Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

September 20, 2011 10:41 ET

Newstrike Capital Intersects 119.60 Meters of 3.76 g/t Au and 88.82 Meters of 2.58 g/t Au at the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2011) -

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

Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") is pleased to announce the latest drill results received from the ongoing 2011 drill program at the Company's 100%-owned Ana Paula Project, Guerrero Gold Belt (GGB). This series of drill holes includes results from two holes that tested the mineralized breccia body first intersected in drill hole AP-10-19, four step out and infill holes that tested the north and northwest extension of mineralization at Ana Paula and one hole that tested the continuity of low-grade near surface mineralization with bulk tonnage potential first intersected in AP-11-36.

Highlights from this series include:

Drill hole AP-11-62 intersected a 49.00 meter interval of 0.55 g/t Au and 11.8 g/t Ag

Drill hole AP-11-64 intersected multiple closely spaced intervals including 65.80 meters of 1.19 g/t Au, 25.00 meters of 1.30 g/t Au and 31.00 meters of 1.39 g /t Au.

Drill hole AP-11-66 intersected 31.00 meters of 0.55 g/t Au and 21.1 g/t Ag

Drill hole AP-11-68 intersected 119.60 meters of 3.76 g/t Au, including 40.54 meters of 8.86 g/t Au and 14.50 meters of 16.79 g/t Au. Another interval returned 88.82 meters of 2.58 g/t Au including 13.02 meters of 5.27 g/t Au. A third interval returned 13.00 meters of 3.30 g/t Au and 20 g/t Ag.

Selected highlights from this series of drill results are presented in the following table. A complete table of mineralized intersects is available from the company website at www.newstrike.com.

The best intersections from this series continue to be from the mineralized breccia body. Both drill holes into the breccia reported here were designed to test the extension of the breccia along trend and at depth. Drill hole AP-11-64 is an offset down dip and to the south of hole AP-11-20, representing an approximate 50 meter extension of the breccia mineralization downdip on the southern (hangingwall) side of the breccia body. Drill hole AP-11-64 intersected multiple mineralized intervals over a 342.0 meter interval that averaged 0.6 g/t Au without using the 0.2 g/t Au cutoff protocol. Some of the better intervals from this hole include 13.30 meters of 0.75 g/t Au, 65.80 meters of 1.19 g/t Au, 25.00 meters of 1.30 g/t Au and another 31.00 meter intersect of 1.39 g/t Au.

Drill hole AP-11-68 is an approximate 50 meter extension on the northwestern (footwall) side of the breccia, offsetting holes AP-11-37, 51and 52. Drill hole AP-11-68 also intersected multiple mineralized intervals, including a 119.60 meter interval of 3.76 g/t Au that includes a 40.54 meter higher grade interval of 8.86 g/t Au and 3.1 g/t Ag. Another interval intersected 88.62 meters of 2.58 g/t Au and 5.2 g/t Ag. This second interval also includes a 13.02 meter higher grade interval of 5.27 g /t Au and 9.4 g/t Ag.

Results of drilling on the mineralized breccia to date have outlined a core zone of high grade mineralization hosted in breccia and surrounded by an alteration halo of lower grade mineralization. Both of these types of mineralization are referred to as the "breccia zone", which measures approximately 250 meters by 150 meters with a 250 meter vertical depth, as defined by current drilling. The breccia zone appears to taper at depth, although this may be a function of the drill pattern to date. More drilling is planned to extend the mineralized breccia body, which remains open along trend and at depth, and to determine the relationship of this body to the lower grade breccia intersected at depth in hole AP-11-35.

Drill hole AP-11-62 tested the continuity of the low grade bulk tonnage near surface mineralization first discovered in drill hole AP-11-36, that intersected 159.5 meters near surface grading 0.57 g/t Au and 2.7 g/t Ag (April 20, 2011 press release). Drill hole AP-11-62 intersected multiple intervals including 49.00 meters of 0.55 g/t Au with 11.8 g/t Ag that also includes 9.35 meters of 1.23 g/t Au with 8.5 g/t Ag. Other intercepts in this hole include 16.00 meters of 0.69 g/t Au and another 8.45 meter interval of 0.54 g/t Au. More drilling is necessary to fully define the bulk tonnage potential of this low grade near surface mineralization that occurs relatively close to the main mineralized breccia body described above.

Drill holes AP-11-61, 63, 65 and 66 all tested targets well to the north and northwest as part of the ongoing program of step out and infill drilling program at Ana Paula. AP-11-61 is an infill hole located between AP-05-11 and AP-11-54, neither if which intersected significant mineralization. AP-11-61 did intersect multiple mineralized horizons including 10.92 meters of 0.53 g/t Au and 92.8 g/t Ag; this includes a 0.30 meter sample that assayed 10.35 g/t Au and 21.2 g/t Ag. Other intersects in AP-11-61 include 7.93 meters of 0.70 g/t Au and 28.4 g/t Ag and another interval of 8.75 meters that does not follow the 0.2 g/t cutoff but that averaged 0.57 g/t Au and 59.1 g/t Ag.

