New World Resource Corp.

New World Resource Corp.

January 26, 2006 14:27 ET

New World Acquires Option on High-Grade Gold and Copper Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 26, 2006) -


New World Resource Corp. (the "Company") (TSX VENTURE:NW) has reached agreement with Luis Miguel Mercado Rocabado for the right to acquire a 75 % interest in the Lipena gold and copper project in south-west Bolivia.

Drilling on the project between 1995 and 1997, by a subsidiary of the former Battle Mountain Gold Company (collectively "Battle Mountain"), encountered pervasive gold and copper mineralization over one kilometer of strike length, along a north-west trending structure that appears to be approximately 300 metres in width and was tested to a depth of 300 metres.
Previous drilling by Battle Mountain included:

- Hole LP-03, which intersected 108.23 metres averaging 2.2 % copper, 2.03 grams/tonne ("g/t") gold, 25. 47 g/t silver ending in mineralization;

- Hole DLP-23, which intersected 117.38 metres averaging 1.52 % copper, 2.04 g/t gold, 12.42 g/t silver;

- Hole LP-15, which intersected 24.39 metres averaging 5.32 g/t gold, 0.15 % copper, 5.16 g/t silver; and

- Hole M-01, which intersected 9.15 meters averaging 6.93 g/t gold, 5.12 g/t silver, as well as 21.34 meters averaging 3.19 g/t gold, 11.86 g/t silver (no copper values are available for this hole).

Company President, John Lando commented: "We are, understandably, very excited to have secured this highly-prospective project. After reviewing many property submissions, we focused our efforts on Lipena and are very pleased to have reached this agreement with Sr. Rocabado. Our due diligence review, which included a site inspection last week and meetings in Bolivia to assess the political climate, has persuaded us that Lipena has the potential to become our flagship project."

About the Lipena Property

The Lipena project is located in the department of Potosi, a prolific historical mining province in south-west Bolivia, near the Argentine border. The property is situated in a region of sparse population at an elevation of approximately 4,500 meters 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.

To date, three zones - Lipena, Central, and La Mosa - are known to be exposed at surface over one kilometer of strike length, along a northwest-trending structure approximately 300 meters in width. It is believed that these breccias coalesce at depth and remain open along strike. The system has been tested to a depth of 300 metres and remains open down dip.

Between 1995 and 1997, Battle Mountain drilled a total of 12,690 metres in 44 drill holes (21 reverse circulation and 13 diamond drill holes). Many of the holes intersected multiple significant mineralized intersections and several holes ended in mineralization. Significant mineralization was encountered in all zones, although Battle Mountain analyzed only for gold, copper and silver and not all assay results are available.

The following are significant drill results, by zone. Only mineralized intervals greater than 7.5 meters in length, with an average of greater than one g/t gold or 1.00 % copper, are reported at this time:

Drill Results, by Zone

Lipena Zone

This zone is located at the south-east end of known mineralization and has seen the majority of the drilling to date. The following is a sample of some of the intercepts:

LP-03: 108.23 meters @ 2.2 % copper, 2.03 g/t gold, 25.47 g/t
silver, ending in mineralization

DLP-23: 117.38 meters @ 1.52 % copper, 2.04 g/t gold, 12.42 g/t

LP-08: 7.62 meters @ 5.0 % copper, 5.22 g/t gold, 27.07 g/t silver

LP-09: 38.11 meters @ 2.09 % copper, 1.8 g/t gold, 16.29 g/t silver
13.72 meters @ 6.32 % copper, 0.4 g/t gold, 25.82 g/t silver
21.34 meters @ 1.0 % copper, 2.69 g/t gold, 3.01 g/t silver

DLP-07: 9.15 meters @ 1.5 % copper, 5.37 g/t gold, 40.75 g/t silver

LP-12: 51.89 meters @ 0.65 % copper, 1.69 g/t gold, 12.47 g/t silver

Central Zone

The Central Zone is located approximately 400 meters to the north-west of the Lipena zone. The zone appears to be gold enriched; however, it has been tested by only six drill holes.

