Redstar Gold (RGC.V) released drill results from its Unga Gold project in August, and the market was less than impressed with the assay results and the subsequent interpretation. After having completed soil samples, MAG and IP surveys, Redstar felt confident enough to complete a 12 hole drill program for a total of almost 2,300 meters.
Whilst the drill program was originally focusing on confirming the geological model at the Shumagin zone (where the strike length of the Gold zone was extended by an additional 400 meters), the encountered gold mineralization was pretty weak with most of the holes returning gold grades of less than 1 g/t. Even though hole 32 contained visible gold, the average grade was also very disappointing with 2.12 g/t gold, even though this was the very same type of stock work as in two other drill holes 370 meter and 750 meter away.
This once again shows exploration isn’t an exact science and even though the company did everything right with a very methodical approach and was able to confirm the geological features of the Shumagin gold zone, Mother Nature isn’t always predictable, and most of the drill holes contained very little gold.
We wouldn’t write Shumagin off just yet, but it’s clear the project might have to be re-interpreted. Fortunately Redstar still has C$4.5M in the treasury and entire island full of other prospective zones.