New World Resource Corp.
TSX VENTURE : NW
FRANKFURT : NWU

New World Resource Corp.

December 02, 2010 12:53 ET

New World Increases NI 43-101 Resources at Lipena Copper-Gold Project, Bolivia-Geophysics and Exploration Team Mobilized

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2010) - New World Resource Corp. ("New World" or the "Company") (TSX VENTURE:NW)(FRANKFURT:NWU) wishes to present an updated National Instrument 43-101 ("NI 43-101") mineral resources estimate on the Company's Lipena copper-gold deposit in Bolivia.

  • Inferred Resources Estimate: 30.2% increase in tonnage and a 11.8% increase in Copper Equivalent grade
  • Indicated Resources Estimate: 15% increase in tonnage and a 14.3% increase in Copper Equivalent grade

The Lipena deposit remains open in several directions and the regional land package the Company has secured through our joint venture with Corporacion Minera de Bolivia ("COMIBOL") allows us to continue exploration for not only the continuation of the breccia zone but also to explore for the associated porphyry system. New World's President, John Lando comments "With copper and gold prices at current levels, our management team is anxious to get back to work at Lipena, Our large land package surrounding Lipena is known to host several untested breccia occurrences and we consider this an excellent opportunity to continue to build our resources. The Pastos Grandes lithium project is currently being drill tested and with geophysics set to begin at Lipena, drills will likely be moved to Lipena in the new year."

Due to the increase in commodity prices since the date of this initial NI 43-101 compliant resource estimate, significant tonnage has been added to the resource as well the increase in the overall copper equivalent grade. The increase is solely due to the effect of updated commodity prices on the cut-off grade and that the actual block model has not been re-estimated as there has been no new sampling carried out. The additional tonnage also increases the number of ounces of gold in the indicated category from 224,466 to 240,193 representing a 7% increase and in the inferred category the number of ounces of gold increased from 63,717 to 93,763 representing a 47% increase.

Open Pit Resource Estimate                
    Indicated     Inferred  
  Tonnes         Tonnes        
  greater         greater        
  than         than        
  or         or        
  equal         equal        
Cut-off to   Au Ag   to   Au Ag  
%CuEQ Cutoff Cu % g/t g/t CuEQ% Cutoff Cu % g/t g/t CuEQ%
0.30 1,977,840 0.68 0.07 25.5 0.98 4,616,100 0.63 0.23 21.7 0.99
0.40 1,849,920 0.72 0.07 25.9 1.02 4,450,170 0.65 0.24 21.9 1.01
0.50 1,660,500 0.78 0.08 26.0 1.09 4,049,340 0.69 0.26 21.9 1.07
                     
Underground Resource Estimate              
    Indicated     Inferred  
  Tonnes         Tonnes        
  greater         greater        
  than         than        
  or         or        
  equal         equal        
Cut-off to   Au Ag   to   Au Ag  
%CuEQ Cutoff Cu % g/t g/t CuEQ% Cutoff Cu % g/t g/t CuEQ%
0.50 7,763,760 0.89 1.07 10.8 1.64 8,387,820 0.43 0.57 7.6 0.85
0.75 5,822,820 1.06 1.34 12.2 1.99 4,024,350 0.54 0.77 8.7 1.09
1.00 4,705,980 1.18 1.56 13.5 2.26 1,848,330 0.66 1.00 10.0 1.36
1.25 4,054,080 1.26 1.71 14.3 2.44 890,070 0.78 1.22 12.3 1.64
1.50 3,453,840 1.36 1.84 15.3 2.62 410,670 0.89 1.54 14.1 1.96

Notes:

  • The mineral resources were estimated by ordinary kriging constrained by a 3D solid model based on 0.20% copper equivalent grade shells. The grade shells are both within and outside of the quartz-tourmaline breccia zones and are used as hard boundaries to limit composite extraction, geostatistical analysis and block grade estimation. The block model was created with Surpac Vision software using a block size of 10x10x10 metres.
  • Grade estimation was based on analyses of core samples from 26 diamond drill holes and 17 reverse circulation holes for a total of 11,403 metres completed between 1994-96 and 2006-07. The nominated composite length was set at three metres. The density values assigned to the major lithologies were based on 434 bulk density measurements of drill core.
  • Copper equivalent is calculated as follows: %CuEQ (Copper equivalent) = %Cu + g/t Au * 0.604 + g/t Ag * 0.01, with Cu (copper) at $2.55/lb, Au (gold) at $1035/oz, and Ag (silver) at $17.25/oz.

Readers are cautioned that mineral resources are not mineral reserves until positive economic viability has been demonstrated, through a feasibility study or pre-feasibility study. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred resources in this estimate are uncertain in nature and there has been insufficient exploration to define these inferred resources as indicated or measured mineral resources and it is uncertain if further exploration will result in upgrading them to an indicated or measured minerals resource category.

This independent NI 43-101 compliant resources estimate was completed by "Qualified Person" Ron Simpson, P. Geo. of GeoSim. GeoSim has a solid reputation in the mining industry and has provided consulting services to many advanced exploration companies including Yamana Gold Inc., Novagold Resources Inc., and Viceroy Exploration Ltd. Mr. Simpson has reviewed and approved the contents of this press release.

This resources estimate does not reflect any results from the Company's exploration programs on the surrounding Bonete concession. The Company has a joint venture agreement with COMIBOL with respect to approximately 6,000 hectares of COMIBOL's Bonete mining concession, which encompasses the Lipena project. COMIBOL is the Bolivian government entity that controls all mineral exploration on state owned lands.

Quality Control and Assurance

The Company's drill core sample interval averaged 1.2 metres with one half of the core submitted for assay and the other half stored in the Company's secure field facility in southern Bolivia. Samples were crushed and split at ALS Chemex's preparation lab in Oruro, Bolivia. The pulps were then shipped to ALS Chemex in North Vancouver, Canada where they were analyzed for 41 elements by ICP mass spectrometer and atomic absorption methods. The intra-lab standards, blanks and replicates were augmented by unmarked blanks, replicates and by aliquots of four geological standards acquired by New World. Unmarked checks (standards, blanks and duplicates) were inserted into the numbered sample sequence, and represent approximately 5% of the total samples. Under the supervision of the project geologist, sample bags were sealed and stored, pending secured transport for analysis. Exploration work on the Lipena project is under the supervision of Joan McCorquodale, P.Geo, the Company's Vice President, Exploration, who is a "Qualified Person", as defined in NI 43-101.

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.

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