New World drills 93 m of 1.68% Cu, 2.04 g/t Au
2006-10-25 15:13 ET - News Release
Shares issued 16,291,476
NW Close 2006-10-24 C$ 0.80
Mr. John Lando reports
NEW WORLD RESOURCE CORP.: LIPENA DRILLING INTERSECTS 93 METRES OF 1.68% COPPER 2.04 G/T GOLD AND 19.9 G/T SILVER
New World Resource Corp.'s three remaining diamond drill holes at its initial program on the Lipena project, in Bolivia, have continued to intersect significant copper, gold and silver mineralization.
All seven holes in the program, which totalled 2,950 metres of drilling, encountered significant mineralization over significant intervals. Results from the first four holes were announced in news releases in Stockwatch dated Sept. 21, Sept. 13 and July 6, 2006.
The three holes reported in this release represent a hole from each of the three known zones at Lipena, an area of at least one kilometre in length and 300 metres in width:
Hole 06DLP-48 was a vertical hole collared in tourmaline breccia within the Lipena zone and on the same section as drill holes 06DLP-45 and 46 (reported in Stockwatch on Sept. 21, 2006, and July 6, 2006). The intercepts from this hole indicate that the breccia body is dipping steeply to the southwest.
Hole 06DLP-50 was a twin hole of a historical reverse circulation hole, LP-15, within the Central zone.
Hole 06DLP-51 was a twin of a historical reverse circulation hole, M-1, within the La Mosa zone.
Significant intercepts from the three new holes follow:
Core width Au Cu Ag
Hole From To (metres) (g/t)(i) (%) (g/t)(i)
06DLP-048 168 369 201 1.15 0.89 11.96
including 193 286 93 2.04 1.68 19.91
including 223 240 17 3.77 2.91 29.85
06DLP-050 49 51 2 1.38 15.50 42.70
06DLP-050 78 149 71 1.17 0.14 2.19
including 99.5 127 27.5 2.43 0.19 4.26
06DLP-051 36 163.22 127.22 1.27 0.24 1.65
including 36 117 81 1.71 0.18 1.58
including 40.08 51 10.92 7.48 0.14 5.63
(i) G/t equals grams per tonne.
Program summary
The company's first drill program at Lipena was designed to verify the results of drilling by a previous operator, a subsidiary of Battle Mountain Gold Corp., and to expand the known mineralized deposit in modest step-outs from historical intercepts. The program successfully accomplished both of these objectives.
Battle Mountain reportedly completed a total of 12,000 metres of, primarily, reverse circulation drilling; although, no core or rejects remain available for study. In order to assess the accuracy of these historical drill results and obtain valuable geological information, the company drilled one twin hole in each of the three mineralized zones originally identified by Battle Mountain.
Mineralization is hosted in a tourmaline breccia with a complex morphology. In order to explore the deposit meaningfully, drilling must be methodical on a tightly spaced grid. The next program will continue with this drill pattern, with a view to building a 43-101-compliant resource at Lipena, as quickly and efficiently as possible.
Additional exploration
A detailed ground geophysical survey that has now been initiated will cover the entire project area to explore and locate mineralized tourmaline breccias that are not exposed at surface.
In conjunction with drilling, the company has completed extensive chip sampling and detailed geological mapping programs. Existing road cuts were re-established and chip samples taken between the three zones at Lipena. A total of 373 samples, taken over more than 700 metres, have demonstrated the continuity of the tourmaline breccia between the three zones.
A diamond drill rig has been secured for the second phase of drilling, which will commence in mid-November. The program will focus on delineating and demonstrating the continuity of the mineralized breccia.
Geology
The copper, gold and silver mineralization at Lipena is hosted by a subvertical magmatic hydrothermal breccia, with a vuggy, drusy hydrothermal quartz and tourmaline matrix, intruding a sequence of Miocene intermediate volcanics and volcaniclastics. The magmatic hydrothermal breccia bodies cut all other rock types and follow a west-northwest-trending structure.
Copper, gold and silver mineralization is associated with tourmaline and quartz-bearing breccias. The breccia is mineralized by chalcopyrite and calcocite, intergrown with lesser pyrite and late, specular hematite. Recently, intense K-feldspar alteration has been observed within the clasts of the breccia. The mineralogy and alteration characteristics suggest that this breccia may represent the uppermost level of a copper-gold porphyry system. A late-stage epithermal event is sporadically exposed as cryptocrystalline and vuggy quartz veining, within the breccias.
Company comment on Bolivia
There has been recent concern within the investment community about the Bolivian government's policy on foreign investment in the mining sector. Company management maintains close communication with the government through experienced Bolivian-based consultants and is encouraged by the recent statement of vice-president Alvaro Garcia Linera that, "Foreign and local private investments, with actual investments which generate employment, will not be touched." Management is optimistic that a new government mining policy expected shortly will clearly state this principle, so as to remove the present market uncertainty.
Quality control and quality assurance
Exploration work on the Lipena project is under the supervision of Joan McCorquodale, PGeo, the company's vice-president, exploration, who is a qualified person, as defined in National Instrument 43-101, and is responsible for the preparation of the information contained in this news release.
Mineralized intervals reported are mineralized core lengths and may not represent the true width of mineralization.
The intralab standards, blanks and replicates were augmented by unmarked blanks, replicates and by aliquots of four geological standards acquired by the company. Unmarked checks (standards, blanks and duplicates), inserted into the numbered sample sequence, represent approximately 5 per cent of the total samples. Under the supervision of the project geologist, sample bags were sealed and stored, pending secured transport for analysis. All samples, including drill core and rock chips, were analyzed for 41 elements using an ICP mass spectrometer at the ALS Chemex labs in Vancouver. |
