Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

September 12, 2012 22:28 ET

Newstrike Capital Intersects 76.27 Meters of 10.57 g/t Au Within a 174.48 Meter Interval of 5.45 g/t Au At the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 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 4,948 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. The results are from the ongoing delineation program in the southeast quadrant and from new exploration in the southwest quadrant. Drill results from the Breccia Zone delineation program remain in strong gold mineralization and further follow up drilling is planned.

Highlights from the delineation program include:

  • AP-12-108 intersected 4.50 meters of 0.95 g/t Au, 3.10 meters of 4.44 g/t Au, 11.37 meters of 3.21 g/t Au and 11.59 meters of 1.00 g/t Au in a step out hole west of AP-11-28 and 29.

  • AP-12-109 intersected 55.22 meters of 0.81 g/t Au and 17.0 g/t Ag, including 18.81 meters of 1.28 g/t Au and 27.1 g/t Ag.

  • AP-12-111 intersected from surface 174.48 meters of 5.45 g/t Au and 11.8 g/t Ag that includes a 76.27 meter interval of 10.57 g/t Au and 15.8 g/t Ag. Other intersections further downhole include 31.85 meters of 1.14 g/t Au, 34.92 meters of 1.27 g/t Au, and 11.50 meters of 2.59 g/t Au, among others.

  • AP-12-114 intersected 57.98 meters of 2.27 g/t Au that includes a 38.91 meter interval of 3.14 g/t Au. Another intersection of 31.71 meters of 2.31 g/t Au that includes a 15.78 meter intersection of 4.15 g/t Au, and further downhole another 25.68 meter intersection of 2.36 g/t Au, 20.04 meters of 2.64 g/t Au and 10.30 meters of 0.53 g/t Au among other intersections.

  • AP-12-115 intersected 55.70 meters of 2.56 g/t Au and 10.5 g/t Ag that includes 9.53 meters of 5.06 g/t Au and 35.8 g/t Ag and another 13.25 meter interval of 5.39 g/t Au and 6.4 g/t Ag.

Table 1 provides drill hole collar locations while Table 2 provides a selection of assay results.

Table 1: Preliminary drill hole collar locations.
Drill Hole E N Elev.
(m)
Azimuth Dip Depth
(m)
Quad.
AP-12-104 409217 1997648 1133.0 90.0 -45.0 760.50 SW
AP-12-105 410138 1998362 978.0 100.0 -75.0 288.40 NE
AP-12-106 410341 1997958 936.0 0.0 -90.0 191.90 SE
AP-12-107 410332 1997803 974.0 90.0 -50.0 209.80 SE
AP-12-108 409899 1998199 1024.0 90.0 -65.0 684.25 NE
AP-12-109 409963 1997724 1107.0 105.0 -65.0 582.55 SE
AP-12-110 410343 1998043 909.0 0.0 -90.0 57.25 SE
AP-12-111 410190 1998003 953.0 0.0 -90.0 302.75 SE
AP-12-112 410068 1997906 993.0 0.0 -90.0 297.15 SE
AP-12-113 409081 1997467 1109.0 90.0 -45.0 723.15 SW
AP-12-114 410250 1997980 964.0 0.0 -90.0 365.95 SE
AP-12-115 410125 1998075 958.0 0.0 -90.0 484.65 SE

Delineation Drill Program

Drill holes AP-12-105, 106, 107, 108, 109, 110, 111, 112, 114 and 115 are part of the delineation drill program currently underway on the Ana Paula Project that is advancing towards an initial resource estimate. Delineation is progressing rapidly while results continue to demonstrate significant gold mineralization in both the high grade Breccia Zone and the lower grade monolithic breccia zone of the southeast quadrant. Further step out drilling also continues to intersect strong mineralization in a north-south trending corridor of lower grade stratigraphic mineralization.

Northeast quadrant infill drill holes include AP-12-105 and AP-12-108 that tested the lower grade stratigraphic mineralization. AP-12-105 is a steeply inclined hole that intersected the typical multiple mineralized intervals including 23.18 meters of 0.57 g/t Au, 9.35 meters of 0.56 g/t Au, 20.55 meters of 0.42 g/t Au, 5.14 meters of 0.45 g/t Au, and 9.30 meters of 1.15 g/t Au.

AP-12-108 is an inclined hole that was a 150 meter step out to the west and downdip of mineralization first intersected in AP-11-28 and 29 (March 21st, 2011). AP-12-108 intersected stronger mineralization including best intervals of 3.10 meters of 4.44 g/t Au, 11.37 meters of 3.21 g/t Au and 11.59 meters of 1.00 g/t Au.

