Newstrike Capital's Deep Drill Program Intersects 39.39 Metres of 6.42 g/t Au Included Within a 72.19 Metre Intersection of 3...
October 23 2013 - 5:45PM
Marketwired Canada
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STATES
Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company")
announces final results for the deep drill program at the Company's 100% owned
Ana Paula Project in Guerrero, Mexico. Drillhole AP-13-215 confirmed high-grade
mineralization approximately 100 to 150 metres beneath the conceptual pit in the
current resource model. Results from the deep drill program continue to be very
encouraging and demonstrate a strong potential for high-grade mineralization at
depth.
Highlights include:
-- AP-13-215 intersected 72.19 metres of 3.92 g/t Au from 675.75 to 747.94
metres down hole, including 39.39 meters of 6.42 g/t Au from 677.10 m to
716.49 metres. This includes multiple discrete intervals that returned
over 10 g/t Au as highlighted in the table below.
Other intersections in AP-13-215 include:
-- 24.50 metres of 2.15 g/t Au from 574.10 to 598.60 metres, which includes
11.41 metres of 3.91 g/t Au from 581.15 to 592.56 metres.
Discussion of results
AP-13-215 is a 990.15 metre angle hole that was drilled northerly across the
plunge of the breccia zone to test the continuity of the breccia body and
associated high-grade mineralization at depth. The hole tested beneath a
conceptual open pit described in the initial gold resource estimate that
outlined a pit constrained 2.2 million ounce gold resource in the measured and
indicated categories(i). Completing the recommendations made in the initial
resource report is the focus of the Company's activities on the project.
One of the conclusions in the initial resource report described high-grade
mineralization located in the lower part of the breccia zone that was
intersected below the 375 metre level, which is the approximate depth from
surface of the base of the conceptual pit shape. This mineralized zone was
identified as having potential to increase the resource through additional
drilling and pit optimization studies to determine if some of this material
could be included within the confines of the pit, and/or is of a sufficient
grade and tonnage suitable for underground mining operations. AP-13-215 is the
last of a four-hole exploratory deep drill program designed to further evaluate
this deep high grade potential.
All final results from the deep drilling have now been reported (Newstrike press
releases June 20 and September 16, 2013) and the program has successfully
confirmed the presence of high grade mineralization within the breccia zone from
surface to a depth of at least 700 meters vertically and over a horizontal
distance of about 100 metres with variable widths. The mineralized zone remains
open and additional drilling will be required to fully evaluate the high grade
potential at depth.
Table 1 presents the preliminary drill location information for AP-13-215. Table
2 is a selection of assay results above a gold grade thickness of five gram
meters with gold grade thicknesses greater than ten gram meters highlighted.
Maps and assay tables of all drillholes reported to date are available on the
Company website at www.newstrikecapital.com.
(i) Applying a cutoff grade of 0.45 grams per tonne gold equivalent (AuEq)
defined by the price, cost and recovery assumptions outlined in the initial
resource report, the Ana Paula project includes a conceptual open pit
constrained resource in the measured and indicated categories of 43.0 million
tonnes, including 2.2 million ounces of gold and 9.7 million ounces of silver at
a weighted average grade of 1.59 grams per tonne gold and 7.0 grams per tonne
silver (NI-43-101 technical report filed May 8th, 2013, available on the company
website or at www.sedar.com).
Table 1. Preliminary drillhole collar location.
----------------------------------------------------------------------------
UTM WGS84 Orientation Total Quadrant
-------------------------------------------------------
Drill hole E (m) N (m) Elev. (m) Azimuth Inclination Depth (m)
----------------------------------------------------------------------------
AP-13-215 410097 1997466 979.69 0 -50 990.15 SE
----------------------------------------------------------------------------
Table 2. Selected weighted grade intersections.
