Redstar Gold (RGC.V) has slipped from our radar in the past few years and after a few disappointing drill campaigns, the company has now published a resource estimate on the SH-1 Zone (which was previously called the Shumagin zone).
Using a cutoff grade of 3.5 g/t (based on a gold price of $1450/oz), the inferred resource contains almost 900,000 tonnes at an average grade of 13.8 g/t gold and 1.1 ounces of silver per tonne of rock. This results in a gold resource of 384,000 ounces and just below 1 million ounces of silver.
Redstar Gold’s president says the document ‘summarizes the achievements of both Redstar and earlier exploration work’ and fortunately doesn’t use too many superlatives. In fact, this resource is disappointing. Redstar acquired the project in 2013 with a historical resource with 254,000 tonnes at 27.4 g/t gold and 127 g/t silver for a total of roughly 250,000 gold-equivalent ounces. So more than 6 years later, all Redstar has to show for is just over 130,000 additional gold-equivalent ounces. Granted, it is good to see a historical resource being converted to a NI43 compliant resource, but we can’t imagine the company is very happy with the result after 6 years of work.
Disclosure: The author has no position in Redstar Gold.
