Newstrike Capital Releases PEA for Ana Paula, Mexico

Newstrike Capital Inc. (TSXV:NES) has announced results ofa preliminary economic assessment for its Ana Paula project in Mexico’s Guerrero Gold Belt. The open pit mining project would have an 8.2 year mine life and features a low, all-in sustaining cost of $567 per ounce of gold.

As quoted in the press release, highlights of the PEA included:

• Pre-tax NPV@5% of $405.3 million, IRR of 47.5% with a 2.0 year payback
• After-tax NPV@5% of $232.1million, IRR of 32.8% with a 2.4 year payback
• Initial capital costs of $163.9 million (Total life-of mine (“LOM”) – $219.7 includes sustaining/closure costs of $55.8 million and contingency costs of $36.2 million)
• Open pit mine with 6,000 tonne per day (“tpd”) gravity/flotation/CIL process plant
• Cash costs of $527/ oz gold, $486/oz gold Net of By-Product credits
• All-in sustaining costs (“AISC”) of $567/oz gold, $526/oz gold Net of By-Product credits
• Average annual production of 116,000 gold ounces and 239,000 silver ounces over a 8.2 year mine life
• LOM average head grades of 2.24 g/t gold and 6.89 g/t silver
• LOM gold and silver recoveries of 75% and 50%, respectively
• LOM strip ratio of 2.60 to 1 of waste to mineralized material

Newstrike president and CEO, Richard Whittall, said:

This PEA supports our view Ana Paula is one of the best development-stage gold projects in Mexico. It is a straightforward open pit mine, utilizing conventional milling and flotation concentration with robust economics. The combination of high gold grades, low capital requirements with low operating costs makes this a compelling development project. With a positive PEA in hand, our next step is to evaluate the significant underground potential at Ana Paula and to support high priority exploration targets in this prolific gold belt.

Click here to read the Newstrike Capital Inc. (TSXV:NES) press release