Ana Paula Project, Guerrero, Mexico

ccnm




VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) -



NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES


Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") is pleased to announce assay results for the first eight holes from the Company's drill program at the 100%-owned Ana Paula Project, Guerrero Gold Belt, Mexico. Selected highlights include:




AP-10-19:



214.00 meters of 3.00 g/t Au and 5.5 g/t Ag, including;







0.80 meters of 31.20 g/t Au and 42.2 g/t Ag;







0.50 meters of 439.00 g/t Au and 126.00 g/t Ag, and







1.09 meters of 105.00 g/t Au and 6.6 g/t Ag.











AP-10-13:



24.03 meters of 2.14 g/t Au and 2.7 g/t Ag;











AP-10-16:



23.13 meters of 4.06 g/t Au and 6.1 g/t Ag, including;







1.00 meters of 77.35 g/t Au and 14.2 g/t Ag.











AP-10-17:



20.17 meters of 1.53 g/t Au and 4.3 g/t Ag.







All key objectives for the program have been achieved, including:

A comprehensive audit program, including a twin of Goldcorp Inc's drillhole AP-05-06 by AP-10-12, has demonstrated the reliability of the previous assay database.
A simplified exploration model has been drill tested that demonstrates a high degree of predictably both on strike and down dip. This model will be used for planning resource drilling and will be continuously refined as drilling progresses.
Step out drilling has extended known mineralization from a 400 by 600 meter area to a 500 by 1000 meter area of mineralization that remains open in all directions and at depth.
A second drill rig mobilized in December is completing a series of infill drill holes (50-100 meter) that is demonstrating continuity of the gold mineralization both along strike and down dip.



Richard Whittall, President and CEO of Newstrike, commented, "Our initial results are indicative of another significant gold discovery in the Guerrero Gold Belt. Ana Paula is already an exploration success with tremendous expansion potential. I look forward to continued excellent results as we progress with our drilling program."


Summary:

The Ana Paula Project is central to Newstrike's 88,000 hectares in the GGB and forms part of a district scale mining camp that is host to Torex Gold's 'Morelos Project' and to Goldcorp's producing 'Los Filos' project.


Newstrike is currently testing a one by two kilometer surface outcrop gold anomaly with coincident geophysical anomalies in the Ana Paula Project, a 400 by 600 meter portion of which was previously drilled tested in 2005 by Goldcorp Inc. (TSX:G, NYSE:GG). Drill results reported herein comprise 3,032 metres out of a total 4,529 meters drilled in 2010 in 12 holes, two of which were in progress at the end of the year. Assay results are pending for the remaining holes.


Assay results indicate that higher grade gold mineralized intercepts tend to occur at contacts between intrusive rocks and altered sediments, and that thick lower grade disseminated and stock work mineralization occurs within sills or dikes and locally within hornfels. Mineralization is associated with a series of stacked intrusions that intrude siliciclastic and carbonate sediments, a setting that is typical of the Guerrero Gold Belt skarn porphyry model for mineralization. A large body of mineralized complex breccia was also recently discovered at the Ana Paula Project.


Results demonstrate an important potential to host multiple gold bearing intercepts over wide mineralized intervals that show good continuity both across and down section, with excellent predictability from a planning perspective. This, along with improving grade and thickness to the west and southwest, speaks to the large volume potential developing at Ana Paula.


Drilling is underway in 2011 with two drill rigs that started on January 12th. Drilling continues with the planned program of step out and infill drill holes.




Table of selected highlights from Phase 1 Drilling at Ana Paula, Guerrero



Weighted grade drill intercepts using a 0.2 g/t cutoff.








Drill Hole



From


To


Interval


Au (g/t)


Ag (g/t)






AP-10-12



74.40
114.50
40.10
0.80
14.4




includes
74.40
78.75
4.35
5.07
130.8





146.00
162.85
16.85
0.61
2.3





211.15
236.60
25.45
0.51
5.2





257.56
262.37
4.81
2.33
14.4





AP-10-13



103.94
121.65
17.71
0.92
2.5




includes
105.63
109.55
3.92
2.86
6.6





179.43
203.46
24.03
2.14
2.7





180.93
194.46
13.53
3.57
4.6




includes
186.96
192.96
6.00
6.76
5.5




includes
191.46
192.96
1.50
15.49
9.0





271.76
297.40
25.64
0.62
2.4





AP-10-14



46.50
52.50
6.00
0.58
12.4





96.50
100.50
4.00
0.80
10.1





254.50
290.00
35.50
0.36
14.9





300.00
302.29
2.29
3.20
19.4





AP-10-15



58.98
84.30
*25.32
0.30
29.5





308.70
348.00
**39.30
0.81
4.3




includes
315.00
324.00
9.00
1.32
2.4





335.00
348.00
13.00
0.55
2.8





361.04
363.00
1.96
0.51
0.0





431.75
435.75
4.00
0.52
0.0





AP-10-16



95.87
119.00
23.13
4.06
6.1




includes
96.63
103.00
6.37
13.61
17.3




includes
100.00
101.00
1.00
77.35
14.2





154.00
164.00
10.00
0.67
2.2




includes
156.00
162.00
6.00
0.92
2.3





AP-10-17



24.50
26.00
1.50
7.04
3.0





40.83
61.00
20.17
1.53
4.3




includes
48.00
59.00
11.00
1.96
5.6





AP-10-18



62.23
79.20
16.97
0.65
3.9




includes
72.00
79.20
7.20
1.11
6.2





93.07
95.18
2.11
1.35
4.4





127.10
137.10
10.00
0.51
1.1





189.00
193.12
4.12
1.28
12.9





AP-10-19



74.30
89.50
15.20
2.83
14.7




includes
74.83
76.29
1.46
21.50
32.5





109.00
323.00
214.00
3.00
5.5




includes
137.00
137.80
0.80
31.20
42.2




and
147.00
243.22
96.22
5.80
8.5




includes
153.00
164.70
11.70
23.69
21.5




includes
153.00
153.50
0.50
439.00
126.0




and
164.00
164.70
0.70
27.00
16.9




and
194.85
207.87
13.02
12.36
2.3




includes
198.78
199.87
1.09
105.00
6.6




includes
226.6
228.6
9.14
5.89
33.1







*Includes samples of 0.074 g/t Au/0.64meters and 0.055 g/t Au/1.00 meters



**Includes 3 consecutive samples averaging 0.132 g/t Au/3.0 m






A table of all weighted grade intercepts is available on the company website together with a drill location map at


The drill program and all project operations are conducted under the direction and supervision of Dr. Craig Gibson, PhD, CPG and a qualified person under NI43-101. Dr. Gibson has reviewed the contents of this press release. Ken Thorsen, a director of the company and a qualified person under NI43-101 has also reviewed the contents of this press release.



About Newstrike (TSX VENTURE:NES)



Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp's and Teck's significant discoveries in Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.


Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the gold bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu rich epithermal camp of the mining districts of Oaxaca State.




FOR FURTHER INFORMATION PLEASE CONTACT: Richard Whittall
Newstrike Capital Inc.
Director, President & CEO
604-605-4654
>http://newstrikecapital.com/blog