Estrella Gold Corporation
TSX VENTURE : EST

Estrella Gold Corporation

December 14, 2010 08:00 ET

Estrella Starts Drilling at Colpayoc and Announces New Mineralization at Cerro Rico, Yanacocha Gold District, Peru

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2010) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce it has commenced a core drilling program at the Daylight Zone of the Colpayoc Gold Project and it has identified high grade silver and gold mineralization four kilometers northwest at the Cerro Rico Zone. The Project contains three types of gold mineralization however the drilling will be completed on the Daylight Zone only. The property contains 4,200 hectares and is located 15 km southwest of the Yanacocha mine complex, which is the largest gold producer in South America, and 15 kilometers west of the city of Cajamarca.

The Daylight Zone contains oxidized, outcropping gold and copper mineralization hosted within a felsic intrusive, typical of a porphyry gold-copper system. Initial surface trench sampling (2500 meters) identified a circular area of outcropping gold mineralization, approximately 300 meters in diameter. The gold zone was initially tested with 4 drill holes (647 meters) which contained results up to 112 meters @ 0.8 g/t gold in drill hole RCD-1, and 152 meters @ 0.8 g/t gold in Trench B.  Drilling was completed to a maximum depth of 180 meters and all drill holes ended in mineralized rock. Based on these results an initial NI 43-101 compliant resource was prepared by SRK Consultants and contained 7.6 million tonnes @ 0.6 g/t gold with 144,600 ounces of gold (see further description below). The historic drilling and resource block model indicates that the gold zone is open at depth and in all directions with higher grade zones oriented northeast-southwest. Drilling is planned to provide assay data that may increase the size of the initial gold resource. Drill holes are located at both in-fill and step-out drill sites from the current resource. A minimum of 1,200 meters of drilling is planned and additional drilling will be considered based on results. The current drill program will include 6 – 8 inclined core holes to depths of approximately 200 meters. Drilling at the Colpayoc Zone will continue until December 22nd, when the team will shut down for the Holiday Break. Drilling will re-commence during early January and initial assay results are expected in late January. 

Recent sampling at the Cerro Rico Prospect, located 4 kilometers northwest of the Daylight Zone identified high grade silver and gold mineralization that occurs within northwest trending fault zones hosted in volcanic and sedimentary rocks. In several places, these structures host variably silicified and brecciated felsic volcanics with precious metal mineralization, including gold assays up to 10 g/t and silver assays up 912 g/t from surface rock samples. Further systematic mapping and rock sampling is now in progress at the Cerro Rico zone in preparation for drilling in 2011. 

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 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, 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 16 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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