Lone Star Gold, operating out of a headquarters in Albuquerque, New Mexico wields an impressive mineral acquisition/development architecture in the US/Mexico and took some time recently (Nov 23) to detail ongoing due diligence related to its aggressive business strategy, as well as to inform investors, providing the latest operational updates regarding current gold and silver projects in Mexico.
President of LSTG, Daniel Ferris, assured markets that the Company’s currently project portfolio had solid forward momentum in all areas and that confidence was high for projected results/conditions. Ferris pointed to the highly anticipated results from samples conveyed to noted Vancouver, Canada analytical laboratory, ALS Chemex Laboratory via the Company’s Chihuahua office and outlined that results would heavily influence the pending (“within months”) Ocampo acquisition. The Ocampo acquisition would substantially expand LSTG’s foothold in the proven Sierra Madre Occidental mining region and save Ferris the trouble of having to explain the Company’s aggressive attitude towards such prime acquisitions.
Timeframes and projected costs, as well as development details regarding the Company’s two Mexico-based projects La Candelaria (70% working interest on some 1,976 acres located in Chihuahua) and the promising Ocampo (option to purchase a 70% interest in the roughly 1,409 acre site, also in Chihuahua) have been provided.
La Candelaria
Extensive logistical considerations, including roadways and a new prepping area, have begun in the current shallow drilling program run-up, with fifteen key target areas mapped for roughly 650 feet of drilling per hole. Budgeting has been allocated for anticipated ancillary expenses related to drilling in the program, with specifics like the securing of a triple-axle trailer and two more equipment trucks over the coming week to bring in gear and supplies, also included.
Initial lab results are anticipated mid-late December 2011, with operations in 2012 kicking off in a January frenzy of up to 2,300 feet of deep hole drilling, for what looks like as many as five of the targets at La Candelaria. Analysis of initial results will largely determine targeting allocation priorities and these decisions will be made at run time. Drilling teams are in the process of being staffed, while the associated cost projections related to drilling are being quantified via actual quotes.
LSTG is set to make a $150k work commitment payment in January as well, with an additional $125k property payment coinciding, as per determinations in the signed La Candelaria definitive agreement.
Ocampo
The meticulous build up of geo-chemical/physical data via field work by the onsite team has served ongoing due diligence very well and the Company is in a prime position to secure a 70% interest. The initial positive results from the team will be vetted against sample analysis coming back from ALS Chemex and the next few weeks will consist of plotting and mapping the data more comprehensively as key targets are honed in on. Chief among the analytical efforts is work done on quartz from the southeast zone of the property; this analysis will offer the best possible framework in which to identify targets, such that subsequent drilling will be at peak efficiency.
For more information on the latest operations at either property, or to stay up to date on news and information related to other developments at Lone Star Gold, Inc. please visit the Company’s website at: www.LoneStarGold.com
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