Redstar Gold (RGC.V) had some good news for its shareholders this week as its 2017 spring exploration – which still is in full swing – has now extended the strike length of the Shumagin zone. Drill holes have now traced Shumagin for roughly 1,350 meters, or 400 meters further than last year.
That’s great news for Redstar Gold and the Shumagin structure remains open along strike and at depth, confirming the company was absolutely right to focus on these zones. As you might remember from the previous exploration program, Redstar Gold also discovered a parallel structure a few hundred meters to the north of the ‘main’ Shumagin zone.
Redstar has now completed a geochemical soil sampling survey over that specific footwall structure as well, and we’re looking forward to see additional exploration results from that zone as well. Needless to say a second, parallel zone could add a considerable amount of tonnes to a future resource estimate. RGC will obviously have to complete more drilling at Shumagin as this year’s initial 12 hole program was performed at 100 meter drill intervals. That was expected as Redstar wanted to figure out how long the Shumagin zone is, and an infill drill program will allow the company to reduce the drill spacings allowing the company to include the tonnes in a resource estimate.
What’s also really interesting is Redstar confirming its exploration ‘template’ is yielding the desired results as the company’s methodical step-out drill program was predominantly based on IP and Mag ground surveys. This template will now obviously be re-used along the Shumagin trend, and on other parts of the Unga island.
The past ten days were great for Redstar Gold, as the company’s trading volumes and share price were above-average. Well-respected mining veteran Byron King sung Redstar’s praises and thinks this company could be a real winner. No need to convince us, as we published our initial report when Redstar’s share price was a mere 5.5 cents. Now, just one year later, the share price is 155% higher (the closing price on Friday was C$0.14), and the company still has in excess of C$5M in cash in its treasury, which will allow it to continue its Unga exploration program.
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The author has a long position in Redstar Gold. Redstar is a sponsor of the website. Please read the disclaimer
