|March 21, 2012|
Redstar Gold and Brocade Metals Sample High Grade Silver and Gold at Root Spring Property, Nevada
|Vancouver, B.C. Redstar Gold Corp. (TSX.V: RGC): ("Redstar" or the "Company") is pleased to announce results from rock sampling and geophysical surveying completed on its Root Spring property, located in Pershing County, Nevada. The property covers a silver and gold-bearing quartz vein system that is located along the west side of the East Range, 25 km east of Coeur d'Alene Mines' operating Rochester open pit silver-gold mine with recorded production of more than 125 million ounces of silver and more than 1.2 million ounces of gold since production began in 1986 (source: www.coeur.com/operations-rochester-nevada.html). The work has been carried out by Brocade and they have an option to earn a 70% interest in the Root Spring property under the terms of its agreement with Redstar Gold Corp.|
Results from mapping and sampling of the veins and related silicified zones that outcrop on the Root Spring property have confirmed a strongly mineralized precious-metal system. Two principal veins are exposed over 1,200 m along their northwesterly strike and are up to 4.5 metres thick. The vein system is open along strike in both directions and is open down dip. In addition to the natural exposures, numerous historic prospect pits, dozer trenches, shafts and a small open cut provide areas for examining and sampling of the veins and enclosing country rock. Samples from the northern 650 m of the West Vein returned consistently modest to high-grade silver and associated gold values. Channel samples have returned values as high as 1,420 g/t Ag and 7.91 g/t Au over 1.15 metres. Locally, well-developed quartz stockwork zones occur in the immediate hangingwall of the West Vein and carry bulk tonnage gold-silver grades (0.744 g/t Au and 73.7 g/t Ag). Table 1 provides highlights from the sampling program and Figure 1 shows locations for rock samples collected.
Table 1 - 2011 Rock Sampling Assay Results
<< Drag to view the table >>
Figure 1 - 2011 Rock Sample Location Map
The recently completed 19 line-km Controlled Source Audio-Frequency Magnetotelluric (CSAMT) survey provided a fingerprint of the exposed vein system and identified linear, resistivity high anomalies that are thought to represent extensions of the veins beneath a thin cover of alluvium. These features occur up to 600 m northwest of the exposed veins and up to 800 m southeast of the exposed veins, and suggest that the strike length of the system may be much greater than presently recognized. Additional resistivity high anomalies occur to the southwest of the trend of the exposed veins and suggest that additional veins or stockwork zones may exist beneath a veneer of alluvium and/or Tertiary volcanic rock.
Brocade plans to follow-up the 2011 exploration program with a diamond drill program that will test: 1) the down dip potential of the exposed parts of the vein system, 2) several of the prominent resistivity high anomalies that underlie a cover of alluvium along strike and to the southwest of the exposed veins, and 3) the bulk tonnage potential of the hangingwall and footwall rocks that host the discrete, well mineralized veins. A total of 16-18 holes are required to test the recommended targets and will cost an estimated $450,000.
Scott Weekes, President & CEO of Redstar, stated "Redstar is extremely encouraged by the high quality of work completed by Brocade in the first phase of exploration at Root Spring. Brocade has confirmed the presence of high-grade gold and silver mineralization at surface and significantly expanded the potential target area with geophysics."
Robert (Bob) Biagioni, President & CEO of Brocade, stated "Brocade is excited by the results from the 2011 exploration program and is looking forward to conducting the first core drilling on the property. The high grade silver and gold values that occur in discrete veins, the locally identified potential bulk tonnage gold-silver mineralization in stockwork zones and the multiple resistivity anomalies that lie beneath a thin cover are all high priority drill targets for 2012."
All samples were delivered to ALS Minerals facility in Reno, Nevada where samples were weighed, crushed, split and pulverized prior to analysis. Each rock sample was jaw crushed until 70% passed through a -10 mesh (2 mm) screen. The sample was split and a 250 g riffle split sample was then pulverized in a mild-steel ring-and-puck mill until 85% passed through a 200 mesh (75 µm) screen. All samples were analyzed using method ME-ICP61 in which the sample digest is analyzed by ICP-AES for 33 elements and by method Au-ICP21 for gold. Samples grading more than 100 ppm silver were re-analyzed by method Ag-OG62. Samples grading more than 10,000 ppm copper, lead and/or zinc were re-analyzed by method ME-OG62.
The technical content of this news release has been reviewed and accepted by Bob Lane (PGeo), VP Exploration and a Director of Brocade Metals Corp. Mr. Lane is a Qualified Person as defined by NI 43-101.
Brocade and Redstar recently completed a staking program to add an additional 64 claims to the Root Spring property. As of March 2012, the property now consists of 134 unpatented claims that cover 1,120 hectares.
Redstar Root Spring Property Option
Under terms of the option agreement between Brocade and Redstar, Brocade can earn a 70% interest in the Root Spring property by spending $3.5 million on exploration, issuing 500,000 shares and paying $200,000 to Redstar by Dec. 31, 2014. The property is subject to an underlying NSR agreement between Redstar and AngloGold Ashanti North America Inc.
About Redstar Gold
Redstar has fourteen gold projects in Nevada, the Unga project in Alaska and the Newman Todd project in the Red Lake district, Ontario. In Nevada, several projects are undergoing active exploration by partners including Newmont Mining and others. The Unga Project in Alaska includes the high-grade Shumagin gold deposit, the Centennial disseminated bulk-tonnage gold deposit and the Apollo-Sitka high-grade gold vein system, which produced approximately 150,000 oz of gold in the early 20th century. The Newman Todd project contains a 2 km-long corridor of high-grade gold mineralization that is similar to that at the nearby world-class Red Lake Mine and has been the focus of an aggressive drilling campaign in 2011.
About Brocade Metals
Brocade Metals Corp. is a private junior mining exploration company based in Vancouver, British Columbia. Brocade is focused on identifying and developing select high-value silver and gold prospects in North America. Brocade's Ruby property, located 320 km north of Prince George, was the first high grade silver property optioned by Brocade in 2010. Both Ruby and Root Spring properties have recent NI 43-101 technical reports which will soon be available on its website www.brocademetals.com following the dissemination of this news release.
Dr. Jake Margolis and Bob Singh P.Geo are the qualified persons as defined by National Instrument 43-101 and have reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp. and Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp.
On Behalf of the Board,
Redstar Gold Corp
800 WEST PENDER STREET
Redstar Gold Corp.
Tim Mikula, Business Development
Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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