LATG

LSTG



This is my last BIG report for the year, so make sure you read the entire report as it may interest you!

Those who love to trade the markets will want to take a closer look at LSTG. This one has been moving up and down in waves.

View Chart: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=LSTG&insttype=Stock&freq=1&show=&time=5

LSTG has bounced off near these levels twice in the last 2 months, view the chart and decide for yourself if you think it will happen again!

LSTG announced this morning they have exercised a $200K draw down against a $15 Mill line of equity. Link: http://finance.yahoo.com/news/Lone-Star-Gold-Inc-Exercises-iw-733219982.html?x=0

This represents the LSTG's third draw down request against the $15 mill line of equity agreement Lone Star entered into on August 26th, 2011 with Hong Kong based equity investor North American Gold Corp (NAGC).

The equity financing agreement does not involve any debt. Rather, the terms of the agreement give LSTG the option to draw down from the $15 mill amount as and when needed in the amount of $100K or multiples thereof.

According to the terms of the agreement, Lone Star is to specifically use the proceeds from the financing to fund operating expenses, working capital and general corporate activities related to the exploration and development of the Company's gold and silver mining projects.

LSTG has a 70% Working Interest in the La Candelaria project, which comprises ~1,976 acres (~800 hectares) of mining concessions located roughly 125 miles (200 km) southwest of the state's capital city of Chihuahua.

A first-stage drilling program of 10-15 holes is currently underway on the project. Samples from the initial 3 holes have already been transported to ALS Chemex in Chihuahua with first results expected back within 3-4 weeks.

The price of gold is currently hovering around $1600 down from a high of over $1800 earlier this year. Will it ever go back up? With Europe still in financial trouble its a feasible possibility.

A survey says that gold is expected to rise in 2012: http://www.vancouversun.com/business/Price+gold+expected+rise+2012+Survey/5888270/story.html

Eighty per cent of mining companies in the world expect the price of gold to go up in 2012, according to PwC’s annual gold price report. And more than half of respondents to the PwC survey expected gold would peak next year at $2,000.

Last week LSTG provided an update on their their La Canadelaria Gold Silver Project.

Based on the 1st stage drilling results, a 2nd exploration and drilling stage is expected to commence in Early, 2012, which would include further defining underground structures in the most economical areas on the property based on previous drill results with the goal of identifying 3-5 deep hole targets designed to reach depths of 600-700 meters

Daniel Ferris, Lone Star Gold's Company President, commented:

"We're not only encouraged to have sent off initial samples for analysis from our 1st stage of drilling on La Candelaria, but to also be in an area of Mexico that is experiencing such growth and infrastructure investment. There's no risk of overemphasizing the importance of new roads, reliable power and effective communications when it comes to realizing the full mineral potential of our assets."

Start your own research on LSTG at: http://www.lonestargold.com Always do your own research and consult with your own financial professional.