Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

June 27, 2011 16:36 ET

Newstrike Intersects 190.15 Meters of 3.52 g/t Au and 116.00 Meters of 4.71 g/t Au at the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE 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 assay results from the 2011 drill program at the Company's 100%-owned Ana Paula Project, Guerrero Gold Belt (GGB). These four holes are infill holes spaced to intersect the mineralized breccia at 50 to 100 meter centers above a vertical depth of 250 meters and were designed to delineate the geometry and continuity of the mineralization. Three of the four holes reported here intersected mineralized breccia and all four holes returned strong gold mineralization.

Highlights from this series include:

Drillhole AP-11-48 intersected a 116.00 meter interval of 4.71 g/t Au, including intervals of 57.33 meters of 8.17 g/t Au, 18.15 meters of 13.30 g/t Au and 6.47 meters of 27.48 g/t Au. Another interval over 35.50 meters averaged 2.10 g/t Au.

Drillhole AP-11-49 intersected 22.50 meters of 1.03 g/t Au, 15.00 meters of 3.44 g/t Au, and a 55.25 meter interval of 1.67 g/t Au.

Drillhole AP-11-50 intersected multiple strongly mineralized intervals, including 52.80 meters of 1.82 g/t Au, which includes 21.50 meters of 2.68 g/t Au.

Drillhole AP-11-51 intersected 190.15 meters of 3.52 g/t Au, including an 87.40 meter interval of 6.44 g/t Au, a 9.30 meter interval of 18.67 g/t Au and a 15.00 meter interval of 14.94 g/t Au.

Selected highlights from this series of drill results are presented in the following table. A complete table of mineralized intersects is available from the Company website at www.newstrike.com.

Drillhole AP-11-48 is a vertical hole that tested the mineralized breccia down dip of AP-11-47, which had previously reported an intersect of 112.90 meters grading 2.51 g/t Au (June 6, 2011 press release). AP-11-48 remained in mineralization from surface to the end of the hole including 22.65 meters grading 3.51 g/t Au and 29.4 g/t Ag and 116.0 meters grading 4.71 g/t Au and 6.3 g/t Ag. Other mineralized intervals intersected in this hole remain to be investigated with further drilling, including a 19.0 meter interval that graded 2.38 g/t Au and 1.3 g/t Ag, and another 9.50 meter interval at the bottom of the hole that graded 0.89 g/t Au and 1.4 g/t Ag.

Drillholes AP-11-49 is an inclined hole drilled towards the southeast from the same drill pad as AP-10-19 (214.00 meters of 3.00 g/t Au and 5.5 g/t Ag, January18, 2011 press release) to infill between holes AP-33 and AP-35. The mineralized breccia was not intersected in this drill hole, but it did stay within a strong envelope of mineralization throughout its length suggesting this drill orientation may be approximating the trend of the breccia unit in this area. AP-11-49 intersected numerous mineralized intervals between 85.60 meters and 441.72 meters downhole as highlighted on the table of drill intersects below. Some of the better intersects include a 9.00 meter interval of 5.11 g/t Au, 22.50 meters grading 1.03 g/t Au, 55.25 meters of 1.67 g/t Au, 15.00 meters grading 3.44 g/t Au and 23.10 meters grading 3.77 g/t Au.

Drillhole AP-11-50 is an angle hole drilled due north to infill between AP-10-19 and AP-11-37. The strongest mineralization occurred between 195.00 and 383.00 meters downhole where some of the better intervals included 50.40 meters grading 0.57 g/t Au, 52.80 meters grading 1.82 g/t Au, including 9.13 meters grading 4.93 g/t Au. Another 46.53 meter interval graded 0.65 g/t Au and another at 12.50 meters grading 0.95 g/t Au.

AP-11-51 is an angle hole drilled to the northeast to infill between holes AP-37 and AP-47. This hole confirmed the high grade zone intersected in those two holes by intersecting a 190.15 meter interval grading 3.52 g/t Au and includes intervals of 87.50 meters grading 6.44 g/t gold and also 9.30 meters grading 18.67 g/t Au.

This series of drill holes has improved the understanding of the geometry of the breccia and its mineralized envelope. The previously announced drill program (June 06, 2011 press release) will continue to test the mineralized breccia zone as well as continue with the ongoing program of step out and infill drilling to define the boundaries of a 1.0 by 2.0 kilometer surface gold geochemistry anomaly that is the target for ongoing exploration with drillholes planned to test the mineralized breccia and to test new targets to the northwest and southwest.

A table of selected drill results of assays greater than 0.5 g/t Au over 5.0 meters.
DrillholeFromToLengthAu g/tAg g/t
AP-11-485.5041.0035.502.1016.2
72.00188.00116.004.716.3
Includes130.67188.0057.338.179.1
And157.25158.501.2582.5011.5
And169.85188.0018.1513.3018.9
With177.53184.006.4727.186.7
204.00231.0027.002.0612.8
247.00266.0019.002.381.3
Includes247.00249.002.0014.451.0
344.70348.003.302.260.4
360.00386.0026.000.421.0
408.00418.0010.000.570.8
524.00530.726.721.482.0
536.00561.4525.450.971.4
670.50699.0028.500.420.4
713.50718.645.141.372.2
Includes718.00718.640.647.8813.5
854.50864.009.500.891.4
AP-11-4990.5099.509.005.115.4
Includes93.5095.001.5027.6017.2
104.00126.5022.501.032.0
Includes114.50122.007.502.052.8
132.50137.505.001.374.0
145.00160.0015.003.446.6
Includes146.50148.101.6018.2037.7
169.00224.2555.251.671.6
Includes170.50194.0023.503.332.2
And174.60175.400.8010.659.7
And189.65190.901.2514.9010.4
231.30249.0017.700.480.9
253.73255.932.205.8917.6
271.73283.0011.270.381.4
289.00300.2511.250.741.0
363.90387.0023.103.776.8
Includes367.41371.734.329.9417.3
And369.93370.630.7023.2022.6
And370.63371.731.1016.5026.1
And375.37375.870.5050.5024.1
And377.00377.500.508.7713.3
426.62437.0010.380.822.5
AP-11-5038.1554.0015.850.502.8
170.00179.009.000.553.1
195.00245.4050.400.573.6
259.00311.8052.801.824.7
Includes273.50275.502.005.416.5
Includes286.50308.0021.502.688.6
And298.87308.009.134.9331.45
316.87363.4046.530.653.2
Includes316.87317.400.531.47120.0
And335.00347.5012.500.952.1
369.00383.0014.000.570.6
404.00415.4011.400.560.8
419.70427.007.301.585.7
Includes420.70421.861.168.3430.6
AP-11-5175.10265.25190.153.526.6
Includes141.10228.6087.506.449.7
Also145.70155.009.3018.6715.1
And150.64152.001.3694.0045.4
And197.00212.0015.0014.9416.2
297.10302.004.900.623.3

All reported drill intersects are downhole lengths. Holes drilled from west to east at -45˚ angles are nearly perpendicular to the perceived strike and dip of the sedimentary geology, thus are interpreted as a close approximation of true width; however, true width of the mineralization is not accurately known at this time. 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 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. 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 intersects 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 ALS Chemex. 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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