Drill holes AP-11-63 and 65 were drilled from the same pad. Both holes are step out holes into previously untested ground to the north and northwest and were designed to test for the continuity of favourable stratigraphy in this area. Both holes have confirmed the favourable stratigraphy and both contain encouraging indications for mineralization, where AP-11-63 has a best intercept of 5.10 meters of 0.44 g/t Au and AP-11-65 has a best intercept of 3.04 meters of 0.77 g/t Au and 4.3 g/t Ag.

Drill hole AP-11-66 is a step out hole to the north that also tested the continuity of mineralization and favourable stratigraphy at Ana Paula in the northernmost target drilled to date. AP-11-66 returned 31.0 meters of 0.55 g/t gold and 21.1 g/t Ag. Drill hole AP-11-67, a step out hole testing the targets to the southwest of the main Ana Paula drilling for the first time was lost prior to reaching its target depth. Drilling will continue in this area at a later date.

Results from this series of drill holes continue to confirm the robust nature of the mineralization at the Ana Paula project, including not only the low grade bulk mineable potential similar to the Los Filos style of mineralization that was the original target of exploration at Ana Paula but also the ongoing potential for new discovery as demonstrated by the high grade mineralized breccia discovery and the low grade bulk tonnage discovery of AP-11-36. To date, only the eastern most portion of the original one by two kilometre surface gold geochemical anomaly has been drill tested. Going forward the company will continue with its established program of infill and step out drill holes that will test the boundaries of mineralization, will continue to delineate the boundaries of the high grade breccia discovery, and will begin to test virgin territory underlying the western and southwestern potion of the original surface gold geochemical anomaly. The company has two drill rigs on site and will add another two rigs as soon as they become available, currently expected by the end of October.

The Ana Paula Project is central to Newstrike's 88,000 hectares 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' project. Ken Thorsen, a director of the company and a qualified person under NI43-101 has reviewed the contents of this press release. The drill program and all project operations are conducted under the direction and supervision of Dr. Craig Gibson, PhD, CPG and a qualified person under NI43-101. Dr. Gibson has reviewed the contents of this press release.

A table of selected drill assay intervals greater than 0.5 g/t Au and/or greater than 5.0 meters.
Drill hole From To Length Au g/t Ag g/t
AP-11-61 123.58 134.50 10.92 0.53 92.8
Includes 123.58 123.88 0.30 10.35 21.2
and 219.00 225.00 6.00 0.40 4.9
265.00 272.93 7.93 0.70 28.4
281.20 281.50 0.30 9.98 136.0
Includes 620.75 622.32 1.57 1.11 290.0
and 627.55 629.50 1.95 1.53 25.5
AP-11-62 322.00 371.00 49.00 0.55 11.8
Includes 322.00 331.35 9.35 1.23 8.5
Includes 337.00 351.00 14.00 0.89 9.4
Includes 341.20 346.10 4.90 1.60 12.4
and 345.00 346.10 1.10 1.29 36.4
607.00 623.00 16.00 0.69 0.3
674.00 682.45 8.45 0.54 4.1
AP-11-63 35.00 40.10 5.10 0.44 0.0
541.00 543.00 2.00 0.44 9.4
Includes 542.50 543.00 0.50 1.10 37.4
AP-11-64 232.80 241.06 8.26 0.53 8.8
238.74 241.06 2.32 1.06 23.3
417.80 424.15 6.35 1.15 3.1
452.00 465.30 13.30 0.75 0.0
477.70 543.50 65.80 1.19 1.0
547.00 572.00 25.00 1.30 0.4
578.00 609.00 31.00 1.39 0.8
AP-11-65 133.54 136.58 3.04 0.77 4.3
AP-11-66 167.00 198.00 31.00 0.55 21.1
AP-11-67 15.50 20.00 4.50 0.814 4.7
AP-11-68 86.00 90.50 4.50 0.27 22.0
184.50 191.16 6.66 0.54 4.1
205.00 215.50 10.50 1.63 11.9
218.95 221.80 2.85 0.53 0.0
233.82 240.43 6.61 1.76 6.9
255.00 259.50 4.50 0.72 2.2
267.50 387.10 119.60 3.76 1.9
Includes 279.50 320.04 40.54 8.86 3.1
and 288.50 303.00 14.50 16.79 6.4
431.88 520.50 88.62 2.58 5.2
Includes 441.12 454.14 13.02 5.27 9.4
and 441.12 444.62 3.50 13.19 8.9
and 479.50 492.50 13.00 3.30 20.0
548.49 558.00 9.51 0.98 7.9

QA-QC:

The 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 intersects are calculated according to a protocol that uses a 0.2 g/t Au cutoff for bounding assays. 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.

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. Analyses in this release were performed by ALS Chemex or SGS laboratories. 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.

A complete table of results from all drill holes to date is available from the home page of the company website at www.newstrike.com. Follow the Ana Paula featured project drill status update link.

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 co-discovered Goldcorp's and Teck's significant discoveries in Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.

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.

blogsite: http://newstrikecapital.com/blog

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.

Contact Information

  • Newstrike Capital Inc.
    Richard Whittall
    Director, President & CEO
    604-605-4654
    www.newstrike.com