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Interval
Drillhole From (m) To (m) (m) Au (g/t) Ag (g/t)
----------------------------------------------------------------------------
AP-13-215 509.76 523.45 13.69 0.48 0.49
544.87 560.50 15.63 0.47 1.01
574.10 598.60 24.50 2.15 3.15
includes 581.15 592.56 11.41 3.91 4.95
and 585.10 586.40 1.30 11.55 14.70
612.37 628.15 15.78 0.34 0.43
662.36 668.46 6.10 3.34 5.78
includes 667.80 668.46 0.66 19.85 19.20
675.75 747.94 72.19 3.92 5.87
includes 677.10 716.49 39.39 6.42 9.72
and 680.40 681.82 1.42 43.82 35.39
and 685.71 687.24 1.53 13.75 10.00
includes 692.23 693.00 0.77 13.35 14.00
includes 695.39 697.61 2.22 12.73 24.82
includes 705.55 706.25 0.70 34.10 97.70
includes 714.45 715.37 0.92 35.30 34.10
760.12 781.50 21.38 0.40 0.27
802.50 811.50 9.00 1.11 0.30
823.50 835.35 11.85 1.28 0.20
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QA-QC:
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. ALS Chemex performed assay analyses reported in this release. All
samples are assayed using certified and industry standard assay techniques for
gold and multi-element packages and for over limits; gold (Au) was analyzed by
50 gram fire assay with an atomic absorption finish, and other elements were
analyzed by a multi-element ICP package. Gold assays over 10 g/t were assayed by
fire assay and gravimetric methods.
The reported 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 intersections are calculated
according to a protocol that uses 0.20 grams per tonne gold cut off 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. The dip of the geology and the mineralized
intersections varies across the property and the true widths are not accurately
known at this time. True width can be expected to be equal to or smaller than
the reported intervals.
About Newstrike (TSX VENTURE:NES)(ETR:NW3)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and
historic mining districts in Mexico. Key senior members of the Company's current
management and directors have participated in Guerrero Gold Belt discoveries,
including Goldcorp Inc.'s producing Los Filos Mine and Torex Gold Resources
advanced stage Morelos Project in Guerrero State.
Newstrike holds a 100% interest in certain exploration properties in Mexico
located within established mining districts; the Au (Ag-Cu) skarn-porphyry camp
of the Guerrero Gold Belt, and the polymetallic Pb-Zn-Ag (Au-Cu) rich epithermal
camp of the mining districts of Oaxaca State.The Ana Paula Project is central to
Newstrike's 88,000 hectare mineral claims located in the Guerrero Gold Belt 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 Mine.
Ken Thorson, 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 qualified person under NI43-101.
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.
Certain of the statements made in this news release contain forward-looking
information within the meaning of applicable Canadian securities law. Material
forward-looking information includes, but is not limited to statements or
information with respect to the resource estimate and potential future
exploration and development results and results of studies in respect of the
Company's Ana Paula Project. We have made numerous assumptions about the
material forward-looking information contained herein, including among other
things, that prices of gold and silver will remain relatively stable, that
applicable permits will be obtainable and that any required financing will be
available on reasonable terms. Even though our management believes that the
assumptions made and the expectations represented by such statements or
information are reasonable, there can be no assurance that the forward-looking
statement or information will prove to be accurate. Forward-looking information
by its nature involves known and unknown risks, uncertainties and other factors
which may cause the actual results to be materially different from any future
results expressed or implied by such forward-looking information. Such risks,
uncertainties and other factors include, among others, the following: the
inherent risks and uncertainty involved in the exploration and development of
mineral properties;
the uncertainties involved in interpreting drill results and other exploration
data; the potential for delays in exploration or development activities; the
geology, grade and continuity of mineral deposits; the possibility that future
exploration, development or mining results will not be consistent with the
Company's expectations; accidents, equipment breakdowns, labor disputes or other
unanticipated difficulties with or interruptions in production and operations;
fluctuating prices of metals and other commodities; currency fluctuations; the
possibility of project cost overruns or unanticipated costs and expenses;
uncertainties relating to the availability and costs of financing needed in the
future; the inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses; regulatory restrictions, including
environmental regulatory restrictions and liability; competition and loss of key
employees; political instability in Mexico; the availability of key equipment;
the risk of disruption from non-governmental organizations; risks relating to
our common shares and the public markets. Should one or more of these risks,
uncertainties or other factors materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those described in
forward-looking information. Although we have attempted to identify factors that
would cause actual results to differ materially from those described in
forward-looking information, there may be other factors that cause actual
results, performances, achievements or events to not be as anticipated,
estimated or intended. Also, many of the factors are beyond our control. There
can be no assurance that forward-looking information will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly you should not place undue reliance
on forward-looking information. Except as required by law, we do not expect to
update forward-looking information as conditions change and you are referred to
the full discussion of the Company's business contained in the Company's reports
filed with the securities regulatory authorities in Canada.
FOR FURTHER INFORMATION PLEASE CONTACT:
Newstrike Capital Inc.
Richard Whittall
Director, President & CEO
604-605-4654
www.newstrikecapital.com
Blog site: http://newstrikecapital.com/blog