VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/13 -- Estrella Gold Corporation (TSX VENTURE: EST) ("Estrella" or the "Company") has updated its technical disclosure on its website and retracted certain documents.
As a result of a review by the British Columbia Securities Commission, the Company is issuing the following news release to clarify its disclosure.
The Company performed a review of all its technical disclosure on the Company's website and determined that certain of its previously disclosed fact sheets and corporate presentations were not completely in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Properties (NI 43-101).
In the Company's May 2012 technical presentation, the Company inappropriately disclosed an economic analysis including cash flow and Net Present Value estimates from its Colpayoc property in Peru. This disclosure violated National Instrument 43-101, Part 2.3(1)(b), that states that "An issuer must not disclose the results of an economic analysis that includes or is based on inferred mineral resources or an estimate permitted under 2.3(2) or section 2.4". The Company hereby retracts the disclosure of the economic analysis, including the cash flow and NPV analysis. In addition, the Company was in violation of National Instrument 43-101, Part 2.3(3) as this economic analysis (i.e. cash flow and NPV) was not supported by a preliminary economic assessment (i.e. PEA). The Company does not intend on completing a PEA in the foreseeable future. The Company has deleted these estimates and removed all such references to these estimates from our presentations and website. The Company's only NI 43-101 report on the Colpayoc property is the "Colpayoc Gold Project Technical Report dated December 21, 2011" and this report remains current and is available on the Company's website.
The definition of a "preliminary economic assessment" in NI 43-101 is "a study, other than a pre-feasibility study or feasibility study, which includes an economic analysis of the potential viability of mineral resources". The Company's estimates do not meet the conditions and definition of a preliminary economic assessment. Given that a preliminary economic assessment was never prepared, the investors should not rely on these estimates in this earlier presentation.
In addition, the Company did not specify the category of the gold resource in its Colpayoc property on its website, more specifically in its July 2012 and January 2013 fact sheets and technical and corporate presentations. The Company corrected such deficiencies by retracting these disclosures and updated the website with the latest fact sheet and corporate presentation, clearly identifying that the estimated resource at the Colpayoc property is all in the "inferred" category. The Company also retracted all other resource information on its adjacent properties that the Company did not have proper references.
The definition of "Inferred Mineral Resource" is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological/or grade continuity. It is based on information gathered through appropriate techniques from location such as outcrops, trenches, pits, workings and drill holes which may be of limited or uncertain quality and reliability.
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