The Company is formally initiating studies to re-evaluate the Reforma, Naranjo, El Largo and El Rey deposits to assess the feasibility of building a second mine with a target [...]]]>

Based upon the rapid rise in gold prices, Farallon Mining said it is planning a second mine at its Campo Morado property in Guerrero Sate in Mexico

The Company is formally initiating studies to re-evaluate the Reforma, Naranjo, El Largo and El Rey deposits to assess the feasibility of building a second mine with a target start date of July 1, 2013.

Indicated resources for the Reforma, El Rey, Naranjo and El Largo deposits total 11.2 million tonnes of 4.7% zinc, 0.7% copper, 1.4% lead, 165 grams per tonne of silver and 2.7 grams per tonne of gold.. Contained gold totals 960,000 ounces and contained silver totals 60 million ounces.

The Company already operates a zinc mine, G-9 zinc mine at Campo Morado.  The second mine would piggy back on infrastructure already in place  at the current G-9 mine operation.

Located in the northern Guerrero Gold Belt to the west of and adjacent to Newstrike Capital Inc.’s Aurea Norte Project in Guerrero State, Mexico, the G-9 mine is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, silver, and lead.

Source: Farallon Resources

The company manages their land position under two contiguous projects – Aurea Sur and Aurea Norte – which are divided geographically by the east-westerly trending Balsas River.

The Aurea [...]]]>

With the acquisition of the Ana Paula Properties, Newstrike Capital now controls a 100 per cent interest in over 160,000 strategic hectares in the Guerrero Gold Belt (GGB).

The company manages their land position under two contiguous projects – Aurea Sur and Aurea Norte – which are divided geographically by the east-westerly trending Balsas River.

The Aurea Sur Project is located in the southwest of the GGB in an area rich in gold history. Geological fieldwork in the four Newstrike owned properties – Durazno, Ottawa, Vinatas & Consorcio – began in 2004 and is situated on a geological setting similar to the areas directly to the east of the Sur properties that have yielded major gold deposits. The gold inventory in southern deposits now exceeds 12 million ounces, with Newstrike Capital’s management team being instrumental in the discovery of eight million of those ounces.

The Aurea Norte Project covers the northwest extension of the GGB and contains project developments in areas like El Coyote, Cosmos, Don Jesus. The Ana Paula Properties have already yielded significant positive research by previous its previous owners, Goldcorp Inc. who – prior to Newstrike Capital’s acquisition – were conducting drill testing in the area. Though the Aurea Norte Project is largely untested compared to the Aurea Sur Project, exploration has confirmed a similar geological setting to those of the Bermejal, Nukay, and Filos deposits – the pioneer discoveries of the GGB.

For a better understanding of these geological similarities, read Understanding The Geological Setting of the Ana Paula Properties.

The total purchase consideration of $500 million, consisted of $275 million in cash, $175 million of Mala Noche common shares valued at the offering price of Mala Noche’s proposed equity financing and a [...]]]>

Goldcorp Inc. recently announced that it had entered agreement to sell the San Dimas gold-silver mine in Mexico to Mala Noche Resources Corp.

The total purchase consideration of $500 million, consisted of $275 million in cash, $175 million of Mala Noche common shares valued at the offering price of Mala Noche’s proposed equity financing and a $50 million promissory note payable over five years which will bear interest at a rate of 6% per annum.  Goldcorp’s ownership interest in Mala Noche is expected to be approximately 30%.

This transaction follows on the heels of Goldcorp’s sale of the Escobal silver deposit in Guatemala to Tahoe Resources Inc., and the sale of its minority interest in Morelos Project to Torex Gold Resources (formerly Gleichen Resources Ltd.).

These transactions are consistent with Goldcorp’s ongoing strategy of creating value for shareholders by divesting smaller or noncore assets to focus on cornerstone operations that will continue to drive Goldcorp’s industry leading production growth and future cash flow

Recently Goldcorp and Newstrike Capital Inc. entered into a definitive agreement for Newstrike to acquire 100% of the “Ana Paula Project” from, a wholly-owned subsidiary of Goldcorp.

