North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Redstar Gold Corp. Sept. 8 reported the closing of a C$750,000 non-brokered private placement consisting of 18.75 million common shares at a price of C4 cents per share.

No finder's fees were paid in conjunction with the financing.

Proceeds of the placement will be used to advance the company's Unga Gold project in Alaska and for general working capital purposes.

Located on an island just off the Alaska Peninsula, Redstar's Unga property blankets two parallel trends of high-grade epithermal gold veins that each extend for more than 4.5 miles across the southeast corner of Unga Island.

An initial phase of exploration that began in April included an eight-hole drill program that targeted the Shumagin gold zone, part of the larger Shumagin trend.

The first four holes of Redstar's 2015 phase-1 program this year targeted various structural elevations of the Shumagin vein system within the resource area.

Highlights from this drilling include: 1.03 ounces-per-ton gold and 6.1 oz/t silver over 2.0 meters, 0.49 oz/t gold and 5.3 oz/t silver over 3.0 meters, and 3.88 oz/t gold and 12.3 oz/t silver over 0.7 meters in hole 15SH012; 4.0 meters of 11.62 g/t gold and 95.6 g/t silver in hole 15SH013; and 3.0 meters with 9.86 g/t gold and 8.0 g/t silver in hole 15SH014.

The remaining four holes tested for the continuation of the vein structure and high-grade gold for about 100 meters along strike to the northeast.

Highlights from the step-out drilling included 5.0 meters grading 9.35 g/t gold and 27.6 g/t silver, including 1.0 meters of 41.2 g/t gold and 130.0 g/t silver in hole 15SH018.

This high-grade intercept was encountered about 100 meters northeast of 11SH010, a 2011 hole that cut 0.55 meters of 738 g/t gold and 408 g/t silver, and 100 meters above BMS-01, a historical hold that cut 5.49 meters of 24.02 g/t gold and 19.4 g/t silver.

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Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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