SOURCE: Lone Star Gold Inc.

October 05, 2011 08:30 ET

Lone Star Gold, Inc. Continues to Strenghen Its Exploration Program at La Candelaria Property and Signs Advisory Agreements With Leading Experts

ALBUQUERQUE, NM--(Marketwire - Oct 5, 2011) - Lone Star Gold, Inc. (OTCBB: LSTG); ("Lone Star" or "the Company")

Lone Star is pleased to provide a field update from the geological team on its Mexico-based La Candelaria Property.

Assessment from a recent sediment study (results from ALS Chemex), have isolated additional surface anomalies in the gold-silver project's southwest zone, indicating an additional exploration area to pursue. The team has decided to conduct additional geo-chemical sampling and analysis of the quartz veining from the obvious fractures to back up existing data from the project's southwest zone. From Oct 4th, a full time crew at the property has been working on quartz veins samples and are preparing these to be sent off for analysis.

The ground crews are currently constructing a new prepping area and are developing better access roads for the Company's initial 10-15 drill targets.

Lone Star has a 70% Working Interest in the La Candelaria gold-silver 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.

Further to this, the company is pleased to announce the signing of agreements with two independent advisors -- qualified mining engineer Dr. Mike Seeger and mining engineer and geologist Ralph Sacrison -- as well as consulting, design, and construction services company Golder Associates Inc. Information on each of the entities is provided further below.

"This is an exciting time for us, what with the positive news coming from our in-field team at La Candelaria," said Daniel Ferris, Lone Star's Company President. "And now that the exploration work is progressing nicely on our flagship project, having these advisor and service company agreements in place is more important than ever. Not only will Dr. Seeger, Mr. Sacrison and Golder Associates help us move toward our goal of rapidly becoming a mid-tier producer in the short term, but by only calling on their expertise as and when needed, we'll be able to keep our operating costs down, thereby maximizing shareholder returns."

DR. MIKE SEEGER - BSc Engineering ( Mining), MSc Engineering (Mining), PhD Mineral Economics, Pr Eng
INDEPENDENT ADVISOR

Dr. Mike Seeger is a qualified Mining Engineer with 20 years of experience in the international mining industry.

His career began in 1991 at Iscor Mining. He has also consulted to major clients in the resources industry, including Newmont Mining, AngloGold Ashanti, Kaiser Aluminium, Outokumpu and RAG Coal, in the optimization of mining operations across the globe, including Ghana, Peru, the US, South Africa, Zambia, Ireland, Finland and Zambia. Dr. Seeger has worked and consulted on several large and small gold mines, including Kloof Gold Mine, Great Noligwa, President Steyn Mine and Klipvaal Gold Mine in South Africa, Obuasi Gold Mine in Ghana and Minera Yanacocha in Peru.

In 2003, Dr. Seeger started Injula Mining Operations, a coal exploration and mining company in South Africa, which included a mining team and opencast mining fleet that mined 1.5 million tons of coal per annum for 6 years for Anglo Coal and the major utility Eskom. In parallel, Injula created a coal exploration portfolio. With a fund raise of A$20M, Injula managed to develop a significant metallurgical and thermal coal project portfolio of 1,800 million tons.

He is currently an independent business advisor to one the largest remaining iron ore projects in South Africa, owned by a US junior mining company, Ferrox Ltd. The project, which is at a feasibility study level, is being developed into a large-scale opencast iron ore mining operation.

RALPH R. SACRISON, P.E.
INDEPENDENT ADVISOR

Ralph Sacrison is a mining engineer and geologist with 35 years of experience in precious metals, base metals, industrial minerals and coal. His engineering and production experience includes open pit, dragline, panel caving, vertical crater retreat, long-hole open stoping and cut-and-fill extraction methods, startups and mine closure.

His work includes resource and reserve evaluations. He has also designed, permitted, and/or constructed strip and pit final walls, waste dumps, tails storage, mine drainage, water production and monitoring wells, dump leach, backfill, shotcrete and degassification facilities, and concurrent reclamation.

Mr. Sacrison is a Principal of Nevada-based Sacrison Engineering, a consultancy established in 2004 to provide engineering services to mining and related firms. The firm's primary service areas are in engineering, construction management, and project management. The firm's staff has proven success in mining, geological, hydrological, environmental, and maintenance engineering at surface and underground mines both domestic and international.

GOLDER ASSOCIATES INC.
Lone Star Gold is pleased to have signed an agreement to use the services of Golder Associates Inc. Golder Associates is a respected, employee-owned, global company providing consulting, design, and construction services in its specialist areas of earth, environment, and the related areas of energy. With 160 offices worldwide, more than 7,000 Golder employees work with clients to manage their environmental and engineering activities in a technically sound, economically viable, and socially responsible manner.

ADDITIONAL INFORMATION
To learn more about Lone Star's advisors, the La Candelaria 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

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

    OTCBB: LSTG.OB