Ana Paula is an advanced exploration stage gold project, located in the north-central part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike’s existing land position. Newstrike’s entire land position in the Guerrero Gold Belt (“GGB”) now covers just over 88,952 contiguous hectares.

As with the Mala Noche/San Dimas transaction, consideration for the Ana Paula transaction includes Goldcorp receiving shares of Newstrike.

In December 2009, Newstrike and Goldcorp announced they has entered into an agreement for Newstrike to acquire Goldcorp’s 21.2% position in the Morelos Project subject to a right of first refusal held by Gleichen Resources Ltd.; which Gleichen subsequently exercised.

Why else would Mexican President Felipe Calderon attend Goldcorp’s (GG) recent opening ceremony for a new mine in Penasquito?

The president lauded Goldcorp for its $1.7 billion investment and for creating thousands of jobs. Once fully operational, the mine in the north-central region will be [...]]]>

Canadian-based mining company Goldcorp is playing well south of the U.S. border.

Why else would Mexican President Felipe Calderon attend Goldcorp’s (GG) recent opening ceremony for a new mine in Penasquito?

The president lauded Goldcorp for its $1.7 billion investment and for creating thousands of jobs. Once fully operational, the mine in the north-central region will be Mexico’s largest. What’s good for Mexico is good for Goldcorp.

The Penasquito mine is expected to produce about 1 million gold equivalent ounces per year for Goldcorp. Commercial production is set to start in the third quarter and fully ramp up by early 2011 to 130,000 tons per day.

While gold prices hover near a record-high $1,200 an ounce, some gold analysts predict prices will go even higher. They reason that investors will continue to turn to gold as a hedge against the falling euro and other global economic woes.

Biggest Mine
Penasquito’s production would put the mine on par with Goldcorp’s biggest gold mining asset, known as Red Lake, which is in northwestern Ontario. And that’s taking into account Red Lake’s expansion over the next couple of years. “It’s of huge importance to Mexico and the company,” said Scotia Capital analyst David Christie.

By market capitalization, Goldcorp is the second largest mining company in North America after Barrick Gold (ABX). Productionwise, it’s third after Barrick and Newmont Mining (NEM), both also based in Canada, a country with a long history of gold mining.

Goldcorp tends to trade at a premium to its large-cap peers due to its growth profile, analysts say. It expects to produce 2.6 million ounces of gold this year at a cost of $350 an ounce, up from 2.4 million ounces in 2009 at a cost of $295 an ounce.  Its five-year forecast calls for a 50% increase due in large part to new production at Penasquito, where costs are viewed as relatively low.

Other new projects are lined up, too, such as Pueblo Viejo in the Dominican Republic, which is expected to start gold production in 2011. Management says the Dominican mine will produce more than 400,000 ounces of gold a year in the first five years.

“Goldcorp has excellent assets, and they’re very long-lived assets,” said analyst Adam Graf of Dahlman Rose & Co. “They are high margin and leveraged to the underlying commodity, which is gold.” The higher the price of gold, the better for gold producers, especially if production costs remain relatively low.

Newstrike Capital Inc. has entered into a definitive agreement  to acquire 100% of the “Ana Paula Project” from a wholly-owned subsidiary company of Goldcorp.

Ana Paula is an advanced exploration stage gold project, located in the north-central part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike’s existing land position. Newstrike’s entire land position in the Guerrero Gold Belt now covers just over 88,952 contiguous hectares.

Source: INVESTOR’S BUSINESS DAILY

Ana Paula is [...]]]>

Newstrike Capital Inc. (TSX VENTURE:NES) (“Newstrike” or the “Company”) – www.newstrikecapital.com – is pleased to announce it has entered into a definitive agreement dated May 11, 2010 to acquire 100% of the “Ana Paula Project” from Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), a wholly-owned subsidiary company of Goldcorp Inc. (TSX:G, NYSE:GG).

