Gleichen Resources Ltd. has announced that drilling is underway at its 100% owned Morelos Gold Project in Mexico, with its first exploration hole nearing completion. Gleichen intends to ramp up its program through the addition of one rig every two months to reach a total of up to four drill rigs actively working on the property this year. Initial results are expected to become available by mid-summer.

Newstrike Capital recently announced it has entered into an agreement to acquire a 100% interest in certain mining concessions situated in Guerrero State, Mexico, referred to as the “Ana Paula Properties” from Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary company of Goldcorp Inc.

Located within the Guerrero Gold Belt, the Ana Paula Properties consist of four claims that in total aggregate 7,622 hectares (ha). The most advanced of these claims has been subject to 3,689 metres of drilling by Goldcorp.

The Guerrero Gold Belt Gold Belt is a significant emerging gold mining district hosting  Goldcorp’s Bermejal, Nukay and Los Filos deposits and Gleichen Resources Morelos Gold project.

The pending acquisition of the Ana Paula Properties will extend Newstrike’s strategic footprint within the Guerrero Gold Belt beyond the current 81,000 hectares of highly prospective mineral claims in the immediate area.

The Guerrero Gold Belt (GGB) is a significant emerging gold mining district hosting a gold bearing iron skarn-porphyry mineralizing system. The district includes Goldcorp’s Bermejal, Nukay and Los Filos deposits, and Gleichen Resource’s Limon-Los Guajes deposit. The GGB has an inventory of approximately 14 million ounces of gold, which continues to increase with ongoing exploration and/or mine development activities. All GGB participants are currently active in the area. Newstrike Capital Inc’s management team was instrumental in the discovery of over eight million of those gold ounces.

The following is a history of mining activities with The Guerrero Gold Belt.

1924

Gold was discovered at Xochipala in 1924 by the Franco Urias Family. They operated a small family owned mine and mill until 1988 and a total of 360,000 Au oz were produced. Today, Xochipala remains largely unexplored by modern exploration methods

1938

Minera Guadalupe SA de CV began underground mining of the Nukay gold deposit. Mining operations were interrupted at the beginning of Second World War

1947

The original Nukay Mine went into production in 1947 as a small underground cut-and fill gold mining operation. Gold occurred in what was then described as manto and fissure filling vein deposits and about 500,000 metric tonnes of ore grading 18 gr/ton Au (290,000 Au oz) were extracted between 1947 and 1964 (historical records).

1950-1960’s

Several small mining operations begin operating in the area, mostly for epithermal Ag-Pb-Zn from high-grade narrow veins (El Anono, Vianey) and for amethyst and antimony (Rodeo, General). The Todos Santos mine, a disseminated Au-Cu skarn was the first disseminated intrusion hosted gold and copper discovery made. It was drill delineated during this time by Minera Comicosa While grades and reserves for that period are not available, in the last five years of operation Comicosa did extensive exploration in an attempt to delineate sufficient reserves for a 500 tonne per day operation. They developed a non NI43-101 historical resource estimated at 1.5 million tonnes grading 1.5% Cu, 80 g/t Ag and 0.5 g/t Au. It was then that a leaching plant was

1961

Declining head grades and a lower gold price caused operations to cease at Nukay

1983

Minera Nukay SA de CV restarted mining activity at Nukay, initially with underground operations, then open pit mining and the construction of a Merrill Crowe treatment plan

The 47,600 hectare Morelos Mineral Reserve is created during the Administration of President Miguel de la Madrid. All claims in good standing in the area, such as where the Nukay, Xochipala and Bermejal projects are currently located, remained in the hands of private owners, as did a few other small internal claims.

Industrias Peñoles S.A., a major Mexican mining company acquired rights to the Bermejal area and formed a JV with Newmont Mining. Aggressive exploration was carried out between 1986 and 1993.

1987

Enrique Miranda forms Minera Nukay to expand the original Nukay Mine, then producing 100 tons per day from the underground mine workings. Discovery during road building of high-grade gold skarn mineralization at surface prompted opening of the Nukay open pit.

The Peñoles-Newmont JV announces discovery of the Bermejal gold deposit in 1987 but market conditions at the time delay further development.

1993

Minera Nukay is taken over by Miranda Mining Corporation (“MMC”). Mining of the Nukay and La Aguita deposits is by conventional open-pit mining methods utilizing front-end loaders and trucks. Underground mining is carried using traditional cut and fill methods. Ore from the underground mines is trammed to the surface via a 320-metre long adit and trucked to the mill or to a stockpile at the mine site.

