Estrella Gold Corporation
TSX VENTURE : EST

Estrella Gold Corporation

February 16, 2011 09:37 ET

Estrella Announces Trench Results from Second Mineralized Zone at the Colpayoc Gold Project, Yanacocha District, Peru

TORONTO, ONTARIO--(Marketwire - Feb. 16, 2011) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce exciting gold and silver trench sample results from the Cerro Rico Zone at the Colpayoc Gold Project in Peru. Colpayoc is located 12 kilometers southwest of the Yanacocha Gold Mine. The Cerro Rico Gold-Silver Zone is located 2.0 kilometers northwest of the Daylight Gold Zone, where the Company has a small NI-43-101 compliant gold resource and recently announced successful drilling results. The Company has received assay results of continuous chip channel samples from three trenches, totaling 231.8 meters. The trenches are located over a distance of 260 meters, with two trenches (CR 01 and 02) located 58 meters apart and the third trench CR 03 located 220 meters to the southeast. The hand-dug trenches were excavated in an area containing historic manganese prospect pits which also contains high grade silver mineralization as reported previously. The trenches exhibit northwest trending fault zones occurring within and between limestone sedimentary rocks, felsic volcanic rocks, and irregular felsic intrusive rocks, all of interpreted Cretaceous age. Trenches encountered 147.4 meters of bedrock, with the remainder containing locally derived alluvial material. All mineralization is oxidized. The Cerro Rico Zone occurs at the northwest margin of a magnetic geophysical anomaly that is approximately 3.0 kilometers in diameter and also hosts the Daylight Gold Zone. Trench results include the following significant bedrock assay results which are also shown on the attached map:

Trench   Total Length (m)   Azimuth   From (m)   To (m)   Interval (m)   Silver g/t (Ag)   Gold g/t (Au)
CR-01   109.5   030   74.0   82.0   8.0   372.5 g/t   3.9 g/t
        including   80.0   82.0   2.0   675.0 g/t   6.5 g/t
            90.0   95.5   5.5   7.8 g/t   2.1 g/t
                             
CR-03   60.8   100   2.3   6.6   3.8   84.6 g/t   0.9 g/t
            19.9   24.7   4.8   420.3 g/t   0.2 g/t
            37.8   43.6   5.8   872.6 g/t   0.7 g/t
        Including   41.8   43.6   1.8   1,515 g/t   0.8 g/t

Trench CR-01 contains significant gold and silver mineralization that occurs as silica-manganese replacement style mineralization hosted within silicified, brecciated limestones. The mineralized zone remains open to the north. The mineralized zone from 90.0 – 95.5 contains 2.1 g/t gold and is adjacent to locally derived alluvial material which assays 2.9 g/t Au from 95.5 – 109.5 meters (14.0 meters). This zone of alluvial material is likely derived from adjacent bedrock, however it is not bedrock, senso stricto. The mineralized zone may be more than 22 meters wide. The southern end of the trench also contains anomalous gold mineralization that ranges from 0.17 – 0.26 g/t gold.

Trench CR-02 contains a broad zone of elevated gold and silver mineralization extending from 1.0 – 57.5 meters, containing gold values in the range of 0.02 – 0.64 g/t and silver values up to 13.3 g/t. The trench contains elevated gold mineralization from 45.5 – 49.5, including 2 meters @ 0.64 g/t gold adjacent to alluvial material which covers the bedrock. The zone remains open to the south. 

Trench CR-03 contains multiple spectacular silver values that also occur as silica-manganese replacement style mineralization. Several zones of near-source alluvial material are also present in this trench, including the zone from 31.4 – 33.8 meters, which assayed 2.4 meters @ 84.4 g/t silver and 0.6 g/t gold. 

Keith Laskowski, President of Estrella commented: "These early stage results are extremely encouraging for several reasons. First, the width and grade of the mineralization is substantial and establishes the Cerro Rico Zone as an independent silver and gold target. Second, these trenches failed to reach bedrock in several areas, and the presence of mineralized alluvial material suggests there is good potential that the mineralized zones are wider than identified here. Third, the Cerro Rico Zone is located only 2.0 kilometers from the Daylight Gold Zone, suggesting there is potential for additional mineralization between these areas. Finally, these results support our interpretation that the Colpayoc Gold Project may contain another major deposit in the Yanacocha District." Additional trenching and geological programs are planned, prior to drilling, as the mineralized zones are open to the northwest and southeast along strike, to the south in trench CR-02 and to the north in trench CR-01.

QA/QC: Assay results identify those mineralized intervals that contain a minimum continuous width of 2.4 meters with a minimum of 0.3 g/t gold (Au) or 100 g/t silver (Ag). Only one internal or adjacent interval of dilution is allowed. Trench samples were collected in accordance with accepted industry standards and procedures. The samples were submitted to the ALS Chemex Labs (ISO 9001:2000 accredited) in Lima Peru for analysis. Gold was analyzed by fire assay with an AAS finish and multi-element analyses were determined with aqua regia digestion and ICP MS/AAS techniques. Silver assays were conducted with ICP MS/AAS and values above 100 g/t were re-analysed with an AAS finish. The Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks and field duplicates.

About Estrella Gold Corporation (TSX VENTURE:EST) Estrella Gold is a "Prospect Generator" focused on gold in Latin America. The Company's dual strategies focus on 1) generating new prospects/discoveries and 2) increasing the Company's inventory of gold resource ounces. Estrella has a NI 43-101 compliant inferred gold resource of 144,600 ounces at its Colpayoc project in Peru, and additional historic non-compliant gold resources. Mr. Keith A. Laskowski, MSc., is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has prepared, reviewed and verified the technical information contained in this news release. Estrella Gold has seven precious metal exploration projects in Perú and one in Chile. The Company has 17.3 million shares issued and outstanding on the TSX Venture Exchange (TSX VENTURE:EST). Further information is available at Estrella Gold's website: www.estrellagold.com

STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.

To view the maps included with this release, please visit the following link: http://media3.marketwire.com/docs/est216maps.pdf

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information