TORONTO, ONTARIO--(Marketwire - June 30, 2011) - Estrella Gold Corporation (TSX VENTURE:EST) ("Estrella" or the "Company") is pleased to announce it started drilling its Colpayoc gold project on June 26, 2011. Colpayoc is located 12 kilometers southwest of the Yanacocha gold mine complex, in Peru. The drill program is designed to expand the area of known mineralization at the Daylight Zone, and to test recently discovered high-grade silver and gold mineralization at the Cerro Rico Zone. The Colpayoc property contains 5,774 hectares (57.7 square kilometers) with gold and silver mineralization in three areas. Approximately 1,800 meters of core drilling in eight holes are planned at the Daylight Zone and the Cerro Rico Zone.
The Daylight Zone has been the focus of most work at Colpayoc and contains oxidized, outcropping gold and copper mineralization hosted within a porphyry gold-copper system. The zone contains a 300 meter diameter area of outcropping gold mineralization, surrounded by sedimentary rocks. Based on previous drill results, SRK Consultants calculated an initial NI 43-101 compliant inferred resource (2010) containing 7.6 million tonnes @ 0.6 g/t gold with 144,600 ounces of gold (0.3 g/t cutoff).
The Cerro Rico Zone will receive its first drilling. The drill program is planned to test high grade silver and gold mineralization identified in recent trenching results. Estrella completed an initial trenching program in February, located less than two kilometers northwest of the Daylight Zone. Three trenches totaling 231.8 meters identified high grade silver and gold replacement style mineralization, hosted in fault zones within sedimentary and volcanic rocks. Trench sampling was restricted and drilling will help to determine the true width of these mineralized zones. Trench assays results include:
||8.0 meters @ 372.5 g/t silver with 3.9 g/t gold (74.0-82.0 m)
||5.8 meters @ 872.6 g/t silver with 0.7 g/t gold (37.8-43.6 m)
||1.8 meters @ 1,515 g/t silver and 0.8 g/t gold (41.8-43.6 m)
Drilling will continue through the month of July. Estrella has contracted Bradley MDH S.A.C of Lima, Peru to complete the drilling program.
About Estrella Gold Corporation (TSX VENTURE:EST) Estrella Gold is a "Prospect Generator" company focused on gold exploration and resource definition in Latin America. Estrella Gold has seven precious metal exploration projects in Perú and one in Chile. The Company has 144,000 ounces of gold at its Colpayoc Project in Peru (NI 43-101 Inferred Resource) and is expanding its gold resource inventory, and also making new gold discoveries. Mr. Keith A. Laskowski, MSc., 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. The Company has 17.3 million shares issued and outstanding on the TSX Venture Exchange (TSX VENTURE:EST). 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.
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