SOURCE: Lone Star Gold Inc.

October 10, 2011 10:17 ET

Lone Star Gold, Inc. Provides Update on First Week's Research on Mexico-Based Gold-Silver Ocampo Property

ALBUQUERQUE, NM--(Marketwire - Oct 10, 2011) - Lone Star Gold, Inc. (OTCBB: LSTG) ("Lone Star" or "the Company") is pleased to provide an update on the Company's first week of due diligence on the Ocampo gold-silver property in Chihuahua State, Mexico.

Lone Star has recently signed a letter of intent (LOI) committing to the acquisition of 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, 192 miles (310 km) from the capital city of Chihuahua, in southwest Chihuahua State.

Reconnaissance & due diligence activities by the Lone Star team over the past week have included the completion of an initial field study of the property and if positive may result in the future purchase of the property.

Last weeks collected samples will be crushed, split, and then sent for analysis to ALS Global in Vancouver as well as a second laboratory located in Torreon, Chihuahua. During the course of the week, the Lone Star team confirmed 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 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.

While gold production and exploration occurs both to the north and south of the Ocampo region within Chihuahua State, the Ocampo mining district itself has multiple large mines currently in operation along with multiple exploration projects in the area. Among them is AuRico Gold's (formerly Gammon Gold) 14,641 hectares in the Ocampo mine area, on which they completed 115,493 meters of drilling in 2009 and another 75,637 meters during the first eight months of 2010. Meanwhile, 5 km (3.1 miles) to the south of Lone Star's Ocampo Project, Fresnillo PLC, the world's largest primary silver producer, is conducting a large exploration project. The Lone Star team noted that access roads and infrastructure in the surrounding area have been greatly improved over the last few years.

"This property could be very exciting and this area has much still to give," commented Lone Star's VP of Exploration Miguel (Mike) Jaramillo. "The surface rock shows potential to be shipped to a plant immediately."

Lone Star intends to develop an exploration plan to further evaluate the properties potential mineral resource while determining the potential sites that represent the best potential for silver and gold deposit before announcing it's decision (within 90 days of LOI), whether or not to move into a Definitive Agreement and subsequent property purchase.

ADDITIONAL INFORMATION
To learn more about the Ocampo 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 Property, 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.

(OTCBB: LSTG)

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