Newstrike Capital Inc.
TSX VENTURE : NES

Newstrike Capital Inc.

April 20, 2011 16:05 ET

Newstrike Intersects 230.95 Meters of 7.51 g/t Au at the Ana Paula Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2011) -

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Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") is pleased to announce additional drill results from the Company's 100%-owned Ana Paula Project, Guerrero Gold Belt (GGB), Mexico. The reported drill holes represent a cross section of targets from ongoing widely spaced step out and infill drilling that continues to intercept gold mineralization over multiple mineralized horizons.

Some of the highlights from this series include:

Drillhole AP-11-35 intercepted 87.22 meter interval of 0.95 g/t Au, including 1.11 meters below the 0.2 g/t cutoff; and also intercepted a 208.03 meter interval of 0.93 g/t Au where 10% assayed below the 0.2 g/t Au cutoff.

Drillhole AP-11-37 intercepted 316.95 meters of 5.80 g/t Au that includes a 230.95 meter interval of 7.51 g/t Au, also including a 57.64 meter interval of 18.61 g/t Au where a 5.7 meter interval assayed below the 0.2 g/t Au cutoff.

Selected highlights of all intercepts that grade 0.5 g/t Au over more than 5.0 meters are presented in the following table. A table of all mineralized intervals is available from the company website at www.newstrike.com.

Table of selected drill results of assays greater than 0.5 g/t Au over 5.0 meters
DrillholeFromToInterval (m)Au g/tAg g/t
AP-11-3456.5064.007.500.502.4
107.50112.505.000.701.8
150.00160.0010.000.474.3
242.00253.0011.001.168.1
431.90439.007.103.700.9
452.65471.1518.500.851.0
554.50557.583.084.704.0
584.80610.0025.200.881.8
includes593.00601.758.751.883.2
AP-11-353.0519.7516.701.007.6
116.00203.2287.220.957.7
includes116.00148.2832.280.9014.9
includes150.59203.2252.631.023.5
213.00219.406.400.542.8
228.65242.3213.670.691.8
432.00445.0013.000.734.1
542.00562.0020.002.263.7
includes543.33544.300.9711.5522.2
includes552.22553.301.0823.6024.3
617.97679.0061.030.771.3
685.00692.417.417.394.9
includes686.63687.290.6676.1027.7
698.00712.0014.000.721.3
718.00772.8454.840.602.2
775.34826.0050.660.906.0
includes793.90794.870.9711.7033.5
831.67832.851.180.511.1
AP-11-365.00164.50159.500.572.7
414.00420.626.620.481.9
AP-11-373.05234.00230.957.517.0
includes88.50193.90105.4012.3010.4
and117.36175.0057.6418.6113.4
239.70320.0080.301.291.6
includes240.80264.0023.203.002.9
406.00417.0011.003.258.8
includes407.00407.830.8338.8085.0
423.00441.0018.001.311.1
453.00469.0016.000.641.1
AP-11-38111.50133.4721.970.8894.0
includes117.56129.8512.291.26157.7
AP-11-39116.00134.0018.000.4621.0
140.85178.0037.151.0322.9
includes140.85158.5017.651.3541.8

Both AP-11-35 and AP-11-37 are part of a series of drill holes designed to test the orientation and continuity of the mineralized breccia originally intercepted in drill holes AP-10-19 and 20 (January 18th and 25th, 2011 press releases), as well as testing the orientation and spacing of veinlets in mineralized porphyritic intrusion. Hole 35, a vertical hole that tested down dip of AP-11-33 (March 21st, 2011 press release) and drilled about 50 meters south of AP-10-19 and 20, intercepted 87.22 meter interval of 0.95 g/t Au, including 1.11 meters below the 0.2 g/t cutoff; and also intercepted a 208.03 meter interval of 0.93 g/t Au where 10% assayed below the 0.2 g/t Au cutoff.

Hole 37, drilled 50 meters north of holes AP-10-19 and 20 and oriented to the west to test the down dip interpretation and continuity of the mineralized breccia, intercepted 316.95 meters of 5.80 g/t Au that includes a 230.95 meter interval of 7.51 g/t Au, also including a 57.64 meter interval of 18.61 g/t Au where a 5.7 meter interval assayed below the 0.2 g/t Au cutoff. The mineralized breccia intercepts to date appear to confirm the interpretation that the body of the mineralized breccia is parallel to the structural fabric of the surrounding host rocks, although deeper intercepts to the south, in holes AP-11-20 and AP-11-35, have yet to be explained. More drilling is planned to confirm the orientation of the mineralized breccia body and further define its dimensions, which remains open to the north and south and also down dip.

Drill hole AP-11-34 is a vertical hole that tested the down dip continuity of mineralization previously intercepted in AP-11-32 and in AP-10-18 and 19 (January 18st and March 21st, 2011 press releases). Results confirm multiple gold intercepts, including 11.0 meters of 1.16 g/t Au, 18.5 meters of 0.85 g/t Au, and 25.2 meters of 0.88 g/t Au.

Drill hole AP-11-36 was drilled as an infill hole, located between drill holes AP-11-22 and 27 and oriented to drill east. Consistent mineralization was intercepted in this hole from near surface for over 159.5 meters grading 0.57 g/t Au and 2.7 g/t Ag. The mineralized interval is similar to a unit first intercepted in drill hole AP-11-22 that assayed 42.00 meters of 0.62 g/t Au and 57.5 g/t Ag (January 25th, 2011 press release) and is now recognized as a new polylithic breccia whose potential and origin remains to be explored.

Drillholes AP-11-38 and 39 are located to the northeast of the current drill area and are inclined holes that tested beneath existing historic mine workings. These holes confirmed the continuity of mineralization to the northeast of any previous drilling, and intercepted significant gold and silver mineralization. Hole 38 intercepted 21.97 meters grading 0.88 g/t Au and 94.0 g/t Ag, including 12.29 meters of 1.26 g/t Au and 157.7 g/t Ag. Hole 39 tested down dip of hole 38, intercepting 62.0 meters of 0.77 g/t Au and 20.3 g/t Ag, that includes 37.15 meters grading 1.03 g/t Au and 22.9 g/t Ag, an interval that also includes 17.65 meters of 1.35 g/t Au and 41.8 g/t Ag. A 6.85 meter interval assayed below the 0.2 g/t Au cutoff.

Step out drilling will continue to search for the boundaries of the mineralized envelope at Ana Paula, operating concurrently with planned infill drilling. Drilling to date demonstrates a robust mineralization that hosts multiple gold-bearing intercepts over wide intervals that starts at or near surface, remains open in all directions including at depth, and shows good continuity both along strike and down dip. Mineralization in general is associated with a series of stacked porphyritic intrusions that intrude siliciclastic and carbonate sediments, a setting that is typical of the Guerrero Gold Belt skarn porphyry model for mineralization.

Newstrike's drill results from Ana Paula indicate in general that higher grade intercepts tend to occur at or near the contacts between intrusive rocks and altered sediments, particularly within hornfels, and that thicker lower grade intercepts tends to occur with a disseminated and stockwork mineralization within porphyritic intrusions. Recent drilling by Newstrike has also resulted in the discovery of a new strongly mineralized breccia body that appears to parallel the structural grain of the deposit. More drilling is planned to confirm the orientation of this body, and to further define its dimensions.

All reported drill intercepts are down hole lengths. Holes drilled from west to east 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. 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 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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