Junior Miner Resumes High-Grade Gold Drilling
By: AllPennyStocks.com News
February 3, 2010
With the growing number of junior gold mining companies being profiled in this space, it is becoming increasingly obvious that the gold “pie” is much bigger than observers took it for – the constantly climbing priceof gold not withstanding – and that the game of finding gold is still worth the candle, regardless of how big the competition pool or how small the companies are taking part in that pool.
Another example was provided in early February when Vancouver-based Redstar Gold Corp. (TSX-Venture:RGC)announced brighter news emanating from its Newman Todd project in the northwestern Ontario town of Red Lake. Results from recent drilling announced in mid-January helped define three zones of high-grade goldmineralization within a structural trend that could be traced for 2,000metres. Current drilling by RGC is focusing on expanding the known zones of mineralization and continuing to test the structural trend.
Besides its activities in the gold-rich fields of Ontario, Redstar has also formed a partnership with AngloGold Ashanti (NYSE:AU)to explore for gold in Nevada. The partnership entailed exclusive rights for RGC to AngloGold Ashanti's extensive Nevada property database. Since signing the deal with AU, RGC has acquired 10 Nevadagold projects.
The exploration strategy in Nevada is to use the database to generate high quality projects and attract aggressive partners toexplore them, with an eye to give shareholders exposure to numerous exploration projects and potential for discoveries with minimum costs.
Back to Newman Todd for a second, 20 drill holes have been completed by RGC in that zone, and previous work by Redstar outlined gold mineralization within broader intervals of lower grade (one holeturned 61.20 grams per ton, or g/t, gold over one metre within a widerzone of 67.0 metres of 1.76 g/t gold).
The property has many similarities to the major mines in the Red Lake camp such as Goldcorp's (TSX:G)Campbell and Red Lake mines. Among those similarities: proximity to a major structure, secondary northwest-southeast trending structures,proximity to a folded ultramafic body (that is, referring to rocks containing iron and magnesium, with little or no silica) and association with a large iron-carbonate alteration zone.
And would-be investors, figuratively kicking tires for a bargain-basement gold stock that might soon come up nuggets, may well be in luck. The price remains in the upper region of a narrow trading range, which peaked at 35 cents soon after the New Year, six months after dipping to a depth of four cents. The news about Newman Todd helped vault the stock price a penny or so higher to about 25 cents ashare, still enough to tantalize investors anxious to see a small company grow fairly quickly, as it asserts its right to more lucrative claims.
http://www.allpennystocks.com/aps_ca/special_reports/083/Junior-Miner-Resumes-High-Grade-Gold-Drilling.htm
