Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

June 18, 2012 16:50 ET

Newstrike Capital Intersects 102.00 Meters of 1.22 g/t Au, Including 4.04 Meters of 12.81 g/t Au and 54.10 Meters of 2.05 g/t Au , Including 11.00 Meters of 4.05 g/t Au at the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") announces the results from 5,720 meters of drilling completed this period as part of the 2012 drill program in progress at the Company's 100%-owned Ana Paula Project in the Guerrero Gold Belt (GGB). This series of results are from the ongoing delineation program in the southeast quadrant and from new exploration holes in the northeast and southwest quadrants. Breccia zone delineation continues to indicate that mineralization remains open in several directions and at depth.

Highlights from the delineation program include:

  • AP-12-90 intersected 102.00 meters of 1.22 g/t Au and 54.10 meters of 2.05 g/t Au that includes 11.00 meters of 4.05 g/t Au.
  • AP-12-92 intersected 88.12 meters of 1.12 g/t Au where 8.5 meters in three intervals assay below the 0.2 g/t Au cut off protocol.
  • AP-12-94 intersected 83.32 meters of 1.07 g/t Au and 92.43 meters of 0.68 g/t Au that also includes 25.02 meters of 1.18 g/t Au.
  • AP-12-96 intersected 105.30 meters of 0.73 g/t Au where 7.00 meters in two intervals assay below the 0.2 g/t Au cut off protocol.

Selected highlights from this series of drill results are presented as follows:

Southeast Quadrant - Delineation drill program

Drill holes AP-12-90 and AP-12-92 tested the Breccia Zone as part of delineation drill program. Drill hole AP-12-90, an inclined hole to the northwest, tested the western contact down dip of drill holes AP-11-49 (1.03 g/t Au /22.50 meters, 3.44 g/t Au/15.00 meters, and 1.67 g/t Au/55.25 meters, June 27, 2011) and AP-11-64 (1.19 g/t Au/65.80 meters, 1.30 g/t Au/25.00 meters and 1.39 g/t Au/31.00 meters, September 19, 2011). AP-12-90 intersected multiple intervals over a 465.05 meter mineralized intersection in core that also includes intervals that assay below a 0.2 g/t Au cut off protocol. Some of the better intersections include 27.69 meters of 0.96 g/t Au, 29.62 meters of 1.23 g/t Au, 102.00 meters of 1.22 g/t Au that also includes 4.04 meters of 12.81 g/t Au and 37.7 g/t Ag, another, 40.00 meters of 0.65 g/t Au, and 54.10 meters of 2.05 g/t Au that also includes 11.00 meters of 4.05 g/t Au.

Drill hole AP-12-92, a hole inclined to the northeast to offset holes AP-11-51 (3.52g/t Au/190.15 meters, June 27, 2011) and AP-11-52 (4.60 g/t Au/120.00 meters, Aug. 03, 2011) and AP-11-76 (1.54 g/t Au/72.95 meters, 0.63 g/t Au/54.30 meters and 0.41 g/t Au/33.00 meters; Jan. 27, 2012) intersected multiple intervals over a 262.17 meter mineralized intersection in core, including intermittent intervals that assay below the 0.2 g/t Au cut off protocol. Some of the better intersections include 88.12 meters of 1.12 g/t Au, 16.70 meters of 1.39 g/t Au, 19.00 meters of 1.35 g/t Au, 23.55 meters of 1.70 g/t Au and 7.20 meters of 8.21 g/t Au.

Drill holes AP-12-94 and AP-12-96 both tested the continuity of near surface lower grade mineralization first intersected in drill hole AP-11-36 (159.50 meters of 0.57 g/t Au, April 20, 2011) and located immediately up section and to the south of the Breccia Zone. AP-12-94, an inclined hole to the southeast, intersected somewhat higher grades than had previously been intersected in this area, among others 83.32 meters of 1.07 g/t Au and 8.0 g/t Ag that also includes 17.52 meters of 2.12 g/t Au and 15.5 g/t Ag. Another interval intersected 92.43 meters of 0.68 g/t Au and 5.0 g/t Ag that includes 25.02 meters of 1.18 g/t Au and 3.7 g/t Ag.

AP-12-96, an inclined hole to the northeast, also intersected multiple intervals that includes 126.40 meters of 0.68 g/t Au and 7.6 g/t Ag, 28.25 meters of 0.74 g/t Au and 15.2 g/t Ag, 26.20 meters of 0.65 g/t Au and 6.9 g/t Ag and 14.87 meters of 1.49 g/t Au and 12.5 g/t Ag. These results confirm the continuity of this near surface lower grade mineralization that will be included in the ongoing delineation drill program.

