Newstrike Resources Ltd.
TSX VENTURE : NR

Newstrike Resources Ltd.

April 24, 2007 13:44 ET

Newstrike Resources Ltd. Provides Further Details of New Mineral Prospect

TORONTO, ONTARIO--(CCNMatthews - April 24, 2007) - Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike" or the "Company") is pleased to provide further details of the property known as the Jean property, in connection with which Newstrike has been granted the option to acquire a 100% legal and beneficial interest (subject to a 3% NSR), all as further described in the press release of Newstrike dated April 23, 2007.

The Jean Property encompasses 11,679 hectares in the Omineca Mining Division in British Columbia. The property is located approximately 115 kilometers northwest by road from Fort St. James and is accessible via logging roads.

Copper-molybdenum mineralization was first discovered on the Jean property in 1968, following which it was subject to intermittent exploration between 1969 and 1991. Since 1991, the vendors of the property have completed 16 vertical and angle diamond drill holes for a total of 3,118 meters to test three induced polarization anomalies.

A historical estimate for the Jean property prepared by Ragnar Bruaset which was first completed in 1970 and updated in 1997 reports (i) 14 million tonnes at 0.30% Cu and 0.015% Mo in the "A-zone" area; (ii) 16 million tonnes at 0.31% Cu and 0.025% Mo in the "B-zone" area; and (iii) 30 million tonnes at 0.11% Cu and 0.017% Mo in the "C-zone" area. These estimates are historical in nature and are not compliant with National Instrument 43-101 standards, however they are still considered relevant as they illustrate that the sulphide bearing hydrothermal system extends for over 4 kilometers along the faulted contact. Potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource on the Jean property in accordance with the standards of National Instrument 43-101, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Newstrike's proposed exploration program on the Jean property is expected to test the three zones noted above by diamond drilling to a depth of approximately 700 meters from surface.

The transaction remains subject to the execution of a definitive option agreement and the approval of the TSX Venture Exchange.

A finder's fee consisting of 100,000 common shares of Newstrike and $10,000 cash is payable to Messrs. Robert Pollock and G. Hornby in connection with this transaction, which fee is in addition to the finder's fee payable to Mr. Barrie Hancock disclosed in the press release of Newstrike dated April 23, 2007.

Forward Looking Statements:

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Newstrike Resources Ltd.
    Donald Rankin
    Director
    (416) 628-6556