ALBUQUERQUE, NM, Apr 17, 2012 (MARKETWIRE via COMTEX) — Lone Star Gold, Inc. (“Lone Star” or “the Company”) is pleased to provide an update on its Tailings Project wash plant construction progress and other project developments, and on its La Candelaria gold-silver project drilling progress and sample results. Both projects are located in the state of Chihuahua, Mexico.
LA CANDELARIA DRILLING & SAMPLES
Lone Star is currently in its second-year exploration program at its ~1,976-acre La Candelaria gold-silver project. Mapping and surveying is currently being conducted along with a three-month drill program that will further define the project’s underground hydrothermal structures. In particular, following the results received, the Company will next send in two crews to commence both deep and shallow core drilling to increase the geological understanding of the different sized anomalies found in the lower S.E. zone of the property.
Results from split core project samples were recently received from a local laboratory in Parral. The results ranged from 0.09-0.12 grams per ton (gpt) gold and 15-35 gpt silver. (Initial Results are not recognized by the N43-101 standard.)
TAILINGS PROJECT WASH PLANT & DEVELOPMENTS
The Company is constructing an on-site wash plant that is expected to more than double the assay results for the project’s tailings by separating the heavy mineral-rich material from the lighter worthless material in the tailings.
The first of two jigs are currently in place on the Tailings Project wash plant, and testing is currently being conducted to confirm the best flow rates to maximize the separation ratios of heavier material. The jig in question is the smaller of two jigs planned for the wash plant’s start-up. The existing jig will be used to set up the entire wash plant circuit in preparation for the second, larger jig, which the Company expects will be delivered in the next 3 to 4 weeks.
The Company has also decided to move forward with the design and development of a Benign nitrogen leaching pile process, which will be built on the property while being capable of processing 1,500 tons of tailings per day. This relatively new leaching process represents the benefits of not using cyanide and of having minimal environmental impact. In turn, the complexity of the permitting process for the plant’s construction will be greatly reduced. The leaching process will also hopefully have the positive long-term effect of influencing surrounding processing companies to switch to this low-impact leaching system.
Finally, Lone Star representatives have also negotiated with a second processing plant that will potentially enable the Company to increase production in the next few weeks up to 300 tons per day equivalent.
Lone Star Gold’s President, Daniel Ferris, commented: “Apart from a few technical delays with conducting business in these relatively remote areas, we’re making better than expected progress and, most important, will soon be into positive cash flow. We’re also excited about the new Leaching process, which will increase our onsite processing capabilities while having little or no effect on the ecological system surrounding our Tailings Project.”
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 Lone Star’s projects, 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 /quotes/zigman/5448492 LSTG +5.00% 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]