SOURCE: Lone Star Gold Inc.

November 15, 2011 09:00 ET

Lone Star Gold, Inc. Provides Due Diligence Results Update on Mexico-Based Ocampo Property

ALBUQUERQUE, NM--(Marketwire - Nov 15, 2011) - Lone Star Gold, Inc. (OTCBB: LSTG) ("Lone Star" or "the Company") is pleased to provide an update on results obtained to date through the Company's due diligence field work on the Ocampo gold-silver property in Chihuahua State, Mexico.

Lone Star recently signed a letter of intent (LOI), thereby acquiring an option to purchase a 70% interest in the ~1409-acre (570-hectare) project, which consists of the San Luis and La Colorada properties in the municipality of Ocampo. The project lies 192 miles (310 km) from the capital city of Chihuahua, in southwest Chihuahua State. The Company is currently still within a 90-day due diligence period (from the signing date of the LOI), during which time Lone Star is continuing to explore the whole property and collect samples (chip, quartz vein, and fault structure) before announcing the Company's decision on whether or not to move into a Definitive Agreement and subsequent property purchase.

On Friday, November 11, 2011, Lone Star received the following sample results from its exploration efforts on the Ocampo property:

NO. SAMPLE OCAMPO GOLD GRAMS SILVER GRAMS
SL-4 1.7 120
SL-6 0.9 108
SL-11 1.9 205
SL-13 2.1 218

Other results from the Lone Star team's field work include confirming multiple previously reported large vein structures with a N.E. 15 and N.E. 60 strike, ranging from 0.7 to 4 meters (2.3 to 13.12 feet) in width. The team has also observed multiple off-shoot veins containing obvious high content silver, and strong oxidization in the host rock. Previous Geo-Chemical data had shown the area systems, quartz vein stockworks and breccias bearing gold, silver, argentite and pyrite with trace amounts of galena as well as chalcopytrite, sphalerite and sulphosalt minerals. The Ocampo property itself has multiple small existing mines with a maximum depth of 15 meters (~49 feet) that were worked between 50 and 100 years ago.

Over the course of the next 2 weeks, the Lone Star team will continue its due diligence exploration across the property while strategically targeting select areas to further evaluate the property's potential mineral resource while determining the sites that represent the best potential for silver and gold deposits.

Lone Star's Company President, Daniel Ferris, commented: "No decision has been made yet to purchase. At the same time, these preliminary due diligence results are certainly encouraging. And the property represents the potential to enter production in the very near term. Then there's the attractiveness of the region, with multiple large mines currently in operation and gold exploration occurring to the north and south, including AuRico Gold (formerly Gammon Gold) drilling in the Ocampo mine area, and Fresnillo (the world's largest primary silver producer), conducting a large exploration project 5 km (3.1 miles) to the south of the Ocampo property. These are all significant factors that will be considered before making a final decision on whether to exercise our option to purchase the Ocampo property."

In addition to the Company's Ocampo property-related activities, Lone Star is currently evaluating a 3rd project in the area (details will be released as they become available). Meanwhile, the Company's 10-15 target drilling program is still underway on its La Candelaria gold-silver project (70% Working Interest) in Chihuahua State, Mexico. Results from the drilling program, which began in early November, are expected back by mid-December 2011.

The company is also looking at 3 different track type drills to purchase. Currently the firm rents the equipment and a purchase will make greater financial sense for the long-term, especially as the number of properties looks likely to increase in the region.

ADDITIONAL INFORMATION
To learn more about the Company's projects, 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.

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.

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