Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

September 16, 2013 19:00 ET

Newstrike Capital Intersects 64.40 Metres of 4.32 g/t Gold and 62.10 Metres of 3.13 g/t Gold at the Ana Paula Project, Guerrero, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 16, 2013) -

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 further results from the ongoing drill program at the Company's 100% owned Ana Paula Project in Guerrero, Mexico. These results are from drilling designed to test the margins of the Breccia Zone mineralization near surface and also tested the continuity of the mineralization at depth, beneath Ana Paula's floating cone pit (Newstrike press release May 8, 2013).

Highlights include:

  • AP-13-162 intersected several mineralized horizons at depth including 87.08 metres of 2.08 g/t Au from 418.32 to 505.40 metres. This includes 23.42 metres of 4.15 g/t Au from 479.40 to 502.82 meters. This is in addition to a near surface intersection of 213.45 metres of 3.45 g/t Au from 3.85 to 217.30 metres, which includes 20.00 metres of 16.92 g/t Au from 123.00 to 143.00 metres.

  • AP-13-186 intersected 64.40 meters of 4.32 g/t Au from 0.00 to 64.40 metres, including 11.07 meters of 12.40 g/t Au from 8.99 to 20.06 metres.

  • AP-13-190 intersected a 62.10 meters of 3.13 g/t Au from 25.40 to 87.50 metres, including 13.67 meters of 6.82 g/t Au from 76.83 to 87.50 metres.

AP-13-186, AP-13-190, and AP-13-192 are infill holes that tested the southeast, southwest and west margins of the known breccia zone respectively. These drill results are from the Breccia Zone and form part of a series of recommended holes designed to improve the mineral confidence within the Ana Paula floating cone pit (see Newstrike press release May 8, 2013).

AP-13-162, previously released on June 20th, 2013 and drillholes AP-13-188 and AP-13-206 tested the continuity of the breccia body at depth.

Discussion of results

Highlights from a total of 4,237.15 meters in 6 new holes are reported here with complete results available on the Company website together with the drillhole location maps and sections.

Results for AP-12-186, AP-13-190 and AP-13-192 confirmed continuity of the near surface high grade mineralization of the Breccia Zone and results are consistent with results from other holes in this area, indicating that the boundaries of the mineralized zone remain open near surface.

Drillhole AP-13-162 was drilled down the plunge of the breccia zone to determine the depth extent and continuity of the Breccia Zone. Final results have been received as reported in the table below that show persistent mineralization beneath the current conceptual pit model. AP-13-188 and AP-13-206 tested across the structural grain of the Breccia Zone at depth beneath the pit. Both drill holes clipped the edges of the breccia zone intersecting multiple intervals and confirming the presence of deeper mineralization.

The depth of the conceptual floating cone pit as defined in the maiden resource study filed on May 08th, 2013 and available at www.newstrikecapital.com is currently about 375 meters deep. Several higher-grade intervals that were intersected below this level in the lower part of the breccia zone were identified as having potential to increase the resource through additional drilling and pit optimization studies to determine if some of this material could be included within the confines of the pit, and/or is of a sufficient grade and tonnage suitable for underground mining operations. Results from the three drill holes completed in this four hole deep drillhole program continue to show promise and are included in the highlights listed above and in the table of results below. Additional drilling is required to fully understand the potential of the higher grade intersections at these depths.

