New World Resource Corp.

New World Resource Corp.

March 02, 2010 15:59 ET

New World Amends Lipena Option Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2010) - New World Resource Corp. ("New World" or the "Company") (TSX VENTURE:NW) announces that it has entered into a further amended agreement with Empresa Minera Marte S.R.L ("MARTE") a subsidiary of Empresa Minera Unificada S.A. ("EMUSA") amending the terms of the agreement with MARTE announced on January 14, 2010. Pursuant to the terms of the amendment, the period by which New World may elect to accelerate option period to acquire a 75% interest in the Lipena concession has been extended from March 1, 2010 to May 1, 2010.

The other terms of the agreement with MARTE remain unchanged and, as announced on January 14, 2010, if the Company elects to accelerate the option period under its agreement with MARTE, then in order to acquire a 75% interest in the Lipena concession, the Company will be required to:

  • pay to MARTE at the time it makes the election US$100,000 in cash;
  • issue to MARTE at the time it makes the election 2,000,000 units (the "Units") of the Company at a deemed price of C$0.27 per Unit;
  • issue to MARTE 3.0 million shares of the Company at the time it makes the election;
  • incur future exploration expenditures of US$1,080,000 on the concessions, to be completed within one year; and
  • Each Unit will consist of one common share of the Company and one half of one common share purchase warrant. Each full warrant is exercisable at a price of C$0.40 for a period of 12 months. The Units will be subject to a four month hold period.

In addition, if the Company elects to proceed under the new deal terms:

  • Luis Mercado will join the board of directors; and
  • MARTE will grant to the Company an option to acquire an additional 10% interest in the Lipena concession, exercisable for a period of three years by making an additional cash payment to MARTE of US$2.0 million and issuing to MARTE an additional 1.0 million shares of New World.

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 and other studies 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:

Open Pit Resources Estimate

Cut-off %CuEQ   Indicated       Inferred    
Tonnes greater than or equal to Cutoff Cu % Au g/t  Ag g/t CuEQ % Tonnes greater than or equal to 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 greater than or equal to Cutoff Cu %  Au g/t  Ag g/t CuEQ % Tonnes greater than or equal to 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 x 0.345 + g/t Ag x 0.0064, with Cu (copper) at $2.75/lb, Au (gold) at $650/oz, and Ag (silver) at $12/oz.

Quality Control and Assurance

Joan McCorquodale, P. Geo is the Company's Vice President, Exploration and 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 Grandes lithium brine project in Bolivia.


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 exploration programs, exploration program budgets and 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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