Mining News: News Nuggets: Redstar completes Unga drilling; readies for bigger 2017 program
Redstar Gold Corp. Nov. 7 reported the completion of a 1,505-meter drill program at its Unga gold project in Southwest Alaska. Spaced over a roughly 750-meter stretch of the 2,000-meter-long Shumagin gold zone, the seven holes drilled during this program targeted the lateral and vertical expansion potential of high-grade gold mineralization at various structural elevations. The first two holes, 16SH019 and 16SH020, tested the expansion potential of high-grade vein-breccia mineralization below and to the southwest of the main are of the Shumagin zone. Both holes tapped the targeted structure, indicating the expansion potential of the high-grade gold mineralization there. The balance of the holes were drilled along two vertical fans that targeted the down-dip extension of exposed breccia bodies along the Bunker Hill gold zone, where historical drilling has encountered high-grade gold intercepts. Redstar reports that all five holes cut these two breccia veins, indicating the depth expansion potential along Bunker Hill. Assay results from this drilling are expected by December. In the meantime, Redstar is planning for a much bigger drill program at Unga for next spring. This program is expected to continue confirmation and expansion drilling at the Shumagin zone, as well as test other highly prospective exploration targets along the Shumagin trend, a roughly six-mile structural corridor that hosts the Shumagin zone. Apollo-Sitka, a second six-mile structural corridor that is parallel to and about 3,000 meters south of the Shumagin trend, hosts additional targets being considered for drilling next year. Redstar would also like to take a preliminary look at the Centennial gold zone, a prospect on nearby Popof Island, and Zachary Bay, a porphyry copper prospect some 3,500 meters north of the Shumagin trend. After a recent exercise of roughly 35.9 million warrants priced at C10 cents each, Redstar is already well-financed for carrying out its 2017 exploration. Including the C$3.6 million of new cash from this financing Redstar had roughly C$7.5 million in the bank at the end of October. The company is now also focused on ensuring a batch of C12 warrants due to expire on Nov. 27 are fully exercised, which would add another C$3.3 million to the treasury. Other good news for Redstar is its listing on the OTCQB Venture Market in the United States has been upgraded, which should improve the share liquidity and broaden the company’s shareholder base and visibility in the U.S.