Newstrike President Richard Whittall on Mexico assays of 4.6 g/t gold over 120m

Newstrike Capital Inc TSXV:NES announced results from its Ana Paula Project in Guerrero State, Mexico. Highlights include 4.6 g/t gold and 3.96 g/t silver over 120 metres (including 8.89 g/t gold and 6.3 g/t silver over 50 metres), 0.81 g/t gold and 6.4 g/t silver over 108 metres (including 1.39 g/t gold and 11.1 g/t silver over 48 metres), 0.43 g/t gold and 6.6 g/t silver over 155.8 metres (including 0.73 g/t gold and 3.9 g/t silver over 10.3 metres) and 0.67 g/t gold and 3.7 g/t silver over 68.3 metres (including 0.97 g/t gold and 6.9 g/t silver over 22 metres).

President/CEO Richard Whittall tells ResourceClips.com, “We acquired Ana Paula a year ago from Goldcorp, and we started drilling in October of last year. We’ve put in about 24,000 metres of drilling on an exploratory program. We initially acquired the property from Goldcorp because they had put in 11 holes and we analysed the assays from those and thought it might be what we call a classic GGB—or Guerrero Gold Belt style of mineralization. Low grade and shallow. These are porphyry-gold, porphyry-skarn deposits. We ended up achieving results that were very predictable in terms of low grade, with some high-grade gold-skarn kicks. Then we punched some holes in the southern part of the project and hit a very high-grade breccia zone. It has been probably the most robust mineralizing system we have seen in 15 years in Guerrero. But Ana Paula has a lot more to tell us.

“The drill program is continuing. Normally what you do is just step out 100 metres at a time until you fall off the edges of the mineralizing system. To date, it’s still open in every direction and at depth. So it’s a pretty significant gold discovery. And, it turns out, it has some pretty interesting silver values as well.”

Whittall continues, “It’s a guess at this point, because we’ll be drilling till the end of this year, but at that point we’ll make a decision on whether we bring in a group to help us do a resource estimate and a 43-101. But, at the moment, we’re still not even a year into this.

“We’re not production people. Our business model is to partner or sell the company. Which is pretty common among 3,000 other junior companies. We have a track record in Guerrero. Our team was responsible for discovering the deposit next door, Torex‘s Morelos project. We sold another deposit back in 2003 [i.e. the Los Filos deposit]—we were partners with Teck Resources—and Goldcorp bought that, and it’s now the largest gold mine in Mexico until Penasquito gets up and running. We’re exploration people, and it’s pretty likely that we’re just going to continue on that path.

“The infrastructure is terrific. The community is just excellent. We have water and power and, topographically, it’s easy to get to and easy to navigate around. Like most places in Guerrero, it has ravines that are quite shallow. I’m not an engineer, but this is shaping up to be a shallow, robust discovery—potentially an open pit. I would say we’ll finish the year with about 35,000 metres of drilling. Eventually, I think it’ll make a beautiful deposit for someone. But, again, I can’t emphasize how early it is, and we’ve been spectacularly lucky by hitting a very high-grade area early on.

“[These results] give a huge boost to our confidence about the scope and scale of this breccia area. Furthermore, in the lower-grade mineralization it confirms another large bulk area of mineralization that’s holding together. Our confidence, with every set of assays, is increasing in the scope and scale of this project.” Whittall concludes, “I can’t say it’s world class because we haven’t put enough holes in it. But it is, without question, one of the richest gold discoveries in Mexico. A very significant discovery.”

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Contact:
Richard Whittall
Director/President/CEO
604.605.4654

by Greg Klein and Ted Niles

August 10th, 2011
Categories: Uncategorized . Author: caliche