ALBUQUERQUE, NM–(Marketwire – March 26, 2012) – Lone Star Gold, Inc. (
In December 2011, initial shallow holes were drilled on Lone Star’s ~1,976-acre La Candelaria. Initial results from the drilling showed hydrothermal chemical alterations that have potential for a silver-gold deposit at deeper levels. In January 2012, Lone Star extended the Company’s work commitment to the project until March 11, 2012, in order to allow for drilling 3-4 deep core holes to add to the Company’s understanding of the project’s mineral potential. Based on positive drilling results received in March 2012, the Company has decided to continue its exploration activities on the La Candelaria project, which will require arranging the originally agreed payment of $125,000 USD for the full year work commitment following the March 11, 2012 work commitment extension date. More details on the drilling results and 2012 timeline will be released in due course. (Official ALS Chemex core results due in coming 1-2 weeks).
In order to fund the continued exploration program Lone Star has exercised a USD$250,000 Put Notice, which represents Lone Star’s fifth draw down request against the USD$15 million line of equity agreement the Company entered into on August 26th, 2011, with North American Gold Corp (NAGC). The draw down will be used to support the Company’s ongoing development of its Tailings Project shipments and its year-two financial commitments on the La Candelaria gold-silver project in order to facilitate continuing exploration.
Lone Star Gold’s President, Daniel Ferris, commented: “We’ve seen positive indicators at the Candelaria and our VP of exploration has suggested the need to drill deeper to further test the property’s mineral potential. The team is all very excited that we’ve decided to continue the Deep Drill program & further exploration of the property.”
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.
ADDITIONAL INFORMATION
To learn more about Lone Star’s projects, 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 (
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.
