NES Drills more Gold!
These results although not as impressive as the last still extend the known mineralization in all directions. Ana Paula is a massive find and even at .6 to .8 grams is is economic if it is a representative GGB deposit!
Newstrike drills 52.63 m of 6.9 g/t Au at Ana Paula
Newstrike Capital Inc (C:NES)
Shares Issued 82,570,638
Last Close 3/18/2011 $1.27
Monday March 21 2011 – News Release
Mr. Richard Whittall reports
NEWSTRIKE DRILLING EXPANDS GOLD MINERALIZATION AT ANA PAULA PROJECT INTERCEPTS 52.63 METERS OF 6.9 G/T GOLD
Newstrike Capital Inc.’s drilling continues to intercept and expand on the gold discovery at the company’s 100-per-cent-owned Ana Paula project, Guerrero gold belt (GGB), Mexico. Selected highlights include:
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Drillhole From To Length Au g/t Ag g/t
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AP-10-23 50.45 58.43 7.98 1.4 46.4
186.00 196.00 10.00 0.7 6.3
241.50 256.00 14.50 1.2 43.1
478.00 495.53 17.53 0.5 4.7
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AP-11-24 291.48 301.50 10.02 0.7 166.2
331.08 355.00 23.92 1.3 3.9
364.00 394.00 30.00 0.7 5.0
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AP-11-25 351.50 368.00 16.50 0.9 9.3
393.50 408.71 15.21 0.5 1.4
417.50 431.00 13.50 1.8 1.5
552.00 572.88 20.88 0.5 2.2
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AP-11-26 250.50 261.50 11.00 0.6 3.2
273.67 289.00 15.33 0.7 23.0
453.00 464.55 11.55 2.1 9.2
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AP-11-28 224.50 240.50 16.00 1.4 3.1
331.33 343.70 12.37 1.1 4.0
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AP-11-29 89.50 107.70 18.20 0.6 1.9
281.15 300.60 19.45 0.9 1.6
322.75 365.00 42.25 1.1 5.7
381.00 388.30 7.30 1.1 2.9
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AP-11-31 4.00 17.25 13.25 0.5 3.4
31.59 52.70 21.11 0.9 12.4
202.93 218.00 15.07 1.2 20.3
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AP-11-32 82.50 109.00 26.50 0.6 4.0
290.00 304.00 14.00 0.8 3.2
378.80 400.00 21.20 0.7 2.0
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AP-11-33 0.00 13.78 13.78 0.5 4.2
77.50 87.50 10.00 1.1 104.2
127.50 153.73 26.23 0.5 4.1
173.74 184.50 10.76 1.4 12.6
193.37 246.00 52.63 6.9 8.1
274.00 291.50 17.50 0.7 5.8
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Step-out drilling continues to intercept multiple mineralized intervals in all drill holes completed to date, and has expanded the area of mineralization to 700 by 1100 meters. Mineralization continues to remain open in all directions and at depth; including 23.92 meters of 1.3 g/t Au and 3.9 g/t Ag in hole AP-11-24 located about 100 meters west and south of previous drilling, and 11.55 meters of 2.1 g/t Au and 2.2 g/t Ag in hole AP-11-26 located to the west and north of previous drilling. Additionally, an intercept of 42.25 meters of 1.1 g/t Au and 5.7 g/t Ag in hole AP-11-29 is located about 150 meters west of the central portion of the drilled area and west of Goldcorp Inc. drill hole AP-05-01. Holes AP-11-27 and AP-11-30 are both step out holes located furthest south of previous drilling. The intercepts from these two holes includes 19.50 meters of 0.4 g/t Au and 6.3 g/t Ag in AP-11-27 and 1.85 meters of 1.0 g/t Au and 2.4 g/t Ag in AP-11-30.
