The Ana Paula gold project. Photo: Newstrike Capital

The Ana Paula gold project. Photo: Newstrike Capital

Newstrike Capital (TSXV:NES), one of the better respected gold exploration names on the TSX-V, has published their maiden NI 43-101 Resource Estimate for the Ana Paul gold project in Guerrero, Mexico.

NES long James Kwantes commented, "Ana Paula contains 43 million tonnes grading 1.59 g/t gold and 7 g/t silver, for a measured and indicated resource of 2.2 million ounces of gold and 9.7 million ounces of silver (at a .45 g/t gold equivalent cutoff)... I expected a number closer to 3 million ounces, as outlined here, but Newstrike’s piggy bank is full, the drills are still turning and I expect this resource estimate to grow. I also hope the company delivers some news flow in the coming weeks about both Ana Paula and other discoveries in its vast land package in the Guerrero Gold Belt. We’ll see how the market reacts."

We were able to reach a mining engineer and analyst friend for comment this afternoon. "The gold looks good but the silver is low grade and there's not a lot of it so won't add much to the overall economics," he told me. "The stripping ratio isn't great, but it's definitely doable," he added.

It's fair to wonder what Lukas Lundin, one of the largest investors in Newstrike Capital, and his advisors are thinking this afternoon. The billionaire resource developer certainly has the money to be on the bid for NES shares tomorrow, and he is not the type of guy to be discouraged by a weak overall mining market. Only the tape will tell tomorrow.

More to come on this story. The resource media should cover this broadly.

Watch the Stockhouse Bullboards for NES here. 

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