From The Northern Miner, March 28th, 2013
VANCOUVER — It has been a wild ride for Vancouver-based explorer Newstrike Capital (NES-V) at its flagship Ana Paula gold-silver project along the emerging gold belt in Guerrero State, Mexico. After acquiring the project roughly three years ago, Newstrike started up an aggressive exploration campaign that resulted in some impressive gold grades before culminating on March 27 when the company released its maiden resource estimate.
During drilling Newstrike outlined two separate types of mineralization at Ana Paula, featuring a central zone of higher-grade mineralization hosted in breccia that is surrounded by an alteration halo of lower-grade mineralization in intrusion, hornfels, skarn and sedimentary rocks. The company attempted to strike a balance between grade and tonnage during its delineation drilling, hoping to illustrate the long-term mine potential in its lower-grade zones.
Newstrike’s floating-cone pit model assumes a 0.45 gram gold per tonne cut-off and a gold price of US$1,450 per oz. along with a silver price of US$28 per oz. Under the given constraints Ana Paula hosts 44.8 million measured-and-indicated tonnes grading 1.56 grams gold and 7.5 grams silver for 2.25 million oz. contained gold and 2.32 million oz. contained silver. On a gold equivalent basis the resource clocks in at 2.32 million oz. at an average combined grade of 1.61 grams.
Newstrike notes two opportunities to boost potential resources around its pit. Firstly, there exists additional near-surface material inside and outside of the pit boundaries that will require more shallow-infill drilling to determine grade cut-off and resource classification. Secondly, the company notes a number of “pod-like bodies” in the lower portion of its breccia zone below the pit shell that could be amendable to undergound mining.
Additional metallurgical tests will also be required at Ana Paula, with preliminary results based solely on composite samples of the higher-grade breccia material. Newstrike reports that carbon-in-pulp and carbon-in-leach cyanide tests returned gold recoveries of 77% and 81% respectively over a 96 hour period, while conventional flotation testing resulted in recoveries of 93% to 96% in concentrate. The company will likely look at additional grinding and flotation options in its processing circuit as it moves forward with economic modelling.
Newstrike incorporated 68,000 metres of drilling in its maiden resource, and the company shows no signs of slowing down. Four rigs will continue to turn at the project in 2013, with a focus on additional near-surface gold mineralization and a deeper drill program aimed at tapping the underground potential in the breccia zone.
And with a sizeable gold-silver resource in its pocket Newstrike will also be turning its attention to a greater regional property package that totals roughly 800 sq.km. The company owns 100% in its 596-sq.km Aurea Norte property, which covers the northwest extension of the Guerrero Gold Belt and surrounds Ana Paula. Newstrike began a 3,000-metre drill campaign at its San Luis target in late 2012, and has outlined a series of other anomalies slated for additional exploration in 2013.
Meanwhile regional mapping and geochemical testing continue at Newstrike’s 217-sq.km Aurea Sur land package south of Ana Paula, with areas of interest including the Vinatas, Cienega, and Tepetates showings. Overall the company plans on investing roughly US$14 million into exploration this year, though the bulk of its attention will focus on de-risking its mine plan at the Ana Paula deposit.
Click here to read the entire article at Norther Miner.