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| | Thu Jan 14, 2010
New World Secures Favourable New Deal to Acquire Lipeña Copper-Gold Concession
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| | Vancouver, BC: New World Resource Corp. ("New World" or the "Company") has entered into an agreement with Empresa Minera Marte S.R.L ("MARTE") a subsidiary of Empresa Minera Unificada S.A. ("EMUSA"), which gives New World a more beneficial means of acquiring its 75% interest in the Lipeña copper-gold concession in southwest Bolivia. New deal terms include an accelerated option period; a substantial reduction in cash payments; and the ability for New World to increase its interest in the concession to 85%. The Company has until March 1, 2010 to elect to proceed under the new deal terms. If New World decides to proceed under the new deal terms, MARTE's principal shareholder, Luis Miguel Mercado Rocabado, will join the Company's board of directors.
John Lando, President of the Company, commented: "The new deal would benefit New World in a number of ways. The Company could acquire its 75% interest in the Lipeña concession without having to make further significant cash payments, thereby preserving most of the Company's treasury for its exploration programs. At the same time, New World's board would be strengthened by the addition of Mr. Mercado, whose experience and stature within the Bolivian mining industry would be invaluable to the Company as it progresses both Lipeña and the Pastos Grandes lithium brine project.
"We continue to believe strongly in the Lipeña project, and the surrounding Bonete concession. The inferred resource estimate produced on the Lipeña concession is significant and we feel confident that further exploration work will expand the deposit."
The new deal provides for future exploration expenditures of not less than US$1,080,000 to be incurred by the Company on Lipeña and the surrounding Bonete concession. If and when the Company elects to proceed under the new deal terms, it will commence a comprehensive exploration program with a budget of not less than US$1,080,000.
About the Option Agreement
Under the existing option agreement dated January 26, 2006, as amended December 3, 2008, the Company's outstanding obligations are, by March 2011, to pay to MARTE US$850,000 in cash, issue to MARTE 3.0 million shares of New World, and incur expenditures of US$900,000 on the concession. If the Company elects to proceed under the new deal terms, then in order to acquire a 75% interest in the Lipeña concession, the Company will be required to:
- pay to MARTE at the time it makes the election US$100,000 in cash
- issue to MARTE at the time it makes the election 2,000,000 units (the "Units") of the Company at a deemed price of C$0.27 per Unit;
- issue to MARTE 3.0 million shares of the Company at the time it makes the election.
- incur future exploration expenditures of US$1,080,000 on the concessions, to be completed within one year
- Each Unit will consist of one common share of the Company and one half of one common share purchase warrant. Each full warrant is exercisable at a price of C$0.40 for a period of 12 months. The Units will be subject to a four month hold period.
In addition, if the Company elects to proceed under the new deal terms:
- Luis Mercado will join the board of directors; and
- MARTE will grant to the Company an option to acquire an additional 10% interest in the Lipeņa concession, exercisable for a period of three years by making an additional cash payment to MARTE of US$2.0 million and issuing to MARTE an additional 1.0 million shares of New World.
The foregoing is subject to TSX Venture Exchange approval.
About Luis Mercado, Emusa and Marte
Luis Mercado, the Mercado family, and their companies EMUSA and MARTE have been instrumental in the development of many major mining operations in Bolivia over the last 50 years. The Mercado family has been one of the largest employers within the Bolivian mining industry. Luis Mercado took over the management of the family business following the death of his father, a former Mayor of La Paz. EMUSA has been involved with many private mining operations and also has played a significant role in the development of numerous projects including San Vicente which is currently held by Pan American Silver.
About Lipeña
The Lipeña project is located in the department of Potosí, a prolific historical mining province in southwest Bolivia, near the Argentine border. The project is situated in a region of sparse population at an elevation of approximately 4,500 metres 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.
Previous work has located three main zones of hydrothermal magmatic breccias, which have been named La Mosa, Central and Lipeña from northwest to southeast. At surface these appear to be separate bodies, however drill data and other studies suggests that they are likely related at depth, and represent the top of a porphyry system. While the bulk of drilling has been done in the Lipeña zone, the other two zones have been found to contain significant gold intercepts (see the Company's news release dated December 7, 2009).
