Vancouver BC / TNW-ACCESSWIRE / October 10, 2014 / Redstar Gold Corp. (TSX.V:RGC) ("Redstar" or the "Company") announces that, as a result of a review by the British Columbia Securities Commission, the Company is issuing this news release to clarify and update certain aspects of its mining technical disclosure.
On the Company's website and in its September 2014 corporate presentation (the "Presentation") the Company discloses historical estimates in a manner that is non-compliant with National Instrument 43-101 ("NI 43-101") of the Canadian securities administrators.
The Company would like to clarify that it has no current resources or "estimates of potential". On its website, in a November 2011 Beacon Rock Research article and in the Presentation, the Company discloses historical estimates without adequately providing the cautionary language required by NI 43-101.
The Company has previously disclosed an historical resource prepared by SRK Consulting ("SRK") in 2000 for the Shumagin Property (Unga Project, Alaska). The historical resource consists of 280,000 Tons grading 0.80 opt gold and grading 3.70 opt silver. The previous disclosure omitted information required under NI 43-101 as to the relevance and reliability of the historical estimate, the key parameters used to make the estimate and the work needed to bring the historical estimate into a current mineral resource category. The Company provides the additional information as follows:
Shumagin Historical Resource Estimate
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- The historical resource estimate is located in the following technical report prepared for the Shumagin Property by SRK entitled Unga Island Project Resources and Reserve Review (April 4, 2000).
- The estimation methods employed by SRK included a detailed, systematic review and reclassification of work previously performed by Strandberg (1995).
- SRK concluded that the estimate of Strandberg (1995) is globally reasonable, and may be conservative in tonnage.
- SRK re-classified the estimates as "Inferred Resources" following the definitions proposed by the SME and as "Mineral Inventory" for SEC reporting purposes.
- Drilling performed by the Company in 2011 has not been included in this resource estimate.
- Additional in-fill drilling is required to upgrade the status of the mineral inventory to classify the historical estimates as current mineral resources.
- The Company is not treating the historical estimate as current mineral resources or reserves.
The Company has also previously disclosed an historical resource for the Centennial Prospect (Unga Project, Alaska). The historical resource consists of 4.8 million Tons with an average grade of 0.042 opt gold. The previous disclosure omitted information required under NI 43-101 as to the relevance and reliability of the historical estimate, the key parameters used to make the estimate and the work needed to bring the historical estimate into a current mineral resource category. The Company provides the additional information as follows:
Centennial Prospect Historical Resource Estimate
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- Historical estimates and classifications are located in the following technical report prepared by William T. Ellis and Douglas E. Harris (Battle Mountain Exploration Company) for the Centennial Prospect entitled Centennial Prospect, Final Report 1989.
- The estimation methods employed by Battle Mountain included a total of 7,275 lineal feet of surface trenching and 18,543 feet of gridded HQ & NQ diamond drill holes with 2,032 core samples that were used to generate a "very preliminary resource estimate".
- Battle Mountain utilized plan and section methods for calculating geological resources.
- Battle Mountain calculated resource blocks using 1/2 the distance to the next drill hole for constraints and utilized a cut-off grade of 0.02 opt gold.
- Battle Mountain also utilized averaged surface trench assays with drill holes where resource blocks are influenced.
- No additional drilling or data has since been included in this preliminary resource estimate.
- Additional in-fill drilling is required to upgrade the status of this preliminary resource estimate to classify the historical estimates as current mineral resources.
- The Company is not treating the historical estimate as current mineral resources or reserves.
The Company cautions investors that a qualified person (within the meaning of NI 43-101) has not done sufficient work to classify these historical estimates as current mineral resources or mineral reserves and should not be relied upon until they have been verified and supported by a compliant NI 43-101 technical report.
The updating of the Company's technical disclosure will be coordinated by the members of the Company's newly appointed management team, who have been tasked with strengthening and revamping the Company's operations.
About RedStar Gold Corp.
Redstar Gold Corp. (TSX.V:RGC) is a Vancouver based junior exploration company focused on high-grade gold exploration in North America. Each of Redstar and Confederation Minerals Ltd. owns 50% of the Newman Todd Project, located in Red Lake, Ontario, Canada. Exploration work at the Newman Todd project has been funded by Confederation Minerals Ltd. (TSX.V:CFM), which is the acting operator of the project. Confederation has an option to earn an additional 20% undivided interest into the Newman Todd Project by completing a preliminary economic assessment ("PEA") and issuing 500,000 common shares to Redstar by November 19, 2016. In Alaska, the Company is exploring the high-grade Unga Project which was initially acquired in 2011. The Company also has ten properties in Nevada, which are currently under option.
Jesse C. Grady, MSc, CPG-11592, the Company's Vice President of Exploration and a qualified person within the meaning of National Instrument 43-101, has reviewed and approved the technical content of this news release.
On Behalf of the Board,
Redstar Gold Corp.
"Toby Mayo"
Toby Mayo
President and CEO
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|TSX.V:RGCWWW.REDSTARGOLD.COM|CORPORATE INQUIRIES |
|SUITE 615 |Redstar Gold Corp. |
|800 WEST PENDER STREET |Paul Durham, Investor Relations|
|VANCOUVER, BC |Tel: 203.940.2538 |
|TEL: 604.488.0051 |pdurham@redstargold.com |
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Forward-Looking Information This news 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 Corp. (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 news release.
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