005 was drilled 85 metres southwest of holes SH001, SH006 and SH007, and intersected anomalous gold and silver values within a 60 metre interval of quartz and carbonate veining and breccia.

Drill hole SH-003 was drilled 160m southwest of hole SH-005, and intersected only low-grade gold; however, the hole passed below an area of the outcropping vein, that contains multiple high-grade surface samples across the vein, including 2.4m grading 51.4 g/t Au. As noted above, such results may be due to coarse gold.

Drill hole SH002 was drilled approximately 500 metres to the northeast of holes SH001, SH006 and SH007, and intersected anomalous gold and silver values, within a nine metre zone of quartz-carbonate breccia.

These holes demonstrate the vein system is still very robust along strike from the "Main Zone", and indicate a very high exploration potential, along strike and at depth.

Shumagin Vein

Previous drilling at the Shumagin vein, led to a non 43-101 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. Examples from this previous drilling include 8.2m grading 15 g/t Au (0.46 opt) in hole 42, 3.2m of 33.26 g/t Au (0.97 opt) in hole 57 and 1.2m of 367 g/t Au (10.7 opt) in hole 46. The vein is at least 1.3km long but remains open for exploration along strike and at depth. Limited drilling along strike from the resource block intersected locally high grades, including 37.7 g/t (1.1 opt) gold over 0.76m (2.5 feet).

Mineralization occurs as a network of multiple, closely-spaced, steeply-dipping veins, within a northeast-trending fault zone in strongly-altered volcanic rocks. The Shumagin vein is within a larger gold mineralized trend, which is about 9km long and 1.5km wide. Other mineralized vein zones, occur along the Shumagin trend, but have only seen limited exploration work. One of these, the Aquila zone, about 6km southwest of the Shumagin vein, consists of a 2km-long vein system that includes a drill hole intersection of 113 g/t over 0.4m. There has been no work at Aquila since 1981.

Unga Project

The phase-one drill program on the Shumagin vein represents the initial work by Redstar, on a large land package within an under explored epithermal district. The Unga Project covers approximately 240 square kilometres, and includes the high-grade Shumagin and Aquila gold vein systems, the past producing Apollo-Sitka gold-silver vein system, bulk tonnage gold mineralization (the Centennial deposit has a non 43-101 compliant shallow resource of 4.9 million tonnes grading 1.4 g/t gold), porphyry Cu-Au mineralization (Zachary Bay) and numerous other gold/silver showings.

The Unga Project consists of two properties acquired by Redstar in 2011: the Shumagin Property and the Unga-Popof Property. Redstar is purchasing a 100% interest in the Shumagin Property from Magnum Hunter Resources. The mineral rights to the Unga-Popov property are held by Full Metal Minerals Inc., under a lease agreement with The Aleut Corporation, an Alaska Native Regional Corporation headquartered in Anchorage, Alaska. Redstar has signed an agreement with Full Metal, giving Redstar the right to earn a 60% 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 15% 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 in the event of commencement of commercial production.

Quality Assurance / Quality Control

Core samples were cut in half using a Diamond saw, with one half placed in sealed bags, and delivered to ALS-Chemex, an accredited mineral analysis laboratory, in Fairbanks, Alaska. All samples were analysed for gold utilizing standard fire assay methods. A sample quality control/quality assurance program utilizing standards and blanks, has been implemented and reviewed by qualified persons prior to release of analytical data.

Dr. Jake Margolis and Bob Singh P.Geo are the qualified persons as defined by National Instrument 43-101and have reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp. Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp.

About Redstar Gold Corp.

Redstar has two key gold projects, including a high-grade epithermal gold district in Alaska that is a good complement to the high-grade gold discovery in Red Lake, Ontario. The Shumagin project in Alaska includes a high-grade gold deposit with a non 43-101 compliant resource, a bulk tonnage non 43-101 compliant resource, a historic high-grade gold mine, and numerous high priority exploration targets. At the Shumagin project, results from a recently completed drilling returned outstanding results, and an aggressive drill program is ongoing at Redstar's high-grade gold discovery at the Newman Todd project in Red Lake, Ontario. Along with the high-grade gold projects in Alaska and Red Lake, the company also has a total of 14 gold focused projects in Nevada.

On Behalf of the Board,
Redstar Gold Corp

"Scott Weekes"

Scott Weekes
President

TSX.V:RGC
WWW.REDSTARGOLD.COM
SUITE 615
800 WEST PENDER STREET
VANCOUVER, BC
TEL: 604.488.0051

CORPORATE INQUIRIES
Redstar Gold Corp.
Tim Mikula, Business Development
Tel: 604.488.0051
tmikula@redstargold.com

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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Redstar Gold Corp

EXPLORATION STAGE
CODE : RGC.V
ISIN : CA75773Q2080
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Redstar Gold is a gold exploration company based in Canada.

Redstar Gold holds various exploration projects in Canada and in USA.

Its main exploration properties are PAINTED HILLS, DRY GULCH (NEVADA), EAGLE BASIN and RICHMOND SUMMIT in USA and NEWMAN TODD in Canada.

Redstar Gold is listed in Canada and in United States of America. Its market capitalisation is CA$ 31.2 millions as of today (US$ 23.5 millions, € 19.8 millions).

Its stock quote reached its lowest recent point on December 14, 2001 at CA$ 0.01, and its highest recent level on September 23, 2011 at CA$ 0.68.

Redstar Gold has 296 950 016 shares outstanding.

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