SOURCE: Lone Star Gold, Inc.
ALBUQUERQUE, NM--(Marketwire - Mar 4, 2013) - Lone Star Gold, Inc. (OTCBB: LSTG) ("Lone Star" or "the Company") announces that monies from the Company's $15 million common-stock-purchase investment agreement with Deer Valley Management, LLC ("the Agreement") have been used to cover all of Lone Star's operating costs. Lone Star is also now sending monies from the Agreement to Mexico via the Company's consultant to fund the construction of the Company's on-site processing plant at its Tailings Project near the city of Hidalgo Del Parral in the state of Chihuahua, Mexico.
The processing plant will further enhance Lone Star's ability to maximize the silver and gold content per ton of shipment from the project's 1.2 million tons of mine tailings. The plant will use the relatively new benign nitrogen leaching pile process. In Q3 2012, the Company's team in Mexico completed a preliminary leach plant development plan, which includes a processing capacity of 1,000 tons per day (tpd) while avoiding the use of cyanide and having minimal environmental impact. Leach testing has also been completed, which determined that no additional crushing of the tailings material is required and that expected recovery will be between the 88-90% range.
The Company expects the on-site processing plant to be operational within six months.
Lone Star's President, Daniel Ferris, commented: "Now that we have the necessary financing to proceed with the construction of our on-site processing plant, all the preliminary work we've already completed will be of great value in moving along the process. While there are several factors that will determine when the plant actually becomes operational, we're hoping to potentially realize concentrate sales at that time, or earlier if the local government-owned processing plant can offer available capacity."
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.lonestargold.com.
To learn more about the Tailings 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 undivided 65% interest in the San Antonio del Potrero mine tailings project near the city of Hidalgo Del Parral in the state of Chihuahua, Mexico.
ON BEHALF OF THE BOARD OF DIRECTORS,
Lone Star Gold, Inc.
Daniel Ferris, Company President
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.