Drilling in the southeast quadrant tested a variety of targets including the high grade breccia zone, the lower grade monolithic breccia to the south and the lower grade stratigraphic mineralization. The strongest mineralization from this area continues to come from the Breccia Zone delineation drill holes. AP-12-111 is a vertical infill hole between AP-11-19 and AP-11-37 (January 18th and April 20th, 2011). AP-12-111 intersected strong mineralization over a 294.13 meter interval that does not meet the 0.2 g/t Au cutoff protocol but that averages 3.64 g/t Au and 8.24 g/t Ag overall. This interval includes 174.48 meters of continuous mineralization of 5.45 g/t Au and 11.8 g/t Ag that also includes 105.97 meters of 8.52 g/t Au and 14.69 g/t Ag, or a 76.27 meter interval of 10.57 g/t Au and 15.8 g/t Ag. This interval includes 28 discrete samples over a total of 32.22 meters that each assay 10.0 g/t Au or more and also includes 58 discrete samples over a total of 65.76 meters that assay 5.0 g/t Au or more.

AP-12-114 and 115 are vertical infill holes that also tested the Breccia Zone. Both holes remain in strong mineralization where AP-12-114 intersected 57.98 meters of 2.27 g/t Au that also includes 38.91 meters of 3.14 g/t Au. Other intersections include 31.71 meters of 2.31 g/t Au that includes 15.78 meters of 4.15 g/t Au, an additional 25.68 meters of 2.36 g/t Au and 10.30 meters of 0.53 g/t Au. AP-12-115 intersected 55.70 meters of 2.56 g/t Au and 10.5 g/t Ag that includes 13.25 meters of 5.39 g/t Au. Other intersections include 34.35 meters of 0.53 g/t Au, 46.05 meters of 0.90 g/t Au that includes 16.30 meters of 1.19 g/t Au and 5.20 meters of 2.97 g/t Au.

Drill hole AP-12-112 successfully tested the continuity of the lower grade monolithic breccia at depth beneath AP-12-94 (June 28, 2012), intersecting 55.22 meters of 0.81 g/t Au and 17.0 g/t Ag and another intersection of 18.87 meters of 1.28 g/t Au and 27.1 g/t Ag. The lower grade monolithic breccia is located up hill and to the south of the high grade Breccia Zone.

Drill holes AP-12-106, 107, 110 and 112 each tested the boundaries of the lower grade mineralization that surrounds the Breccia Zone. The strongest mineralization from this group is from AP-12-112, a vertical hole testing the southwestern boundary of mineralization. AP-12-112 intersected strong mineralization over multiple intercepts typical of the lower grade stratigraphic controlled mineralization, including 7.90 meters of 0.69 g/t Au, 11.65 meters of 2.06 g/t Au, 9.75 meters of 0.71 g/t Au, 23.37meters of 1.45 g/t Au and 4.50 meters of 1.52 g/t Au.

The weakest intersections from this group of drill holes are from AP-12-107 and AP-12-110, both of which tested the eastern boundary of mineralization. Both holes intersected weakly anomalous gold over discrete sample intervals, the best of which was a 1.90 meter intersection of 1.15 g/t Au from AP-12-110.

The delineation drill program is continuing as planned with four drill rigs on site. New holes were added to the program to follow up these results and to complete the process of delineation as the Company continues to advance Ana Paula towards a resource estimate. Deposit modelling is ongoing and until that process is complete true widths can be assumed to be less than or equal to the reported intervals.

Southwest Quadrant - Exploration drill program

Drill holes AP-12-104 and 113 both tested targets in the southwest quadrant that are part of a series of new exploration holes testing the contact zone between highly altered sediments and an altered and mineralized intrusion that outcrops in this area. Some of the better intersections from AP-12-104, an inclined hole drilled to the east, intersected 7.66 meters of 0.41 g/t Au, 3.29 meters of 2.91 g/t Au, 2.89 meters of 1.10 g/t Au that also returned 18.9 g/t Ag and another intersection of 4.91 meters of 0.68 g/t Au.

AP-12-113 is also an inclined hole that intersected multiple lower grade intervals of mineralization at depth, including 7.69 meters of 0.34 g/t Au, 5.40 meters of 0.54 g/t Au, 7.39 meters of 0.34 g/t Au, 5.72 meters of 0.69 g/t Au and 2.66 meters of 0.93 g/t Au among other intersections. The Company will continue to test a variety of planned exploration targets as drilling progresses throughout 2012.

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 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:

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 intersections are calculated according to a protocol that uses a 0.20 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. 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 Au cut off is available on the company website together with drill location maps and sections at www.newstrikecapital.com.

