New World Resource Corp.

New World Resource Corp.

November 20, 2013 09:30 ET

New World Signs Agreement to Earn Interest in the Agua Grande Gold- Copper Project, Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 20, 2013) - New World Resource Corp. (TSX VENTURE:NW) (FRANKFURT:NWU) ("New World" or the "Company") announces that it has entered into an agreement (the "Agreement") with Fondo de Inversión Privado EPG Exploración Minera ("EPG Exploration Fund"), a private equity fund managed by EPG Partners S.A., in Santiago, Chile. As part of the Agreement, New World can acquire up to 40% interest in the Agua Grande gold-copper project ("Agua Grande" or "the Project") located in Region IV of Chile from Sociedad Contractual Minera Agua Grande (the "Vendor").


  • Inverse Polarization ("IP") and resistivity survey indicates several anomalously high zones of continuous chargeability.
  • 3,000 metre drill program planned to commence in Q1 2014 to test IP targets and surface mineralization.
  • 1,074 hectares including a large hydrothermal alteration zone with vein and stock-work hosted gold-copper mineralization.
  • Small scale open-pit and underground mining has occurred in the area with grades ranging from 2 to 5 g/t Au and from 0.6 to 3% Cu.
  • Excellent infrastructure including road access and proximal to grid power.
  • Agreement with an experienced Chilean mining and finance team.
  • Minimum up front cost to earn 40% in Agua Grande.

New World Resources CEO, John Lando commented, "The Company is pleased to partner with EPG Exploration Fund, an experienced mining and investment team in Chile. Agua Grande is located in a well-established mining friendly jurisdiction with drill ready IP targets in close proximity to near surface gold and copper mineralization. This transaction allows New World to benefit from EPG Exploration Fund's experience and capital and gives us exposure to an excellent project at a low capital cost."

The Transaction

Pursuant to the Agreement, EPG Exploration Fund must invest US$1,000,000 for 60% interest in New World's Chilean subsidiary, Minera Asturias SpA ("Asturias") and New World must invest US$115,000 upon Asturias closing an agreement to acquire up to 100% interest in the Project. Asturias will form a technical committee whereby the Company will have the right to elect one out of four members and all technical committee decisions will require a simple majority (51%).

Asturias has entered into an option agreement (the "Option Agreement") with the Vendor to acquire up to 100% interest in the Project by paying US$9,000,000 (US$150,000 paid) over 54 months. The proceeds received by Asturias will be used for payments to the Vendor, exploration programs and general working capital of Asturias. Future Vendor payments, exploration programs and general working capital of Asturias will be borne by each New World and EPG Exploration Fund on a pro rata basis. Upon Asturias earning its 100%, the Vendor will retain a 1% Net Smelter Return.

The Project

Agua Grande consists of 15 concessions covering 1,074 hectares within the Agua Grande Mining District. The Project lies 900 metres above sea level and is approximately 95 kilometres (1.5 hours) northeast of La Serena and 565 kilometres north of Santiago. The access from La Serena is via the Panamerican Highway for 80 kilometres followed by 20 kilometres of gravel road, suitable for all types of vehicles year round. Several mining roads cross the area and provide access through- out the property. Power is also available from the grid approximately 20 kilometres to the north.

An intrusive complex of granitic to granodiorite composition outcrops in the Agua Grande area. The complex has two district-scale intersecting faults running north-northwest and these are believed to be the main feeders of hydrothermal fluids to the system. A 1994 report by Grand Pacific Minerals identified hydrothermal alteration through mapping covering an area of approximately six square kilometres, including a silicified core and an argillic outer zone. Copper and gold mineralization can be found in large veins and stockworks in areas of fracturing and siliceous alteration.

Geological indicators suggest the area is underlain by a porphyry-style mineralized system. In 2011, IP and ground magnetic surveys, completed by Geoexploraciones S.A., identified large continuous zones of high chargeability.

Small scale open-pit and underground mining has occurred within the Agua Grande Mining District, including El Peralito, Venero Negro and Albrun mines which are located adjacent to the Project. A 2007 report from the Chilean National Mining agency, Empresa Nacional de Mineria (ENAMI) includes the following results from operations:

Prospect Sample Gold (g/t) Copper (%)
Mina Peralito 667819 5.5 0.66
667820 4.9 2.03
667821 3.8 0.82
667823 3.4 1.04
Mina Venero Negro 65089 3.0 1.09
65096 2.2 1.04
65099 3.0 0.82
Mina Albrun 65074 2.7 3.17
65085 3.8 1.93
(g/t = grams per tonne)

While the Company has no reason to doubt the accuracy of the historical results, the historical results have not been classified as current under National Instrument ("NI") 43-101 and require confirmation by the Company's own exploration.

An initial 3,000 metre diamond drill program is planned to commence in Q1 2014, which has been designed based on the IP and resistivity surveys, geological mapping, and historic and recent sampling. The plan will include drill holes targeting structural higher grade zones of high chargeability which could represent disseminated porphyry mineralization. Asturias is currently reviewing drilling proposals to complete this work.

About EPG Partners

EPG Partners S.A. is a Chilean financial boutique with focus on financial advisory and private equity fund management. EPG Exploration Fund was created to capture exploration opportunities in Chile. This fund is managed by a senior team with experience in geology, business administration and M&A transactions; and has a solid financial position to conduct exploration activities at early stage mining projects.

Quality Control and Assurance

Exploration work on the Agua Grande project will be under the supervision of Brian McEwen, P.Geol., the Company's Chief Operating Officer, who is a "qualified person", as defined in NI 43- 101, and is responsible for the preparation of the technical information contained in this news release.

About New World

New World Resource Corp. is a Canadian based exploration company focused on building a strong, diversified project portfolio within the Americas. The Company's projects include the Lipeña/Bonete 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, exploration plans of the Company, including the time thereof, 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 performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; risks arising as a result of the Company operating in Chile; the ability of the Company to obtain additional financing; including through EPG Exploration Fund funding pursuant to the Agreement; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in title to the Company's 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, except as required by law, the Company is under no obligation to update or alter any forward-looking information.


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