Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

April 19, 2012 16:00 ET

Newstrike Capital Intersects 81.45 Meters of 2.19 g/t Au, Including 25.03 Meters of 5.10 g/t Au at the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 19, 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 next series of results completed in the 2012 drill program in progress at the Company's 100%-owned Ana Paula Project, Guerrero Gold Belt (GGB). The results reported here include one hole from the ongoing delineation of the high grade Breccia Zone located in the southeast quadrant that indicates mineralization still remains open to the south and south west. Results from four other holes from other quadrants continue to highlight the robust mineralizing system that underlies the Ana Paula project, returning strong results from all quadrants.

Highlights from this series include:

  • Southeast Quadrant: Part of the Breccia Zone delineation program, Drill hole AP-12-86 tested the southern contact and continues to intersect strong mineralization over multiple intervals. Longer intersections include (in down hole sequence) 82.95 meters of 1.16 g/t Au where 2 isolated samples less than 1.5 meters each assayed below the 0.20 g/t Au cut off protocol. This is followed by 81.45 meters of 2.19 g/t Au that includes a core 25.03 meter interval of 5.10 g/t Au. A third interval intersected 83.7 meters of 0.48 g/t Au where 3 isolated samples less than 1.5 meters assay below the cut off protocol.
  • Southwest Quadrant: Drilling continues to outline an area of strong mineralization with hole AP-12-87 returned the best intersection to date for this area with 42.14 meters of 1.02 g/t gold and 33.8 g/t Ag, including a 3.05 meter intersection of 4.6 g/t Au and 423.8 g/t Ag.
  • Northwest-Northeast Quadrant: Drill hole AP-12-85 intersected strong mineralization over multiple intervals, including among other intersects, 22.00 meters of 0.76 g/t Au, 13.93 meters of 1.03 g/t Au, 25.95 meters of 0.57 g/t Au, 18.20 meters of 1.26 g/t Au, 16.50 meters of 1.24 g/t Au and 42.00 meters of 0.50 g/t Au.
  • Northwest Quadrant: New exploration drilling got underway in this quadrant with encouraging results from AP-12-89, which intersected 3.90 meters of 2.34 g/t Au and 22.9 g/t Ag and another 11.30 meters of 1.00 g/t Au with 26.9 g/t Ag that also includes a 4.14 meter interval of 1.96 g/t Au and 70.9 g/t Ag.

Selected highlights from this series of drill results are presented in the following tables.

Southeast Quadrant - Breccia Zone Delineation

Drill hole AP-12-86 is an inclined infill hole drilled westerly from the same drill pad as AP-12-80, 81 and 84 (March 14th, 2012 press release) that tested the southern contact of the Breccia Zone first discovered in AP-10-19 (January 18th, 2011 PR). Results from AP-12-86 offset holes AP-10-19 and AP-10-20 25 meters to the south and indicate that mineralization remains open to the south and southwest. Multiple mineralized intervals were intersected, including an 81.45 meter interval of 2.19 g/t Au that also includes 25.03 meters of 5.10 g/t Au.

AP-12-86 also intersected a 69.50 meter interval that averages 0.67 g/t Au, including a 5.80 meter interval of 1.68 g/t Au, a 13.01 meter interval of 1.15 g/t Au, and a 20.30 meter interval of 0.68 g/t Au. This interval also includes 3.00 to 7.50 meter intervals that average less than the 0.20 g/t cut off protocol. Further down hole, another 14.48 meter interval intersected 3.06 g/t Au that includes a 4.45 meter interval of 9.18 g/t Au that also includes 0.52 meters of 59.00 g/t Au. Another 82.95 meter down hole interval intersected 1.16 g/t Au where two isolated samples less than 1.5 meters each were below the 0.20 g/t Au cut off protocol. Mineralization remained strong in this hole with another 83.70 meter intersection of 0.48 g/t Au where three isolated samples each less than 1.50 meters do not meet the cut off protocol. Other narrower intersections occur throughout the drill hole, the deepest of which includes 31.00 meters of 0.67 g/t Au.

Preliminary modelling of the Breccia Zone as announced on September 19, 2011 indicated that it is an irregularly shaped body plunging steeply to the south-southwest with nominal true dimensions of 250 meters by 150 meters and a 250 meter vertical depth at that time. Drill results reported since then indicate that the Breccia Zone mineralization continues to remain open in several directions. It also remains open at depth where it was intersected in AP-12-70, returning 33.00 meters of 12.39 g/t Au at a vertical depth of 700 meters from surface (November 23rd, 2011 press release). While the true thickness and dimensions of the Breccia Zone have not been determined, drilling continues to delineate the contacts of mineralization, and geological modelling is ongoing. Until that process is complete true widths can be assumed to be less or equal to the reported intervals.

Southwest Quadrant

Drill holes AP-12-87 and AP-12-88 are both east oriented drill holes that are part of the follow up drilling to the new discovery announced in AP-11-67 (November 28th, 2011 PR). Drill hole AP-11-87, located about 150 meters north and 500 meters west of AP-11-67, intersected the strongest mineralization to date in this sector with a 42.14 meter down hole interval of 1.02 g/t Au and 33.8 g/t Ag.

