Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

January 18, 2011 13:33 ET

Newstrike Drills 214 Meters of 3.0 g/t Gold at Ana Paula Project, Guerrero, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 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 assay results for the first eight holes from the Company's drill program at the 100%-owned Ana Paula Project, Guerrero Gold Belt, Mexico. Selected highlights include:

AP-10-19:   214.00 meters of 3.00 g/t Au and 5.5 g/t Ag, including;
    0.80 meters of 31.20 g/t Au and 42.2 g/t Ag;
    0.50 meters of 439.00 g/t Au and 126.00 g/t Ag, and
    1.09 meters of 105.00 g/t Au and 6.6 g/t Ag.
     
AP-10-13:   24.03 meters of 2.14 g/t Au and 2.7 g/t Ag;
     
AP-10-16:   23.13 meters of 4.06 g/t Au and 6.1 g/t Ag, including;
    1.00 meters of 77.35 g/t Au and 14.2 g/t Ag.
     
AP-10-17:   20.17 meters of 1.53 g/t Au and 4.3 g/t Ag.

All key objectives for the program have been achieved, including:

  • A comprehensive audit program, including a twin of Goldcorp Inc's drillhole AP-05-06 by AP-10-12, has demonstrated the reliability of the previous assay database.
  • A simplified exploration model has been drill tested that demonstrates a high degree of predictably both on strike and down dip. This model will be used for planning resource drilling and will be continuously refined as drilling progresses.
  • Step out drilling has extended known mineralization from a 400 by 600 meter area to a 500 by 1000 meter area of mineralization that remains open in all directions and at depth.
  • A second drill rig mobilized in December is completing a series of infill drill holes (50-100 meter) that is demonstrating continuity of the gold mineralization both along strike and down dip.

Richard Whittall, President and CEO of Newstrike, commented, "Our initial results are indicative of another significant gold discovery in the Guerrero Gold Belt. Ana Paula is already an exploration success with tremendous expansion potential. I look forward to continued excellent results as we progress with our drilling program."

Summary:

  • 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.
  • Newstrike is currently testing a one by two kilometer surface outcrop gold anomaly with coincident geophysical anomalies in the Ana Paula Project, a 400 by 600 meter portion of which was previously drilled tested in 2005 by Goldcorp Inc. (TSX:G, NYSE:GG). Drill results reported herein comprise 3,032 metres out of a total 4,529 meters drilled in 2010 in 12 holes, two of which were in progress at the end of the year. Assay results are pending for the remaining holes.
  • 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 large body of mineralized complex breccia was also recently discovered at the Ana Paula Project.
  • Results demonstrate an important potential to host multiple gold bearing intercepts over wide mineralized intervals that show good continuity both across and down section, with excellent predictability from a planning perspective. This, along with improving grade and thickness to the west and southwest, speaks to the large volume potential developing at Ana Paula.
  • Drilling is underway in 2011 with two drill rigs that started on January 12th. Drilling continues with the planned program of step out and infill drill holes.
Table of selected highlights from Phase 1 Drilling at Ana Paula, Guerrero
Weighted grade drill intercepts using a 0.2 g/t cutoff.
 
Drill Hole   From To Interval Au (g/t) Ag (g/t)
AP-10-12   74.40 114.50 40.10 0.80 14.4
  includes 74.40 78.75 4.35 5.07 130.8
    146.00 162.85 16.85 0.61 2.3
    211.15 236.60 25.45 0.51 5.2
    257.56 262.37 4.81 2.33 14.4
AP-10-13   103.94 121.65 17.71 0.92 2.5
  includes 105.63 109.55 3.92 2.86 6.6
    179.43 203.46 24.03 2.14 2.7
    180.93 194.46 13.53 3.57 4.6
  includes 186.96 192.96 6.00 6.76 5.5
  includes 191.46 192.96 1.50 15.49 9.0
    271.76 297.40 25.64 0.62 2.4
AP-10-14   46.50 52.50 6.00 0.58 12.4
    96.50 100.50 4.00 0.80 10.1
    254.50 290.00 35.50 0.36 14.9
    300.00 302.29 2.29 3.20 19.4
AP-10-15   58.98 84.30 *25.32 0.30 29.5
    308.70 348.00 **39.30 0.81 4.3
  includes 315.00 324.00 9.00 1.32 2.4
    335.00 348.00 13.00 0.55 2.8
    361.04 363.00 1.96 0.51 0.0
    431.75 435.75 4.00 0.52 0.0
AP-10-16   95.87 119.00 23.13 4.06 6.1
  includes 96.63 103.00 6.37 13.61 17.3
  includes 100.00 101.00 1.00 77.35 14.2
    154.00 164.00 10.00 0.67 2.2
  includes 156.00 162.00 6.00 0.92 2.3
AP-10-17   24.50 26.00 1.50 7.04 3.0
    40.83 61.00 20.17 1.53 4.3
  includes 48.00 59.00 11.00 1.96 5.6
AP-10-18   62.23 79.20 16.97 0.65 3.9
  includes 72.00 79.20 7.20 1.11 6.2
    93.07 95.18 2.11 1.35 4.4
    127.10 137.10 10.00 0.51 1.1
    189.00 193.12 4.12 1.28 12.9
AP-10-19   74.30 89.50 15.20 2.83 14.7
  includes 74.83 76.29 1.46 21.50 32.5
    109.00 323.00 214.00 3.00 5.5
  includes 137.00 137.80 0.80 31.20 42.2
  and 147.00 243.22 96.22 5.80 8.5
  includes 153.00 164.70 11.70 23.69 21.5
  includes 153.00 153.50 0.50 439.00 126.0
  and 164.00 164.70 0.70 27.00 16.9
  and 194.85 207.87 13.02 12.36 2.3
  includes 198.78 199.87 1.09 105.00 6.6
  includes 226.6 228.6 9.14 5.89 33.1
 
  *Includes samples of 0.074 g/t Au/0.64meters and 0.055 g/t Au/1.00 meters
**Includes 3 consecutive samples averaging 0.132 g/t Au/3.0 m  

A table of all weighted grade intercepts is available on the company website together with a drill location map at www.newstrikecapital.com. Drill intercepts in holes angled at -45 degrees 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.

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. Sample protocols include systematic insertion of blanks and standards. Analyses in this release were performed by both ALS Chemex and by SGS. Samples from each lab were selected to be sent to the alternate lab for check assay. Samples analyzed by Chemex are picked up by Chemex personnel at Newstrike's on site warehouse, and transported directly to their Guadalajara sample preparation facilities prior to shipping pulps to Vancouver, Canada for analysis. Project personnel delivered samples analyzed by SGS directly to their Mexico facilities or samples were picked up on site by SGS personnel and delivered for processing and analysis at the SGS Laboratory in Durango, Mexico. 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 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. Ken Thorsen, a director of the company and a qualified person under NI43-101 has also reviewed the contents of this press release.

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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