Newstrike Capital Inc.

Newstrike Capital Inc.

October 15, 2008 09:00 ET

Newstrike Capital Files Technical Report and Prepares Application for Reactivation on the TSX Venture Exchange

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2008) - Newstrike Capital Inc. (NEX BOARD:NES.H) ("Newstrike" or the "Company") announces that the TSX Venture Exchange has accepted for filing the Company's September 10, 2008 technical report entitled "Technical Qualifying Report of the Monte Alban Exploration Project, Taviche Mining District, Oaxaca, Mexico". The Technical Report, authored by Baltazar Solano-Rico, Geol. Eng., M.Sc. and Francisco Escandon-Valle, Geol. Eng., both of Behre Dolbear and Company, Inc., was prepared in respect of the Monte Alban I, Monica, El Conejo Blanco, Renacimiento, El Descuido, San Jorge and Gwinico mining claims, collectively known as the Monte Alban property, owned 100% by Minera Aurea, S.A. de C.V., the Company's indirect wholly-owned subsidiary.

The property that is the subject of the Technical Report constitutes the Company's qualifying property for the purposes of its application to graduate from the NEX board of the TSX Venture Exchange to a full Tier 2 TSX Venture Exchange listing. The Technical Report includes a recommended work program in respect of the property with a proposed budget of $1,482,000. The Company expects to arrange for a private placement, to be completed in conjunction with its TSX-V listing, to finance the work program.

A copy of the Technical Report has been filed on SEDAR under Newstrike's profile.

The acquisition of Aurea Mining Inc. by Newstrike and the further exploration of the Monte Alban property is part of Newstrike's first move into the Mexican mineral exploration and development sector and is expected to form the basis of the Company's aggressive acquisition strategy in Mexico.

Through Aurea Mining Inc., the Company's wholly owned subsidiary, the Company has a 100% interest in over 158,000 hectares of mineral claims in the State of Guerrero and the State of Oaxaca, Mexico. The Aurea Norte project is contiguous to and on strike to a known inventory in Guerrero's emerging gold belt. In 2007, Aurea increased its exploration portfolio to include approximately 77,000 hectares in the historical Taviche silver gold mining district in Oaxaca.

Forward-Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable securities legislation. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the companies' expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Newstrike Capital Inc.
    Mr. Richard Whittall
    President & CEO
    (604) 605-4654