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.
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