Newstrike Capital’s Deep Drill Program Intersects 39.39 Metres Of 6.42 G/T Au Included Within A 72.19 Metre Intersection Of 3.92 G/T Au At The Ana Paula Project, Guerrero, Mexico
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Newstrike Capital’s Deep Drill Program Intersects 39.39 Metres Of 6.42 G/T Au Included Within A 72.19 Metre Intersection Of 3.92 G/T Au At The Ana Paula Project, Guerrero, Mexico
Vancouver, B.C. October 23rd, 2013 – Newstrike Capital Inc. (TSXV: 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*. 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.
* 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).
