Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

November 28, 2011 16:12 ET

Newstrike Capital Intersects New Mineralized Zone at the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2011) - Newstrike Capital Inc. (TSX VENTURE:NES) -

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

Newstrike Capital Inc. ("Newstrike" or the "Company") is pleased to announce that the extension to hole AP-11-67 has resulted in a new discovery on the Ana Paula Project. Highlights include:

  • 15.51 meters of 1.92 g/t Au including 7.98 meters of 3.15 g/t Au;
  • 36.00 meters of 0.96 g/t gold including 21.20 meters averaging 1.34 g/t Au.

AP-11-67 is located in the southwestern portion of the one by two kilometre surface gold anomaly that is the primary target of exploration at Ana Paula. This is a one kilometre step out to the southwest from discovery hole AP-10-19. Preliminary results from this hole were previously announced with a 4.50 meter intersect of 0.81 g/t gold (September 19, 2011 press release). The hole was subsequently extended to its target depth, and has intersected multiple gold bearing horizons. Mineralization in AP-11-67 begins near surface and continues throughout the length of the vertical drill hole, and is hosted in an interlayered intrusion, hornfels and skarn environment similar to the area drilled to date at Ana Paula. This discovery confirms the size, interpretation and scope of the Ana Paula project.

Table of drill hole highlights
Drill hole From To Interval (m ) Au (g/t ) Ag(g/t )
AP-11-67 15.50 20.00 4.50 0.81 4.67
179.95 189.80 9.85 0.42 0.75
205.50 211.50 6.00 0.96 3.31
246.25 261.76 15.51 1.92 2.19
includes 252.40 260.38 7.98 3.15 1.31
267.73 274.24 6.51 0.55 1.45
309.50 311.50 2.00 2.53 0.50
581.00 617.00 36.00 0.96 0.99
includes 590.00 611.20 21.20 1.34 0.84
625.40 630.42 5.02 3.58 7.24
683.06 695.55 12.49 1.00 0.50

A complete table of mineralized intersections, drill hole location maps and drill sections are available on the Company website at www.newstrikecapital.com.

The Company will begin the 2012 exploratory drill program with a 4 drill rig program that will continue exploration of the one by two kilometre Ana Paula target area. This includes the ongoing delineation drilling of the Breccia Zone and surrounding mineralization and includes following up on the discovery in AP-11-67. The Company continues to work towards a NI43-101 resource estimate planned for the end of the first quarter in 2012.

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.

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 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. Drill intercepts in holes angled at -45˚ are nearly perpendicular to the perceived strike and dip, thus are a close approximation of true width; however, true width is not accurately known at this time.

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.

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.

Contact Information