Preliminary modelling of this important new discovery for the GGB was announced in a press release dated September 19th, 2011 and updated in a press release dated April 19th, 2012. The Breccia Zone tends to form a core zone of high grade gold mineralization hosted in a polylithic to hydrothermal breccia that is surrounded by an irregularly shaped alteration zone (envelope) of lower grade mineralized wallrock that includes limestone, hornfels and intrusive rocks with other breccia. The core zone and the surrounding lower grade alteration zone combine together to make up what has become known as the Breccia Zone. The high grade core zone is locally as thin as 18 meters, but appears to average about 55 meters near surface, tapering at depth. The extent of the alteration zone surrounding the core zone remains to be fully delineated but intercepts of between 100 to 200 meters have been intersected in core. The breccia rakes at least 175 meters along a northwesterly trend, and extends to at least 700 meters vertically where AP-11-70 intersected a 33.00 meter interval of 12.39 g/t Au (Nov. 23, 2011). The Breccia Zone continues to remain open at depth and in several directions. Deposit modelling is in progress as delineation drilling continues to advance towards a resource estimate. Until that process is complete true widths can be assumed to be less than or equal to the reported intervals.

Northeast Quadrant - Exploration drill program

AP-12-91 is an inclined hole located north of the Breccia Zone and drilled to the east as a new exploration hole to test continuity of the main Ana Paula stratigraphic controlled mineralization as well as to test strongly altered rock to the west. AP-12-91 confirmed the continuity of mineralization at depth, intersecting mineralization nearly 200 meters downdip over multiple intersections. Some of the better intersections include 11.32 meters of 1.57 g/t Au, 7.17 meters of 0.68 g/t Au and 19.1 g/t Ag, and 11.42 meters of 2.69 g/t Au and 11.7 g/t Ag.

Southwest Quadrant - Exploration drill program

AP-12-93 and AP-12-95 are inclined holes drilled to the east as part of the new exploration drilling ongoing in the western quadrants of the Ana Paula exploration target area. These deep holes were moved up in the drill sequence because access to this area will be limited during the rainy season. Intermittent low grade mineralization was intersected in both drill holes.

The best intersections from these holes include 11.86 meters of 0.41 g/t Au in AP-12-93. Drill hole AP-12-95 intersected 36.32 meters of 0.39 g/t Au, 7.75 meters of 0.58 g/t Au and 15.17 meters of 0.44 g/t Au. Drilling in this quadrant will continue to follow up previous favourable results and will continue to test other targets as new exploration continues.

With the onset of the rainy season in Guerrero, all efforts have been made to plan drilling to minimize any potential seasonal delays. The Company has a 45,000-meter drill program for 2012 that includes plans for completing delineation drilling of the Breccia zone, and drilling of the surrounding lower grade mineralization located in the southeast and northeast quadrants where the company is working towards completing an initial resource estimate. The exact timing of the resource estimate will depend on completing delineation of the Breccia Zone, still in progress at this date. 2012 plans also include drill testing new areas that have seen little or no drilling to date, follow up drilling of the southwest quadrant discovery announced in AP-11-67 (November 28, 2011 press release), and includes new exploration drilling in the western quadrants of the one by two kilometer Ana Paula exploration target. In addition a series of studies are already underway including engineering studies, geological modelling, metallurgical studies, geophysical modelling and topographic surveys.

The Ana Paula Project is central to Newstrike's 88,000 hectare mineral claims located in the GGB and forms part of a district scale mining camp that is host to Torex Gold's advanced Morelos Project and to Goldcorp's producing Los Filos Mine. The drill program and all project operations are conducted under the direction and supervision of Dr. Craig Gibson, PhD, CPG, a qualified person under NI43-101, has reviewed and approved the technical content of this press release.

QA-QC:

Newstrike maintains strict QA-QC protocols for all aspects of their exploration programs that include the systematic insertion of blanks and standards into each sample batch. SGS laboratories or ALS Chemex performed assay analyses reported in this release. All samples are assayed using the respective laboratories certified and industry standard assay techniques for gold and multi-element packages and for over limits; Au was analyzed by 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP packages.

