Estrella Gold Corporation
TSX VENTURE : EST

Estrella Gold Corporation

September 20, 2011 09:00 ET

Estrella Drill Results From Colpayoc Gold Project, Peru

Drill Hole COL 07: 110.5 meters @ 0.52 g/t Gold

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2011) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce drilling results from the five remaining drill holes completed at the Daylight Gold Zone of the Colpayoc gold project. Colpayoc is located 12 kilometers southwest of the Yanacocha mine complex in northern Peru and contains 5,774 hectares (57.7 square kilometers) with gold and silver mineralization in three areas. Estrella has completed a total of 14 core holes (2357.2 meters) at the Colpayoc project since December 2010. Five holes from the Daylight Zone previously reported wide zones of gold mineralization. The five holes reported here bring the total to 10 core holes including 1556.3 meters of drilling on the Daylight Gold Zone. All drill holes and assay results are shown on the attached map (also at www.estrellagold.com).

The Daylight Gold Zone contains a 400 meter diameter area of gold mineralization exposed at surface. Mineralization occurs within an intrusive body of rock within a porphyry gold system, surrounded by sedimentary rocks. In 2010 SRK Consultants calculated an initial NI 43-101 compliant inferred resource based on a small amount of drilling. The inferred resource identified a minimum of 7.6 million tonnes @ 0.6 g/t gold with 144,600 ounces of gold (0.3 g/t cutoff), mainly oxide. The SRK report confirmed that the gold resource remained open for expansion, and that the Daylight Gold Zone has potential to contain a larger gold resource. Exploration drill holes completed by Estrella were located at in-fill and step-out drill sites from the current resource and are intended to provide data necessary to expand the gold resource. Drill results contain the following significant assay intervals:

Drill Hole Total
Depth(m
) Depth of Oxidation Azimuth Inc. Interval
From (m
) Interval
To (m
) Interval
(m
) Gold
g/t
COL - 06 135.5 50.8 m 270° -50° 66.0 83.0 17.0 m 0.35 g/t
120.0 135.0 15.0 m 0.30 g/t
COL - 07 153.6 58.0 m 270° -50° 1.3 11.0 9.7 m 0.40 g/t
14.0 124.5 110.5 m 0.52 g/t
inc 46.0 56.1 10.1 m 1.27 g/t
134.5 140.5 6.0 m 0.31 g/t
COL - 08 147.5 91.0 m 270° -50° 0.0 22.5 22.5 m 0.65 g/t
COL - 09 205.6 53.4 m 270° -50° 0.3 44.0 43.7 m 0.40 g/t
inc 6.0 11.0 5.0 m 0.98 g/t
104.0 129.5 25.5 m 0.62 g/t
inc 116.0 124.1 8.1 m 0.99 g/t
138.5 150.0 11.5 m 0.50 g/t
COL - 10 153.5 14.1 270° -50° 10.0 63.0 53.0 m 0.57 g/t
78.5 91.5 13.0 m 0.34 g/t

Drill results shown on the attached map exhibit grade variations typical of a gold porphyry system, with individual 1-2 meter wide gold assays plotted and projected to surface from these inclined drill holes. The results identify mineralization which covers an area that is roughly 250 meters long by 200 meters wide. The higher-grade gold zones trend roughly north-south. The gold zone remains open for expansion on the east, with all six holes collared in mineralization. The zone also remains open to the north and south along strike, and down dip, for further expansion.

Keith Laskowski, President and CEO of Estrella, commented: "These results provide us with the basis for preparing an updated, and expanded resource estimate. The results clearly indicate that the gold mineralization extends beyond our current drilling at surface and at depth. Most of our drilling has focused on the oxide gold mineralization, which extends to depth ranging from 50 – 90 meters. Our deepest drill hole is about 200 meters, and this type of gold system typically extends to much greater depths indicating the potential for greater expansion of this resource."

QA/QC: Assay results identify those mineralized intervals that contain a minimum continuous width of 6.0 meters with a minimum gold content of 0.3 g/t. Only two internal or one adjacent interval of dilution is allowed in the calculation of intercepts. Higher grade intervals are calculated using a minimum continuous width of 5.0 meters with a minimum gold content of 0.8 g/t gold. Drill hole 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. The Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks and field duplicates.

About the Colpayoc NI 43-101 Compliant Gold Resource: The initial resource estimate was prepared by SRK Consulting (U.S.) Inc. as part of a NI 43-101 Technical Report completed in June 2010. The resource estimate contained the following:

Colpayoc Daylight Gold Zone: Inferred Resource (0.30 g/t low-grade cutoff):
Oxide: 4,663,275 tonnes @ 0.59 g/t containing 87,800 oz
Reduced: 2,913,019 tonnes @ 0.61 g/t containing 56,800 oz
Total: 7,576,293 tonnes @ 0.60 g/t containing 144,600 oz gold

The block model utilizes an inverse-distance squared (ID2) model, with 6m x 10m x 10m block sizes, using Mintec's MineSight software. All gold mineralization is hosted within sheeted and stockwork quartz+/magnetite+/pyrite-iron oxide veins, hosted within a highly altered granitic intrusion. Oxidation extends to approximately 45 meters depth, and preliminary bottle-role tests on surface trench samples indicate favorable recoveries for oxidized material. The outcropping area of the intrusion is almost entirely altered and mineralized, however overlying sedimentary rocks limit the exposure of this mineralized rock. Although the property has received only a small amount of drilling, due to the consistent and broad areas of gold mineralization, the Company has prepared this initial gold resource estimate to guide future exploration and expansion of the resource. This initial resource estimate benefits from extensive surface trench data, however the small number of drill holes generally limits the extent of interpolated mineralization at depth. The four drill holes penetrated consistent mineralization to the end of each hole (200 meters), however resources can only be included adjacent to the drill holes, and between the drill holes on interpreted northeast structural trends, until additional drilling is completed. There is exploration potential beneath mineralized trenches that is not fully tested by drilling.

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. 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 23.7 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.

To view the Maps associated with this release, please visit the following link: http://media3.marketwire.com/docs/est920_Maps.pdf.

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.

Neither the 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.

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