ALBUQUERQUE, NM--(Marketwire - April 10, 2012) - Lone Star Gold, Inc. (
TAILINGS PROJECT ACTIVITIES
At the Tailings Project, located near the city of Hidalgo Del Parral in the state of Chihuahua, Mexico, ongoing shipments from 1.2 million tons of mine tailings are being sent to a nearby processing plant. A sufficiently large pile of tailings now exists to allow the plant to commence a processing run. Once the initial processing run is complete and the plant sells the resulting concentrate, it will arrange payment to the Joint Venture firm that was specially formed for the operation of the Tailings Project. At that point, 65% of the total revenue will be transferred to Lone Star Gold.
To facilitate the efficient and cost effective shipment of mine tailings, Lone Star has purchased the following operations equipment: two 12-cubic-meter Dump Trucks; one Front End Loader and one 4x4 Backhoe.
The Company has also commenced construction of its planned onsite wash plant and jig circuit. The plant, which will be capable of processing 40 tons of tailings per hour, will be completed in around a month's time from today.
By separating the heavy mineral-rich material from the lighter worthless material in the tailings, the wash plant is expected to more than double the assay results for the project's tailings. In turn, the Company expects the trucking costs to be reduced by 50-65% due to shipping a higher base metal concentrate. Processing plant costs will also be reduced due to less overall tailings needing to be processed. The combined result will be a significant increase in the price per ton being shipped.
LA CANDELARIA DRILLING ACTIVITIES
Lone Star is currently in its second-year exploration program at its ~1,976-acre La Candelaria gold-silver property in Chihuahua State, Mexico. Previously, shallow holes drilled on the property produced results showing hydrothermal chemical alterations that have potential for a silver-gold deposit at deeper levels. Based on those findings, initial Deep Drill targets were drilled in March 2012 to add to the understanding of the project's mineral potential. The Company is currently waiting on delayed results from the initial Deep Drill targets. Once the results have been obtained, they will be used to direct the Company's ongoing drill program. The program is then expected to extend throughout the 2012 calendar year.
Photos of the La Candelaria Deep Drill program are included in the project's gallery on the Lone Star site: http://lonestargold.com/pr/cand-gallery/
Lone Star Gold's President, Daniel Ferris, commented: "We're looking forward to another good year operating in this area of Mexico. The industry is established and supportive while the drilling services, equipment and infrastructure are all we could ask for. While we are committed to further expanding both our projects in 2012, we're also actively looking into the feasibility of adding a third project and possibly another tailings pile opportunity."
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.
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 (
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