VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/07/13 -- Estrella Gold Corporation (TSX VENTURE: EST) ("Estrella" or the "Company") is pleased to announce that its joint venture partner Mines Management, Inc. (NYSE MKT: MGN)(TSX: MGT) ("Mines Management") has elected to extend the exploration program at La Estrella gold-silver project in central Peru under the terms of its agreement with Estrella, to earn a 75% interest in the property. Mines Management has notified Estrella of their intent to continue with the project, and they have made their annual earn-in lease payment to the Company. Mines Management has submitted proposed modifications to their previously approved exploration drilling permit to the appropriate Peruvian regulatory agencies, and currently, they are awaiting governmental approval of these modifications.
"Estrella is extremely happy that that Mines Management has decided to continue exploration work on the La Estrella project for a second year. Mines Management's work on the project during 2012 has been encouraging, and both their drilling and 3D-IP/Resistivity work indicate potential for further enlargement of the known mineralized zone. Mines Management is an excellent company to work with, and we anxiously await the results of their next phase of exploration work on the project," stated John R. Wilson, President and CEO.
2012 Exploration of La Estrella
In 2012, eight diamond drill holes totaling approximately 2,700 meters were completed, seven of which intercepted significant thicknesses of gold and silver mineralization (see News Release September 13, 2012). Highlights of the drill program include E-23 with 112.8 meters (m) @ 0.41 grams per tonne (gpt) gold (Au) and 21.4 gpt silver (Ag); E-24 with 160.6 m @ 0.37 gpt Au and 23.0 gpt Ag; and E-25 with 201.4 m @ 0.35 gpt Au and 12.9 gpt Ag. These intercepts expand the historically known area of mineralization toward greater depths on the west and southwest side of the project's 2012 area of interest.
Because a strong positive correlation between higher grade gold mineralization and moderate to high values of chargeability had previously been demonstrated on La Estrella Project, a 3-D Induced-Polarization/Resistivity survey by Val D'Or Geophysics Peru was contracted in December 2012 to February 2013 to provide indications of mineralized trends and directions useful for exploration. The survey identified a large, previously unknown area of anomalous chargeability extending north and northwest from the 2012 area of interest for a distance of approximately 1,400 meters. This new area, when combined with previously known areas of anomalous chargeability, forms a prospective zone over 2,000 meters in N-S extent and up to 1,100 meters in E-W extent. Mines Management expects that targets for the next phase of drilling will include sites across these newly-recognized chargeability trends. Other targets will include follow-up of structurally-controlled high grade silver intercepts as in E-29 with 26.1 m @ 0.04 gpt Au and 157 gpt Ag. All drillhole data is posted and available for review on Mines Management's website at www.minesmanagement.com.
Activities thus far in 2013 include the modification of exploration permits to encompass the expanded areas prospective for drilling, and metallurgical studies with completion expected in May, 2013. Activities planned for the remainder of the year will be conducted in accordance with Mines Management's current cash conservation activities.
La Estrella Project
La Estrella property contains approximately 2,500 hectares of land within the Central Peru Polymetallic Belt, and is located 130 km south of Huancayo in the Department of Huancavelica, a region with a history of silver mining dating to the 1500's. The Project is in an area of established infrastructure, with roads and electricity, and lies within 30 km of Minera Buenaventura's historic Julcani Silver Mine which began operation in 1955. Mines Management conducts work on the project subject to its agreement to earn 75% of the project through US$5 million in exploration activities and a preliminary economic assessment (see News Release April 10, 2012).
La Estrella Geology and Mineralization
La Estrella concessions cover a large area of gold-silver mineralization hosted by a thick west-dipping dacite sill beneath a sequence of andesitic volcanic rocks. Gold mineralization occurs as pyrite-associated disseminations in silicified and phylically-altered dacite; also as quartz-sulfide stockworks in brecciated or structurally-disrupted andesitic rocks. Higher-grade silver intervals (greater than 100 gpt) occur with galena and a variety of sulfosalts in mineralized structures cutting the dacite sill and volcanic package, reflecting an event later than the more widespread gold-silver dacite-hosted mineralization. To date, historic and current sampling and drilling activities have identified a roughly tabular zone of mineralization generally conformable to the dacite sill over 1,500 meters in strike length, 300-500 meters in width, and 50-150 meters thick. As previously mentioned, geophysical indications of mineralization include this known area and extend across a strike length of 2000 m and up to 1100 meters width in the central portion of the deposit. The system remains open to the north, south, west, and at depth in the central, widest portion of the anomalous zone.
About Estrella Gold Corporation (TSX VENTURE: EST) Mineral exploration is inherently risky and Estrella increases the chances of success as a "Prospect Generator" focused on gold exploration in Latin America. Estrella identifies and acquires new mineral properties, conducts initial, low-cost exploration to define a potential new deposit and then forms joint ventures with other companies that will provide funding for more advanced exploration. Estrella has twenty-two (22) active exploration properties in Peru, with five (5) held in venture agreements. The Company has 31.6 million shares issued and outstanding, and is listed on the TSX Venture Exchange (TSX VENTURE: EST).
Mines Management, Inc.'s VP of Exploration Mr. Michael G. Rasmussen, CPG, is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has prepared, reviewed and verified the technical information contained in this news release. Further information is available at Estrella Gold's website: www.estrellagold.com.
STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Estrella Gold Corporation
John R. Wilson
President and CEO
Estrella Gold Corporation
(888) 889-4874 (FAX)
Most Popular Stories
- Islamic State Obliterating Cultural Landmarks in Mosul
- The 2014 Fastest-Growing 100
- 'Lucy's' Super Powers Tops 'Hercules' at Box Office
- Boehner Says Impeachment Talk Is Democrat Scam
- You're So Vain: Microsoft to Launch First 'Selfie Phone'
- VW Site Could Mean Another 2,000 Jobs for Chattanooga
- U.S. Home Price Gains Slow for 6th Month in a Row
- RV Sales See Highest Increase Post Great Recession
- Report: China to Declare Qualcomm a Monopoly
- Insecticides Permeate U.S. Food, Water Supply