Redstar Gold (CVE:RGC): Going for High Grade in Alaska

One junior gold exploration with big plans is Redstar Gold (CVE:RGC)

James Fraser | November 28, 2016 | One of the key aspects in evaluating a junior mining exploration company is looking at the grade of company’s project.

The old saying is that “grade is king” still holds true because typically, the higher the grade the better the economics.

It is no secret to investors that gold deposits are becoming harder to find.

One of the world’s largest gold producers Goldcorp believes that the gold market is close to peak production. As gold enters peak production the ore grade of mines have decreased dramatically in the last 10 years.

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In 2013, Natural Resource Holdings studied 580 gold deposits greater than 1 million ounces and found that the average grade was 1.01 grams per tonne.

Companies who find a high grade deposit will see significant appreciation in their share prices.

One junior gold exploration with big plans is Redstar Gold (CVE:RGC).

Redstar Gold is a junior gold exploration company in a unique position of having a district scale high grade project (240+ square kilometers) in the premier mining jurisdiction of Alaska.

Infrastructure at the project is excellent as it is located near tidewater and a deep sea port. Daily flights are available from Anchorage and the climate allows for year round access.

Alaska is currently rated the 6th best jurisdiction for mining investment according to a 2015 survey from the Fraser Institute.  The mineral endowment of Alaska is evident as the state is home to the world’s largest undeveloped copper and gold project (Pebble project) containing 57 billion pounds of copper and 70 million ounces of gold. Major mines currently in production include Fort Knox, Greens Creek, Kensington, Pogo, and Red Dog.

The main focus of Redstar Gold is the Unga project, which is 100% owned.

Unga is an exciting high grade epithermal sulphidation project with numerous prospects. It has the potential for multiple high grade discoveries.

The Shumagin prospect is one of the highest grade exploration projects in the world.