Bolivia Project Map

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The Lipeña Project is located in southwest Bolivia and is accessible year round by a series of gravel roads leading to the town of San Pablo de Lípez and from there to the property. It occurs within an area of Miocene subhorizontal volcanic rocks where a structurally controlled hydrothermal alteration zone developed. Bleached rocks circumscribe to a belt of ca. 1,200 x 250 m oriented along 290º strike. At Lipeña sector in the southeast section of the altered belt a tourmaline-bearing breccia pipe is exposed, which has at least 100 to 150 m in diameter. The breccia is polymictic with fragments of volcanic rocks mostly centimetric, and altered to quartz-sericite-clays-chlorite; the matrix is tourmalinized with common open spaces. The breccia is mineralized by coarse-grained chalcopyrite, intergrown with lesser pyrite, and late specular hematite. Gold and silver mineralization also occurs in the breccia, but gold is not visible, and probably is associated with chalcopyrite.

The current knowledge indicates that the Lipeña breccia pipe has at least 450 m in vertical extent and it is open at depth. Its accurate shape and the distribution of the ore minerals within the pipe are still not very well defined. The geological characteristics of the project are akin to the uppermost section of a Cu-Au porphyry system, and have some peculiarities that are common at Cu-Au mineralization associated with alkaline intrusions. The occurrence of a Cu-Au deposit of large tonnage and low grade at depth is plausible, but the actual depth of this hypothetic mineralization is still unknown; factor that can be critical for its economic value.

New World Resource Corp. has entered into an option agreement with Empresa Minera Unificada S.A. (EMUSA) to acquire a 75% interest in the Lipeña Project. EMUSA acquired the Lipeña Project in 1997. Under the Option Agreement (the "Agreement"), the Company has the right to acquire the 75% interest in the Lipeña 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).

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