Newstrike Capital (NES:TSXV) - 12 month chart

Newstrike Capital (NES:TSXV) - 12 month chart

Newstrike Capital (NES:TSXV) hasn’t had an easy ride over the past year, with share prices hitting 3-year lows, however, they have been efficiently adding value to their Ana Paula project in Guerrero State, Mexico.  Today they discovered several high-priority targets on a parallel trend with the Ana Paula project (which, the market didn't care for much closing today's trading down 4.5%).  NES completed a ZTEM airborne geophysical survey on the Aurea Norte property on an area known as the San Luis trend.  This trend is a geological structure over 10km long with widespread near-surface gold mineralization.  The company anticipates completing a 5,000m drill program on the Aurea Norte property.

"Preliminary ZTEM results have identified several blind exploration targets that coincide with favourable 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, Vice-President, Exploration

Lundin family reportedly own close to 40% of Newstrike

Lundin family reportedly own close to 40% of Newstrike

With approximately $20 million in cash in the treasury, and Swedish mining magnate, Lukas Lundin and his family holding close to 40% of the company, Newstrike is sitting in a strong position to weather the exploration duldrums that have overcome the sector in the past 24 months.

The company’s flagship asset is the Ana Paula project which is an epithermal-style gold deposit located within the Guerrero Gold Belt in Mexico (which hosts Torex Gold's (TSX:TSX) Morelos project and Goldcorp's (G:TSX) Los Filos mine).

Ana Paula hosts 2.25 million ounces of gold and 10.8 million ounces of silver in a constrained pit shell at average grades of 1.56g/t gold and 7.5g/t silver.  The mineralization there is north-trending and lies to the west and parallel to the San Luis trend.  Some analysts put the project NPV at over $400 million in an open-pit operation.  Watch for the company to begin exploration work on this latest discovery as well as metallurgical work on Ana Paula, leading to an economic study.

News Release here: Newstrike Completes ZTEM Survey and Identifies New Exploration Potential at Area Norte, Guerrero, Mexico