Newstrike Results
I have reviewed the last round of drill results and believe the Ana Paula deposit will come in somewhere between Los Filos and El Limon. It has characteristics of both with a mineralized intrusive element and enriched skarn and complex breccia components.
To my eye (without plotting the intercepts in a modeling program) I see a series of 3 to 4 stacked intrusive sheets consisting of intrusive rocks (porphyry) with higher grade contact material (skarn) interwoven with a breccia. IMHO the most important line of the release was in the text of the release that states “holes drilled at ~45 degree angle are nearly perpendicular to the perceived strike and dip…”). This line is usually buried (by other co’s) in the QA-QC at the back of the release or as a footnote. It is germane in this case due to the dip of the porphrytic sheets. If you drill at right angles to the dip for a true thickness and the drill angle is 45 degrees then the dip of the unit is 45 degrees. This info and the cross sections published on the first round of drilling infers the mineralization outcrops AT SURFACE. Newstrike need not dig a hole to 500 meters to encounter mineralization, but they may be able to dig a hole FROM surface to 500 meters depth IN mineralization..
The porphyry grades are remarkably consistent at between .5 to about .9 g/ton which is very consistent with, (and even better) than Filos. The skarn and breccia will kick up the grades improving economics.
Here is where the speculation comes in. If you believe the grades are consistent and the sheets outcrop at surface and the surface expression of the deposit is 700 x 1100 m (so far) then you can speculate that the thickness of the sheets plus the skarn and breccia kicks make this thing look pretty darn good!
If you believe the intercepts are few and far between buried deep in isolation from each other than NES may not be the stock for you.
The management and geo team has literally been in the region on the ground longer than a decade and I fully support them in the path they have chosen to delineate the mineralizing envelope and infill later. They are much smarter than I am and they believe they are on to something significant.
As for the directorship announced Monday if you look at Mr. Wodzicki’s affiliations you will see a very important link between him and Lukas Lundin. NGEx is a Lundin Group company. He is President and CEO of their worldwide exploration company, that should tell you something about the future of NES.
For reference I have included a random selection of Los Filos drill data for comparison. They are assayed at 1.5 meter intervals with gold grades varying from .05g/ton up to .24 g/ton with silver copper lead and zinc in the remaining columns. The Newstrike grades are much higher than these and Filos is one o the biggest and most profitable mines in Mexico!
TNP‐509 172.200 173.730 1.530 0.070 0.000 0.001 0.000 0.000
TNP‐509 173.730 175.250 1.520 0.010 0.000 0.001 0.000 0.000
TNP‐509 175.250 176.780 1.530
TNP‐509 176.780 178.300 1.520 0.002
TNP‐509 178.300 179.820 1.520 0.040 0.200 0.003 0.000 0.000
TNP‐509 179.820 181.350 1.530 0.040 0.000 0.001 0.000 0.000
TNP‐509 181.350 182.870 1.520 0.015 0.000 0.001 0.000 0.000
TNP‐509 182.870 184.400 1.530 0.001
TNP‐509 184.400 185.920 1.520 0.001
TNP‐509 185.920 187.440 1.520 0.200 0.001
TNP‐509 187.440 188.970 1.530 0.001
TNP‐509 188.970 190.490 1.520 0.001
TNP‐509 190.490 192.010 1.520 0.001
TNP‐509 192.010 193.540 1.530 0.050 0.000 0.005 0.000 0.000
TNP‐509 193.540 195.060 1.520 0.135 0.400 0.023 0.000 0.000
TNP‐509 195.060 196.590 1.530 0.030 0.200 0.059 0.000 0.000
TNP‐509 196.590 198.110 1.520 0.090 0.000 0.009 0.000 0.000
TNP‐509 198.110 199.630 1.520 0.070 0.000 0.004 0.000 0.000
TNP‐509 199.630 201.160 1.530 0.050 0.200 0.004 0.000 0.000
TNP‐509 201.160 202.680 1.520 0.025 0.200 0.010 0.000 0.000
