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Estrella prepares updated resource at Colpayoc Gold Project, Peru

Estrella prepares updated resource at Colpayoc Gold Project, Peru
November 03
20:16 2011

VANCOUVER, CANADA – Estrella Gold Corporation (“Estrella” or the “Company”) is pleased to announce it is preparing an updated resource estimate on the Daylight Gold Zone at its flagship Colpayoc Gold Project in the Yanacocha Gold District in northern Peru.

Estrella completed 10 drill holes in 2011 (previously reported). The Daylight Gold Zone contains a 400 meter diameter area of outcropping gold mineralization.

Mineralization 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. The inferred resource identified a minimum of 7.6 million tonnes @ 0.6 g/t gold with 144,600 ounces of gold (0.3 g/t cutoff), mainly oxide.

NR 52 map sm Estrella prepares updated resource at Colpayoc Gold Project, Peru

Estrella is updating resources at the Colpayoc Gold Project in Peru. Photo: Estrella Gold Corporation website.

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.

Drill results shown on the attached map exhibit grade variations typical of a gold porphyry system ranging from 0.1 — 1.3 g/t.

These 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 commented: “We completed our 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. Drill results clearly indicate that the gold mineralization extends beyond our 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.

About the Colpayoc NI 43-101 Compliant Gold Resource: The initial resource estimate was prepared by SRK Consulting (U.S.) Inc. as part of a NI 43-101 Technical Report completed in June 2010. The resource estimate contained the following:

Colpayoc Daylight Gold Zone: Inferred Resource (0.30 g/t low-grade cutoff):

Oxide: 4,663,275 tonnes @ 0.59 g/t containing 87,800 oz
Reduced: 2,913,019 tonnes @ 0.61 g/t containing 56,800 oz
Total: 7,576,293 tonnes @ 0.60 g/t containing 144,600 oz gold

The block model utilizes an inverse-distance squared (ID2) model, with 6m x 10m x 10m block sizes, using Mintec’s MineSight software.

All gold mineralization is hosted within sheeted and stockwork quartz+/magnetite+/pyrite-iron oxide veins, hosted within a highly altered granitic intrusion. Oxidation extends to approximately 45 meters depth, and preliminary bottle-role tests on surface trench samples indicate favorable recoveries for oxidized material.

The outcropping area of the intrusion is almost entirely altered and mineralized, however overlying sedimentary rocks limit the exposure of this mineralized rock.

Although the property has received only a small amount of drilling, due to the consistent and broad areas of gold mineralization, the Company has prepared this initial gold resource estimate to guide future exploration and expansion of the resource.

This initial resource estimate benefits from extensive surface trench data, however the small number of drill holes generally limits the extent of interpolated mineralization at depth. The four drill holes penetrated consistent mineralization to the end of each hole (200 meters), however resources can only be included adjacent to the drill holes, and between the drill holes on interpreted northeast structural trends, until additional drilling is completed.

There is exploration potential beneath mineralized trenches that is not fully tested by drilling.

About Estrella Gold Corporation (TSX-V: EST)

Estrella Gold is a “Prospect Generator” company focused on gold exploration and resource definition in Latin America. Estrella Gold has six precious metal exploration projects in Perú. The Company has a minimum of 144,000 ounces of gold at its Colpayoc Project in Peru (NI 43-101 Inferred Resource) and is expanding its gold resource inventory and also making new gold discoveries. Mr. Keith A. Laskowski, MSc., is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has prepared, reviewed and verified the technical information contained in this news release. The Company has 24.1 million shares issued and outstanding on the TSX Venture Exchange (TSX-V: EST). Further information is available at Estrella Gold’s website: www.estrellagold.com.

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