Centerra has completed the 2011 drill campaign at Redstar Gold's Oasis porphyry project, Southwest Nevada. The company planned this drilling to examine for high-grade zones in the extensive low-grade gold mineralization regions cut during the 2010 drill campaign and to extend the mineralized region.
It can obtain 75% of interest in the Oasis project by paying cash of $200,000 to Redstar for five years and by finishing $4 million in work expenses. This Oasis project is a porphyry gold system, including gold associated with molybdenum and copper. The gold anomalous zone is outlined to be approximately 700 m in diameter. This zone stays open in many directions.
The company drilled 2,447.5 m, totaling 11 RC holes. The target of drilling is around the western and eastern borders of the prominent gold system, wherein the 2010 drill program has cut strong mineralization with potential structural control. Redstar is anticipating the receipt of assay results in 2012.
Redstar’s President, Scott Weekes, has commented that the initial objective was to identify high-quality projects and make a joint venture for drill testing. Centerra finished a second drilling at the Oasis project in order to follow up the 2010 positive drill results. This program will assist in understanding the low-grade, bulk tonnage gold target at the project. Redstar completed an aggressive drilling at the Newman Todd gold discovery in Ontario and purchased the Unga gold project, where a phase I drilling was completed recently. It is expecting to continue the aggressive work on several gold projects during 2012.