Estrella Gold Corporation (CSRFF)

[chmcnfunds]

Quotes from Mickey Fulp:

Quote:
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In my opinion, Estrella Gold Corp is currently on sale at 21 cents. The company has 24.1 million shares outstanding and 40.2 million fully diluted. However, that total includes 12.9 million warrants that are far out-of-the-money with expiries from July 2012 to July 2013. Market capitalization is a paltry $5 million. Estrella has $1.9 million in working capital, enough to satisfy exploration, property, and G &A expenditures until year end with a burn rate of about $100,000 per month. No current information on insider, family, and friends holdings was forthcoming from the company but based on my previous report, it is tightly held.

Since my last full report, Estrella Gold strengthened its Board of Directors, moved its corporate office and administration to a less expensive venue in Vancouver, staked new prospects and optioned out additional properties, and drilled and increased the 43-101 resource estimate at its Yanacocha District property.
EST currently holds 38 properties; most of them are in southern Peru with 34 joint ventured to other companies. Included in its joint ventures are 29 prospects in a strategic alliance with steel-industry giant Cliffs Natural Resources and the Pampa Poroma designated project currently being drilled, La Estrella
and Cerro Cori with AMEX-listed Mines Management Inc of Spokane, Washington, Isy with junior prospect generator Lara Exploration, and Pucarana with Esperanza Resources: Estrella Gold’s Projects in Peru

Projects currently available for joint venture include:

Colpayoc is located 12 km from Newmont-Buenaventura’s Yanacocha mine in northern Peru. It has a 313,000 ounce 43-101 inferred gold resource in the Daylight zone and a high-grade silver occurrence in the Cerro Rico zone. There are numerous undrilled porphyry gold targets within the landholdings.

Ccello Ccello-La Tola is a large area of epithermal and porphyry alteration in a contiguous claim block covering 70 sq km. Ccello Ccello is a high-sulfidation system related to structurally-controlled gold-silver mineralization at La Tola. In 2004 Newmont ran comprehensive geophysical surveys and drilled 18 reverse circulation holes at La Tola with some significant intercepts. Sense is a volcanic-hosted epithermal alteration system covering 35 sq km with a stream sediment gold anomaly. It is located 20 km southeast of the six million ounce Chucapaca gold deposit of Goldfields and Buenaventura.

In addition, Estrella controls a large concession in covered terrain north of Barrick’s giant polymetallic Pueblo Viejo deposit in the central Dominican Republic.

Estrella Gold Corp is a prospect generator that has executed its business plan with much success since ace geologist and CEO Keith Laskowski took over management about two and a half years ago. However, it has not been successful in rewarding its shareholders. Most of its decrease in market capitalization over the past year can be blamed on general micro-cap market conditions and relentless selling thru a Torontobased brokerage house for the past five months. Management thinks most of this selling is from retail shareholders placed in brokered private placements from late 2009 to mid 2011. Estrella retains a very tightly held share structure and it has a strong technical team that continues to
generate many prospects of merit in southern Peru.

Estrella means “star” in Spanish; I think the company’s stars are lining up and it is poised to take off when the junior resource market turns around.
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http://www.goldgeologist.com/update/ma4444.pdf

CSRFF