SOURCE: Lone Star Gold, Inc.

November 07, 2011 08:30 ET

Lone Star Gold, Inc. Announces Commencement Date for La Candelaria Gold-Silver Project Drilling

ALBUQUERQUE, NM--(Marketwire - Nov 7, 2011) - Lone Star Gold, Inc. (OTCBB: LSTG) ("Lone Star" or "the Company") is pleased to announce that first stage drilling on the Company's Mexico-based La Candelaria gold-silver project will commence today. Lone Star has a 70% Working Interest in the project, which comprises ~1,976 acres (~800 hectares) of mining concessions located roughly 125 miles (200 km) southwest of the capital city of Chihuahua State, Mexico.

Using the new sample review data from the recent study, the Lone Star team has mapped the first stage core drill program of 10-15 drill targets on the property. Onsite ground crews have already been constructing a new prepping area and have been working on developing better access roads to facilitate the drilling program. The 10-15 drill targets are targeted to reach a depth of 200 meters (~650 feet). The drill core samples will then be sent for lab analysis. Results are expected back by mid-December 2011.

The drilling program plan is based on the analysis of new data from the Company's own study of the La Candelaria asset, which was conducted as due diligence toward verifying the findings of the property's initial report. The study included conducting layers of geo-chemical and geo-physical analysis of the entire property, thereby significantly increasing the Company's geo-chemical data. Among the findings was an assessment from a sediment study (results from ALS Chemex) that isolated additional surface anomalies in the gold-silver project's southwest zone, indicating an additional exploration area to pursue. Both existing data and the Company's new data (from approximately 150 Rock Chip, Outcrop, Quartz Vein and Sediment samples) was analyzed, mapped and processed in Lone Star's regional satellite office in Chihuahua, which also provided a secure sample transfer location for delivery to the ALS Chemex regional office/processing plant.

Based on the first stage drilling results, a second exploration and drilling stage is expected to commence in mid-January, 2011, which would include further defining underground structures in the most economical areas on the property based on previous drill results with the goal of identifying 3-5 deep hole targets designed to reach depths of 600-700 meters (~1,970-2,300 feet).

"We're now in the position, both in terms of data and financing, to move forward with the next stage of clearly determining the full economic potential of our La Candelaria property," commented Daniel Ferris, Lone Star Gold's Company President. "And armed with the insight this first stage of drilling will provide, we'll be that much closer to realizing this asset's full mineral potential."

ADDITIONAL INFORMATION
To learn more about the La Candelaria gold-silver project, 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 (OTCBB: LSTG) gold exploration and development company based in Albuquerque, New Mexico. The Company's aggressive acquisition and exploration approach is strategically focused on proven, stable precious metal regions in America and Mexico. Currently, Lone Star has a 70% Working Interest in concessions covering 800 hectares in the La Candelaria project in Chihuahua, Mexico, which the Company is evaluating to determine the potential sites that represent the best potential for silver and gold deposits. Lone Star also has an option to purchase a 70% interest in the Ocampo Project, a 570-hectare gold-silver project in Chihuahua State, Mexico.

ON BEHALF OF THE BOARD OF DIRECTORS,

Lone Star Gold, Inc.
Daniel Ferris, Company President

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.

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.

Contact Information

  • Contact:
    Lone Star Gold, Inc.
    6565 Americas Parkway NE, Ste 200
    Albuquerque, New Mexico
    87110
    USA

    INVESTOR RELATIONS
    Toll Free: 1-800-986-9358
    E-mail: ir@lonestargold.com
    Web: www.lonestargold.com