Estrella Gold Corporation
TSX VENTURE : EST

Estrella Gold Corporation

September 16, 2010 09:00 ET

Estrella Stakes Three New Grassroots Gold Exploration Properties in Peru

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2010) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce the acquisition of three new gold exploration properties and the expansion of two existing gold projects in Peru. Estrella is conducting an integrated gold exploration program which includes prospect generation, property acquisition and project evaluation that may or may not lead to gold resource definition. The Company has acquired three new gold exploration properties that are now in the project evaluation stage. The three properties are now considered early-stage exploration projects ("grassroots stage"). Estrella also has three gold projects that are at the gold resource definition stage, and four evaluation stage projects including the Pucarana project which is held in a Joint Venture with Esperanza Resource Corporation (EPZ.V).

Estrella has identified and acquired three properties based on its proprietary regional exploration database covering much of southern Peru. All work was conducted under the Company's Regional Andean Gold Exploration Program ("RAGE"). The Company has acquired the properties following staking procedures which provide a 100% interest subject to the laws and conditions of the Mining Law of Peru. The properties include the following:

  • The Sense Property contains 3,500 hectares and is located 20 km south of the Chucapaca gold discovery, which is the newest gold discovery in Peru. Chucapaca was recently announced by the Goldfields-Bueneventura Joint Venture. The Sense property contains regional LANDSAT alteration anomalies, favourable structural/fault zones, and elevated gold concentrations in stream sediment samples reported by regional surveys conducted by the Government of Peru.

  • The Yanque Property contains 600 hectares and is located adjacent to the Humajala gold occurrence and 20 km west of the Company's Ccello-La Tola Project. The geology of the property is consists mainly of Miocene felsic volcanic rocks containing extensive epithermal alteration mineral assemblages. Estrella conducted significant exploration drilling (+30 holes) at the Humajala gold occurrence previously.

  • The Isy Property contains 3,100 hectares underlain primarily by Miocene volcanic rocks, containing extensive alteration. The target was identified based on regional analysis of LANDSAT alteration anomalies, structural geology, and regional metallogenic studies.

Estrella has two field teams sampling and mapping these new properties, to evaluate the distribution and composition of the rock-alteration and to determine if significant gold mineralization is present.

"Estrella has been focused on establishing resource-stage properties, to provide a base value for the Company, but generative exploration is the life-blood of Estrella and the mining industry. Identification and acquisition of new targets, and hopefully new discoveries, is the most exciting part of this business" commented Keith Laskowski, Estrella's President.

Estrella has also acquired additional property at its Colpayoc gold project, adding 1,520 hectares of new lands contiguous with its current property package bringing the total to approximately 5,700 hectares located 15 km southwest of the Yanacocha Mine complex in northern Peru. Colpayoc contains two areas of outcropping gold mineralization, including the Daylight porphyry gold system with a NI 43-101 compliant inferred gold resource of 7.6 Mmt @ 0.6 g/t for 144,000 ounces. The Company also acquired an additional 300 hectares of land at its Pampa Poroma Iron-Oxide, Copper, Gold exploration project in southern Peru. This brings the total property package to 900 hectares.

About Estrella Gold Corporation (TSX VENTURE:EST) Estrella Gold is a precious metals exploration and development company focused on strategically-located properties in Latin America. Estrella Gold has seven precious metal exploration projects in Peru and one in Chile. The Company is focused on expanding its gold resource inventory, and making new gold discoveries. The Company's has 11.9 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.

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