Redstar Gold has announced the drilling results from two diamond drilling holes located in the Newman-Todd property in Red Lake, Ontario.
The two drill holes namely, NT-110 and NT-111 were drilled at cross section 1700. These holes were primarily drilled to test the continuous availability of gold mineralisation from holes NT-071 and NT-072 which intercepted gold mineralisation of more than 10 g/t during 2011.
The drilling revealed that NT-111 intersected 13.0 m of 5.71 g/t gold including two high grade sections at an average of 17.10 g/t gold over 1.0 m and 49.60 g/t gold over 1.0 m. NT-110 intersected 1.0 m of 5.84 g/t gold. As of now four holes have been completed in cross section 1700 at the Newman-Todd Structure. There are various intercepts that are greater than 10 g/t gold in this stretch.
The exploration work at the Newman Todd structure is funded by Confederation Minerals. The company is entitled to a 50% interest in the project by spending $5.0 million for exploration, issuing Redstar 500,000 shares by November 2013 and paying Redstar a total of $250,000 as per the option agreement with Redstar Gold. Confederation has already spent more than $5.0 million over exploration and has an option to earn an additional 20% interest by carrying out a Preliminary Economic Assessment by November 2016.
Redstar owns 14 gold projects in Nevada apart from the Newman Todd project in Ontario and Unga project in Alaska. The Newman Todd project also contains a 2 km stretch of high grade gold mineralisation which has been the target for exploration work carried out during 2011.