Redstar Gold (RGC.V) isn’t waiting for next year to conduct a drill program at the high grade Shumagin zone on Unga island and will drill seven high-priority holes later this quarter, for a total of approximately 1,500 meters. Four of the holes will be drilled below Bunker Hill (of which one hole will be a deep hole), whilst two holes will be drilled deep below the main zone (where the mineralization remained open after a previous drill program) and a final hole will be a deep hole to the east of Bunker Hill.
This small drill program will allow the company to analyze the data during the winter season and be fully prepared for a larger follow-up drill program next spring, when it will be cheaper to drill. Even though Redstar plans to drill just seven holes, the impact could be enormous. Three of the holes will target deeper mineralization at a depth of 200-300 meters which is the depth where a previous drill program discovered 5.5 meters of 25 g/t gold elsewhere on the property. Should all seven holes confirm the existence of mineralization, Redstar thinks the total size of the potentially mineralized area could quadruple to 350,000 square meters (35 hectare).
After adding Eric Sprott to its list of shareholders, Redstar Gold is now cashed up with C$5M in the treasury, whilst warrant exercises will very likely bring in an additional few million dollar within the next few weeks and months.
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The author has a long position in Redstar Gold. Redstar is a sponsor of the website. Please read the disclaimer