TNP‐509 202.680 204.210 1.530 0.010 0.000 0.002 0.000 0.000
TNP‐509 204.210 205.730 1.520 0.030 0.300 0.007 0.000 0.000
TNP‐509 205.730 207.250 1.520 0.245 0.600 0.014 0.000 0.000
TNP‐509 207.250 208.780 1.530 0.010 0.000 0.003 0.000 0.000
TNP‐509 208.780 210.300 1.520 0.005 0.000 0.002 0.000 0.000
TNP‐509 210.300 211.830 1.530 0.004
TNP‐509 211.830 213.350 1.520 0.002
TNP‐509 213.350 214.870 1.520 0.002
TNP‐509 214.870 216.400 1.530 0.015 0.000 0.001 0.000 0.000
TNP‐509 216.400 217.920 1.520 0.010 0.000 0.001 0.000 0.000
TNP‐509 217.920 219.450 1.530 0.030 0.400 0.004 0.000 0.000
TNP‐509 219.450 220.970 1.520 0.010 0.000 0.002 0.000 0.000
TNP‐509 220.970 222.490 1.520 0.001
TNP‐509 222.490 224.020 1.530 0.015 0.000 0.001 0.000 0.000
TNP‐509 224.020 225.540 1.520 0.015 0.200 0.001 0.000 0.000
TNP‐509 225.540 227.060 1.520 0.050 0.300 0.001 0.000 0.000
TNP‐509 227.060 228.590 1.530 0.025 0.000 0.001 0.000 0.000
TNP‐509 228.590 230.110 1.520 0.015 0.000 0.001 0.000 0.000
TNP‐509 230.110 231.640 1.530 0.010 0.000 0.001 0.000 0.000
Here is another hole with no mineraization from surface to 237 meters and a higher grade interval similar to NES results
LF27A‐04 0.000 237.740 237.740
LF27A‐04 237.740 239.240 1.500 0.630 5.200 0.083 0.004 0.051
LF27A‐04 239.240 240.740 1.500 0.170 6.000 0.086 0.004 0.076
LF27A‐04 240.740 242.240 1.500 0.200 7.000 0.101 0.007 0.134
LF27A‐04 242.240 243.740 1.500 0.890 16.000 0.197 0.009 0.244
LF27A‐04 243.740 245.240 1.500 2.940 19.000 0.264 0.017 0.166
LF27A‐04 245.240 246.600 1.360 0.700 15.000 0.149 0.032 0.323
LF27A‐04 246.600 247.500 0.900 1.250 13.000 0.123 0.043 0.284
LF27A‐04 247.500 248.410 0.910 0.470 6.000 0.153 0.034 0.289
LF27A‐04 248.410 249.500 1.090 0.440 19.000 0.115 0.047 0.164
LF27A‐04 249.500 250.510 1.010 0.660 8.000 0.098 0.026 0.135
LF27A‐04 250.510 251.460 0.950 12.750 3.900 0.091 0.023 0.230
LF27A‐04 251.460 252.580 1.120 11.850 1.800 0.064 0.028 0.615
LF27A‐04 252.580 253.840 1.260 1.950 0.500 0.012 0.005 0.144
LF27A‐04 253.840 254.490 0.650 3.510 6.000 0.057 0.017 0.683
LF27A‐04 254.490 255.240 0.750 3.000 0.600 0.010 0.009 0.174
LF27A‐04 255.240 256.740 1.500 4.910 1.500 0.011 0.038 0.237
LF27A‐04 256.740 258.240 1.500 17.250 2.300 0.006 0.043 0.097
LF27A‐04 258.240 259.000 0.760 1.130 1.500 0.004 0.040 0.045
LF27A‐04 259.000 260.180 1.180 0.780 2.900 0.006 0.016 0.028
LF27A‐04 260.180 261.010 0.830 0.490 0.800 0.002 0.009 0.018
LF27A‐04 261.010 262.320 1.310 0.550 1.500 0.006 0.032 0.032
LF27A‐04 262.320 263.820 1.500 0.070 0.400 0.002 0.006 0.015
LF27A‐04 263.820 265.320 1.500 0.025 0.300 0.001 0.002 0.006
LF27A‐04 265.320 266.820 1.500 0.025 0.300 0.001 0.002 0.006
LF27A‐04 266.820 268.320 1.500 0.025 0.800 0.001 0.004 0.009
LF27A‐04 268.320 269.820 1.500 0.025 0.300 0.001 0.003 0.007
LF27A‐04 269.820 271.320 1.500 0.025 0.300 0.001 0.002 0.005
LF27A‐04 271.320 272.820 1.500 0.025 0.400 0.001 0.005 0.010
LF27A‐04 272.820 274.320 1.500 0.025 0.300 0.001 0.004 0.007
Geology is variable in every setting on every continent around the world. Single holes or batches of holes do not make or break a deposit. You must look at the whole system and understand the processes of mineralization and the transportation and deposition of those minerals in the geologic setting to best determine a course of action. The team at Newstrike has unmatched experience in the very geologic environment we are drilling right now. I can think of no one better to lead us forward and ultimately define another multi million ounce deposit in the GGB!
The information provided in this letter is my personal opinion and should not be construed as investment advice. Personal decisions to buy or sell shares or any other financial instrument are exactly that, personal. Please consult an investment and/or tax advisor prior to making any investment decisions, and as always do your own Due Diligence.
