TORONTO, ONTARIO--(Marketwire - Dec. 2, 2011) - Newstrike Resources Ltd. (TSX VENTURE:NR) ("Newstrike") announces that it has completed two diamond drill holes to evaluate VTEM airborne geophysical anomalies on the Horseshoe Lake property. The Horseshoe Lake property is comprised of 27 mining claims units contained in 4 unpatented mining claims.
The Horseshoe Lake property is located between the South Bay Mine (past producer) (9.5 km NNE) and the Arrow Lake deposit (5.0 km SW). The South Bay Mine produced 1.6 million tons of ore grading 14.7% zinc, 2.3% copper and 120 grams per ton silver. The Arrow Lake deposit contains an estimated NI 43-101 indicated resource of 2.02 million tonnes grading 5.92% zinc, 0.75 % copper, 21.1 grams per ton silver and 0.58 grams per ton gold.
The two hole diamond drill program (844 metres) targeted one VTEM anomaly that was modeled in 3D to be located within the known favorable horizon. Both drill holes intersected sulfide zones (pyrite > pyrrhotite minor sphalerite and chalcopyrite) that would explain the conductive anomaly. Descriptions and assay results of > 3000 ppm zinc are presented below.
| Hole | From (m) | To (m) | Length (m) | Zinc (ppm) | Copper (ppm) | Description | ||||||
| HL-11-01 | 171.00 | 172.90 | 1.90 | 3386 | 17 | 172.90 - 176.15: 1-2% bands, stringers and disseminated pyrite/pyrrhotite and sphalerite | ||||||
| 172.90 | 174.00 | 1.10 | 5920 | 75 | ||||||||
| 174.00 | 175.00 | 1.00 | 12778 | 78 | ||||||||
| 175.00 | 176.20 | 1.20 | 6029 | 93 | ||||||||
| 313.20 | 314.00 | 0.80 | 3276 | 213 | 313.25 - 313.95: ~40-50% semi-massive po, py with trace cpy and possibly sphalerite | |||||||
| 353.80 | 354.60 | 0.80 | 6830 | 160 | 353.80 - 355.40: ~30-40% semi-massive and stringer pyrrhotite, pyrite, sphalerite and chalcopyrite | |||||||
| 354.80 | 355.40 | 0.80 | 9297 | 1001 | ||||||||
| HL-11-02 | 61.50 | 63.00 | 1.50 | 3029 | 30 | 59.20 - 64.10: 1-2% stringer and disseminated pyrite with occasional sphalerite stringers | ||||||
| 225.40 | 226.55 | 1.15 | 9786 | 312 | 70 to 75% massive to semi-massive pyrite > pyrrhotite with minor sphalerite and trace chalcopyrite |
The Company advises that no further work is planned on the Horseshoe Lake property at this time.
The project was managed by Desmond Cullen P.Geo of Clark Expl. Consulting of Thunder Bay, Ontario. Garry J. Clark is the qualified person, as defined by NI 43-101, and is responsible for reviewing the Horseshoe Lake content is this press release.
Oil and gas prospect
On October 1, 2010, Newstrike announced that it would participate with a group of private oil companies in the drilling of an oil and gas exploration project (the "Joarcam Project") near the town of Camrose, Alberta. Newstrike has a 20% interest, which involves approximately 2,500 acres of Crown and freehold mineral leases.
Newstrike's 20% interest in the Westhill 7-14 Wildcat well (i.e. a test well) was not successful in discovering any commercial hydrocarbons. The Company is evaluating its alternatives.
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Newstrike, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Donald Rankin
Director
(416) 628-6556