Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

January 27, 2012 09:32 ET

Newstrike Capital Intersects 72.95 Meters of 1.54 g/t Au At the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 27, 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") is pleased to announce the results of the last holes drilled in the 2011 program at the Company's 100%-owned Ana Paula Project, Guerrero Gold Belt (GGB). These drill results include two delineation drill holes testing the boundaries of the Breccia Zone, one hole that followed up the new discovery announced with AP-11-67 (November 28th, 2011 PR) and two drill holes located in the northeast quadrant are from the ongoing step out drill program.

Highlights from this series include:

  • Drill hole AP-11-74 intersected strong multiple mineralized intervals at depth with 14.31 meters of 0.88 g/t Au and 36.60 meters of 0.56 g/t Au that includes an interval of 7.33 meters of 1.50 g/t Au at the bottom of the hole.

  • Drill hole AP-11-75 intersected 46.00 meters of 0.75 g/t Au, including 14.00 meters of 1.27 g/t Au.

  • Drill hole AP-11-76 intersected strong mineralization over multiple intervals including 72.95 meters of 1.54 g/t Au that also includes 48.50 meters of 1.99 g/t Au. Another interval was intersected of 54.30 meters of 0.63 g/t Au that includes 12.26 meters of 1.21 g/t Au. This hole ended in mineralization with 33.00 meters of 0.41 g/t Au including 8.00 meters of 0.56 g/t Au.

  • Drill hole AP-11-77 also intersected multiple intervals including 27.42 meters of 0.67 g/t Au including 6.15 meters of 1.58 g/t Au. Other intervals include 7.92 meters of 0.66 g/t Au and 12.45 meters of 0.62 g/t Au.

Selected highlights from this series of drill results are presented in the following table. A complete table of mineralized intersections, drill hole location maps and drill sections are available on the company website at www.newstrikecapital.com.

SE Quadrant Drill Holes- Breccia Zone Delineation

Drill hole AP-11-74 and AP-11-76 are part of a series of holes designed to delineate the boundaries of the Breccia Zone first discovered in AP-10-19 (January 18th, 2011 PR). The Breccia Zone currently includes a core zone of higher-grade mineralization hosted in breccia that is surrounded by an alteration halo of lower grade mineralization hosted in intrusion, hornfels, skarn and sedimentary rocks. The two holes reported here were drilled to test the northern and western boundaries of the alteration halo at depth respectively. Both holes successfully tested the down plunge continuity of mineralization, intersected multiple intervals and both ended within the mineralized alteration halo. Among other intervals, AP-11-74 intersected 35.60 meters of 0.56 g/t Au that also includes 7.33 meters of 1.44 g/t Au at the bottom of the hole. Drill hole AP-11-76 was the best hole in this series with 72.95 meters of 1.54 g/t Au, including 25.84 meters of 2.86 g/t Au. AP-11-76 is an offset to the Breccia Zone that extends mineralization by about 80 meters to the west of previous holes. This hole ended in mineralization with a 33.00-meter interval of 0.41 g/t Au that includes 8.00 meters of 0.56 g/t Au. Mineralization remains open at depth and in several directions.

Preliminary modelling and current drilling of the Breccia Zone indicates that it is an irregularly shaped body plunging steeply to the south southwest with approximate true dimensions of 250 meters by 150 meters and a 250 meter vertical depth as announced on September 19, 2011, and that mineralization remains open along trend and at depth. While the true thickness of high-grade intersections has not been determined, delineation drilling will continue to refine and extend the boundaries of the Breccia Zone until its true dimensions are determined, part of the work required to bring the Ana Paula project to an initial NI43-101 resource estimate, expected in 2012.

SW Quadrant Drill Holes

Drill hole AP-11-75 is the first hole in a series designed to follow up on the new discovery announced in AP-11-67 that intercepted strong mineralization from surface (including 15.51 meters of 1.92 g/t Au and 36.00 meters of 0.96 g/t Au, November 28th, 2011 PR). Drill hole AP-11-75 is an approximate 150 meter offset of the mineralization in hole AP-11-67 and continues to confirm the areas potential by intersecting multiple mineralized intervals throughout the length of the drill hole, the best of which is 46.00 meters of 0.75 g/t Au, including 12.50 meters of 1.36 g/t Au. These results will continue to be followed up with one dedicated drill rig in this area.

NE Quadrant Drill Holes

Drill holes AP-11-73 and AP-11-77 both tested widely spaced targets to follow up on previous drill results. Each drill hole confirmed continuity of mineralization at depth of their respective targets. AP-11-73 was drilled to the west to test below mineralization intersected in AP-11-66 (31.00 meters of 0.55 g/t Au and 21.1 g/t Ag, September 19th, 2011 PR). The best intersect from AP-11-73 includes 10.03 meters of 2.62 g/t Au and 42.1 g/t Ag. Drill hole AP-11-77 tested west of AP-11-16 (23.13 meters of 4.06 g/t Au and 6.1 g/t Ag, January 18th, 2011 PR) and intersected multiple intervals, the best of which includes 27.42 meters of 0.67 g/t Au and a 12.45-meter interval of 0.62 g/t Au.

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 NI 43-101 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 NI 43-101.

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 intersections are calculated according to a protocol that uses a 0.2 g/t Au 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.

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.

A table of selected drill assay results. Highlighted intervals that are
greater than 0.5 g/t Au over 5.0 meters or greater.
Drill
hole
From
(m)
To
(m)
Interval
(m)
Au
g/t
Ag
g/t
AP-11-73 197.85 198.60 0.75 10.57 90.70
233.47 243.50 10.03 2.62 42.11
Includes 233.47 235.00 1.53 10.57 32.60
AP-11-74 239.00 245.00 6.00 2.59 3.6
includes 240.00 241.74 1.74 8.30 8.7
252.84 257.06 4.22 5.19 14.3
567.19 581.50 14.31 0.88 0.1
includes 573.50 575.50 2.00 4.95 1.0
597.50 633.10 35.60 0.56 0.3
includes 610.00 617.33 7.33 1.44 1.1
AP-11-75 178.50 224.50 46.00 0.75 2.7
includes 178.50 192.50 14.00 1.27 4.6
and 180.00 184.50 4.50 2.37 3.4
includes 212.07 216.00 3.93 1.79 3.1
257.96 265.42 7.46 0.48 15.2
332.00 338.57 6.57 0.58 5.9
419.35 424.00 4.65 0.93 17.5
includes 422.73 424.00 1.27 2.92 5.6
AP-11-76 521.00 526.50 5.50 0.78 1.4
536.56 547.12 10.56 0.96 1.9
551.05 624.00 72.95 1.54 1.2
includes 571.50 620.00 48.50 1.99 1.3
and 574.50 600.34 25.84 2.86 2.2
and 579.33 579.85 0.52 43.38 46.8
634.77 642.00 7.23 1.18 0.2
652.50 706.80 54.30 0.63 0.7
includes 677.24 689.50 12.26 1.21 1.3
712.78 728.30 15.52 0.43 0.9
745.00 778.00 33.00 0.41 0.5
includes 768.00 776.00 8.00 0.56 0.0
AP-11-77 39.50 66.92 27.42 0.67 2.80
includes 39.50 40.50 1.00 2.77 3.90
includes 54.90 61.05 6.15 1.58 6.97
323.00 327.50 4.50 1.54 3.88
381.85 389.77 7.92 0.66 2.19
includes 388.22 389.77 1.55 2.46 4.68
394.82 398.10 3.28 2.13 2.23
435.04 447.49 12.45 0.62 1.29
includes 440.05 443.96 3.91 1.12 1.79

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.

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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