ALBUQUERQUE, NM, May 14, 2012 (MARKETWIRE via COMTEX) — Lone Star Gold, Inc. (“Lone Star” or “the Company”) is pleased to provide an update on the Company’s Tailings Project wash plant in terms of operation, ongoing development and further concentrate testing results. Lone Star has an undivided 65% interest in the Tailings Project, which represents 1.2 million tons of mine tailings.
In late April, the first of two jigs was set up on the Tailings Project property. The small 10-ton-per-hour jig was used to process in excess of 250 tons of the mine tailings into approximately 100 tons of concentrated material. Initial assay results from a local plant lab for the new concentrate shows an average of just over 300 grams per ton or 9.3 ounces per ton of silver, a result that is considerably higher than expected. (Initial Results are not recognized by the N43-101 standard.)
The Company is currently building a larger multiple jig circuit on the property. This second jig will be capable of processing in excess of 500 tons of mine tailings per day. This Jig is now complete and the team is building the associated water recycling tanks, concrete bases and conveyor delivery systems that are needed, all of which are expected to be operational in the next 4 weeks.
By concentrating the tailings material, the wash plant will effectively reduce trucking costs and processing plant costs due to less overall tailings needing to be shipped and processed. The combined result will be a significant increase in the price per ton being shipped.
Lone Star Gold’s President, Daniel Ferris, commented: “The team are very pleased with the recent Assays and now this initial jig will enable us to ship a more concentrated material while lowering our transportation and processing costs. And once the larger jig goes into operation, we’ll be able to build on the project’s success even more.”
Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml .
ADDITIONAL INFORMATION To learn more about the Tailings Project, the Company, and regular news updates, visit Lone Star Gold’s official website: http://www.lonestargold.com .
ABOUT LONE STAR: Lone Star Gold, Inc. is a publicly traded gold exploration and development company based in Albuquerque, New Mexico. The Company’s aggressive acquisition and exploration approach is strategically focused on proven, stable precious metal regions in America and Mexico. Currently, Lone Star has a 70% Working Interest in concessions covering 800 hectares in the La Candelaria project in Chihuahua, Mexico, which the Company is evaluating to determine the potential sites that represent the best potential for silver and gold deposits. Lone Star also has an undivided 65% interest in the San Antonio del Potrero mine tailings project near the city of Hidalgo Del Parral in the state of Chihuahua, Mexico.
ON BEHALF OF THE BOARD OF DIRECTORS,
Lone Star Gold, Inc. Daniel Ferris, Company President
This press release contains statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in question are based on Lone Star Gold, Inc.’s current expectations and projections about future events, based on information currently available. The forward-looking statements found in this press release may also include statements relating to Lone Star Gold, Inc.’s anticipated financial performance, business prospects, new developments, strategies, and similar matters. Lone Star Gold, Inc. provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release. Lone Star Gold, Inc. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
Lone Star Gold, Inc.
6565 Americas Parkway NE, Ste 200
Albuquerque, New Mexico
Toll Free: 1-800-986-9358
E-mail: [email protected]