Newstrike pulls big intercept at Ana Paula

Vancouver – Newstrike Capital (NES-V) has hit its most impressive hole to date at its Ana Paula gold project in Mexico’s Guerrero State.

Hole 11-37 hit a remarkable 231 metres carrying 7.51 grams gold per tonne from 3 metres depth, including a 57.6-metre section grading 18.61 grams gold from 117 metres. Following a 9-metre gap, the hole then hit 80.3 metres carrying 1.29 grams gold, with multiple further intersections past 400 metres depth.

Hole 11-35, meanwhile, hit 87.2 metres averaging 0.95 gram gold from 116 metres and numerous other gold intercepts all the way down to 833 metres depth, and holes 34, 36, 38 and 39 hit significant but shorter or lower grade mineralization.

Newstrike’s share price popped on the news, climbing 59¢ or 34.7% to close at a new high of $2.29 on 8.7 million shares traded.

Holes 35 and 37 were part of a program designed to test the orientation and continuity of the mineralized breccia that the company discovered with holes 10-19 and 20, reported in January. Hole 19 hit 214 metres grading 3 grams gold from 109 metres depth while hole 20 cut 282.5 metres averaging 1.4 grams gold from 276 metres downhole. Hole 35 was drilled about 50 metres south of holes 19 and 20, while hole 37 was drilled 50 metres north.

Newstrike is continuing with stepout drilling to find the boundaries of the mineralized envelop, currently open in all directions including depth. With two drill rigs on site, the company is also continuing with infill drilling.

The company reports that mineralization in general is associated with a series of stacked porphyritic intrusions that intrude siliciclastic and carbonate sediments, a setting that is typical of the Guerrero Gold Belt skarn porphyry model for mineralization.

Newstrike earned 100% of the 76-sq.-km Ana Paula from Goldcorp (G-T, GG-N) in 2010, while the major retains a 3% net smelter return royalty. The company has also recently secured 139 hectares of surface rights from Goldcorp within the Ana Paula mineral project.

At the company’s 600 -sq.-km Aurea Notre property, which surrounds the Ana Paula concessions, Newstrike has arranged a roughly 2,500-line-kilometre airborne magnetic survey as part of early stage exploration.  The company is conducting minimal work on its Aurea Sur property, just south of Aurea Norte.

The company’s properties are located adjacent to the west and north of Torex Gold Resources‘ (TXG-T) Morelos project and near Goldcorp’s Los Filos mine.

Torex was forced to suspend exploration on its property in March after an armed robbery of several of the company’s trucks and a general escalation of violence in the area. Newstrike issued a press release at the time clarifying that drilling continues on its project as planned.

Newstrike has 82.6 million shares outstanding, of which Lukas Lundin holds roughly 10.3 million.