Ana Paula is an advanced exploration stage gold project, located in the north-central part of the State of Guerrero in southern Mexico. The Ana Paula Project consists of two contiguous and two discrete concessions covering 7,622 hectares that collectively comprise internal claims to Newstrike’s existing land position. Newstrike’s entire land position in the Guerrero Gold Belt (“GGB”) now covers just over 88,952 contiguous hectares.

Beginning in 2004, Goldcorp conducted exploration programs on Ana Paula including geophysics, mapping and geochemistry, resulting in the discovery of a 1.0 kilometre by 2.0 kilometre wide area of gold mineralization at surface. A portion of this large mineralized area was drill tested in 2005 with a 3,689 meter, 11-hole diamond drill program that has confirmed the gold mineralization potential of the area.

Richard Whittall, President & CEO of Newstrike, commented: “Newstrike is pleased and excited by the acquisition of the Ana Paula Project, an advanced exploration project that we look forward to developing through aggressive exploration and drilling. Our management team has a long history formulating and developing the original GGB concept. Today, it is gratifying to see published NI43-101 compliant inventories of over 15 million ounces of gold in all categories, including from Goldcorp’s Los Filos gold mine and the El Limon deposit currently under development by Torex Gold Resources Inc. The GGB is now a firmly established gold camp where new discoveries are being actively pursued by Newstrike, Goldcorp, Torex and La Camera Mining Inc. Newstrike continues to hold a dominant strategic land position within the GGB that we will continue to advance towards discovery.”

As consideration for the acquisition of the Ana Paula Project, Newstrike will pay to DMSL $1.5 million in cash and a number of common shares in Newstrike having a value of $600,000, such shares to be issued at a price that is based on the higher of the volume weighted average trading price of the shares of Newstrike on the TSX Venture Exchange for the 20 consecutive trading days ending on the trading date prior closing or the closing price of Newstrike’s common shares on the date the transaction was approved. The TSX Venture Exchange approved the transaction on April 28, 2010 and closing of the transaction is expected on or before June 30, 2010.

About Newstrike (TSX VENTURE:NES)

Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in Guerrero Gold Belt in Guerrero State, currently in production, development and advanced stages of exploration.

Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the gold bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu rich epithermal camp of the mining districts of Oaxaca State.

SOURCE:
Marketwire: “Newstrike Signs Definitive Agreement to Acquire Ana Paula Project from Goldcorp”

High grade precious metal intercepts at G-9 have been reported in various news releases over the years, most recently in the Company’s December 16, 2009 news [...]]]>

Farallon Mining Ltd. recently announced new high grade gold zones outside the current mineral resource at the G-9 Mine at the Company’s Campo Morado property in Guerrero State, Mexico.

High grade precious metal intercepts at G-9 have been reported in various news releases over the years, most recently in the Company’s December 16, 2009 news release in which an intersection of 13 metres of 20 grams of gold was announced. Since that time, the Company has been actively investigating the geological continuity and stratigraphic location of these intercepts, particularly since underground drilling became a component of the ongoing exploration program at G-9. Farallon commented that it is now apparent that there is a definite geological and stratigraphical correlation to the high grade gold and silver intercepts.

Dick Whittington President and CEO of Farallon, said: “This is an exciting new development for the Company as it shows that the G-9 mine and the Campo Morado District have the potential for high grade precious metal resources as well as the current high grade zinc resources upon which the G-9 mine was built. These resources are incremental to our recently announced mineral resources, and though small in tonnes, are high in precious metals content. Our challenge now is to find more of these high value resources and to define a metallurgical program to maximize their recovery.”

Located to the west of and adjacent to Newstrike Capital Inc.’s Aurea Norte Project in Guerrero State, Mexico, the G-9 mine is a 1,500 tonnes per day, underground, zinc mine with important by-product credits of copper, gold, silver, and lead.

Source: Farallon Mining Ltd.