Table 1. Preliminary drillhole collar locations
UTM WGS84 Orientation Total
Drillhole E (m) N (m) Elevation (m) Azimuth Inclination Depth
(m)
Quadrant
AP-13-162 410123.60 1998023.08 920.33 165 -77 1407.90 SE
AP-13-186 410300.04 1997995.86 921.06 0 -90 296.95 SE
AP-13-188 410333.00 1997812.00 959.57 290 -70 1049.35 SE
AP-13-190 410089.58 1997990.48 928.97 0 -90 87.50 SE
AP-13-192 410062.53 1998056.73 972.64 0 -90 354.55 SE
AP-13-206 410328.00 1997808.00 980.00 308 -75 1040.90 SE
Table 2. Selected weighted grade intersections with a grade thickness greater than 10.
Drillhole From (m) To (m) Interval (m) Au g/t Ag g/t
AP-13-162 3.85 217.30 213.45 3.45 6.9
includes 36.60 162.00 125.40 5.29 7.4
and 123.00 143.00 20.00 16.92 7.6
225.30 236.14 10.84 1.03 1.8
243.82 285.75 41.93 2.54 2.7
Includes 249.43 281.54 32.11 3.21 3.4
and 278.41 279.52 1.11 21.30 11.5
344.02 361.60 17.58 1.17 1.2
370.70 410.90 40.20 0.66 1.5
includes 370.70 395.60 24.90 0.89 2.2
417.35 132.87 1.50 1.1
includes 418.32 505.40 87.08 2.08 1.4
and 423.52 432.85 9.33 3.16 2.1
and 479.40 502.82 23.42 4.15 2.6
and 479.40 485.20 5.80 11.14 3.8
and 482.20 483.10 0.90 64.60 20.2
and 493.48 496.16 2.68 7.69 10.5
includes 493.48 494.46 0.98 15.00 13.8
578.80 600.25 21.45 0.91 0.5
AP-13-162 includes 578.80 581.32 2.52 5.35 1.9
Continued 621.80 713.10 91.30 0.74 1.6
includes 656.50 660.00 3.50 2.41 3.6
includes 679.05 688.15 9.10 3.18 7.3
and 679.05 683.85 4.80 5.46 13.3
and 681.25 683.85 2.60 9.41 22.4
717.50 734.75 17.25 0.93 0.6
includes 717.50 730.62 13.12 1.13 0.6
and 727.29 730.62 3.33 2.54 1.0
740.58 766.29 25.71 0.98 2.9
includes 746.47 751.56 5.09 3.36 8.4
796.35 867.20 70.85 0.33 1.5
1306.90 1312.90 6.00 0.51 5.7
AP-13-186 0.00 64.40 64.40 4.32 4.98
includes 8.99 20.06 11.07 12.40 6.76
and 12.06 13.14 1.08 52.80 19.10
and 17.80 18.82 1.02 31.30 9.50
130.90 147.76 16.86 1.91 6.49
includes 140.25 147.76 7.51 3.82 12.72
AP-13-188 107.50 155.00 47.50 1.39 12.72
includes 110.48 114.30 3.82 2.73 97.25
includes 147.15 155.00 7.85 4.27 4.00
and 149.50 150.50 1.00 16.84 5.30
162.26 183.05 20.79 2.85 13.08
includes 164.23 174.00 9.77 5.42 24.34
and 170.20 171.00 0.80 15.41 73.00
472.27 484.60 12.33 2.02 4.06
includes 483.78 484.60 0.82 19.90 11.70
537.30 540.10 2.80 6.38 3.00
includes 538.10 539.16 1.06 13.79 4.00
546.95 561.15 14.20 1.51 2.56
includes 554.20 561.15 6.95 2.48 2.81
and 559.00 561.15 2.15 6.77 5.53
608.45 630.55 22.10 0.84 2.50
includes 610.45 630.55 20.10 0.91 2.60
715.00 752.94 37.94 0.42 2.46
839.10 879.22 40.12 0.84 0.36
includes 849.45 871.85 22.40 1.28 0.42
AP-13-190 25.40 87.50 62.10 3.13 5.19
includes 36.15 37.34 1.19 39.50 43.00
includes 73.83 87.50 13.67 6.82 5.93
AP-13-192 75.52 82.12 6.60 5.43 29.92
81.50 82.12 0.62 50.41 215.00
134.74 158.38 23.64 2.25 6.61
includes 134.74 141.40 6.66 4.82 18.50
163.56 184.40 20.84 0.88 1.99
190.36 200.39 10.03 2.18 2.31
206.08 230.04 23.96 1.06 3.77
AP-13-206 86.18 112.45 26.27 0.60 9.4
also 87.92 91.05 3.13 0.10 0.9
554.47 570.30 15.83 1.26 1.0
includes 560.20 565.27 5.07 3.41 2.4
622.61 653.30 30.69 0.45 0.7
706.85 725.55 18.70 1.37 0.4
includes 706.85 710.80 3.95 3.67 1.0
750.35 779.05 28.70 0.47 0.6

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. ALS Chemex and Acme Labs (now a part of the Bureau Veritis group that includes BSI Inspectorate) 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; gold (Au) was analyzed by 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP or MS 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 intersections are calculated according to a protocol that uses a 0.20 grams per tonne gold cut off 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. 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 grams per tonne gold cut off is available on the company website together with drill location maps and sections at www.newstrikecapital.com.

About Newstrike (TSX VENTURE:NES)

Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Key senior members of the Company's current management and directors have participated in 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 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.

The Ana Paula Project is central to Newstrike's 88,000 hectare mineral claims located in the Guerrero Gold Belt 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. Ken Thorson, 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 qualified person under NI43-101.

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.

Certain of the statements made in this news release contain forward-looking information within the meaning of applicable Canadian securities law. Material forward-looking information includes, but is not limited to statements or information with respect to the resource estimate and potential future exploration and development results and results of studies in respect of the Company's Ana Paula Project. We have made numerous assumptions about the material forward-looking information contained herein, including among other things, that prices of gold and silver will remain relatively stable, that applicable permits will be obtainable and that any required financing will be available on reasonable terms. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate.
Forward-looking information by its nature involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, among others, the following: the inherent risks and uncertainty involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; accidents, equipment breakdowns, labor disputes or other unanticipated difficulties with or interruptions in production and operations; fluctuating prices of metals and other commodities; currency fluctuations; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; regulatory restrictions, including environmental regulatory restrictions and liability; competition and loss of key employees; political instability in Mexico; the availability of key equipment; the risk of disruption from non-governmental organizations; risks relating to our common shares and the public markets. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Although we have attempted to identify factors that would cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly you should not place undue reliance on forward-looking information. Except as required by law, we do not expect to update forward-looking information as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

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