Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

March 21, 2011 09:10 ET

Newstrike Drilling Expands Gold Mineralization at Ana Paula Project Intercepts 52.63 Meters of 6.9 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 21, 2011) -

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 that drilling continues to intercept and expand on the gold discovery at the Company's 100%-owned Ana Paula Project, Guerrero Gold Belt (GGB), Mexico. Selected highlights include: 

Drillhole   From   To   Length   Au g/t   Ag g/t
AP-10-23   50.45   58.43   7.98   1.4   46.4
    186.00   196.00   10.00   0.7   6.3
    241.50   256.00   14.50   1.2   43.1
    478.00   495.53   17.53   0.5   4.7
AP-11-24   291.48   301.50   10.02   0.7   166.2
    331.08   355.00   23.92   1.3   3.9
    364.00   394.00   30.00   0.7   5.0
AP-11-25   351.50   368.00   16.50   0.9   9.3
    393.50   408.71   15.21   0.5   1.4
    417.50   431.00   13.50   1.8   1.5
    552.00   572.88   20.88   0.5   2.2
AP-11-26   250.50   261.50   11.00   0.6   3.2
    273.67   289.00   15.33   0.7   23.0
    453.00   464.55   11.55   2.1   9.2
AP-11-28   224.50   240.50   16.00   1.4   3.1
    331.33   343.70   12.37   1.1   4.0
AP-11-29   89.50   107.70   18.20   0.6   1.9
    281.15   300.60   19.45   0.9   1.6
    322.75   365.00   42.25   1.1   5.7
    381.00   388.30   7.30   1.1   2.9
AP-11-31   4.00   17.25   13.25   0.5   3.4
    31.59   52.70   21.11   0.9   12.4
    202.93   218.00   15.07   1.2   20.3
AP-11-32   82.50   109.00   26.50   0.6   4.0
    290.00   304.00   14.00   0.8   3.2
    378.80   400.00   21.20   0.7   2.0
AP-11-33   0.00   13.78   13.78   0.5   4.2
    77.50   87.50   10.00   1.1   104.2
    127.50   153.73   26.23   0.5   4.1
    173.74   184.50   10.76   1.4   12.6
    193.37   246.00   52.63   6.9   8.1
    274.00   291.50   17.50   0.7   5.8

Step-out drilling continues to intercept multiple mineralized intervals in all drill holes completed to date, and has expanded the area of mineralization to 700 by 1100 meters. Mineralization continues to remain open in all directions and at depth; including 23.92 meters of 1.3 g/t Au and 3.9 g/t Ag in hole AP-11-24 located about 100 meters west and south of previous drilling, and 11.55 meters of 2.1 g/t Au and 2.2 g/t Ag in hole AP-11-26 located to the west and north of previous drilling. Additionally, an intercept of 42.25 meters of 1.1 g/t Au and 5.7 g/t Ag in hole AP-11-29 is located about 150 meters west of the central portion of the drilled area and west of Goldcorp Inc. drill hole AP-05-01. Holes AP-11-27 and AP-11-30 are both step out holes located furthest south of previous drilling. The intercepts from these two holes includes 19.50 meters of 0.4 g/t Au and 6.3 g/t Ag in AP-11-27 and 1.85 meters of 1.0 g/t Au and 2.4 g/t Ag in AP-11-30.

The best intercept from this series of drillholes is 52.63 meters of 6.9 g/t Au and 8.1 g/t Ag in AP-11-33, located about 100 meters south and east of AP-10-19 and 20. Drillhole AP-11-33 was oriented to the northeast to test the up-dip portion of the mineralized complex breccia intercepts in AP-10-19 and 20. Those drill holes averaged 214.00 meters of 3.0 g/t Au and 5.5 g/t Ag in AP-10-19 and 275.46 meters of 1.4 g/t Au and 1.7 g/t Ag in AP-10-20 as announced previously on January 18th and 25th, 2011.

