Estrella Gold Corporation (CSRFF)

[chmcnfunds]

Here is ho the Estrella Gold news release played in Lima, Peru:

Quote:
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15:35 Estrella likely to increase resource estimate at Colpayoc gold project, Peru

Lima, Nov. 03 (ANDINA). Canadian-based Estrella Gold Corporation said it would increase its resource estimate on the Daylight Gold Zone at its flagship Colpayoc gold project in the Yanacocha Gold District, located in Cajamarca, northern Peru.

The company announced it is preparing an updated resource estimate adding it has already completed 10 drill holes in 2011.

The Daylight Gold Zone contains a 400 meter diameter area of outcropping gold mineralization, which occurs within a porphyry gold system, surrounded by sedimentary rocks.

In 2010 SRK Consultants calculated an initial NI 43-101 compliant inferred resource based on a small amount of drilling, identifying a minimum of 7.6 million tonnes with 0.6 g/t gold with 144,600 ounces of gold (0.3 g/t cutoff), mainly oxide.

The SRK report confirmed that the gold resource remained open for expansion, and that the Daylight Gold Zone has potential to contain a larger gold resource.

Exploration drill holes completed by Estrella were located at in-fill and step-out drill sites from the current resource and are intended to provide data necessary to expand the gold resource.

The results identify mineralization which covers an area that is roughly 250 meters long by 200 meters wide with higher-grade gold zones trending roughly north-south.

The gold zone remains open for expansion on the east, with all six holes collared in mineralization, and to the north, south, and at depth.

Estrella has contracted Global Geotechnologies Inc. of Littleton Colorado to prepare the updated NI 43-101 compliant resource.

Keith Laskowski, President and CEO of Estrella, said the company has completed its initial resource estimate with only four historic drill holes, while historic trench results indicated that gold mineralization is continuous over a large area.

"I wanted to provide a base platform of value for shareholders with the initial resource estimate. We have now completed 10 additional holes which will expand the resource substantially; however we have still only drilled to about 150 meters in depth, " he said.

Laskowski stated drill results clearly indicate that the gold mineralization extends beyond the company's current drilling at surface and at depth.

"Most of our drilling has focused on the oxide gold mineralization, which extends to depth ranging from 50 – 90 meters. This type of gold system typically extends to much greater depths indicating the potential for even greater expansion of this resource in the future," he said.

Estrella Gold is a prospect generator company focused on gold exploration and resource definition in Latin America, with six precious metal exploration projects in Peru.

It has a minimum of 144,000 ounces of gold at its Colpayoc project in Peru and is expanding its gold resource inventory and also making new gold discoveries. It has 24.1 million shares issued and outstanding on the TSX Venture Exchange.

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http://www.andina.com.pe/Ingles/Noticia.aspx?Id=BkR/2apQO4w=

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