The reported mineralized intervals in core tend to be separated by "barren" intervals that may or may not contain narrow anomalous sections and local high-grade spikes that are not included in the calculations of mineralized intervals. Unless specified otherwise, reported intervals are calculated according to a protocol that uses a 0.20 g/t Au cut off for bounding assays and may include internal intervals of 5.0 meters or less that assay below 0.2g/t Au. Reported grade intervals are based on the original uncut assay certificates as received from the assay labs. They do not include check assays pending at the time of reporting. The dip of the geology and the mineralized intersections varies across the property and the true widths are not accurately known at this time. True width can be expected to be equal to or smaller than the reported intervals.

A table of all weighted grade intercepts over a 0.20 g/t cut off is available on the company website together with drill location maps and sections at www.newstrikecapital.com.

A table of selected drill assay highlights

Drill Hole Quadrant From To Interval (m) Au g/t Ag g/t
AP-12-90 SE-BX 46.74 64.48 17.74 0.59 13.6
185.45 240.95 55.50 0.74 4.7
250.38 280.00 29.62 1.23 1.0
includes 258.27 267.86 9.59 3.06 1.0
289.00 391.00 102.00 1.22 3.9
includes 386.96 391.00 4.04 12.81 37.7
395.83 401.00 5.17 1.08 3.0
412.10 436.00 23.90 0.56 0.4
474.00 514.00 40.00 0.65 0.5
593.40 647.50 54.10 2.05 4.6
includes 598.20 599.30 1.10 35.70 33.6
includes 635.00 646.00 11.00 4.05 17.5
AP-12-91 NE 519.53 525.52 5.99 1.16 0.9
564.00 573.50 9.50 0.75 1.3
711.28 722.60 11.32 1.57 0.8
784.26 791.43 7.17 0.68 19.1
801.95 813.37 11.42 2.69 11.7
includes 808.62 811.86 3.24 8.40 37.9
818.80 828.84 10.04 0.60 2.5
AP-12-92 SE-BX 348.98 361.70 12.72 0.65 1.3
365.60 371.95 6.35 1.49 8.3
377.90 394.60 16.70 1.39 2.7
includes 381.15 390.20 9.05 2.02 2.9
400.60 409.80 9.20 1.59 5.7
414.30 428.46 14.16 0.75 2.6
439.00 458.00 19.00 1.35 3.3
464.68 552.80 88.12 1.12 0.9
includes 499.60 507.00 7.40 4.12 0.4
and 515.57 515.97 0.40 42.10 55.8
559.60 583.15 23.55 1.70 1.8
includes 560.95 561.35 0.40 65.00 53.3
603.95 611.15 7.20 8.21 1.5
includes 606.43 606.83 0.40 123.00 14.2
647.40 654.48 7.08 0.49 0.6
667.37 673.70 6.33 1.66 0.7
787.74 804.50 16.76 0.61 0.1
AP-12-93 SW 125.64 137.50 11.86 0.41 2.0
855.30 859.80 4.50 1.39 6.2
AP-12-94 SE-BX 58.68 142.00 83.32 1.07 8.0
includes 72.85 126.90 54.05 1.43 10.6
and 82.03 99.55 17.52 2.12 15.5
159.75 165.33 5.58 0.68 3.9
183.30 275.73 92.43 0.68 5.0
includes 191.38 216.40 25.02 1.18 3.7
402.60 406.30 3.70 2.49 31.8
AP-12-95 SW 12.53 48.85 36.32 0.39 2.4
includes 12.53 16.75 4.22 0.89 3.3
109.90 119.00 9.10 0.45 1.6
163.55 171.30 7.75 0.58 1.8
includes 165.95 171.30 5.35 0.78 2.2
565.00 580.17 15.17 0.44 9.2
includes 577.85 580.17 2.32 1.19 28.8
AP-12-96 SE-BX 13.00 19.50 6.50 0.97 18.7
107.20 212.50 105.30 0.73 8.1
includes 162.00 183.75 21.75 1.29 17.4
225.20 233.60 8.40 0.84 9.9
310.25 338.50 28.25 0.74 15.2
includes 319.32 334.00 14.68 1.03 16.0
377.00 403.20 26.20 0.65 6.9
442.50 457.37 14.87 1.49 12.5

About Newstrike (TSX VENTURE:NES)

Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors have participated in all the Guerrero Gold Belt discoveries, including Goldcorp Inc.'s producing Los Filos Mine and Torex Gold Resources advanced stage Morelos Project in Guerrero State.

Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the Au (Ag-Cu) skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Pb-Zn-Ag (Au-Cu) rich epithermal camp of the mining districts of Oaxaca State.

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, expectations, plans and objectives of Newstrike Capital Inc. are forward-looking statements that involve various risks. The following are important factors that could cause Newstrike Capital Inc.'s actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Newstrike Capital Inc. undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

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