Redstar to gain Yukon ground

A preliminary option agreement sets the stage for Redstar Resources (RST-V) to acquire the Clear Creek property in the Yukon’s Dawson mining district.

To exercise the option, Redstar must spend $1.25 million on exploration by the end of 2000 and make payments totalling $222,000 to Newmont Mining (NEM-N). Once this is completed, Newmont has 90 days to elect to back-in for a 40% interest by spending $2 million on ongoing exploration.

This can be increased to 60% by funding a feasibility study.

The road-accessible property is in the Tintina gold belt and was explored intermittently by previous operators, first for tungsten and tin, and more recently for gold. The property has seen placer mining activity and, in recent years, yielded the most elevated gold, arsenic and antimony values in the Yukon portion of the Tintina gold belt. Redstar proposes a $500,000 work program this year for the property, which is viewed as being prospective for bulk-tonnage gold deposits.