The project, which comprises the Lipeña concession and a portion of the surrounding Bonete concession, encompasses approximately 6,000 hectares and has undergone more than 18,000 metres of drilling.
On October 15, 2008, the Company announced that it had received from GeoSim Services Inc. the following independent National Instrument 43-101 ("NI 43-101") mineral resources estimate on the Lipeña concession only:
Open Pit Resources Estimate
| Cut-off %CuEQ |
|
Indicated |
|
|
|
Inferred |
|
|
| Tonnes ≥ Cutoff |
Cu % Au g/t |
Ag g/t |
CuEQ % |
Tonnes ≥ Cutoff |
Cu % Au g/t |
Ag g/t |
CuEQ % |
| 0.30 |
1,913,880 |
0.70 0.07 |
25.5 |
0.89 |
4,519,050 |
0.64 0.24 |
21.7 |
0.86 |
| 0.40 |
1,613,760 |
0.80 0.07 |
25.7 |
0.99 |
4,005,810 |
0.71 0.26 |
21.1 |
0.93 |
| 0.50 |
1,407,120 |
0.89 0.08 |
23.7 |
1.07 |
3,498,240 |
0.77 0.27 |
21.0 |
1.00 |
Underground Resources Estimate
| Cut-off %CuEQ |
|
Indicated |
|
|
|
Inferred |
|
|
| Tonnes ≥ Cutoff |
Cu % Au g/t |
Ag g/t |
CuEQ % |
Tonnes ≥ Cutoff |
Cu % Au g/t |
Ag g/t |
CuEQ % |
| 0.50 |
7,020,840 |
0.96 1.15 |
11.1 |
1.43 |
5,846,070 |
0.51 0.60 |
8.7 |
0.77 |
| 0.75 |
5,143,860 |
1.14 1.45 |
13.0 |
1.72 |
2,190,030 |
0.66 0.88 |
10.1 |
1.03 |
| 1.00 |
4,088,520 |
1.27 1.68 |
14.3 |
1.94 |
832,140 |
0.84 1.13 |
13.1 |
1.31 |
| 1.25 |
3,247,200 |
1.41 1.86 |
15.6 |
2.15 |
371,460 |
0.97 1.43 |
15.4 |
1.56 |
| 1.50 |
2,553,480 |
1.56 2.01 |
16.9 |
2.36 |
196,800 |
1.08 1.64 |
15.6 |
1.75 |
Note - copper equivalent is calculated as follows: %CuEQ (Copper equivalent) = %Cu + g/t Au * 0.345 + g/t Ag * 0.0064, with Cu (copper) at $2.75/lb, Au (gold) at $650/oz, and Ag (silver) at $12/oz.
Quality Control and Assurance
Joan McCorquodale, P. Geo is the Company's Vice President, Exploration and a "qualified person" within the definition of that term in NI 43-101, has supervised the preparation of the technical information contained in this news 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. The Company's projects include the Lipeña copper gold project and the Pastos Grandes lithium brine project in Bolivia. The Company has C$2.4 million in its treasury.
NEW WORLD RESOURCE CORP.
John Lando, President
For information with respect to the Company or the contents of this news release, please contact John Lando or Don Flahiff at (604) 669-2701 or toll free at 1-800-663-0510, email at info@newworldresource.com, or visit the web site at www.newworldresource.com.
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements regarding the extent and timing of its exploration programs, exploration program budgets and exploration results. This forward-looking information is given as of the date of this news release. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information contained herein. While the Company has based this forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of the Company's future performance and is subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of lithium, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking information. In addition, there are also known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Known risk factors include, among others, risks 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. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company is under no obligation to update or alter any forward-looking information except as required under applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE. |
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| | You can view the Next News Releases item: Mon Feb 1, 2010, New World Engages Investor Relations Consultant
You can view the Previous News Releases item: Mon Dec 7, 2009, New World Begins Integration of Lipeña Models to Generate Gold-Copper Breccia and Porphyry Drill Targets
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