The best intercept from this series of drillholes is 52.63 meters of 6.9 g/t Au and 8.1 g/t Ag in AP-11-33, located about 100 meters south and east of AP-10-19 and 20. Drillhole AP-11-33 was oriented to the northeast to test the up-dip portion of the mineralized complex breccia intercepts in AP-10-19 and 20. Those drill holes averaged 214.00 meters of 3.0 g/t Au and 5.5 g/t Ag in AP-10-19 and 275.46 meters of 1.4 g/t Au and 1.7 g/t Ag in AP-10-20 as announced previously on January 18th and 25th, 2011.
Richard Whittall, President and CEO of Newstrike stated “To date we have tested roughly half of the surface gold anomaly with 10,100 meters in 22 widely spaced drill holes. We are very pleased that mineralization at Ana Paula continues to be so robust and remains open in all directions. At an early stage of testing the full potential of the gold mineralization, Ana Paula continues to deliver excellent results and is an important discovery for the GGB.”
He also said “Step out drilling throughout 2011 will continue as planned until we have located the boundaries of the gold mineralization envelope. Additionally a series of drill holes in the 2011 program will test the orientation and continuity of the mineralized complex breccia encountered in several of the drill holes. We will also continue to infill at 100m centers as drilling progresses.”
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. The 2011 drill program is testing a 1.0 by 2.0 kilometer surface gold geochemistry with two drill rigs currently mobilized to the project. Results from drilling will be reported in groups at regular intervals as drilling progresses.
Drill results continue to demonstrate an important potential to host multiple gold-bearing intercepts over wide mineralized intervals that shows good continuity both across and down section. 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 table of all weighted grade intercepts is available on the company website together with a drill location map at www.newstrike.com. Reported drill intercepts are down hole lengths. Holes drilled at -45 degrees 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.
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.
Table of selected results from Phase 1 Drilling at Ana Paula,
Guerrero
Weighted grade drill intercepts using a 0.2 g/t cutoff.
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Drill hole From To Length Au g/t Ag g/t
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AP-10-23 Infill 50.45 58.43 7.98 1.4 46.4
84.00 90.83 6.83 0.6 24.3
186.00 196.00 10.00 0.7 6.3
212.00 232.00 20.00 0.4 3.6
241.50 256.00 14.50 1.2 43.1
Includes 250.84 251.24 0.40 19.1 762.0
292.51 293.78 1.27 16.9 17.5
Includes 292.51 293.08 0.57 37.1 37.3
478.00 495.53 17.53 0.5 4.7
Includes 481.84 486.00 4.16 1.0 5.0
696.00 699.50 3.50 0.8 2.4
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AP-11-24 Step Out 152.00 175.90 23.90 0.4 21.3
291.48 301.50 10.02 0.7 166.2
331.08 355.00 23.92 1.3 3.9
364.00 394.00 30.00 0.7 5.0
397.00 415.00 18.00 0.4 5.2
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AP-11-25 Step Out 351.50 368.00 16.50 0.9 9.3
393.50 408.71 15.21 0.5 1.4
417.50 431.00 13.50 1.8 1.5
Includes 422.00 431.00 9.00 2.5 2.0
511.00 519.00 8.00 0.4 0.6
552.00 572.88 20.88 0.5 2.2
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AP-11-26 Step Out 53.35 54.04 0.69 1.2 23.7
250.50 261.50 11.00 0.6 3.2
273.67 289.00 15.33 0.7 23.0
Includes 276.86 282.98 6.12 1.1 6.7
453.00 464.55 11.55 2.1 9.2
Includes 463.30 464.55 1.25 14.2 36.6
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AP-11-27 Step Out 55.61 56.17 0.56 1.7 35.3
117.50 137.00 19.50 0.4 6.3
