Pinestar Gold Inc.
TSX VENTURE : PNS

Pinestar Gold Inc.

May 27, 2011 15:30 ET

Pinestar Gold Inc. Cuts 13.3 g/t Gold and 14.1 g/t Silver at Becker Gold-Silver Property in Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 27, 2011) - Pinestar Gold Inc. (TSX VENTURE:PNS) ("Pinestar" or the "Company") is pleased to announce that it has now received complete assays from thirteen holes of its ongoing diamond drill program on the Becker Gold-Silver property in Chile. These holes are part of a 1,500 metre reconnaissance drill program designed to test the "Guindos" sector, one of several swarms of gold and silver bearing epithermal veins identified by the Company's prior surface exploration programs. Significant gold, silver and / or copper and zinc intercepts worthy of follow up drilling were obtained from the six holes detailed in the table below.

Jeremy Ford, President and CEO of the Company, states that "the drill results released today from our reconnaissance program indicate to the Company that the Becker vein systems have excellent potential to develop high grade gold and silver resources and the Company intends to follow up aggressively with a second phase of more detailed drilling".

Highlights

  • Significant new gold–silver +/- copper-zinc intercepts from the Guindos vein systems, include highs of: 1.7 metres grading 6.8 g/t Au and 16.6 g/t Ag in BK11-03, 2 metres grading 1.6 g/t Au, 10.7 g/t Ag, 1.57% Cu and 1.03% Zn in BK11-12 and 1.9 metres grading 7.3 g/t Au and 1.9 g/t Ag.
  • Prior surface channel sampling of the Guindos vein systems returned highs of 8.3 g/t Au and 13.5 g/t Ag over 2.5 metres to 9.1 g/t Au and 2.2 g/t Ag over 6.0 metres width.
  • The Guindos vein systems at surface vary from 5-30 metres wide, contain individual veins from 1.5 metres to over 10 metres in width and can be traced over strike lengths of 200 metres to 600 metres.
  • The Becker property covers at least two main vein systems, Guindos and Lajuelas, both of which have developed under low to medium sulfidation epithermal conditions and as such are similar to local past and current producers such as Yamana's Florida Mine.
  • Following completion of the Guindos sector drilling, the Company plans immediately start drilling of the Lajuelas sector vein system were prior trenching returned peak values of 9.6 g/t Au over 7.5 metres width and 12.2 g/t Au over 3 metres width.

Phase I Reconnaissance Diamond Drill Hole Results


Hole#
From(m)To(m)IntervalAu g/tAg g/tCu%%Zn
BK11-0217.419.62.21.912.2
BK11-0316.120.74.63.39.9
includes19.820.70.913.314.1
33.035.42.40.717.20.231.84
BK11-059.411.01.61.44.3
BK11-1052.054.02.01.86.60.13
BK11-11101.0103.12.10.48.50.47
BK11-12102.5104.52.01.610.71.571.03
BK11-131.64.73.13.91.4
includes2.84.71.97.31.9

These six shallow holes are distributed at intervals of 100 metres or more along three of the five main veins in the Guindos sector none of which have been drilled in the past. All widths are core widths and true widths are not known at this time, but will be less than core widths. The intersected gold-silver grades in these holes are characteristic of gold-silver grades within and peripheral to ore shoots at local mines on similar epithermal veins and indicate their potential for economic mineralization. Drill holes BK11-01, 04, 06, 07, 09 and 09 encountered local sections geochemically anomalous in Au, Ag and or Cu, Pb and Zn.

The Becker Gold-Silver Property

The 2,000 hectare Becker property is located 250 kilometres south of Santiago in the Chilean Coastal Precious Metal Belt and is readily accessible by paved and good gravel road from the city of Talca 40 kilometres to the southeast in Region VII, Chile. Pinestar holds an option to earn up to a 70% equity interest in the property from Condor Resources Inc.

