SOURCE: Lone Star Gold, Inc.

June 04, 2012 11:12 ET

Lone Star Gold, Inc. Arranges Processing for 4-5000 Tons per Month of Washed Concentrate From Tailings Project

ALBUQUERQUE, NM--(Marketwire - Jun 4, 2012) - Lone Star Gold, Inc. (OTCBB: LSTG) ("Lone Star" or "the Company") is pleased to announce it has made arrangements with a local processing plant to receive up to 200 tons per day (tpd) of washed concentrate from the Company's Tailings Project. The Tailings Project represents 1.2 million tons of mine tailings near the city of Hidalgo Del Parral in the state of Chihuahua, Mexico.

The Company had previously established a revenue stream by making tailings shipments to another processing plant nearby. Due to the recent sale of that plant, new processing arrangements were made with another plant that is in the region. Although the shift to a new plant has temporarily delayed Lone Star's revenue stream, the move also represents multiple advantages:

  • For the foreseeable future the new plant has agreed to receive up to 200 tpd of washed concentrate from the tailings pile. Each 200 tons of concentrate shipped represents the equivalent of ~400-500 tons of tailings since the Company pre-washes the tailings at its on-site wash plant. In turn, assay results for the tailings are more than doubled, which results in double the potential value from each shipment sent.

  • The 200 tpd arrangement will enable the Company to ship around 4000-5000 tons per month of concentrate. This rate of delivery, which is significantly greater than Lone Star previously expected to ship, represents up to four times the expected revenue per calendar month.

The first shipment to the new plant was delivered as of Friday, June 1, 2012. The Company's two dump trucks are currently delivering concentrate by continuously making trips to the plant. At the Tailings Project site itself, the Company is constantly washing tailings and has already built up around 1000 tons of concentrate ready to ship. It is expected that within the next 4-6 weeks, the Company will be fully operational with both of its on-site wash plant jigs being used, at which point it will be able to ship up to 200 tpd of concentrate to the processing plant each day.

Lone Star Gold's President, Daniel Ferris, commented: "Our ability to quickly and easily secure nearby processing for our tailings concentrate is both fortunate and yet another indicator of how the industry is well established in this region. We're not only back online and shipping again, but now with the potential for even greater monthly revenue."

Lone Star has an undivided 65% interest in the Tailings Project.

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

To learn more about the Tailings Project, the Company, and regular news updates, visit Lone Star Gold's official website:

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.


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.

Contact Information

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

    Toll Free: 1-800-986-9358