Redstar Gold (RGC.V) is still working on interpreting the data it gathered from its summer exploration program at the 100% owned Unga gold project in Alaska, and the company released another positive update on its efforts.
Redstar now confirmed its exploration program has identified a continuous mineralized structure connecting the Aquila, Shumagin and Orange Mountain zones. According to CEO Peter Ball this ‘provides the structural framework for targeting high-grade breccia systems along the entire 9 kilometer long Shumagin trend’. Ball also sounds increasingly positive about the Orange Mountain target as the recent exploration work could indicate this zone may host buried intermediate epithermal vein systems, rooted at depth, after discovering several pathfinder elements during the sampling program. This sampling program was pretty extensive as it consisted of 200 soil samples over a 1.25 kilometer strike length, indicating some zones have elevated levels of mineralization compared to soil samples taken from another part of the project.
After having raised C$4M with Eric Sprott as the main financier, and taking the warrants that are in the money but will soon expire into consideration, Redstar’s war chest will contain C$XM and this will allow the company to design an extensive drill program to follow up on this summer’s exploration program.
Meanwhile, the company has now completed the sale of its Nevada properties to NV Gold Corp (NVX), and received 6.172M shares of NV Gold as consideration. Based on yesterday’s closing price of C$0.35, this position now has a value of C$2.16M and allows Redstar to participate in the upside potential of the projects.
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
