Colpayoc is located 12 km southwest of the Yanacocha gold mine, the largest gold mine in South America.
Estrella has renegotiated the two underlying option agreements which include much of the 54 square kilometer property.
Estrella has reduced its 2012 obligations by $3.9M, down to $0.7M; eliminated its work commitments; and extended the term of the agreements an additional 2.5 years until December 2014.
These new terms allow the company to conduct exploration of the multiple targets on the property, while continuing venture negotiations with interested parties.
Colpayoc has a +300,000 ounce NI 43-101 compliant gold resource which is open in three directions, and four other areas of mineralization.
The company is preparing an Environmental Impact Assessment in preparation for future drilling programs.
Estrella has also reduced its Peru administrative costs by more than 50% by relocating to a more efficient office location and through funding by Venture partners.
The company is seeking to minimize all expenditures allowing the staff to continue to focus on new acquisitions.
Mr. Keith Laskowski, President and CEO of Estrella, commented, "We have greatly reduced our administrative and operating costs, allowing us to protect our cash while continuing in full force with our prospect generator business strategy through 2012 and into 2013. We are pursuing negotiations with potential J.V. partners to fund additional drilling at Colpayoc."