Friday, September 29, 2006

Redstar Gold Corp - AGM - Sept 28/06

Spoke with Scott Weekes, President

1) Drilling results at Pine Nut completed. NR in 2-3 weeks.

2) Dry Gulch should get permit approval this week.They'll be drilling 2 holes only, which should take 2 weeks. Of course, they will have to secure a rig first. Worst case scenario, they'll get the rigs by the end of October. Winter comes around end of November.

3) North Bullfrog, started permitting process, should take only 2 weeks to get approval - mid Oct. They can drill year round here.

4) Painted Hills - Anglo was targeting this property as it was drill ready. However, Bullion River got hold of it, but did nothing. RGC then picked it up. Never been drilled.- zero holes. Low-grade at surface. Potentially, Midas or Sleeper-like.

5) Eagle Basin - huge alteration system, low gold mineralization, but found mercury and arsenic.

Red Lake - A program of 15-20 holes would cost about $1M. They have $100,000 in bank. Financing or take in partners. They're talking with 4 potential partners. Recently, they gave a tour of the property to one of mid-sized companies. If there's drilling, it'll be this fall before the end of the year.

The model they could follow would be like Southern Star or Exall where they retain 50% of their stake, but which has worked relatively well for those companies. That model looks attractive.

They were at the Toronto gold show last week. Met many holders of larger positions. They have a following in the US, who tend to be longer term holders, buying RGC despite not being on Amex.

Chance they might use an IR firm out of NY.

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