A table of selected highlights of weighted grade drill assay intersections:

Drill hole From To Interval
(m)
Au
g/t
Ag
g/t
AP-12-104 340.30 347.96 7.66 0.41 5.8
590.51 593.80 3.29 2.91 6.3
610.85 613.74 2.89 1.10 18.9
634.50 639.41 4.91 0.68 2.1
AP-12-105 5.82 29.00 23.18 0.57 1.6
147.60 156.95 9.35 0.56 3.2
includes 147.60 152.90 5.30 0.78 4.9
184.70 205.25 20.55 0.42 1.6
includes 197.75 205.25 7.50 0.70 2.7
217.00 222.14 5.14 0.45 5.2
240.50 249.80 9.30 1.15 2.2
AP-12-106 16.20 17.40 1.20 0.96 142.0
21.00 23.05 2.05 0.90 119.0
57.25 61.45 4.20 2.00 6.4
includes 57.25 57.60 0.35 19.90 59.0
81.02 83.47 2.45 0.70 2.0
AP-12-107 90.80 92.20 1.40 0.29 1.6
AP-12-108 309.60 317.00 7.40 0.44 0.9
459.50 464.00 4.50 0.95 0.7
468.90 472.00 3.10 4.44 4.0
553.00 564.37 11.37 3.21 2.5
includes 563.00 564.37 1.37 20.90 18.1
574.00 585.59 11.59 1.00 2.8
AP-12-109 141.48 146.75 5.27 0.99 7.5
228.00 233.88 5.88 0.85 7.1
263.40 318.62 55.22 0.81 17.0
includes 288.23 307.10 18.87 1.28 27.1
AP-12-110 5.70 7.60 1.90 1.15 6.7
AP-12-111 0.00 174.48 174.48 5.45 11.8
includes 72.25 77.13 4.88 14.29 12.2
includes 87.90 164.17 76.27 10.57 15.8
and 88.96 102.58 13.62 16.20 46.6
and 114.30 117.00 2.70 41.26 22.1
and 120.70 128.20 7.50 13.25 11.6
and 131.63 135.20 3.57 15.73 8.5
and 143.60 146.00 2.40 11.64 12.3
and 148.50 149.62 1.12 10.15 14.9
and 155.95 157.85 1.90 17.27 14.9
Also 179.80 187.50 7.70 1.76 2.3
192.00 198.80 6.80 3.14 5.8
208.15 240.00 31.85 1.14 6.7
includes 210.50 215.55 5.05 4.16 32.2
244.50 279.42 34.92 1.27 1.3
includes 256.00 267.50 11.50 2.59 2.0
AP-12-112 154.00 161.90 7.90 0.69 1.1
174.55 186.20 11.65 2.06 1.9
includes 181.20 183.54 2.34 8.99 7.6
204.70 211.15 6.45 0.56 1.3
216.55 226.30 9.75 0.71 1.2
228.86 230.14 1.28 1.85 0.3
232.70 247.06 14.36 0.37 0.6
254.13 277.50 23.37 1.45 2.8
includes 259.35 261.10 1.75 12.10 29.8
282.00 286.50 4.50 1.52 4.7
AP-12-113 142.95 150.64 7.69 0.34 1.9
361.10 366.50 5.40 0.54 7.5
411.60 413.95 2.35 0.53 3.5
417.40 418.93 1.53 2.15 8.1
482.55 489.94 7.39 0.34 2.0
665.55 671.27 5.72 0.69 9.2
684.81 687.47 2.66 0.93 0.5
AP-12-114 18.50 24.50 6.00 2.40 59.3
49.00 59.90 10.90 0.63 2.2
86.90 93.20 6.30 2.32 9.2
99.02 157.00 57.98 2.27 4.4
includes 113.86 152.77 38.91 3.14 5.3
includes 117.10 118.90 1.80 30.08 11.2
163.45 195.16 31.71 2.31 6.9
includes 169.00 184.78 15.78 4.15 5.3
and 172.00 181.30 9.30 6.34 3.8
and 172.00 173.12 1.12 13.34 1.5
and 180.30 181.30 1.00 11.15 1.9
198.75 202.28 3.53 2.04 1.7
219.20 244.88 25.68 2.36 8.4
219.20 221.15 1.95 3.80 49.4
224.84 244.88 20.04 2.64 5.8
includes 232.95 235.26 2.31 16.16 28.9
343.60 353.90 10.30 0.53 2.0
AP-12-115 40.70 96.40 55.70 2.56 10.5
includes 44.70 54.23 9.53 5.06 35.8
and 44.70 45.70 1.00 11.48 32.8
includes 62.35 75.60 13.25 5.39 6.4
and 63.35 68.80 5.45 11.54 9.5
and 66.80 68.80 2.00 19.64 8.9
105.15 139.50 34.35 0.53 3.0
141.00 146.80 5.80 1.05 2.4
214.45 219.05 4.60 0.55 3.9
351.50 359.00 7.50 0.56 1.3
373.70 390.00 16.30 1.19 1.0
375.50 380.70 5.20 2.97 1.9
394.90 399.55 4.65 3.01 2.3
includes 394.90 395.50 0.60 12.72 6.0
466.93 472.00 5.07 0.71 3.9

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 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.

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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