Newstrike Capital Inc. (TSX VENTURE:NES) (“Newstrike” or the “Company”) is pleased to report that a recently completed ZTEM airborne geophysical survey flown over the Company’s Aurea Norte property has successfully identified several high priority anomalies on a parallel trend with its flagship gold deposit at Ana Paula. The survey covered an area known as the San Luis Trend, an important structural corridor over ten kilometres in length that has returned anomalous assays from widespread near-surface gold mineralization.
“Preliminary ZTEM results have identified several ‘blind’ exploration targets that coincide with favourable GGB (“Guerrero Gold Belt”) style surface alteration in outcrop that includes iron oxide alteration, jasperoid breccia, silicified intrusion and skarn with associated anomalous gold values. The survey results will be used to focus exploratory drilling along this prospective trend. In addition, several new targets were identified outside this trend that will continue to be investigated as exploration advances,” said Gillian Kearvell, V.P Exploration.
A 5,000 metre exploratory drill program is expected to commence shortly that will complement the exploration activity at Aurea Norte over the past year.
Geotech Ltd of Aurora, Ontario, Canada was contracted to survey approximately 250 square kilometres encompassing 1,298 flight line kilometres flown at a line spacing of 200m. The ZTEM survey is recognized for its ability to map resistivity contrasts associated with the structure and alteration typically associated with porphyry-skarn deposits or with structurally controlled epithermal deposits. ZTEM is capable of penetrating to depths from one to two kilometres and is useful in identifying “blind” exploration targets (a buried target that does not outcrop at surface).
The objective of the Aurea Norte survey was to locate potentially buried intrusive bodies associated with the GGB mineralization model and to confirm controlling structures along the mineralized San Luis Trend. The new anomalies identified by the ZTEM survey include resistivity contrasts typical of buried silicified intrusions and with alteration commonly associated with porphyry-skarn and epithermal style deposits. See the company website for maps from this survey.
Exploration activities are currently focused on advancing the project pipeline around the Company’s flagship Ana Paula project, The Ana Paula project is located internal to and surrounded by the 59,587 hectare Aurea Norte property.
The Ana Paula project is host to a structurally controlled epithermal style gold deposit with a pit constrained resource* of 44.8 million tonnes that includes 2.25 million ounces of contained gold and 10.8 million ounces of contained silver in all categories at a weighted average grade of 1.56 grams per tonne gold and 7.5 grams per tonne silver (NI-43-101 technical report filed May 8th, 2013, available on the company website or at www.sedar.com). *(applying cutoff grade of 0.45 grams per tonne gold equivalent (AuEq) defined by the price, cost and recovery assumptions).
The mineralization at Ana Paula follows a north trending structural corridor that lies to the west of and is parallel to the San Luis Trend. The deposit at Ana Paula was included in the ZTEM survey area to provide a case study and model for ongoing exploration.
The GGB is an established gold mining district that hosts to skarn and epithermal gold deposits located in a mining friendly jurisdiction that offers ample infrastructure, including roads, power, water and ports of access.
Ken Thorsen, a director of the company and a qualified person under NI43-101 has reviewed the contents of this press release. Drill programs and all project operations are conducted under the direction and supervision of Dr. Craig Gibson, PhD, CPG and a qualified person under NI43-101.
About Newstrike (TSX VENTURE:NES)
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 two established mining districts; the Au (Ag-Cu) porphyry-skarn camp of the Guerrero Gold Belt, and the polymetallic Pb-Zn-Ag (Au-Cu) rich epithermal camp of the mining districts of Oaxaca State.
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.