The concept of the Guerrero Gold Belt (GGB) was conceived of by then MMC chief geologist Alfonso Martinez-Vera. MMC begins the search for a JV partner began in order to develop the larger potential of the region.

1994

Miranda and Teck sign a joint venture to explore and develop the Nukay open pit mine and surrounding claims. The Nukay plant is expanded.

The Teck-MMC JV discover skarn and intrusion hosted disseminated gold mineralization at Los Filos from

Peñoles-Newmont completes a prefeasibility study on their Bermejal deposit in 1994. Continuing poor market conditions leads to a negative decision and Newmont backs out of the JV.

1995

The Mexican government announces plans to privatize all mineral reserves in Mexico through a lottery process. The Morelos Reserve is later divided into a North and South portion by the government in preparation for sale to multiple bidders.

1998

Miranda and Teck entered into a joint venture agreement to bid on the Morelos National Reserve block which the Mexican Government was privatizing Morelos National Reserve blocks. In July 1998 The joint venture company Minera Media Luna (MML) is successful in acquiring the Morelos North (26,346 ha.) block. Morelos South (16,887 ha.) was awarded to Industrial Minera Mexico, S.A. de C.V. (“IMMSA), a subsidiary of Grupo Mexico, S.A. de C.V. (“GM”), one of the largest mining and railroad companies in Mexico.

1998 to 2002

The Miranda-Teck joint venture continued exploring the GGB, resulting in the discovery of a new iron skarn-gold bearing deposit, El Limón located 15 kilometres north of Los Filos.

November 2003

Wheaton River Minerals (Goldcorp) acquired 100% of Miranda Mining Corporation including Teck’s interest in Los Filos and 21.2% of El Limón gold deposit. At the time of acquisition, Los Filos had been explored with over 400 drill holes totaling 90,000 metres of drilling and using a cutoff of 0.5 grams of gold per tonne (“g Au/t”), estimated a measured and indicated resource of 38.4 million tonnes grading 1.44 g Au/t (1.77 million ounces) and inferred resources of 11.0 million tonnes grading 1.35 g Au/t.

At El Limón, Teck had completed a resource estimate based on 35 reverse circulation drill holes and 25 diamond drill holes totaling approximately 10,000 metres of drilling. Using a cut off grade of 0.8 g Au/t, inferred resources totaled 15.9 million tonnes grading 3.35.

The Nukay operation had produced approximately 90,000 ounces of gold over the last five years at an average cash cost of US$164 per ounce

March 2005

Goldcorp Inc. through their Mexican operating arm, Luismin, acquires of the 2.4 million ounce Bermejal Gold Deposit. Bermejal is located 2 kilometres south of Los Filos The immediate proximity to Los Filos will allow the use of a joint processing facility for ore from both deposits

May 2005

Aurea Mining Inc (now Newstrike Capital Inc) holder of goes public. The Aurea team includes key players from the former Miranda Mining Corporation (MMC) team including Enrique Miranda as President and CEO, MMC chief geologist Alfonso Martinez-Vera (presently Technical Director, Servicio Geologic Mexican and former president of the Association of Engineer, Metallurgists and Geologists of Mexico) and David Euresti-Reyna. Aurea controls 100% interest in over 81,000 contiguous hectares of highly prospective mineral claims strategically located in the Guerrero Gold Belt.

January 2008

Commercial production for Los Filos commenced January 1, 2008. The Los Filos mine consists of two open pit mines (Los Filos and El Bermejal) and underground (which was previously known as the Nukay mine) with common heap leach, wet plant and ancillary facilities. Los Filos is forecast to produce an average of 300,000 ounces of gold per year.  Source: Goldcorp

August 2009

Gleichen Resources Ltd. entered into an agreement to acquire 78.8% of the Morelos Project including El Limón, from Teck Resources Ltd.

December 2009

Newstrike Capital Inc. entered into an agreement to acquire 21.2% of the Morelos Project from Goldcorp Inc. The 21.2% interest is represented by 7.2034% Class A ‘participating’ shares and by 14% Class G ‘carried’ shares in the Morelos Project. Gleichen Resources Ltd. has a right of first refusal in respect of Goldcorp’s interest in the Morelos Project; exercisable for 90 days from the date it is advised of the terms of the Newstrike agreement.