Redstar Gold (RGC.V) has announced it has started an exploration program at the high-grade Unga project in Alaska. This year’s field program will try to delineate new drill targets at the Shumagin zone where earlier drill programs have discovered high grade zones of gold and silver. The intervals aren’t always long, but with the grades encountered at Unga, that’s definitely not necessary either, as 0.76 meters of 1.2 ounces of gold per tonne and 1.52 meters of almost 2 ounces of gold per tonne of rock are definitely high enough to be viable.
The Shumagin trend is approximately 1,200 meters long, and the high grade mineralization is still open at depth, whilst several other zones along the trend have never been drill-tested. This year’s summer season will be interesting for Redstar Gold, as it will be important for the company to define new drill targets that could be drilled in the future. The high-grade nature of the Unga project is very remarkable, and there’s no doubt that this project could work at $1250 gold. But of course, as it’s a narrow vein deposit, Redstar Gold will have to do its homework very thoroughly to avoid any negative surprises.
We are very impressed with the Unga project and are convinced it has a lot of merit. We will follow Redstar Gold very closely and will release an in-depth report in the near future.
Go to Redstar’s website
The author has a long position in Redstar Gold. Redstar is a sponsor of the website. Please read the disclaimer
