Newstrike’s 100% owned flagship property is the 'Ana Paula' Project in Guerrero. In October 2010, ten-year surface access rights were signed to encompass an area overlying the area of exploration interest. As of today, 905 hectares are under long-term contract in 59 separate agreements. Today, Newstrike has increased its outright land ownership to over 1,000 hectares covering Ana Paula’s high-grade discovery.
Newstrike acquired the ‘Ana Paula' project from Goldcorp in June 2010. Ana Paula is an advanced-stage gold exploration project, covering 7,622 hectares over 4 mineral claims in the established Guerrero Gold Belt where Goldcorp had previously identified anomalous gold at surface over a 1.0 by 2.0 kilometer area and in a similar geological setting to other deposits in the GGB. Ana Paula 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.
Ana Paula’s Breccia Zone is an entirely new kind of depositional setting for the Guerrero Gold Belt that has significantly improved the potential for the Ana Paula project. Subsequent drilling since discovery has outlined a core zone of high grade mineralization hosted in breccia that is surrounded by an alteration halo of lower grade mineralization hosted in intrusion, hornfels, skarn and sedimentary rocks that has become known as “the Breccia Zone” or “the High Grade Mineralized Breccia.”
In addition to the discovery of the breccia unit, Ana Paula hosts a lower grade bulk tonnage gold and silver target that is primarily intrusion hosted and is the style of mineralization originally discovered by Goldcorp during its eleven-hole 2005 drill campaign. This style of mineralization remains an important focus of the Company’s exploration program, with an interpreted potential to host a multi-million ounce near surface bulk tonnage target similar to the Los Filos Mine for grade and depositional setting.
The Path to Production
Ana Paula has a current resource estimate of 2.2 million ounces gold (pit-constrained) with another 3 million ounces of gold surrounding the Ana Paula zone.
The deposit at Ana Paula can be described as having a high-grade core, surrounding by a lower grade envelope of gold and silver mineralization. The high-grade nature of this gold mineralization starts just below surface and extends to approximately 700 metres deep. In short, it is a very robust project.
Newstrike has completed approximately 230 drill holes at Ana Paula and is now preparing a Preliminary Economic Assessment that will be finalized on or before mid-2014.