Redstar Gold Corp

Published : May 16th, 2012

Provides Update on 2012 Exploration Programs

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    Wednesday, May 16, 2012

Redstar Provides Update on 2012 Exploration Programs

Redstar Gold Corp. (TSX.V: RGC) is pleased to provide an update on exploration plans for 2012. Activities will include additional drilling along the high-grade mineralized trend at the Newman Todd project at Red Lake, Ontario. Multiple targets are planned for drill testing at the Unga project in Alaska, including the high-grade Shumagin vein system and the Zachary Bay porphyry Cu-Au system. In Nevada, drilling is expected at the Baker project, with exploration carried out by Newmont Mining, as well as at the Root Spring and Cooks Creek projects.

High-Grade Gold Conference

Redstar was invited to present at a recent conference (May 2, 2012) in Toronto, Canada, entitled "Making the Grade", convened by Macquarie Capital Markets and focused on high-grade gold-silver deposits. The conference included a select group of junior exploration and mining companies that have been recognized for having notable high-grade gold mineralization. Redstar's U.S. Exploration Manager, Jake Margolis, discussed Redstar's Unga and Newman Todd projects. The conference highlighted the attractive characteristics of high-grade gold deposits, including lower operating costs, shorter permitting timelines, and opportunities for superior returns on investment.

Unga, Alaska

Redstar is planning an aggressive exploration program at its Unga project in Alaska. Work is expected to include additional drilling along the Shumagin high-grade vein, where drilling in 2011 intersected high-grade gold mineralization within a wide quartz-vein stockwork. Results included 43.1 g/t gold over 0.9m within 4.52 g/t over 12m in hole 11SH009 and local visible gold with bonanza grades, as in hole 11SH010, with 738 g/t over 0.55m. The 2012 program will focus on expanding the known mineralization at depth and along strike. Gold mineralization with grades exceeding 1 ounce per ton (34.3 g/t) is known from historic drilling in the 1980's to cover a vertical range of at least 350m and a strike length of at least 800m.

First-phase drilling is also planned at the Zachary Bay porphyry Cu-Au target 7 kilometres northwest of the Shumagin vein. Surface rock-chip sampling in 1974 returned 46 metres of 0.36% copper and 0.550 g/t gold. A 117-m drillhole completed in 1975 intersected disseminated Cu-Au mineralization in intrusive rocks over its entire length below overburden, with 107 metres grading 0.11% copper and 0.280 g/t gold. There has been no drilling conducted since 1975, and Redstar believes that Zachary Bay could yield an additional important mineralized system at Unga in addition to the multiple high-grade targets already defined.

Drilling is also planned along the Apollo-Sitka Au-Ag vein system, where sampling by Redstar in 2011 returned high-grade mineralization, including a vein separate of 94.7 g/t (2.76 opt) Au and 1840 g/t Ag within a 2m channel sample of 13.2 g/t (0.38 opt). Other targets scheduled for drilling include the Aquila high-grade vein field, where drilling in 1980 intersected 113 g/t over 0.45m at the bottom of a 49m-long drillhole. There has been exploration at Aquila since. The Centennial gold deposit on Popof Island is also scheduled for drill testing, with the focus on potential high-grade vein feeder structures underlying the shallowly-drilled disseminated gold mineralization defined in the late 1980's. Results of that work included 1.07 g/t (0.031 opt) over 62m (202 ft) and 18.14 g/t (0.53 opt) over 3.0m (10 ft).

Newman Todd, Red Lake

A minimum 5,000 meter Diamond drill program is planned for the Newman Todd property, located in the Red Lake Gold District, Ontario. Mobilization and the initiation of drilling is anticipated in mid-May. The majority of the 2012 program will target the Hinge Zone with hole locations designed to both fill in gaps within the existing 3D model and to optimize the geological information.

A total of 56 holes, totaling 24,707 metres, were drilled in 2011 at Newman Todd, intersecting numerous zones of high-grade gold mineralization over a strike length of 1.8 kilometres within the overall 2.2km-long mineralized structure. Highlights of the 2011 program include:

  • NT-103: 60.60 g/t Gold over 1.0 metres,
  • NT-104: 21.60 g/t Gold over 1.5 metres, NT-105: 1.34 g/t Gold over 46.0 metres,
  • NT-105W1: 1.56 g/t gold over 38.0 metres including 3.83 g/t gold over 11.0 metres,
  • NT-108: 3.41 g/t gold over 27.50 metres including 145.0 g/t gold over 0.50 metres,
  • NT-109: 7.11 g/t gold over 13.0 metres including 114.0 g/t gold over 0.50 metres.
Exploration work on the Newman Todd property is fully funded by the operator, Confederation Minerals Ltd. (TSX VENTURE:CFM), who is in the process of earning a 60% interest in the project.

Baker, Nevada

Newmont Mining Corp. has informed Redstar that it is planning a first-phase drilling program for 2012 at the Baker project, six miles north of Newmont's Long Canyon gold deposit in northeastern Nevada. Newmont has completed surface sampling, geophysics and geologic mapping to define drill targets. Baker contains extensive sediment-hosted silicification along a range-front fault and has never been drill tested.

