Centerra (U.S.) Inc. to Option Oasis Project in Nevada

 

VANCOUVER, BC - Redstar Gold Corp. reported the signing of a non binding letter agreement with Centerra (U.S.) Inc., a subsidiary of Centerra Gold Inc. (TSX:CG), wherein Centerra can earn a 75% interest in Redstar's Oasis project in Nevada. Under the proposed terms of the agreement, Centerra can earn a 75% interest by completing $4 million in work expenditures and paying $200,000 in cash to Redstar over five years. Centerra will act as operator. Minimum work expenditures in the first year of the agreement are $500,000.

Scott Weekes, President of Redstar states: "Redstar is extremely pleased to have Centerra advance the Oasis project. Centerra has significant international gold production experience and is active in Nevada exploration. The Oasis project appears to host a gold porphyry system and therefore has significant size potential. Centerra has the resources needed to aggressively explore this exciting prospect."

The Oasis Project consists of 100% Redstar-owned unpatented mining claims in southwestern Nevada, 26 miles southwest of the Goldfield mining district. Extensive low-grade, disseminated gold mineralization occurs in strongly-altered andesitic volcanic rocks.

Surface samples collected by exploration programs in the early 1980's returned gold values to 2.55 ppm, and Redstar's sampling has returned gold values to 5.41 ppm. The overall tenor of the disseminated gold zone at surface is in the 0.3 to 1.5 g/t range, and the zone is at least 2,000 feet in diameter. Mineralization is locally concealed by post-mineralization rocks and a silica cap, providing for significant expansion potential. Characteristics of the gold system are consistent with a porphyry gold system, and include disseminated gold in rocks containing hydrothermal biotite, "A-type" quartz-vein stockworks and elevated molybdenum and copper contents.

Drilling is currently under way on Redstar's Newman Todd project in Red Lake, Ontario and an exploration program on the Richmond Summit project on the Carlin Trend in Nevada has recently been completed.

The companys address is 615-800 West Pender Street, Vancouver, BC V6C 2V6, 604.488.0051, fax: 604.488.0053, email: [email protected].