LP-15: 24.39 meters @ 5.32 g/t gold, 0.15 % copper, 5.16 g/t silver
16.77 meters @ 2.45 g/t gold, 0.54 % copper, 8.67 g/t silver

LP-20: 18.29 meters @ 1.78 g/t gold, 0.7 % copper, 8.1 g/t silver
4.57 meters @ 2.55 g/t gold, 0.26 % copper, 4.68 g/t silver,
ending in mineralization

DLP-26: 9.15 meters @ 3.27 g/t gold, 0.24 % copper, 5.46 g/t silver

La Mosa Zone

The La Mosa zone is situated at the north-west end of the known mineralization and is 600 meters to the northwest of the Central Zone. The La Mosa data are incomplete and the majority of copper values are not available.

M-01: 9.15 meters @ 6.93 g/t gold, 5.12 g/t silver, and
21.34 meters @ 3.19 g/t gold, 11.86 g/t silver, no copper
values available

M-3A: 9.15 meters @ 2.16 g/t gold, 0.43 % copper, 2.87 g/t silver

M-07: 15.24 meters @ 1.58 g/t gold, 0.93 % copper, 7.07 g/t silver

Planned Exploration

The Company is currently compiling all available Battle Mountain exploration data for entry into a GIS program to assist in designing the upcoming exploration programs. An aggressive schedule of field work is planned for the Lipena project, commencing with an initial drill program to verify a selection of historical intercepts, and with the preparation of a detailed geological map.

The Option Agreement

Under the Option Agreement (the "Agreement"), the Company has the right to acquire a 75 % interest in the Lipena property by making payments to the optionor, consisting of cash and the issuance of shares, and by incurring "qualifying" (exploration) expenditures on the property over a four year period.

In particular, the Company must:

- make cash payments totaling $1.1 million ($50,000 on approval, and on the first anniversary; $100,000 at 24 and at 30 months; $300,000 on the third anniversary; and $500,000 on the fourth anniversary);

- issue 1.85 million shares (100,000 on approval; 250,000 at 12 months, 24 months, and at 30 months; 500,000 on the third anniversary; and 500,000 on the fourth anniversary); and

- incur qualifying expenditures of at least $2.2 million (a minimum of $200,000 in the first year; $500,000 in each of the second and third years; and $1,000,000 in the fourth year).

The Agreement contemplates that it will be replaced within 60 days by an agreement to be entered into by a new subsidiary of the Company, in accordance with Bolivian law, and is subject to approval by the TSX Venture Exchange. A finder's fee will be paid to an arms-length party in connection with the Agreement.

Quality Control and Assurance

Exploration work on the Lipena project will be under the supervision of Joan McCorquodale, P.Geo, the Company's Vice President, Exploration, who is the qualified person, as defined in NI 43-101, and is responsible for the preparation of the information contained in this news release.

Readers are cautioned that, while the Company has no reason to doubt the accuracy of the historical results reported in this news release, it can provide no assurance as to the accuracy of any such results until they have been confirmed by its own exploration. All mineralized intervals reported are core lengths and may not be true widths.

About Bolivia

The mining industry in Bolivia has a rich history and is a significant contributor to the country's gross domestic product. International mining companies operating in Bolivia are generally of the view that recent political change will bring greater stability to the country. The new federal government has assured the mining community that it places a high priority on providing a stable and functional legal framework within which to work.

The recent US$200 million investment by Apex Silver Mines Limited at its San Cristobal silver project in Potosi department is an example of the confidence that the mining community has in its ability to continue to operate successfully in Bolivia.

The Company's joint venture partner at Lipena, Luis Mercado Rocabado, controls Empresa Minera Unificada Sociedad Anonima ("EMUSA"), one of the countries largest mining concerns. EMUSA owns and operates several operating mines in Bolivia and is an active explorer of other projects, through joint ventures with foreign companies. EMUSA has experienced mining management and extensive human resources within its organization, and has already provided considerable assistance to Company management.

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.


John Lando, President

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

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