New World Acquires 75% Interest in Lipena Copper and Gold Concession
May 03 2010 - 4:17PM
Marketwired Canada
New World Resource Corp. ("New World" or the "Company") (TSX VENTURE:NW)
announces that it has secured beneficial amendments to its option agreement with
Empresa Minera Marte S.R.L. ("MARTE"). It has also exercised its option to
acquire a 75% interest in the Lipena copper and gold concession in southwest
Bolivia.
Plans are now underway to begin further exploration at the Lipena project. The
new work program will focus on geophysics and diamond drilling. John Lando,
President of the Company, stated, "We are looking forward to starting a new
exploration program at Lipena. There are several existing drill targets, and
with the addition of the advanced 3-D modeling and further geophysics, we are
optimistic that we will be able to grow the existing National Instrument 43-101
compliant gold copper resource estimate. Previous drill programs encountered
substantial mineralization within 11 out of 13 holes, including DDH-47, which
intersected 172 metres of 2.5 grams per tonne ("g/t") gold and 1.48% copper,
including 60 metres, true width, of 5.3 g/t gold and 3.2% copper. There are
several technical signatures within this deposit which suggest that the quartz
tourmaline breccia hosting the mineralization is associated with an unidentified
porphyry system."
The Amended Agreement
Under the existing option agreement, New World must make its US$100,000 cash
payment and issue to MARTE 5,000,000 shares and 1,000,000 warrants at an
exercise price of $0.40 (collectively, the "Payments") on or before May 1, 2010.
However, it will not acquire its interest in the concession until it has
incurred the required exploration expenditures. The amended option agreement
provides that New World's 75% interest in the concession will vest fully as soon
as the Payments have been made. While New World is still required to incur
US$1,080,000 in expenditures on the Lipena and Bonete concessions, it will now
have until May 1, 2012 to do so. If New World fails to incur the expenditures,
it will be required to pay a cash penalty of US$150,000 to MARTE; its obligation
to incur expenditures under the amended option agreement will thereafter
terminate, and New World's interest in the concession will not be affected.
Acquisition of Interest
In light of recent discussions with the Bolivian Government regarding its
intention to respect pre-existing rights within the proposed new mining law, as
well as the strength of current metal prices, New World elected to make the
Payments in full on April 30, 2010 to acquire its 75% interest. As a result, Mr.
Luis Mercado has agreed to join the Company's board of directors. Mr. Mercado is
currently the President of Empresa Minera Unificada S.A. ("EMUSA"), one of the
largest private mining operators in Bolivia.
John Lando commented, "While much of our focus in Bolivia still remains in
developing the Pastos Grandes lithium brine project, the Lipena copper gold
project has a great deal of potential which justifies both the option exercise
and the new exploration program. By exercising our option, we have also acquired
a strategic board member in Luis Mercado, a very prominent mining executive in
Bolivia. The amended deal terms give the Company the flexibility to incur
expenditures at Lipena over a longer timeframe, freeing up existing cash
resources for the Pastos Grandes project."
The Company may still acquire an additional 10% interest in the Lipena
concession by paying to MARTE an additional US$2,000,000 and issuing an
additional 1,000,000 shares on or before May 1, 2013.
About Luis Mercado
Mr. Mercado, the Mercado family and their companies, EMUSA and MARTE, have been
instrumental in the development of many major mining operations in Bolivia over
the last 50 years. The Mercado family has been one of the largest employers
within the Bolivian mining industry. Mr. Mercado took over the management of the
family business following the death of his father, a former mayor of La Paz.
EMUSA has been involved with many private mining operations and also has played
a significant role in the development of numerous projects, including San
Vicente, which is currently held by Pan American Silver.
About Lipena
The Lipena project is located in the department of Potosi, a prolific historical
mining province in southwest Bolivia, near the Argentine border. The project is
situated in a region of sparse population at an elevation of approximately 4,500
metres with road access and a small airstrip nearby. The system is a magmatic
hydrothermal breccia that hosts copper, gold, silver mineralization, with a
tourmaline, quartz, specular hematite cement intruding an intermediate volcanic
complex. The principal mineralizing event was subsequently altered by an
epithermal overprint.
Previous work has located three main zones of hydrothermal magmatic breccias,
which have been named La Mosa, Central and Lipena from northwest to southeast.
At surface these appear to be separate bodies, however drill data suggests that
they are likely related at depth, and represent the top of a porphyry system.
While the bulk of drilling has been done in the Lipena zone, the other two zones
have been found to contain significant gold intercepts (see the Company's news
release dated December 7, 2009).