Drill hole AP-12-88, tested up dip of AP-11-67 and intersected multiple lower grade intervals including 4.50 meters of 0.57 g/t Au, 4.05 meters of 1.13 g/t Au, 2.53 meters of 0.83 g/t gold, and 4.00 meters of 0.53 g/t gold. Results of drilling from this area continue to be positive and have confirmed a stratigraphy of intrusions and calcareous sediments comparable to that of the northeast quadrant, host to a lower grade bulk tonnage exploration target. Follow up drilling in the southwest quadrant will continue to define the continuity and geometry of these intersections and will continue to explore for new mineralization.

Northeast and Northwest Quadrants

Drill holes AP-12-85 and 89 are both collared in the northwest quadrant, just west of the boundary with the northeast quadrant, Drill hole AP-12-85 is an inclined hole that drilled into the northeast quadrant, and is a new step out hole located about 300 meters west of AP-10-14 and 15 (January 19th, 2011 press release). AP-12-85 intersected multiple mineralized intervals. Some of the better intersections include 22.00 meters of 0.76 g/t Au, 13.93 meters of 1.03 g/t Au, 25.95 meters of 0.57 g/t Au, 18.20 meters of 1.26 g/t Au, 16.50 meters of 1.24 g/t Au, 9.00 meters of 2.08 g/t Au and 37.50 meters of 0.58 g/t Au.

Additional infill and step out drilling is planned to follow up these results that are considered comparable to the results from AP-12-82 (March 14th, 2012 press release), located about 100 meters to the south and 250 meters to the east of AP-12-85. Both holes tested strong alteration exposed at surface.

AP-12-89 is part of the new exploration drilling planned for the northwest quadrant, an area that remains largely untested by drilling to date. It is collared on the same drill pad as AP-12-85, and is an inclined hole drilled to the west. Results from this hole confirm a comparable stratigraphy to other areas of the Ana Paula exploration area, and assays have returned encouraging early exploration results, including a 3.90 meter down hole intersection of 2.34 g/t Au and 22.9 g/t Ag, another 11.30 meter intersection of 1.00 g/t Au and 26.9 g/t Ag that includes 4.14 meters of 1.96 g/t Au and 70.9 g/t Ag. Further drilling is planned.

The Company has a 45,000-meter drill program for 2012 that includes plans for completing delineation drilling of the high grade Breccia zone and infill 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 for mid-year. The exact timing of the initial resource estimate will depend on completing delineation of the Breccia Zone, still in progress at this date. 2012 plans also include drill testing 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. 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.

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 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
Quad. From To Interval
(m)
Au
g/t
Ag
g/t
AP-12-85 NW-NE 83.85 84.93 1.08 0.68 115.0
325.09 331.00 5.91 0.57 3.0
337.83 340.77 2.94 1.74 5.2
514.00 536.00 22.00 0.76 3.9
includes 520.37 534.30 13.93 1.03 5.5
558.65 584.60 25.95 0.57 7.9
623.80 642.00 18.20 1.26 1.5
includes 625.00 628.80 3.80 3.67 4.5
654.00 670.50 16.50 1.24 1.9
includes 658.50 667.50 9.00 2.08 2.6
676.50 714.00 37.50 0.58 1.8
AP-12-86 SE 37.80 60.00 22.20 0.46 4.1
87.00 92.80 5.80 1.68 6.2
97.29 110.30 13.01 1.15 12.1
includes 97.29 99.92 2.63 2.97 37.90
116.30 122.75 6.45 0.62 4.0
136.20 156.50 20.30 0.68 2.7
226.01 231.40 5.39 0.92 3.4
264.90 274.60 9.70 0.98 4.5
319.80 334.28 14.48 3.06 2.1
includes 325.58 330.03 4.45 9.18 4.3
and 325.58 326.10 0.52 59.00 24.5
340.05 343.20 3.15 1.77 1.9
371.20 420.97 49.77 1.31 2.6
424.57 434.00 9.43 0.43 0.3
436.80 454.15 17.35 1.48 0.9
includes 443.85 446.75 2.90 5.98 4.0
513.95 595.40 81.45 2.19 4.9
includes 520.42 545.45 25.03 5.10 12.3
635.90 648.18 12.28 0.76 0.4
651.00 697.85 46.85 0.54 0.6
737.00 768.00 31.00 0.67 0.5
AP-12-87 SW 198.00 201.72 3.72 1.08 1.7
415.42 457.56 42.14 1.02 33.8
Includes 418.4 421.45 3.05 4.60 423.8
and 429.15 431.4 2.25 3.24 6.7
and 446.78 454.12 7.34 1.37 5.1
621.50 636.30 14.80 0.41 0.8
AP-12-88 SW 86.70 91.20 4.50 0.57 1.6
158.20 162.25 4.05 1.13 8.9
181.50 186.00 4.50 0.42 1.9
205.67 208.20 2.53 0.83 4.3
556.00 560.00 4.00 0.53 2.9
AP-12-89 NW 277.00 280.90 3.90 2.34 22.9
489.42 500.72 11.30 1.00 26.9
includes 492.63 496.77 4.14 1.96 70.9

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.

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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