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NW 2006-01-26 (provided courtesy of CCNMatthews .)
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New World Acquires Option on High-Grade Gold and Copper Project
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 26, 2006) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
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:
/T/
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
silver
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
/T/
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.
/T/
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
/T/
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.
/T/
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
/T/
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.
NEW WORLD RESOURCE CORP.
John Lando, President
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
New World Resource Corp.
John Lando
President
(604) 669-2701 or Toll Free: 1-800-663-0510
or
New World Resource Corp.
Don Flahiff
(604) 669-2701 or Toll Free: 1-800-663-0510
(604) 687-4670 (FAX)
info@newworldresource.com
www.newworldresource.com
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