Root Spring, Nevada

Approval was received recently from the Bureau of Land Management (BLM) for a drilling program at the Root Spring Au-Ag vein system near Coeur d'Alene Mine Corp's Rochester silver mine in west-central Nevada. Mineralization at Root Spring has geologic similarities to Rochester. Recent sampling along the +1.2km-long vein system returned values reaching 1,420 g/t Ag and 7.91 g/t Au over 1.15 metres and grab samples of 635 g/t Ag and 8.8 g/t Au. The work is being carried out by Brocade Metals Corp., a private company which has an option to earn a 70% interest in Root Spring. Additional claims were staked in 2012 to cover potential extensions to the mineralized system under alluvial cover that were identified by a recent geophysical survey. Thirty drill sites were approved by the BLM, and Brocade is in the process of logistical planning for a first-phase drilling program.

Cooks Creek, Nevada

Drilling is also planned in 2012 to test outcropping gold mineralization at the Cooks Creek project, which consists of approximately 4 square miles of unpatented mining claims 100%-owned by Redstar 13km west of the world-class Pipeline mine operated by Barrick Gold Corp. Work at Cooks Creek is being conducted by Catalina Metals Corp. (TSX.V:CTX.H), who is earning an interest in the project (see March 2, 2011 news release). In 2011, Catalina and Redstar discovered a significant new area of gold mineralization with rock-chip samples of up to 2.45 g/t (0.071 ounces per ton) gold along a district-scale fault. The zone is about 750m south of previously-defined gold mineralization at the Main zone and has not been drill tested. Historic drilling at the Main zone intersected 21.3m (70 feet) grading 2.317 g/t gold (0.068 opt) from 18.3 to 39.6m. Gold mineralization contains strongly anomalous arsenic, mercury, and antimony (which locally occurs as stibnite), elements characteristic of Carlin-type gold deposits such as nearby Pipeline-Cortez. Induced-polarization (IP) geophysics completed in 2011 has also assisted in defining drilling targets.

Oasis Project, Nevada

Results of an 11-hole drilling program completed in late 2011 continued to identify significant thicknesses of low-grade gold mineralization within the Oasis porphyry gold system near Goldfield, Nevada. The 2011 program was carried out by Centerra (U.S.) Inc., a subsidiary of Centerra Gold Inc. (TSX: CG). On February 21, 2012, Centerra informed Redstar that it will be terminating its agreement with Redstar, and the property has been returned to Redstar. Centerra did not meet its expenditure requirement to earn a 75% interest in the project, and Redstar remains 100% owner of Oasis.

Centerra completed eleven reverse-circulation drill holes (holes OA11-17 through OA11-27) for 2,447.5m (8,030 feet) between September 25th and November 12th, bringing the total number of holes for 2010 and 2011 to 27. Five of the 11 holes (OA11-17, 18, 22, 23 and 25) were terminated well short of target depth due to drilling problems. Drilling focused around the eastern and western edges of the known gold system, where the 2010 drilling intersected stronger disseminated mineralization. For example, from the 2010 drilling program, drill hole 16 (T.D. 1,200 ft, 365.8 m) contains a combined 153.9m (505 feet) grading 0.181 g/t (0.1 g/t cutoff) that includes higher-grade intervals, e.g., 0.322 g/t over 15.2m (50 feet). Additional results included drill hole 14 (96.1 metres of 0.26 g/t including 12.2m of 0.40 g/t), hole 15 (7.6m of 0.80 g/t and 10.7m of 0.63 g/t) and hole 10 (13.7m of 0.49 g/t including 3.0m of 1.06 g/t). Highlights include 169.2m (555 feet) grading 0.223 g/t in hole 24 and 0.405 g/t over 30.5m (100 feet) in hole 26 that contains 0.907 g/t over 10.7m (35 feet). Complete results for Oasis are available on Redstar's website.

The 2011 results show copper increasing with depth within the gold mineralization and a strong correlation between gold and copper. However, the deepest drilling has tested to only 365m (1,200 feet) below surface, and as noted above, many of the 2011 holes failed to reach targeted depths. The system remains open at depth and to the south and west, and Redstar believes that deeper testing has the potential to intersect an economic porphyry Au-Cu deposit. Redstar will be seeking a partner to continue advancing the project.

Dr. Jake Margolis is the qualified person as defined by National Instrument 43-101 and has reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp.

About Redstar Gold Corp.

Redstar has fourteen gold projects in Nevada, the Unga project in Alaska and the Newman Todd project in the Red Lake district, Ontario. The Unga Project in Alaska 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. The Newman Todd project contains a 2 km-long corridor of high-grade gold vein mineralization that is similar to that at the nearby world-class Red Lake Mine and has been the focus of an aggressive drilling campaign in 2011. In Nevada, several projects are undergoing active exploration by partners including Newmont Mining Corp.


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.

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.

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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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