New World Signs Agreement to Earn Interest in the Agua Grande Gold- Copper Project, Chile
November 20 2013 - 7:30AM
Marketwired Canada
New World Resource Corp. (TSX VENTURE:NW) (FRANKFURT:NWU) ("New World" or the
"Company") announces that it has entered into an agreement (the "Agreement")
with Fondo de Inversion Privado EPG Exploracion Minera ("EPG Exploration Fund"),
a private equity fund managed by EPG Partners S.A., in Santiago, Chile. As part
of the Agreement, New World can acquire up to 40% interest in the Agua Grande
gold-copper project ("Agua Grande" or "the Project") located in Region IV of
Chile from Sociedad Contractual Minera Agua Grande (the "Vendor").
Highlights
-- Inverse Polarization ("IP") and resistivity survey indicates several
anomalously high zones of continuous chargeability.
-- 3,000 metre drill program planned to commence in Q1 2014 to test IP
targets and surface mineralization.
-- 1,074 hectares including a large hydrothermal alteration zone with vein
and stock-work hosted gold-copper mineralization.
-- Small scale open-pit and underground mining has occurred in the area
with grades ranging from 2 to 5 g/t Au and from 0.6 to 3% Cu.
-- Excellent infrastructure including road access and proximal to grid
power.
-- Agreement with an experienced Chilean mining and finance team.
-- Minimum up front cost to earn 40% in Agua Grande.
New World Resources CEO, John Lando commented, "The Company is pleased to
partner with EPG Exploration Fund, an experienced mining and investment team in
Chile. Agua Grande is located in a well-established mining friendly jurisdiction
with drill ready IP targets in close proximity to near surface gold and copper
mineralization. This transaction allows New World to benefit from EPG
Exploration Fund's experience and capital and gives us exposure to an excellent
project at a low capital cost."
The Transaction
Pursuant to the Agreement, EPG Exploration Fund must invest US$1,000,000 for 60%
interest in New World's Chilean subsidiary, Minera Asturias SpA ("Asturias") and
New World must invest US$115,000 upon Asturias closing an agreement to acquire
up to 100% interest in the Project. Asturias will form a technical committee
whereby the Company will have the right to elect one out of four members and all
technical committee decisions will require a simple majority (51%).
Asturias has entered into an option agreement (the "Option Agreement") with the
Vendor to acquire up to 100% interest in the Project by paying US$9,000,000
(US$150,000 paid) over 54 months. The proceeds received by Asturias will be used
for payments to the Vendor, exploration programs and general working capital of
Asturias. Future Vendor payments, exploration programs and general working
capital of Asturias will be borne by each New World and EPG Exploration Fund on
a pro rata basis. Upon Asturias earning its 100%, the Vendor will retain a 1%
Net Smelter Return.
The Project
Agua Grande consists of 15 concessions covering 1,074 hectares within the Agua
Grande Mining District. The Project lies 900 metres above sea level and is
approximately 95 kilometres (1.5 hours) northeast of La Serena and 565
kilometres north of Santiago. The access from La Serena is via the Panamerican
Highway for 80 kilometres followed by 20 kilometres of gravel road, suitable for
all types of vehicles year round. Several mining roads cross the area and
provide access through- out the property. Power is also available from the grid
approximately 20 kilometres to the north.
An intrusive complex of granitic to granodiorite composition outcrops in the
Agua Grande area. The complex has two district-scale intersecting faults running
north-northwest and these are believed to be the main feeders of hydrothermal
fluids to the system. A 1994 report by Grand Pacific Minerals identified
hydrothermal alteration through mapping covering an area of approximately six
square kilometres, including a silicified core and an argillic outer zone.
Copper and gold mineralization can be found in large veins and stockworks in
areas of fracturing and siliceous alteration.
Geological indicators suggest the area is underlain by a porphyry-style
mineralized system. In 2011, IP and ground magnetic surveys, completed by
Geoexploraciones S.A., identified large continuous zones of high chargeability.
Small scale open-pit and underground mining has occurred within the Agua Grande
Mining District, including El Peralito, Venero Negro and Albrun mines which are
located adjacent to the Project. A 2007 report from the Chilean National Mining
agency, Empresa Nacional de Mineria (ENAMI) includes the following results from
operations:
----------------------------------------------------------------------------
Prospect Sample Gold (g/t) Copper (%)
----------------------------------------------------------------------------
Mina Peralito 667819 5.5 0.66
---------------------------------------------
667820 4.9 2.03
---------------------------------------------
667821 3.8 0.82
---------------------------------------------
667823 3.4 1.04
----------------------------------------------------------------------------
Mina Venero Negro 65089 3.0 1.09
---------------------------------------------
65096 2.2 1.04
---------------------------------------------
65099 3.0 0.82
----------------------------------------------------------------------------
Mina Albrun 65074 2.7 3.17
---------------------------------------------
65085 3.8 1.93
----------------------------------------------------------------------------
(g/t = grams per tonne)
While the Company has no reason to doubt the accuracy of the historical results,
the historical results have not been classified as current under National
Instrument ("NI") 43-101 and require confirmation by the Company's own
exploration.
An initial 3,000 metre diamond drill program is planned to commence in Q1 2014,
which has been designed based on the IP and resistivity surveys, geological
mapping, and historic and recent sampling. The plan will include drill holes
targeting structural higher grade zones of high chargeability which could
represent disseminated porphyry mineralization. Asturias is currently reviewing
drilling proposals to complete this work.
About EPG Partners
EPG Partners S.A. is a Chilean financial boutique with focus on financial
advisory and private equity fund management. EPG Exploration Fund was created to
capture exploration opportunities in Chile. This fund is managed by a senior
team with experience in geology, business administration and M&A transactions;
and has a solid financial position to conduct exploration activities at early
stage mining projects.
Quality Control and Assurance
Exploration work on the Agua Grande project will be under the supervision of
Brian McEwen, P.Geol., the Company's Chief Operating Officer, who is a
"qualified person", as defined in NI 43- 101, and is responsible for the
preparation of the technical information contained in this news release.
About New World
New World Resource Corp. is a Canadian based exploration company focused on
building a strong, diversified project portfolio within the Americas. The
Company's projects include the Lipena/Bonete copper-gold project and the Pastos
Grandes 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, exploration plans of the Company, including the time
thereof, the success of exploration activities and other similar statements
concerning anticipated future events, conditions or results that are not
historical facts. These statements reflect management's current estimates,
beliefs, intentions and expectations; they are not guarantees of future
performance. The Company cautions that all forward-looking information is
inherently uncertain and that actual performance may be affected by a number of
material factors, many of which are beyond the Company's control. Such factors
include, among others, risks and uncertainties relating to exploration and
development; risks arising as a result of the Company operating in Chile; the
ability of the Company to obtain additional financing; including through EPG
Exploration Fund funding pursuant to the Agreement; the Company's limited
operating history; the need to comply with environmental and governmental
regulations; potential defects in title to the Company's properties;
fluctuations in currency exchange rates; fluctuating prices of commodities;
operating hazards and risks; competition; and other risks and uncertainties.
Accordingly, actual future events, conditions and results may differ materially
from the estimates, beliefs, intentions and expectations expressed or implied in
the forward-looking information. All statements are made as of the date of this
news release and, except as required by law, the Company is under no obligation
to update or alter any forward-looking information.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
New World Resource Corp.
John Lando or Ian Mitchell
(604) 669-2701 or toll free at 1-800-663-0510
info@newworldresource.com
www.newworldresource.com
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