New Page 1
By: AllPennyStocks.com
With the growing number of junior gold mining companies being profiled in this
space, it is becoming increasingly obvious that the gold “pie” is much bigger
than observers took it for – the constantly climbing price of gold
notwithstanding – and that the game of finding gold is still worth the candle,
regardless of how big the competition pool or how small the companies are taking
part in that pool.
Another example was provided in early February when Vancouver-based Redstar Gold
Corp. (TSX VENTURE:RGC) announced brighter news emanating from its Newman Todd
project in the northwestern Ontario town of Red Lake. Results from recent
drilling announced in mid-January helped define three zones of high-grade gold
mineralization within a structural trend that could be traced for 2,000 metres.
Current drilling by RGC is focusing on expanding the known zones of
mineralization and continuing to test the structural trend.
Besides its activities in the gold-rich fields of Ontario, Redstar has also
formed a partnership with AngloGold Ashanti (NYSE: AU) to explore for gold in
Nevada. The partnership entailed exclusive rights for RGC to AngloGold Ashanti's
extensive Nevada property database. Since signing the deal with AU, RGC has
acquired 10 Nevada gold projects.
The exploration strategy in Nevada is to use the database to generate high
quality projects and attract aggressive partners to explore them, with an eye to
give shareholders exposure to numerous exploration projects and potential for
discoveries with minimum costs.
Back to Newman Todd for a second, 20 drill holes have been completed by RGC in
that zone, and previous work by Redstar outlined gold mineralization within
broader intervals of lower grade (one hole turned 61.20 grams per ton, or g/t,
gold over one metre within a wider zone of 67.0 metres of 1.76 g/t gold).
The property has many similarities to the major mines in the Red Lake camp such
as Goldcorp's (TSX:G) Campbell and Red Lake mines. Among those similarities:
proximity to a major structure, secondary northwest-southeast trending
structures, proximity to a folded ultramafic body (that is, referring to rocks
containing iron and magnesium, with little or no silica) and association with a
large iron-carbonate alteration zone.
And would-be investors, figuratively kicking tires for a bargain-basement gold
stock that might soon come up nuggets, may well be in luck. The price remains in
the upper region of a narrow trading range, which peaked at 35 cents soon after
the New Year, six months after dipping to a depth of four cents. The news about
Newman Todd helped vault the stock price a penny or so higher to about 25 cents
a share, still enough to tantalize investors anxious to see a small company grow
fairly quickly, as it asserts its right to more lucrative claims.
About AllPennyStocks.com:
AllPennyStocks.com is a website devoted to Canadian and American Stocks and
Penny Stocks. Some features in the website include quotes, news and charts. The
site also offers weekly write-ups of financial news, weekly penny stocks to
watch, daily top 50 penny stocks info, technical analysis, a portfolio manager,
a section for visitors to input their own penny stock picks, as well as an
elaborate amount of information for beginning investors. Visitors can sign up to
the AllPennyStocks.com mailing list to receive more penny stock articles, stock
profiles and more. AllPennyStocks.com is a well developed and recognized
financial site among the investment community.
