New World Resource Corp.
TSX VENTURE : NW

New World Resource Corp.

August 28, 2009 11:30 ET

New World Increases Pastos Grandes Lithium Brine Salar Land Holdings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2009) - New World Resource Corp. (the "Company" or "New World") (TSX VENTURE:NW) announces the consolidation of an additional 1,537 hectares within the Pastos Grandes salar located in southern Bolivia. Two additional Letters of Intent ("LOI") have been signed with concession owners which have increased New World's holdings within the salar from 5,975 to 7,512 hectares. New World now has a right to earn greater than 97% interest in over 75km2 of the Pastos Grandes salar.

The brine sampling program announced July 29, 2009 is now complete, and results are expected in September. The sampling program was designed to verify and expand historical results.

Pastos Grandes Salar

The Bolivian Altiplano is host to many alkaline and saline lakes and salars including the Salar de Uyuni which hosts the world's largest known lithium reserve. Pastos Grandes is located approximately 113 kilometres south southwest from Salar de Uyuni, within the same geological and geographical setting. This hyper saline lake/salar basin is surrounded by intermittent rivers and thermal springs discharging waters into the salar. The Pastos Grandes salar is elliptical in shape with the major axis trending NW-SE and covers an area of approximately 120 km2.

Historical brine samples from Pastos Grandes show an average of 1,009 parts per million ("ppm") Lithium, 17,253 ppm Potassium, and very low Mg/Li and SO4/Li ratios of 2.2 and 3.0 respectively. This compares favourably to the Chemetall's Atacama ratios of Mg/Li equals 6.4 and SO4/Li equals 11. As a general rule, lower Mg/Li and SO4/Li ratios facilitates lithium recovery. The Chemetall Foote Corporation owns and operates a lithium brine operation within the Salar de Atacama, located 200 km east of Antofagasta in northern Chile.

Letter of Intent with Alberto Sivila

The term of the LOI is for 30 days and can be renewed for an additional 30 day term. During the term of the LOI New World will carry out a due diligence program to evaluate the deeds and technical details.

If results from the due diligence program are satisfactory to New World then the Parties will execute a Joint Venture (JV) agreement under the following basis:

- The term of the JV will be 15 years

- The interest of the parties will be: New World 97% and Mr. Alberto Sivila 3%

- To vest 97% of interest New World must do the following payments to the concessionaire:

-- U$ 10,000 on signature of the JV agreement

-- U$ 1,000 per month during year one and two of the JV

-- U$ 2,000 per month during the years three, four and five of the JV

-- U$ 2,000 per month during year six and following, if mining has not started and/or the JV is not generating profits.

-- At any time during the term of the JV, US$ 500,000 to acquire an additional 2% of interest on the JV

-- No minimum exploration expenditures is required

- Once New World complies with all the payments it will consolidate its interest in the JV

- New World will be the Operator of the JV and the Board of the JV will be under New World's control

- The concessionaire has a free carried interest and his right to enjoy the profits is guaranteed

- Any current or additional areas acquired by New World will not be part of the JV

- New World will pay the Patentes Mineras (annual payment to the government to keep the concession in good standing).

- New World will be responsible for any environmental liability generated by its activities on the concessions during the JV

- When the JV agreement is terminated for any reason then New World must provide to the concessionaire a copy of all the information obtained during exploration and mining.

Letter of Intent with Empresa Minera Kellguani S.A.

The term of the LOI is for 40 days and can be renewed for an additional 30 day term. During the term of the LOI New World will carry out a due diligence program to evaluate the deeds and technical details.

If results from the due diligence program are satisfactory to New World then the Parties will execute a Joint Venture (JV) agreement under the following basis:

- The term of the JV will be 20 years

- The interest of the parties will be: New World 99% and EM Kellguani S.A. 1%

- To vest 99% of interest New World must make the following payments to the concessionaire:

-- U$ 25,000 on signature of the JV agreement

-- U$ 25,000 and 100,000 NEW WORLD shares on first anniversary of the JV

-- U$ 25,000 and 300,000 NEW WORLD shares on second anniversary of the JV

-- Borates exploitation activities carried out by the concessionaire will be respected by New World.

-- No minimum exploration expenditures is required

- Once New World complies with all the payments it will consolidate its interest in the JV

- New World will not interfere with Borates exploitation activities of the concessionaire.

- New World will be the Operator of the JV and the Board of the JV will be under New World's control

- The concessionaire has a free carried interest and his right to enjoy the profits is guaranteed

- Any current or additional area acquired by New World will not be part of the JV

- New World will pay the Patentes Mineras (annual payment to the government to keep the concession in good standing).

- New World will be responsible for any environmental liability generated by its activities on the concessions during the JV

- When the JV agreement is terminated for any reason then New World must provide to the concessionaire a copy of all the information obtained during exploration and mining.

Quality Control and Assurance

Joan McCorquodale, P. Geo is the Company's Vice President, Exploration and "qualified person" as required under National Instrument 43-101 and has reviewed the technical information contained in this press 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.

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, 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 results may vary from the forward-looking information. A number of material factors, many of which are beyond the Company's control, could cause actual results to differ materially from the forward-looking information. Such factors include, among others, risks and uncertainties 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. 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 the Company is under no obligation to update or alter any forward-looking information.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • New World Resource Corp.
    John Lando
    (604) 669-2701 or Toll Free: 1-800-663-0510
    (604) 687-4670 (FAX)
    or
    New World Resource Corp.
    Don Flahiff
    (604) 669-2701 or Toll Free: 1-800-663-0510
    (604) 687-4670 (FAX)
    info@newworldresource.com
    www.newworldresource.com