The project, which comprises the Lipena concession and a portion of the
surrounding Bonete concession, encompasses approximately 6,000 hectares and has
undergone more than 18,000 metres of drilling.
On October 15, 2008, the Company announced that it had received from GeoSim
Services Inc. the following independent National Instrument 43-101 ("NI 43-101")
mineral resources estimate on the Lipena concession only:
---------------------------------------------------------------------------
Indicated Inferred
-------------------------------------------------------------------
Tonnes Tonnes
greater greater
than or than or
Cut-off equal to CuEQ equal to CuEQ
%CuEq Cutoff Cu % Au g/t Ag g/t % Cutoff Cu % Au g/t Ag g/t %
---------------------------------------------------------------------------
0.30 1,913,880 0.70 0.07 25.5 0.89 4,519,050 0.64 0.24 21.7 0.86
---------------------------------------------------------------------------
0.40 1,613,760 0.80 0.07 25.7 0.99 4,005,810 0.71 0.26 21.1 0.93
---------------------------------------------------------------------------
0.50 1,407,120 0.89 0.08 23.7 1.07 3,498,240 0.77 0.27 21.0 1.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Indicated Inferred
-------------------------------------------------------------------
Tonnes Tonnes
greater greater
than or than or
Cut-off equal to CuEQ equal to CuEQ
%CuEq Cutoff Cu % Au g/t Ag g/t % Cutoff Cu % Au g/t Ag g/t %
---------------------------------------------------------------------------
0.50 7,020,840 0.96 1.15 11.1 1.43 5,846,070 0.51 0.60 8.7 0.77
---------------------------------------------------------------------------
0.75 5,143,860 1.14 1.45 13.0 1.72 2,190,030 0.66 0.88 10.1 1.03
---------------------------------------------------------------------------
1.00 4,088,520 1.27 1.68 14.3 1.94 832,140 0.84 1.13 13.1 1.31
---------------------------------------------------------------------------
1.25 3,247,200 1.41 1.86 15.6 2.15 371,460 0.97 1.43 15.4 1.56
---------------------------------------------------------------------------
1.50 2,553,480 1.56 2.01 16.9 2.36 196,800 1.08 1.64 15.6 1.75
---------------------------------------------------------------------------
Note - copper equivalent is calculated as follows: %CuEQ (Copper equivalent)
equals %Cu + g/t Au (i) 0.345 + g/t Ag (i) 0.0064, with Cu (copper) at
$2.75/lb, Au (gold) at $650/oz, and Ag (silver) at $12/oz.
Joan Mccorquodale, P.Geo, a "qualified person" within the definition of that
term in NI 43-101, has supervised the preparation of the technical information
contained in this news release.
About New World
New World Resource Corp. is a Canadian based mining exploration company focused
on building a strong, diversified project portfolio within the Americas. The
Company's projects include the Lipena copper gold project and the Pastos Grande
lithium brine project in Bolivia.
NEW WORLD RESOURCE CORP.
John Lando, President
This news release includes "forward-looking information", as such term is
defined in applicable securities laws. The forward-looking information includes,
without limitation, statements regarding the extent and timing of its proposed
exploration programs, and potential exploration results. This forward-looking
information is given as of the date of this news release. Users of
forward-looking information are cautioned that actual results may vary from the
forward-looking information contained herein. While the Company has based this
forward-looking information on its expectations about future events as at the
date that such information was prepared, the information is not a guarantee of
the Company's future performance and is subject to risks, uncertainties,
assumptions and other factors which could cause actual results to differ
materially from future results expressed or implied by such forward-looking
information. Such factors and assumptions include, amongst others, the effects
of general economic conditions, the price of lithium, changing foreign exchange
rates and actions by government authorities, uncertainties associated with legal
proceedings and negotiations and misjudgments in the course of preparing
forward-looking information. In addition, there are also known and unknown risk
factors which could cause the Company's actual results, performance or
achievements to differ materially from any future results, performance or
achievements expressed or implied by the forward-looking information. Known risk
factors include, among others, risks relating to exploration and development;
the ability of the Company to obtain additional financing; the Company's limited
operating history; the need to comply with environmental and governmental
regulations; political and economic instability and general civil unrest in
Bolivia; potential defects in title to the properties; fluctuations in currency
exchange rates; fluctuating prices of commodities; operating hazards and risks;
competition; and other risks and uncertainties. Although the Company has
attempted to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward-looking
information, there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
information. The Company is under no obligation to update or alter any
forward-looking information except as required under applicable securities laws.
New World Resource (TSXV:NW)
Historical Stock Chart
From Jun 2024 to Jul 2024
New World Resource (TSXV:NW)
Historical Stock Chart
From Jul 2023 to Jul 2024
