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Message: Redstar is just ramping up

Redstar is just ramping up

posted on Mar 12, 2008 10:16AM

Spoke to Scott this AM...

Newman Todd... 5 more holes completed assays are pending.... 2 undercut the holes reported today to test the zone a little deeper... the remaining 3 holds are between the 2 reported today... so they will be testing the continuety between these holes.

Bullfrog.... about 20 holes have been completed and assays are pending.... should be starting to come in soon.

The Goldfields Jv will also be starting very soon..... Redstar is just ramping up. RGC will get a free ride on this project as below.

From NR:

"The two projects optioned to Gold Fields are the Richmond Summit and Dry Gulch properties. The Richmond Summit property is located four miles northwest of the Mike deposit (8.5 million ounces gold) in the Gold Quarry district and 5.5 miles south of the Carlin-West Leeville gold mines (greater than 10 million ounces gold production plus reserves). Surface sampling has returned gold values up to 7.75 grams per tonne and limited drilling has returned values up to 2.5 g/t gold over 3.28 metres.

The Dry Gulch property is located within six miles of the Gold Quarry gold mine (greater than 15 million ounces gold) and seven miles of the Carlin-West Leeville gold mines (greater than 10 million ounces gold). Geophysics indicates that structures controlling these gold deposits can be traced to the project area, and there is evidence that favourable host rocks may underlie the area at shallow depths. No previous drilling has been completed on the Dry Gulch property.

Under the terms of the agreements Gold Fields can earn a 60-per-cent interest in the respective properties by making the payments and work commitments shown in the table over four years (all amounts are in U.S. dollars).

                   Cash payments    Work commitments  Richmond Summit         $290,000          $3,500,000 Dry Gulch               $190,000          $2,000,000 

After earning a 60-per-cent interest Gold Fields may earn an additional 10-per-cent interest in a property (bringing the total to a 70-per-cent interest) by making additional expenditures of $7.5-million at Richmond Summit and/or $5-million at Dry Gulch.

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