Lone Star Gold Inc (LSTG) is an emerging acquisition and exploration mining company that holds 70% interest in the La Candelaria gold-silver project comprising of 1,976 acres of mining concessions! (Read more)
Despite the consistent appeal of gold over the centuries, relatively new drivers are boosting the metal’s value and, in turn, global demand.
Since 2001, gold has gained every year on increased investment demand from both institutional and retail investors!
Luis Olvera, Engineering Geologist, and his team estimated La Candelaria’s potential reserves as over 10 million ounces gold at an average grade of 0.20 g/t and over 215 million ounces silver at an average grade of 40 g/t. (Read more)
LSTG has partnered with the Bustillos-Gonzalez family that has a long mining history in the region, dating back to the Spanish occupation of Mexico in the early 1600s!
They’ve also secured $15 million in equity financing from Hong Kong based equity investor North American Gold Corp to use for operating expenses towards gold and silver mining project at La Candelaria! (Read more)
LSTG not only holds a huge interest in Mexico, but also engages in the exploration of gold and copper in British Columbia, Canada.
But LSTG doesn’t plan on stopping there as its short-term mandate is to rapidly become a mid-tier producer in Mexico, while its long-term strategy is to have multiple operating gold and silver mines in North America. (Read more)
LSTG has sold 238,095 shares of common stock to North American Gold Corp at a price of $0.84 per share and given 300,000 shares of Common Stock to Homero Bustillos Gonzalez to satisfy the agreement for 70% interest of La Candelaria gold-silver project! (Read more)
LSTG Technical Indicators:
• LSTG bounced heavily off its recent low of $.93 and 50 day moving average to close at $1.05! Now staring the 20 day moving average right in the face.
• The RSI has terminated its downward trend moving nicely at 43.7!
• The MACD has started to revert as the histogram bars shrink in size making a huge positive cross very possible!
• The more price movement – you will see the ADX revert more decisively as the directional indicator continues to move upwards in an incremental fashion!
LSTG’s Bottom Line:
LSTG has stated that drilling is to commence by the end of this month and this stock tends to move big on news! Just look at that move from $1.02 to $1.40 when the President of LSTG submitted an overview of the company to the market in early September!
I’m sure North American Gold Corp is not in the habit of throwing money away and Homero Bustillos Gonzalez gave up 70% of his properties interest for 300k shares… He must really like what they see in this company!
So make sure to load LSTG to your watchlist immediately!
Disclosure: No Position
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