Property Geology

The Becker property covers part of a NE-SW trending roof pendant of Cretaceous volcanics, subvolcanic porphyry bodies and sediments within Cretaceous granodiorite. Gold and copper mineralization in the form of epithermal to upper mesothermal veins, pipes and disseminations occur throughout this roof pendant generally associated with the sub-volcanic porphyries and healed fault zones. Several sets of NW-NNW and E-W to WNW trending anastomosing and bifurcating tensional faults cross-cut the volcanic package and are locally the focus of auriferous epithermal to upper mesothermal quartz-sulphide veins and clay-sericite-quartz alteration. Two main areas of such vein-alteration systems have been identified to date on the Becker property: a) the "Lajuelas" sector and b) the "Guindos" sector. The veins are similar in both sectors, vary from 5-30 metres wide, are traceable for 200 metres to over 1 kilometre in length and most contain variable amounts of gold-silver and or gold-silver-copper mineralization.

Deposit Types

The Becker vein systems appear to have developed under low to medium sulfidation epithermal conditions and as such are similar to past and current producers in the Coastal Gold Belt such as El Chivato, Chancon, Yamana's Florida Mine (Measured and Indicated Resources, 3.9 million tons averaging 5.2 g/t Au, 23.4 g/t Ag and 1.39% Zn, Scott Wilson RPA 2006), Las Palmas, 10 kilometres northeast of the Becker Property and the Chépica Mine, 25kilometres to the south. In all of these locals gold and silver mineralization generally occurs in banded or fine grained quartz and or quartz-sulphide veins, breccias, pipes and stockworks. Copper, zinc and lead are also important by-product minerals in most areas.

Prior Exploration Results

Guindos Sector

Detailed geological mapping and channel sampling in this sector to date has identified two clusters of banded to massive epithermal quartz – sulphide veins covering at least 0.5 square kilometres each. Individual veins vary from 1.5 metres to over 10 metres in width, tend to occur in northwest trending swarms of 3 to 6 veins within wider zones of clay-sericite alteration and have been traced over strike lengths of 200 to 600 metres. Veins in both clusters contain trace to 5% sulphide, mainly as pyrite and chalcopyrite. To date, 40 representative rock chip and channel samples have been collected from these two clusters. The northern most of these, with 21 samples, contains the highest gold and silver values range from a low of 0.02 g/t Au and 1.23 g/t Ag over 3.5 metres width to highs of 8.3 g/t Au and 13.5 g/t Ag over 2.5 metres width to 9.1 g/t Au and 2.23 g/t Ag over 6.0 metres width. This area is the site of the current drilling program and is open to expansion to the northwest and southeast.

Qualified Person

Mr. Terence Walker, M.Sc., P.Geo., is qualified person within the meaning of National Instrument 43-101, and has reviewed the contents of this news release. Mr. Walker is an independent consultant to the Company. Individual core samples where halved using a diamond core saw, one half bagged and sealed on site for assay the other half retained on site in sealed metallic core boxes for future reference. All analyses were carried out at ALS Patagonia Laboratories, Coquimbo, Chile. Routine gold analysis was carried out on 30g sub-samples using a fire assay pre-concentration and atomic absorption spectro-photogrametric (AAS) finish. Silver, copper, zinc and lead were also routinely analysed by ICP following a hot four acid digestion. Samples with gold and or silver values greater than 10g/t were re-analysed by fire assay and gravimetric finish. Samples with copper, zinc and lead values over 1% were re-analysed using a hydrofluoric-nitric-hypochloric acid digestion, hydrochloric acid leach and AAS finish.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the follow-up drilling on the Guindos sector of the Becker property, future drilling plans with respect to the Lajuelas sector of the Becker Property, other future exploration activities of the Company on the Becker property, future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.

Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on a number of material factors and assumptions, including, the availability of suitable personnel to complete drilling and other exploration activities, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, the occurrence of suitable weather conditions to conduct drilling and other exploration activities, the results of past drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, , that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pinestar Gold Inc.
    Jeremy Ford
    President, Chief Executive Officer, and director
    (604) 647-4487
    pinestargold@gmail.com