Estrella Expands Daylight Gold Zone and Identifies Second Porphyry, Colpayoc Gold Project, Peru

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire -12/08/11)- Estrella Gold Corporation (TSX-V: EST.V - News) ("Estrella" or the "Company") is pleased to provide an update on the Colpayoc Gold Project in Peru. The property contains 5,773 hectares of land located 12 kilometers southwest of the Yanacocha mine complex, the largest gold producer in South America. Estrella owns or has the option to acquire a 100% interest in the property. The Company interrupted its work schedule on the property recently due to strikes and disruptions in the city of Cajamarca associated with the Minas Conga development project of Newmont/Buenaventura, however there are no conflicts or disruptions on the property. Two distinctive types of gold mineralization have been identified and are being explored at Colpayoc including porphyry-gold style mineralization at the Daylight Zone, and structurally-controlled gold with silver and base metals at the Cerro Rico Zone. Most work has focused on the Daylight porphyry gold system where the Company is preparing an updated NI 43-101 resource estimate based on the 2011 drill results. Recent mapping indicates that the Daylight Zone is much larger than original mapping had indicated and extends well beyond the area of recent drilling. Previously the Daylight porphyry was thought to be about 350 meters in diameter however new mapping indicates that the magnetite bearing porphyry body is at least 600 meters in diameter and likely extends further, beneath cover rocks in several areas. These results indicate there is further potential to greatly expand the size of the near surface gold resource.

A second gold-porphyry system has been identified approximately 600 meters southwest of the Daylight Zone at the Montura Zone. Montura contains a strong ground magnetics anomaly resulting from disseminated and veinlet magnetite within a 300m x 250m porphyritic intrusion (See attached figure which shows imaged ground magnetics data with prospect, trench and drill hole locations). The porphyry contains well-developed quartz and iron-oxide stockwork with variable magnetite veinlets and disseminated magnetite within sericite-clay-iron oxide altered porphyritic intrusive (oxidized). Reconnaissance rock samples contain anomalous gold values and three historic drill holes (Newcrest) located outside the margin of the main porphyry body encountered anomalous gold values including:

 

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Drill           UTM     Azimuth      Total    From      To  Interval    Gold
Hole       Location Inclination  Depth (m)     (m)     (m)       (m)   (g/t)
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CPD 01   E763447.65           0        300     0.0    44.0      44.0    0.32
        N9209806.44         -90
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                                       and   272.0   300.0      28.0    0.20
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CPD 05   E763647.33         220        160    26.0    82.0      56.0    0.19
        N9209732.55         -70
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CPD 07   E763481.37         220        141     8.0   141.0      133m    0.13
        N9209957.09         -65
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Keith Laskowski, President & CEO, commented: "Our team has greatly expanded the potential size of this system with this new mapping. Our geophysical data indicated that several porphyry systems may be present and our team has confirmed this. Our drilling at the Daylight Zone has been conservative with the plan of carefully expanding the gold resource, however these mapping results are outside of any drilling and clearly identify the potential to greatly expand the resource beyond our current planned update. The new Montura Zone indicates that we have an entirely new porphyry system, with additional potential in the area between Montura and Daylight." The Company has recently collected systematic channel samples from road cuts within the new mineralized zone which are now being analysed.

Mapping at the Cerro Rico Zone has identified a prospective silicified fault zone, extending more than 1.5 kilometers northwest from the initial trenches at Cerro Rico. The fault zone occurs mainly within Cretaceous limestone and varies from 2 - 30 meters in width. Breccia zones contain silica cement and silica replacement of carbonate clasts, with variable amounts of iron oxide and manganese oxide, classified as jasperoid. Initial trench samples from the southeast end of this fault zone contained previously reported high grade values up to 5.8 meters @ 872.6 g/t silver with 0.7 g/t gold (37.8-43.6 m) in trench CR03. Estrella recently completed one drill hole (COL-11) beneath trench CR03 however no significant mineralization was encountered within the fault zone. A second hole (COL-12) was drilled north of COL 11 but did not intersect the fault zone and no significant values were identified. The silicified fault zone contains at least 6 prospect pits, some with evidence of historic production. The Cerro Rico fault zone continues to the northwest and is now subject of systematic mapping and sampling. The Company is awaiting additional assay results from three remaining holes drilled in adjacent target areas and will complete systematic mapping and sampling of all prospective target areas on the property.

About Estrella Gold Corporation (TSX-V: EST.V - News) Estrella Gold is a "Prospect Generator" company focused on gold exploration and resource definition in Latin America. Estrella Gold has six precious metal exploration projects in Peru. The Company has a minimum of 144,000 ounces of gold at its Colpayoc Project in Peru (7.6 Mt @ 0.6 g/t gold, NI 43-101 Inferred Resource, 2010 SRK) 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 24.1 million shares issued and outstanding on the TSX Venture Exchange (TSX-V: EST.V - News). Further information is available at Estrella Gold's website: www.estrellagold.com.

To view the Map associated with this release, visit the following link: http://media3.marketwire.com/docs/est128_F1.pdf.

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 the 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.

Contact:

Estrella Gold Corporation
Keith Laskowski
President , MSc., QP
(720) 272-6224 or (303) 235-8099 or (604) 687-3520
(604) 688-3392 (FAX)
klaskowski@estrellagold.com
www.estrellagold.com

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