283.90 285.50 1.60 0.6 1.0
339.00 339.70 0.70 3.2 54.4
349.00 353.30 4.30 1.7 14.3
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AP-11-28 Infill 30.48 34.50 4.02 0.7 13.1
72.60 76.00 3.40 0.5 2.6
224.50 240.50 16.00 1.4 3.1
Includes 233.50 237.70 4.20 3.6 6.0
and 236.70 237.70 1.00 9.0 6.7
251.00 258.43 7.43 0.4 5.0
274.50 283.00 8.50 0.6 1.8
331.33 343.70 12.37 1.1 4.0
Includes 331.91 332.41 0.50 15.7 44.0
351.15 352.72 1.57 0.6 1.9
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AP-11-29 Infill 22.50 37.66 15.16 0.4 26.0
40.37 43.03 2.66 0.6 15.0
61.50 68.00 6.50 0.9 3.4
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AP-11-29 70.50 73.70 3.20 0.7 10.2
(continued) 89.50 107.70 18.20 0.6 1.9
Includes 96.45 101.20 4.75 1.0 2.2
195.66 197.25 1.59 1.7 1.2
250.65 255.15 4.50 0.5 1.4
267.15 268.65 1.50 0.9 9.2
281.15 300.60 19.45 0.9 1.6
322.75 365.00 42.25 1.1 5.7
Includes 355.35 355.90 0.55 28.9 42.4
381.00 388.30 7.30 1.1 2.9
Includes 387.30 388.30 1.00 5.0 11.6
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AP-11-30 Step Out 165.35 167.20 1.85 1.0 2.4
171.90 174.27 2.37 0.6 4.8
450.00 454.00 4.00 0.4 1.2
490.00 491.60 1.60 0.7 1.0
496.00 498.00 2.00 0.7 10.3
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AP-11-31 Infill 4.00 17.25 13.25 0.5 3.4
31.59 52.70 21.11 0.9 12.4
Includes 34.70 41.26 6.56 1.5 29.2
140.06 143.26 3.20 0.8 7.0
202.93 218.00 15.07 1.2 20.3
Includes 202.93 204.43 1.50 7.0 155.3
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AP-11-32 Infill 82.50 109.00 26.50 0.6 4.0
113.00 115.00 2.00 0.8 2.4
139.00 141.00 2.00 0.4 8.7
229.35 230.23 0.88 1.9 5.8
246.00 250.00 4.00 0.5 1.7
276.30 278.00 1.70 4.5 5.0
290.00 304.00 14.00 0.8 3.2
331.00 335.00 4.00 0.8 3.0
378.80 400.00 21.20 0.7 2.0
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AP-11-33 Infill 0.00 13.78 13.78 0.5 4.2
26.11 34.65 8.54 0.9 30.9
77.50 87.50 10.00 1.1 104.2
111.50 118.50 7.00 0.4 2.5
127.50 153.73 26.23 0.5 4.1
173.74 184.50 10.76 1.4 12.6
Includes 173.74 174.82 1.08 7.4 90.0
193.37 246.00 52.63 6.9 8.1
Includes 200.00 223.25 23.25 10.2 10.3
and 215.50 223.25 7.75 14.8 14.9
and 239.11 246.00 6.89 12.1 15.7
and 239.11 240.51 1.40 56.2 74.1
274.00 291.50 17.50 0.7 5.8
Includes 274.00 274.54 0.54 3.7 66.0
Includes 278.31 278.81 0.50 8.9 47.3
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Intervals of more than 0.5 g/t gold over more than 10 meters and intervals
of more than 1.0 g/t gold over more than 5.0 meters are in bold type.
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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.
Cal, a f/u on my last question….are you re-thinking your portfolio weight with NES after the results? Just curious if this is a good time to take profits and try to buy back under $1.20? Clearly the excitement cooled after understanding the combined press release. Would love to hear some of your strategy. E-mail me if need be. Thanks.
hi cs..
i mis read F/U.. lol
nes is still our largest holding and we are still overweight..
im not sure how far out the next results are and although we bought a little stock yesterday we are taking a wait and see attitude here.. the way the chart looks it could go either way (sellers look to outweigh buyers right now)
i would never tell anyone to hold a position if they are not comfortable..my hard and fast rule is sell till you can sleep..
i dont really expect it to trade below the 1.10 financing if it does we will be buying
caliche
Awesome, thanks for the “follow up” lol…..I’m not going to sacrifice a couple pennies of profit in the long run. It’s not worth it with the forward potential here. Thanks again.