Another article......
LONE STAR GOLD, INC. TO COMMENCE INITIAL TAILINGS PROJECT SHIPMENTS TO
PROCESSING PLANT AHEAD OF SCHEDULE & RECEIVES RESULTS ON INITIAL SAMPLE SENT
FOR PROCESSING.
ALBUQUERQUE, NEW MEXICO, February 13, 2012 -- Lone Star Gold, Inc. (OTC Bulletin Board:
LSTG.OB; "Lone Star" or "the Company") is pleased to announce the Company plans to begin its initial
shipments of 1.2 million tons of mine tailings from the San Antonio del Potrero mine tailings project
("Tailings Project") ahead of schedule. Lone Star acquired an undivided 65% interest in the Tailings
Project on January 26, 2012, when the Company signed a Joint Venture Agreement ("JV Agreement")
with the specially formed Mexican subsidiary company, AMIKO KAY, S de RL de CV, and Miguel
Jaramillo. The project is located near the city of Hidalgo Del Parral in the state of Chihuahua, Mexico
The Company's development plan originally projected that shipments of 100 tons per day (tpd), would
commence at the end of February 2012. The Company now projects the initial shipments will commence
ahead of schedule in the week of February 20, 2012. The majority of ore will be processed in the city of
Parral (less than 15 minutes drive from the Tailings Project). Once a sufficiently large pile of Tailings
Project ore has been accumulated, the plant will then commence a processing run. Upon the plant selling
the resulting concentrate, it will arrange payment to Miguel Jaramillo's firm, at which point Mr. Jaramillo
will transfer 65% of the total revenue to Lone Star's US-based bank account.
The team in Mexico also performed additional unofficial testing by having a sample quantity of
approximately 40 kilograms (~88 pounds) of ore processed last week. Grade assays based on the
sampling were received from SGM (Servicio Geologico Mexicano). The grade assays (which are not
recognized by the N43-101 standard) represent an increase from the figures in the previous tailings
summary:
• Gold (Au): 0.7 grams/tonne
• Silver (Ag): 115 grams/tonne
• Lead (Pb): 1%/tonne
• Zinc (Zn): 1%/tonne
While the processing plant in the city of Parral is the closest to the Tailings Project, the Mexico team has
recently visited other processing plants in the area with the intention of securing additional processing
options. Additional processing plants in Parral, Torreon and Zacatecas have expressed interest in
receiving shipments from the Tailings Project and are currently discussing shipping scenarios that would
have the potential to double or possibly triple the total first year production. Accordingly, the Mexico team
is currently sourcing additional trucks and heavy equipment as needed to accommodate the expected
increase in first year production from the Tailings Project.
Lone Star Gold's President, Daniel Ferris, commented: "From the moment the news went out that the
Tailings Project had been acquired, our team in Mexico began receiving offers from multiple plants in the
surrounding area that were interested in processing our tailings. By leveraging the processing capacity of
these additional plants, we have the opportunity to instantly increase our first year projected production.
At the same time, by contracting out the ore processing in the short-term, we have the opportunity to
establish consistent revenues while simultaneously working on the mine development plan and future
onsite processing plant construction, which may take up to 18 months to complete."
Cautionary Note to U.S. Investors -The United States Securities and Exchange Commission permits U.S.
mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company
can economically and legally extract or produce. We may use certain terms in this press release, such as
“measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S.
