VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2007) - Redstar Gold Corp. (TSX VENTURE:RGC) today announced that Strategic Nevada Resources (TSX VENTURE:SNS) has notified Redstar that Strategic will withdraw from the option agreement on Redstar's Pine Nut, Dry Gulch and North Bullfrog projects in Nevada. Redstar now has 100% ownership and control over a total of five projects in Nevada: in addition to the three projects optioned to Strategic, Redstar acquired the Painted Hills and Eagle Basin projects in September, 2006.
During the term of the option agreement, Strategic completed a first phase drill program on the Pine Nut program and advanced the Dry Gulch and North Bullfrog projects to the drill ready stage. With drill targets now defined and permitting in place, the two projects were significantly advanced in 2006. In addition to the three projects formerly optioned to Strategic, drill targets are now defined for the Painted Hills project and only minor work is needed to define targets at Eagle Basin.
Scott Weekes, President of Redstar Gold said, "With Strategic deciding to redirect its efforts toward a newly acquired, advanced silver project in Idaho, Redstar has been given a unique opportunity and we are evaluating a number of options to further advance our portfolio of very attractive projects. The AngloGold Ashanti geologic database, acquired by Redstar in 2005, has been vital to our success acquiring and developing drill targets on four of the five projects, further demonstrating its effectiveness and value to us."
The Pine Nut project is a large epithermal system located within the Walker Lane belt approximately 50 miles south east of Reno. A drill program was completed in 2006. The program consisted of eight diamond drill holes totaling 7,145 feet. Highlights include the highest-grade intersection yet reported for the property, with hole PNR-4 returning 0.799 ounces per ton (opt) gold (Au) over an approximate true width of 2.1 feet, within a massive vein yielding a composite of 0.373 opt gold over 5.3 feet.
The Dry Gulch project is a large land package strategically located within the Carlin trend in central Nevada. The project is located within six miles of over 24 million ounces of gold production and reserves. Geophysics completed in 2006 helped define structures that can be traced from the known deposits to the project area. Permitting for a drill program designed to test intersecting north west and north east structures was also completed in 2006.
The North Bullfrog project is a large land package with widespread disseminated gold mineralization and high grade vein mineralization located approximately 9 kilometres north of the historic Bullfrog mine (2.5 million ounces gold). Work in 2006 included a significant consolidation of private land including the historic Pioneer mine where, in June, 1909, production averaged 75 tons per day (tpd) grading 2.17 opt (ounce per ton) Au, based on the value of gold at the time. In 1915, 2,000 tons was produced over four months averaging 0.29 opt; and in 1916, ten months of production at 30 tpd averaged 0.24 opt. These grades are supported by the fact that tailings from the mine assay 0.089 opt Au (Redstar sample). The mine contains an estimated 15,000 feet of underground workings, with mining limited to within about 300 feet of surface. Permitting for a drill program designed to test wide spread disseminated gold mineralization, major structural trends and known high grade veins was also completed in 2006.
Redstar Gold Corp. is a Vancouver-based company focused on gold exploration in Nevada and Red Lake, Ontario. Redstar has partnered with AngloGold Ashanti to explore in Nevada and with Rubicon Minerals and AngloGold Ashanti to explore in the West Red Lake area of northern Ontario.
For more detailed information on Redstar's Nevada projects, as well as its gold projects in the Red Lake area, please visit the company's web site at www.redstargold.com.
About this company Redstar Gold Corp.