Richard Whittall, President and CEO of Newstrike stated "To date we have tested roughly half of the surface gold anomaly with 10,100 meters in 22 widely spaced drill holes. We are very pleased that mineralization at Ana Paula continues to be so robust and remains open in all directions. At an early stage of testing the full potential of the gold mineralization, Ana Paula continues to deliver excellent results and is an important discovery for the GGB."

He also said "Step out drilling throughout 2011 will continue as planned until we have located the boundaries of the gold mineralization envelope. Additionally a series of drill holes in the 2011 program will test the orientation and continuity of the mineralized complex breccia encountered in several of the drill holes. We will also continue to infill at 100m centers as drilling progresses."

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 'Morelos Project' and to Goldcorp's producing 'Los Filos' project. The 2011 drill program is testing a 1.0 by 2.0 kilometer surface gold geochemistry with two drill rigs currently mobilized to the project. Results from drilling will be reported in groups at regular intervals as drilling progresses.

Drill results continue to demonstrate an important potential to host multiple gold-bearing intercepts over wide mineralized intervals that shows good continuity both across and down section. Assay results indicate that higher grade gold mineralized intercepts tend to occur at contacts between intrusive rocks and altered sediments, and that thick lower grade disseminated and stock work mineralization occurs within sills or dikes and locally within hornfels. Mineralization is associated with a series of stacked intrusions that intrude siliciclastic and carbonate sediments, a setting that is typical of the Guerrero Gold Belt skarn porphyry model for mineralization.

A table of all weighted grade intercepts is available on the company website together with a drill location map at www.newstrike.com. Reported drill intercepts are down hole lengths. Holes drilled at -45˚ angles are nearly perpendicular to the perceived strike and dip of the geology, thus are interpreted as a close approximation of true width; however, true width of the mineralization is not accurately known at this time.

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.

             Table of selected results from Phase 1 Drilling at Ana Paula, Guerrero
             Weighted grade drill intercepts using a 0.2 g/t cutoff.
 
Drill hole       From   To   Length   Au g/t   Ag g/t
AP-10-23   Infill   50.45   58.43   7.98   1.4   46.4
        84.00   90.83   6.83   0.6   24.3
        186.00   196.00   10.00   0.7   6.3
        212.00   232.00   20.00   0.4   3.6
        241.50   256.00   14.50   1.2   43.1
  Includes       250.84   251.24   0.40   19.1   762.0
        292.51   293.78   1.27   16.9   17.5
  Includes       292.51   293.08   0.57   37.1   37.3
        478.00   495.53   17.53   0.5   4.7
  Includes       481.84   486.00   4.16   1.0   5.0
        696.00   699.50   3.50   0.8   2.4
                         
AP-11-24   Step Out   152.00   175.90   23.90   0.4   21.3
        291.48   301.50   10.02   0.7   166.2
        331.08   355.00   23.92   1.3   3.9
        364.00   394.00   30.00   0.7   5.0
        397.00   415.00   18.00   0.4   5.2
                         
AP-11-25   Step Out   351.50   368.00   16.50   0.9   9.3
        393.50   408.71   15.21   0.5   1.4
        417.50   431.00   13.50   1.8   1.5
  Includes       422.00   431.00   9.00   2.5   2.0
        511.00   519.00   8.00   0.4   0.6
        552.00   572.88   20.88   0.5   2.2
                         
AP-11-26   Step Out   53.35   54.04   0.69   1.2   23.7
        250.50   261.50   11.00   0.6   3.2
        273.67   289.00   15.33   0.7   23.0
  Includes       276.86   282.98   6.12   1.1   6.7
        453.00   464.55   11.55   2.1   9.2
  Includes       463.30   464.55   1.25   14.2   36.6
                         
