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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Contacts: New World Resource Corp. John Lando (604) 669-2701 or
Toll Free: 1-800-663-0510 New World Resource Corp. Don Flahiff
(604) 669-2701 or Toll Free: 1-800-663-0510
info@newworldresource.com www.newworldresource.com
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