A gold explorer with a Massive Deposit Pick #6 is…

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Top 10 Mining Stocks 2012 – Pick #6 Newstrike Capital Inc

 

Symbol:  NES (TSX-V)

Share price: $2.78 (Close on Jan 18, 2012)

Shares outstanding: 104,215,208

Market cap: $283,465,000

Cash: $18.6 million (as of July 31,2011)

 

Newstrike Capital Inc 1yr chart

 

Newstrike capital is a gold exploration company proving up a  massive gold deposit in Mexico. Mexico is one of the worlds top jurisdictions for mineral exploration.

The Ana Paula project is located in the Guerrero Gold Belt and was acquired from Goldcorp. This is the focus project for Newstrike.Newstrike is the largest land holder in the Guerrero Gold belt with over 88.950 ha. The area is well known for gold deposits with Goldcorp and Torex Gold developing projects.

When the project was acquired it already had north of 1 million oz proven and that is growing higher with the high grade intercepts Newstrike has been hitting.

Some of these intercepts are below.

 

Nov 23rd,2011 - Newstrike Capital drills 135.4 m of 5.57 g/t Au at Ana

Aug 3rd,2011 – Newstrike Capital drills 120 m of 4.6 g/t Au at Ana

June 27th, 2011 - Newstrike Capital drills 190.15 m of 3.52 g/t Au at Ana

June 6th, 2011 - Newstrike drills 112.90 m at 2.51 g/t Au at Ana Paula

April 20th, 2011 - Newstrike Capital drills 230.9 m of 7.5 g/t Au at Ana

 

Newstrike currently 4 drill rigs turning for the 2012 exploration program.

 

Things to note:

 

- Lukas Lundin and Sun Valley Gold are major shareholders

- The burn rate is less than 1 million a month (usually around 800k)

- Management is well experienced in Mexico co founding the Goldcorp Filos project and the Torex gold project

 

Potential catalysts in 2012 include:

1)  Resource estimate expected Q1 2012

2) Continuation of long intercepts of high grade drill holes

3) An increasing gold price

4) A possible takeover?

 

More to come on Newstrike Capital and 5 more top picks!