Estrella Gold Corporation (CSRFF)

[chmcnfunds]

Estrella's Partner to Continue Exploration Program at Henry Sur, Peru.

Estrella's Partner to Continue Exploration Program at Henry Sur,Peru.

- Program to consist of geological mapping and geochemical sampling - Exploration work to be conducted by Estrella's Peru Geological team

VANCOUVER, BRITISH COLUMBIA, Jun 20, 2013 (Menafn - Marketwired via COMTEX) --

(Edit -- not sure why many words have merged)

Estrella Gold Corporation ("Estrella" or the"Company") is pleased to announce that following the recentexpiration of our Alliance Agreement with Cliffs Natural ResourcesExploration Inc., a wholly owned subsidiary of Cliffs NaturalResources Inc. CLF ("Cliffs"), Cliffs has decidedto fund additional exploration work on the Henry Sur property. TheHenry project was identified as a "Target" under the AllianceAgreement with Cliffs in 2012 and is comprised of 16 concessionstotaling 11,600 ha.

Mr. John R. Wilson, President and CEO of Estrella, commented, "We arepleased with the results of our initial exploration work at Henry Surand believe that the property may offer the potential for thediscovery of a major copper skarn system with by-product gold, zincand lead. Continuing work with Cliffs on this project offers thepotential for increasing Estrella shareholder value, and we lookforward to additional encouraging news in the coming months."

The Henry Sur property is located in Departamento Ica approximately30 kilometers east of the town of Chincha, and planned 2013 work onthe project will be fully funded by Cliffs. The planned program isexpected to commence in July of 2013, and Estrella will continue toact as the project manager. Planned work will consist of additionalreconnaissance and detailed geological mapping and geochemicalsampling.

Geologically, the prospect is comprised of limestone and clasticsedimentary rocks which has been intruded by Cretaceous granodiorite(Coastal Batholith) and locally diorite. In the western portion ofthe Henry Sur concession block, the older rocks are overlain by ayounger, presumably post-intrusive, andesitic volcanic unit. Thelimestone and clastic sequence trends northwesterly and is up to 5km. wide and a minimum of 15 km. long. The sedimentary sequenceprobably represents a mega roof pendant within the coastal batholith,and it is estimated to be a minimum of 300 meters thick.

Mapping to date has identified approximately 20, relatively small,garnet-(/-pyroxene) skarn zones on the Henry Sur prospect. Theseskarn bodies almost always occur at the contact between the limestoneand the adjacent granodiorite, and they range from a few meters to 35meters wide and up to 350 meters long.

To date, a total of 96 surface rock-chip samples have been collectedfrom the Henry Sur prospect. The majority of these were taken withinthe contact zones/skarn zones between the sedimentary sequence andthe adjacent granodiorite. Within the garnet skarn bodies locallyanomalous Au (up to 0.261 ppm), Cu (up to 9.3 percent), Zn (up to 6.7percent), and Pb (up to 7.1 percent) were detected.

Based on the work completed to date, it appears that potentiallysignificant, skarn-related copper mineralization may be present onthe Henry Sur concession block. Although the known surfacemineralized skarn bodies appear to be small, it is possible thatlarger bodies of mineralized skarn may occur at depth along thelimestone-granodiortie contact. Additionally, much of the favorablelimestone-granodiorite contact has yet to be fully reconnaissancemapped and sampled, and it is possible that larger, currentlyunknown, outcropping, mineralized skarns may occur in these areas.

AGREEMENT: Estrella's Alliance Agreement with Cliffs, whichestablished Estrella as the operator and was initially focused on thediscovery of IOCG-type Cu-Fe/-Au deposits, was terminated upon theexpiration of the two-year term. Nonetheless, the parties havedetermined that Henry Sur will be treated as an "In-Process Project"under the Alliance Agreement terms to determine if the prospect canbe upgraded to a "Property of Merit". If Henry Sur becomes a Propertyof Merit and it is accepted by Cliffs, then Henry Sur will become aJoint Venture Project ("Project") with Cliffs and Estrella eachowning an initial 50% interest.

Cliffs can then acquire an additional 20% interest in Henry Sur, to atotal 70% interest, by spending a minimum of US4,000,000 andcompleting 3,000 meters of drilling within four years of selection.If accepted as a Project, Cliffs will be required to expend a firmcommitment of US500,000. If Cliffs does not acquire the additional20% interest, the property reverts 100% to Estrella, subject incertain circumstances to a potential NSR royalty in favour of Cliffs.Upon earning 70% interest, Cliffs can acquire an additional 10%interest to a total 80% interest in Henry Sur by completing an NI43-101 Compliant Pre-Feasibility Study or by defining a compliantMineral Resource containing a minimum of 1,000,000, ounces of gold orgold equivalent, within four years of earning its 70% interest. IfCliffs elects not to earn an additional 10% interest, Cliffs will payEstrella US2,000,000 within 60 days and the parties will fund theirproportional interest, subject to conventional dilution. If eitherparty's interest in the Project is reduced to 10%, that interest willbe convert to a 2% NSR royalty.

About Estrella Gold Corporation Mineralexploration is inherently risky and Estrella increases the chances ofsuccess as a "Prospect Generator" focused on gold exploration inLatin America. Estrella identifies and acquires new mineralproperties, conducts initial, low-cost exploration to define apotential new deposit and then forms joint ventures with othercompanies that will provide funding for more advanced exploration.Estrella has four properties optioned out or held in joint ventureagreements. The Company has 31.6 million shares issued andoutstanding, and is listed on the TSX Venture Exchange .

To learn more visit: www.estrellagold.com.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (ASTHAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICALINFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTUREPLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKINGSTATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUSASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIESINHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUALRESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THEFORWARD-LOOKING STATEMENTS.

Contacts:
Estrella Gold Corporation
John R. Wilson
President and CEO
[phone]
[phone] (FAX)

Estrella Gold Corporation
Sandrine Lam
Shareholder Communications
[phone]
[phone] (FAX)
www.estrellagold.com

SOURCE: Estrella Gold Corporation

http://www.estrellagold.com

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