Newstrike hits high-grade infill in Guerrero belt

VANCOUVER — Newstrike Capital (NES-V) has hit encouraging infill gold hits at its Ana Paula project in southwest Mexico’s Guerrero gold belt.

The delineation drilling, targeting the southeast region of the project, included hole 12-97 that returned 12.3 metres grading 32.11 grams gold per tonne uncut and included half a metre grading 760 grams gold.

Other definition drilling included hole 12-100 that hit 37.6 metre grading 4.81 grams gold and 6.35 grams silver from surface, hole 12-101 that cut 103 metres averaging 5.06 grams gold and 3.59 grams silver from 21 metres downhole, hole 12-102 that returned 48.5 metres carrying 2.48 grams gold and 4.6 grams silver from surface, and hole 12-103 that hit several short intercepts of fairly low grades.

As to step-out drilling, Newstrike concentrated its efforts in the southwest quadrant of the area. Hole 12-98, drilled to test the contact zone between highly altered sediments and an altered and mineralized intrusion that outcrops in the area, returned several low-grade intercepts including 10.3 metres grading 0.46 gram gold and 7.1 grams silver, 10.9 metres averaging 0.67 gram gold and 16.3 grams silver, and 7.6 metres averaging 0.71 gram gold and 3 grams silver.

June drill results from the delineation program included hole 12-90 that hit 102 metres grading 1.22 grams gold and 54.1 metres carrying 2.05 grams gold, hole 12-92 that returned 88.1 metres averaging 1.12 grams gold, and hole 12-94 that hit 83.3 metres carrying 1.07 grams gold and 92.4 metres grading 0.68 gram gold.

On news of the results Newstrike’s share price climbed 10¢ or 7.4% to $1.45 with about 840,000 shares traded. The company closed a $24.8-million financing in late March at $3.10 per share and now has 114.9 million shares outstanding.

Elsewhere in the Guerrero gold belt, Cayden Resources (CYD-V) recently announced exploration results from its Morelos Sur project. Highlights from trenching included 20 metres grading 6.39 grams gold and 27 metres averaging 0.48 gram gold, while drilling highlights included 28.5 metres carrying 3.21 grams gold, 39.3 metres carrying 0.65 gram gold, and 7.7 metres grading 2.44 grams gold. The company recently closed at $1.01, around where it has hovered for weeks.

Torex Gold Resources (TXG-T), pushing forward its more advanced Morelos gold project in the area, recently secured the necessary water concessions for its proposed mine and mill at the project. The wells are located roughly 14 km from the proposed plant site.