Penny Stock Lone Star Gold (LSTG) Actually Producing Gold?

Lone Star Gold, Inc. (OTC.BB: LSTG.OB) announced that on February 28th, 2012, the Company sent its first shipments from 1.2 million tons of mine tailings from the San Antonio del Potrero mine tailings project to a processing plant less than 15 minutes’ drive away in the city of Parral, in the state of Chihuahua, Mexico.

LSTG 3 Month Stock Chart:

LSTG plans to make initial shipments of approximately 100 tons per day (tpd) from the Tailings Project.

Once a sufficiently large pile of tailings from the project has been accumulated, the plant will then commence a processing run. After the plant sells the resulting concentrate, Lone Star will receive 65% of the total revenue.

Daily shipments are projected to increase to 200-250 tpd within the first 3 months. The goal is to be processing between 600-800 tons within the first 18 months. At the rate of 800 tpd, the 1.2 million tons of tailings would be processed in a total of circa 6 years.

LSTG acquired an undivided 65% interest in the Tailings Project on January 26, 2012.

LSTG‘s President, Daniel Ferris, commented:

This is a milestone for Lone Star Gold. Now that we’re sending our first shipments of tailings for processing, we’ve effectively begun the process of establishing consistent Company revenues. And with other plants in the region expressing interest in processing our tailings, the potential exists for us to double or possibly triple the total production we planned for in our first year.


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