NES...... Canaccord Junior Mining Weekly..........
F*&$#!!!!!
• Come on, you know you want to say it. Yes the “F” word is ugly, but given the
current market ugliness don’t you think it is justifiable? Global equity markets
violently corrected last week; the worst short-term losses since October 2008.
Last week, the S&P/TSX composite lost, from its high during the week 6.4%, and
the S&P/TSX Venture was off 12.1%. Ongoing global economic growth (or lack
thereof) concerns have spooked investors, especially on the notion that the
underlying poor fundamentals backing numerous countries in Europe and the
US, are just too overwhelming to solve in the short term. We believe this general
view is best conveyed in CBOE SPX Volatility Index (VIX), which has jumped
recently – we review within. The week was capped off with the S&P downgrade
of US treasuries. As for the “F” word, we are going to say it. Here it goes…
FRICK!!!!! – there, now we feel better. Feel free to use your own “F” word.
Junior Mining Weekly | 11
10 August 2011
NEWSTRIKE CAPITAL INC.
(NES : TSX-V : C$2.87 | NOT RATED)
Wendell Zerb, P. Geol 1.604.643.7485
Gabriel Gonzalez 1.604.643.7529
Figure 10: NES : TSX–V Figure 11: NES : TSX–V
Shares O/S (M): 101.7
Shares FD (M): 111.4
Working Cap. (M): C$20.3
Market Cap. (M): C$291.9
Co. Website: www.newstrikecapital.com
Past 12 months – purchased: $61,230
Past 12 months – sold: $60,060
Since Sep. 7/10 – acquisitions or dispositions: Nil
Source: Company reports, StockCharts.com Source: INK Research
Newstrike is a gold-silver focused mineral explorer, targeting known and historical mining districts in Mexico, including the
Guerrero gold belt in Guerrero State. Newstrike principals, including CEO, Richard Whittall (formerly at Miranda Mining),
and Gillian Kearvell, VP Exploration, (formerly at Teck Corp.), have extensive experience in the Guerrero mining camp.
Newstrike is a Canaccord Genuity 2011 Watch List company. For more information, please see our Junior Mining Weekly
published 15 December 2010.
• Last week, Newstrike announced the latest drill results from the ongoing 2011 drill program at the 100%-owned Ana
Paula Project. Highlight hole AP-11-52 was drilled approximately 100 metres down dip of from the same drill pad as
the breccia discovery hole AP-10-19 (190.15 metres of 3.52 g/t Au), and intersected a 120 metre interval of 4.6 g/t Au,
including 50 metres of 8.89 g/t Au (approximate true widths, using a 0.2 g/t Au cut-off). This hole completed a fan of
infill holes to test the breccia; more drilling is planned to extend the breccia zone, which appears to remains open
along trend and at depth. Other results included holes AP-11-53 and -55, located about 150 metres southwest of the
main mineralized breccia body, testing the area low-grade mineralization. Hole AP-11-53 was drilled vertically and
returned 108 metres of 0.81 g/t Au and 6.4 g/t Ag, and 155.8 metres of 0.43 g/t Au including 14.8 metres of 0.97 g/t
Au and 17.1 g/t Ag. Newstrike indicates that this low-grade area may be amenable to near-surface bulk tonnage
mining. Hole AP-11-55 cut through -53 from 50 metres to the west, returning three low-grade intersection totalling
160.6 metres averaging 0.6 g/t Au and 8.9 g/t Au (no cut-off). Finally, drilling to the northwest has also intercepted
favourable strike extensions of mineralization, with AP-11-56 intersecting 7.57 metres of 1.15 g/t Au and 7.7 g/t Ag.
• Newstrike holds 88,950 hectares of mineral claims covering the main trend of the Guerrero gold belt in Guerrero State,
Mexico, making it among the largest claim holders in the area. The company’s primary focus is the Ana Paula project,
north of and along trend of Torex Gold’s (TXG : TSX | Not rated) Morelos project (which includes the El Limon deposit)
and Goldcorp’s (G : TSX : C$45.37 | BUY) Los Filos mine. The company acquired the core mineral claims (subject to a 3%
NSR) at Ana Paula from Goldcorp in June 2010, and has a 10-year surface access agreement with the local community.
• Newstrike is targeting gold mineralization associated with Tertiary aged diorite to granodiorite stocks emplaced in
Cretaceous Morelos Formation carbonate rocks. Gold mineralization occurs largely on the margins of the intrusive
stocks and is related to high temperature metasomatic alteration (skarn) followed by meso- to epithermal alteration.
An analyst has not visited the properties held by Newstrike Capital Inc’s material operations.
Investment risks
The commercialization risks associated with mineral exploration and development are high; thus, investment in the shares
of Newstrike Capital Inc is for risk accounts only. |