AP-11-27   Step Out   55.61   56.17   0.56   1.7   35.3
        117.50   137.00   19.50   0.4   6.3
        283.90   285.50   1.60   0.6   1.0
        339.00   339.70   0.70   3.2   54.4
        349.00   353.30   4.30   1.7   14.3
                         
AP-11-28   Infill   30.48   34.50   4.02   0.7   13.1
        72.60   76.00   3.40   0.5   2.6
        224.50   240.50   16.00   1.4   3.1
  Includes       233.50   237.70   4.20   3.6   6.0
  and       236.70   237.70   1.00   9.0   6.7
        251.00   258.43   7.43   0.4   5.0
        274.50   283.00   8.50   0.6   1.8
        331.33   343.70   12.37   1.1   4.0
  Includes       331.91   332.41   0.50   15.7   44.0
        351.15   352.72   1.57   0.6   1.9
                         
AP-11-29   Infill   22.50   37.66   15.16   0.4   26.0
        40.37   43.03   2.66   0.6   15.0
        61.50   68.00   6.50   0.9   3.4
AP-11-29       70.50   73.70   3.20   0.7   10.2
  (continued)       89.50   107.70   18.20   0.6   1.9
  Includes       96.45   101.20   4.75   1.0   2.2
        195.66   197.25   1.59   1.7   1.2
        250.65   255.15   4.50   0.5   1.4
        267.15   268.65   1.50   0.9   9.2
        281.15   300.60   19.45   0.9   1.6
        322.75   365.00   42.25   1.1   5.7
  Includes       355.35   355.90   0.55   28.9   42.4
        381.00   388.30   7.30   1.1   2.9
  Includes       387.30   388.30   1.00   5.0   11.6
                         
AP-11-30   Step Out   165.35   167.20   1.85   1.0   2.4
        171.90   174.27   2.37   0.6   4.8
        450.00   454.00   4.00   0.4   1.2
        490.00   491.60   1.60   0.7   1.0
        496.00   498.00   2.00   0.7   10.3
                         
AP-11-31   Infill   4.00   17.25   13.25   0.5   3.4
        31.59   52.70   21.11   0.9   12.4
  Includes       34.70   41.26   6.56   1.5   29.2
        140.06   143.26   3.20   0.8   7.0
        202.93   218.00   15.07   1.2   20.3
  Includes       202.93   204.43   1.50   7.0   155.3
                         
AP-11-32   Infill   82.50   109.00   26.50   0.6   4.0
        113.00   115.00   2.00   0.8   2.4
        139.00   141.00   2.00   0.4   8.7
        229.35   230.23   0.88   1.9   5.8
        246.00   250.00   4.00   0.5   1.7
        276.30   278.00   1.70   4.5   5.0
        290.00   304.00   14.00   0.8   3.2
        331.00   335.00   4.00   0.8   3.0
        378.80   400.00   21.20   0.7   2.0
                         
AP-11-33   Infill   0.00   13.78   13.78   0.5   4.2
        26.11   34.65   8.54   0.9   30.9
        77.50   87.50   10.00   1.1   104.2
        111.50   118.50   7.00   0.4   2.5
        127.50   153.73   26.23   0.5   4.1
        173.74   184.50   10.76   1.4   12.6
  Includes       173.74   174.82   1.08   7.4   90.0
        193.37   246.00   52.63   6.9   8.1
  Includes       200.00   223.25   23.25   10.2   10.3
  and       215.50   223.25   7.75   14.8   14.9
  and       239.11   246.00   6.89   12.1   15.7
  and       239.11   240.51   1.40   56.2   74.1
        274.00   291.50   17.50   0.7   5.8
  Includes       274.00   274.54   0.54   3.7   66.0
  Includes       278.31   278.81   0.50   8.9   47.3
Intervals of more than 0.5 g∕t gold over more than 10 meters and intervals of more than 1.0 g∕t gold over more than 5.0 meters are in bold type.

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 intercepts 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.

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 both ALS Chemex and by SGS. 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 gold-bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic 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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