Redstar Gold Corp. (TSX VENTURE:RGC) has announced the signing of an agreement with Catalina Metals Corp., wherein Catalina can earn a 60% interest in Redstar's Cooks Creek project in Nevada.
Under the terms of the agreement, Catalina can earn a 60% interest by completing $2.5 million in work expenditures and paying $200,000 in cash and issuing 500,000 Catalina shares to Redstar over four years. Redstar will act as operator.
Scott Weekes, President of Redstar, states: "Redstar is extremely pleased to have completed this agreement with Catalina. The Cooks Creek project represents a large land position with an outcropping gold system on one of the most productive gold trends in the world – the Cortez Trend. Catalina has stated they want to be as aggressive as possible and are committed to drill testing some of the existing targets as quickly as possible."
Cooks Creek consists of approximately 3.7 square miles of 100%-owned unpatented mining claims covering an area of outcropping sediment-hosted gold mineralization about 8 miles west of the Pipeline mine. Cooks Creek lies along the Battle Mountain – Eureka mineral belt, also referred to as the Cortez trend. The Pipeline and adjacent Cortez and Cortez Hills Carlin-type gold deposits contain more than 30 million ounces of gold (production plus reserves/resources); the mines are operated by Barrick Gold.
The main gold zone at Cooks Creek covers an area of at least 2,900 by 2,500 feet (890 x 760m) with surface rock-chip assays reaching 1.26 g/t gold. The area contains strongly anomalous arsenic, mercury, and antimony (which locally occurs as stibnite), elements that are characteristic of productive Carlin-type gold deposits. Historic drilling also intersected gold mineralization, including 70 feet (21.3m) grading 0.068 opt gold (2.317 g/t) from 60 to 130 feet.
Gold Mineralization remains open along strike and depth along at least two northeast-striking fault zones about 1,000 feet apart. Redstar has also identified a gold anomaly about 3,000 ft (900m) south of the main gold zone; rock samples in this second area reach 778 ppb (0.023 opt Au).
Dr. Jake Margolis a qualified person as defined by National Instrument 43-101and has reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp.
Source: Redstar Gold Corp.