Vancouver, Canada, September 3, 2020 - Redstar Gold Corp. (TSX.V: RGC, US: RGCTF, FRA: RGG) ("Redstar" or the "Company") is pleased to announce that its Cumaro project forms a key part of the El Picacho epithermal district in Sonora, where SilverCrest Metals has just announced the purchase of 7,060 hectares for US$1.6 million plus unpaid taxes1. The Cumaro project is one of a set of high-quality exploration projects added to Redstar's portfolio in August 2020 through the acquisition of Heliodor Metals Limited.
Redstar CEO, Charles Funk, commented "Having SilverCrest as our neighbour on three sides in the El Picacho district indicates the potential of Redstar's 100% owned Cumaro project. Cumaro has the south-eastern extensions of the veins from the El Picacho property with drilling right up to the Cumaro boundary. Redstar will be actively exploring Cumaro later in 2020, once the Company has completed the three-drill rig exploration program we recently initiated at Unga in Alaska."
Cumaro Project
The Cumaro property was purchased outright in mid-2020 by Heliodor Metals, now a subsidiary of Redstar Gold, in return for a 1% NSR payable to Orogen Royalties, of which half can be repurchased for US$1 million. The El Picacho district was recognised by the company for its many outcropping veins over a large area and locally - outcropping veins have significant widths and excellent gold grades. Previous drilling on SilverCrest Metals' Picacho vein, two kilometres north of the Cumaro property, returned intersections including 13.9 metres at 16.22 grams per tonne (g/t) gold and 33.9 g/t silver in hole PDD07-013, and 4.1 metres at 3.86 g/t gold and 35.0 g/t silver in hole DA12-001R1 on the Dos Amigos vein. Readers are cautioned that mineralization on adjacent properties is not necessarily indicative of mineralization that could be hosted on the Cumaro property.
Field mapping and remote sensing work indicates the district is divided into two blocks. In the western block multiple outcropping veins have limited associated clay alteration and are therefore interpreted to represent a deeper level epithermal environment with mineralization exposed at surface. The eastern block however, a large part of which underlies the Cumaro property, has strongly defined corridors of clay, silica and hematite alteration with calcite veining, an alteration assemblage that indicates a shallow level, less eroded, part of the epithermal environment relative to the western block.
In the west of the Cumaro claim block, the outcropping Basaitegui Vein extends for approximately one kilometre on the Cumaro claims, with historic Yamana drilling immediately adjacent to the western property boundary.
In the centre and east of the claim block, the interpreted downthrown extensions of the Dos Amigos and Picacho veins are defined by corridors of strongly clay-altered and variably silicified host rocks. Redstar interprets the prospective level for gold mineralisation in the eastern part of the claim to be from approximately 50-300m below surface.
The Basaitegui vein and down-thrown block areas will be the focus of Redstar's exploration later in 2020.
1 - Information announced by SilverCrest Metals Inc. on August 27, 2020. (https://www.silvercrestmetals.com/news/index.php?content_id=443)
Figure 1: Property map showing Redstar's Cumaro project, with veins in red, clay alteration from remote sensing as coloured pixels, structural interpretation in blue and historic drill collars plotted as black circles. Silvercrest's claim boundary is shown with in red with a black halo and Redstar's in yellow with a black halo.
Qualified Person
The Company's disclosure of technical or scientific information in this press release has been reviewed and approved by Stewart Harris, P.Geo., a consultant to the Company. Mr. Harris is a Qualified Person as defined under the terms of National Instrument 43-101.
About Redstar Gold Corp.
Redstar is a well-financed junior exploration and development company with a portfolio of high-grade projects in Alaska and Mexico. The company's flagship asset is the 100% controlled Unga Gold Project on Unga and Popof Islands in Alaska. The project hosts an intermediate sulfidation epithermal gold deposit, located within the district-scale property that encompasses 240km2 across the two islands. Additional targets on the property include porphyry, high sulphidation and intermediate sulphidation epithermal veins. On Unga Island, priority targets include: the SH-1 and Aquila high-grade gold zones, both on the Shumagin Trend; the former Apollo-Sitka mine which was Alaska's first underground gold mine; and the Zachary Bay porphyry gold-copper district. The supergene-enriched, disseminated gold mineralization at the Centennial Zone is located on neighbouring Popof Island, within four kilometres of infrastructure and services available at Sand Point.
In Mexico, the company owns 100% of three early stage epithermal projects in Sonora that are highly prospective for gold and silver. Cumaro forms a key piece of the El Picacho district, while the Oso Negro and La Lola projects are also prospective for epithermal gold-silver mineralization.
Redstar is asking shareholders at the company's AGM on September 29th, 2020 to approve a 15:1 consolidation of the outstanding Redstar shares and approve a name change to Heliostar Metals Ltd.
For additional information please contact:
Charles Funk
Chief Executive Officer
Redstar Gold Corp.
Email: charles.funk@redstargold.com
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.
Forward-Looking Information. This release includes certain statements that may be deemed "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 "would", "may", "could" or "should" occur. Forward-looking statements in this press release include Redstar's expectations that the transactions contemplated in the Agreement will be approved by the TSX Venture Exchange and completed and that it can obtain shareholder approval for its proposed post-closing share consolidation, name change and the election of both the Redstar nominees and the Heliodor nominees at its next general meeting of shareholders, that it can successfully raise at least C$6 million and, if so, the number of Redstar shares that would be issued in the offering, and, finally, that it can commence exploration at its Unga project in late August and that it can achieve its 2020 exploration plans. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing 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.
