What can we say that we haven’t said before about the Red Lake District in Ontario, Canada? The bottom line is that it is one of the most prolific gold regions in the world with monumental finds including a discovery by Goldcorp (TSX:G) in 1995 showcasing an amazing two troy ounces per metric ton. Those looking to get a piece of the gold pie have been flocking to the area in northwest Ontario since 1926, including the smallest of crews to the world’s largest mining firms.
Vancouver-based Redstar Gold Corp. (TSX-Venture:RGC) is a junior exploration company focused on international gold exploration with several promising projects in North America. The Company has its Unga Project in the Unga Gold District of Alaska. Consisting of two properties bearing gold mineralization in multiple veins, the project encompasses roughly 250 square kilometres in the Unga and Popof Islands of the Aleutian Islands.
Redstar gave itself a leg-up on competition in 2005 when it penned a deal with AngloGold-Ashanti to gain access to AngoGold-Ashanti’s extensive Nevada database of geological information. Since the deal was signed, Redstar has acquired 14 different Nevada gold projects. With the projects in the portfolio, Redstar is now hoping to attract aggressive explorers to advance multiple projects expeditiously.
Hitting the major North American gold hotspots of Alaska and Nevada, Redstar did not neglect to grab property in the Red Lake District either. The Company is drilling and advancing the Newman Todd Property in the Red Lake Gold Camp. The property is located in the heart of the Red Lake Greenstone Belt, an area that has produced more than 18 million ounces of gold. Moreover, the property is near two producing mines; the Campbell Mine which has produced more than 10 million ounces of gold, and Red Lake Mines which have produced more than three million ounces of gold.
In 2011, 49 holes totaling 19,000 metres have been drilled on the Newman Todd Property. The exploration work is funded by operator Confederation Minerals Ltd. (TSX-Venture:CFM), who can earn an interest in the project through developmental expenditures. The drilling has been focused on the Newman Todd Structure where gold mineralization has been discovered over a strike length of 1.6 kilometres.
Wednesday’s results showed a 14.3-metre interval with two high-grade intercepts of 343 g/t gold over 0.60 metres and 33.8 g/t gold over 0.5 metres. While those high grade cuts were of shorter width, the latest results also included 32 metres of 1.18 g/t and 25 metres of 1.35 g/t gold.
Importantly, the latest findings from the "Hinge Zone" reinforce previous data of high-grade gold intervals which appear similar to Goldcorp’s nearby Red Lake Mine.
Investors appear to have seen the potential of Redstar quite some time ago. Back in January 2009, shares were trading at a paltry four cents each. Staying in a long-term uptrend, shares closed trading Wednesday at 51 cents, not too far from all-time highs of 68 cents. With the continuing developments and a strong portfolio, another surge towards that old high may be in the cards for Redstar. Proper due diligence is always encouraged.
Related Stories
