New World Resource Corp.
TSX VENTURE : NW

New World Resource Corp.

May 03, 2010 17:16 ET

New World Acquires 75% Interest in Lipena Copper and Gold Concession

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 2010) - 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 Lipeña copper and gold concession in southwest Bolivia.

Plans are now underway to begin further exploration at the Lipeña 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 Lipeña. 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 Lipeña 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 Lipeña 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 Lipeña 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 Lipeña 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 Lipeña

The Lipeña project is located in the department of Potosí, 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 Lipeña 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 Lipeña 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 Lipeña 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 Lipeña concession only:

Open Pit Resources Estimate
Cut-off %CuEQ   Indicated       Inferred    
Tonnes ≥ Cutoff Cu % Au g/t Ag g/t CuEQ % Tonnes ≥ Cutoff Cu % Au g/t Ag g/t CuEQ %
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
Underground Resources Estimate
Cut-off %CuEQ   Indicated       Inferred    
Tonnes ≥ Cutoff Cu % Au g/t Ag g/t CuEQ % Tonnes ≥ Cutoff Cu % Au g/t Ag g/t CuEQ %
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) = %Cu + g/t Au * 0.345 + g/t Ag * 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 Lipeña 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.

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