Located within the Guerrero Gold Belt (GGB), the Ana Paula Properties consist of four claims that in total aggregate 7,622 [...]]]>

With their latest acquisition of the Ana Paula Properties from Goldcorp Inc., Newstrike Capital has purchased 100 per cent interest in a region considered to be extremely strategic in one of Mexico’s most historic mining districts.

Located within the Guerrero Gold Belt (GGB), the Ana Paula Properties consist of four claims that in total aggregate 7,622 hectares and show early signs of yielding significant gold deposits. Many of the major gold discoveries in the area – over 12 million ounces – have been made in the southern part of the GGB in places such as Bermejal, Nukay and Filos.

The Ana Paula Properties are in the northern part of the Guerrero Gold Belt but this area is situated in the same geological and mineralizing environment as the south. Newstrike’s exploration of the Ana Paula Properties (coupled with previous research by Goldcorp) has shown geological settings highly comparable to those on the southern properties.

Among other things, geological research has found:
- The presence of the sediments formed in the Cretaceous period (145-65 million years ago)
- The presence of intrusions – liquid rock that forms under the Earth’s surface and crystallizes into minerals – that are rich in magnesium, iron, and quartz.
- Evidence that granodiorite – a quartz-rich igneous rock formed by cooled magma – has been injected into active fault zones along the Morelos-Mezcala contact, developing rock formations that lead to gold mineralization.
- Evidence of rock formations that have gone through the necessary set of temperature and pressure transformations over time leading to rich mineralization of the rocks.
- Evidence of altered mineralization within the intrusive rocks.

A Brief History

The bedrock deposits of the great silver-gold vein system of the Veta Madre at Guanajuato [...]]]>

Mexico has a fairly long history of mining which dates back almost 500 years. Today, it continues to stand as one of the world’s largest producers of metal and it is known as a major destination for mineral exploration.

A Brief History

The bedrock deposits of the great silver-gold vein system of the Veta Madre at Guanajuato were discovered in the year 1550 and unearthed almost immediately. El Oro, one of the leading gold districts but presently without any significant gold deposits, was discovered in 1521, developed to a great extent by 1530, and mined regularly with some interruptions for about 400 years in the following period generating an output in excess of 5 million oz. of gold.

In the late sixteenth century, the mining industry in Mexico began expanding. Mexican President José de la Cruz Porfirio Díaz brought about modernization of the mining sector during his presidential career, which lasted for thirty-four years (except for 1880 to 84). In 1884, mining code was reformed and subsoil ownership was given to landowners.

The miners in Sonoran Mexico adopted a method for pulverizing gold ore that required no water in the primary stages of gold processing. Termed as the arrastre, this system comprised of an upright axle with large spokes that used horses or mules dragging a heavy rock in a circular motion, which would pulverize the ore. After the rock was pulverized, the miners then made use of gold pans for the final processing.

“A New Gold Rush”

Mining is now returning to Mexico in a big way as the prices of metals – particularly precious metals – have increased. Rich mineral deposits and fair mining regulations in Mexico have also been contributing factors to an increased mining community and mines that were shut down in the first part of the twentieth century are being restarted and are turning profits once again.

A new gold rush fuelled by increased foreign investment in gold exploration and development activities brought Mexico’s mining output to a record high in the year 2007.

Speaking at the Prospectors and Developers’ Association of Canada convention, Mexico’s economy minister Eduardo Sojo Garza-Aldape said Mexico’s gold mining is currently experiencing the “best period” in its history.

Investment by foreign companies in Mexico has taken a huge leap to about $700 million in 2007 from a meager $750,000 in the year 2000. Many locals are also reaping the benefits, with 300,000 people employed in the mining industry, as of 2007.

One of the companies in the region is Newstrike Capital. Though they are strictly an exploration company, members of their team have been instrumental in discovering major gold deposits in the Guerrero Gold Belt – a mineral rich area in the southwest of Mexico.

With strategic landholdings in both Guerrero and Oaxaca, Newstrike is poised to find even more gold in an area that has – to date – yielded over three million gold ounces in every discovery and is still proving itself to be a historically mineral rich mining district.

SOURCE:
History of Mining in Mexico