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Redstar Waits for Drill Results

Tuesday, November 8, 2016 17:25
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(Before It's News)

Bob Moriarty of 321 Gold discusses Redstar Gold Corp. and what investors should expect of the share price during the next few weeks as we await drill results from the company’s recently completed 1,500m program at the high-grade Shumagin Gold Zone on Unga Island, Alaska.

Redstar just announced the completion of a 1500-meter drill program on November 7, 2016 at their high grade Shumagin Gold Zone on Unga Island in Alaska. Results should be out in about three weeks. Until then the shares will tend to be on sale as there are 27 million warrants at $.12 that expire on November 27th. Anytime between now and then, when the price goes above $.12, people wanting to exercise shares but being short of cash will sell in the open market.

The Apollo-Sitka mine was Alaska’s first gold mine and was in production from 1886-1922 at a reported head grade of 10 g/t gold. Redstar drilled seven holes in the 2016 Phase 2 drill program for a total of 1,505 meters. The holes were spaced over about 750 meters strike of the 2,000-meter Shumagin Gold Zone. The holes were intended to test along strike and the down dip extension.

The Redstar technical team reports that all the holes intersected the intended breccias and vein structure. Only the results will show the gold grade, if any. Based on the results of the Phase 2 drill program, Redstar intends a larger and more intensive drill program in the spring of 2017.

Redstar is the first company to consolidate the district with the intent to explore on a district scale the numerous gold and silver targets.

At this point Redstar is a crapshoot. It’s a known high-grade system and good results will blast the shares higher. Results from a 2015 drill program were as high as 202 g/t gold over 1.9 meters with 82-g/t silver and 59.1-g/t gold and 300 g/t silver over 1 meter.

In the past year, shares of Redstar have seen a low of $.025 and a high of $.17. Eric Sprott is a strategic investor and the company just pulled in about $3.6 million with the exercise of warrants at $.10. As of now they are sitting on $7.5 million Canadian. Naturally they are hoping the upcoming 27 million warrants will be exercised but in any case they are already fully financed for a major 2017 drill program.

Redstar is an advertiser and I participated in the latest private placement. I am naturally biased. Do your own due diligence.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 14 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 820 missions in Vietnam. He holds 14 international aviation records.

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Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Redstar Gold Corp. The following companies are advertisers on 321 Gold: Redstar Gold Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.

( Companies Mentioned: RGC:TSX.V, )

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