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Newstrike Capital Receives Assay Results from Ana Paula Project in Mexico

Newstrike Capital Inc. (TSX VENTURE:NES) has announced assay results for the first eight holes from the Company's drill program at the 100%-owned Ana Paula Project, Guerrero Gold Belt, Mexico.

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."


  • 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.

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.

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.

Source: Newstrike Capital Inc.


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