Several years ago, when the significant risks of investing in some of the emerging countries around the globe starting concerning large segments of the investment community, New World Resources deliberately began curating a portfolio of projects in safe, supportive, pro-mining jurisdictions in the U.S.
Fast forward to the present day, and the company now has four highly prospective assets under its wings – spanning across Arizona, New Mexico, Idaho and Nevada.
As the company reports on very high-grade assay results from its maiden drilling program at its most recent acquisition – the historical Antler Copper Mine in Arizona, it begs the question; what is New World Resources up to, and where are they going?
Four unique projects
New World has been exploring areas in the U.S. that are prospective for copper, cobalt, gold and zinc for a few years now.
And there's a pattern to all four of New World’s projects – they all contain, and are centred around, historical mines that have seen some form of production in the past.
However, minimal modern exploration has been carried out, making each project ripe for further investigation.
For New World, this is a crucial part of its success, and it's vital in obtaining value for its shareholders.
New World wants to move into production in the near future!
In the driver's seat
Heading up New World is a team of highly experienced geologists and engineers.
At the helm is Mike Haynes, a homegrown Managing Director and CEO with a background in geology and geophysics. Mike boasts some 30 years of experience in the international resource industry, where he's spent the past 15 years guiding resource companies through IPOs and integrations.
In the past, he's been involved technically with BHP, but has also worked extensively with multiple companies on project acquisition.
As New World continues to develop its four exploration plays, Mike says its key leaders are up to the challenge.
"New World’s board and management team comprise very experienced explorers and project developers. One of our directors, Tony Polglase, recently followed a very similar path to the one New World is now pursuing," he explained.
"Tony was recently the Managing Director of Avanco Resources where he took a high-grade copper deposit in Brazil, through exploration and into production, and then continued to expand that company’s operations and resource base, before Avanco was taken over by Oz Minerals for $450 million ... We believe we have the opportunity to replicate that success by initially rapidly bringing the Antler Deposit back into production," Mike continued.
The Antler Copper Deposit
The Antler Copper Project is the company's newest play. But Mike Haynes says that isn't holding New World back.
"We haven’t had the Antler Project for long; so this opportunity is not yet widely known. But that is changing rapidly, as we have now commenced unlocking the considerable value this advanced asset affords," he explained.
“Indeed we are targeting our first production from this asset” Mike stated.
Back in January 2020, New World signed off on an agreement that would see it acquire 100 per cent of the Antler Copper Deposit.
According to New World, because of the high-grades and substantial remnant resource base, this is a very attractive near-term production opportunity.
It was discovered back in the 1800s in north-western Arizona. But today, it's surrounded by some prime infrastructure.
"The project [is] located in a sparsely populated area, which is only 20 kilometres from both an interstate highway and a cross-country railway network," Mike said.
Between 1916 and 1970, sporadic production at Antler took place, with a total of roughly 70,000 tonnes of ore recovered. When, in 1970, the copper price declined from US$0.77/lb to US$0.45/lb, and the most recent episode of mining ceased, further exploration for additional mineralisation continued for another five years.
And therein lies the significant opportunity.
In 1975, a preliminary feasibility study was formed to investigate what redeveloping the Antler Deposit would look like. To help paint the picture, a mineral resource estimate was drawn up.
Table 1. Historical (1975) Mineral Resource estimate for the Antler Deposit
|Deposit||Tonnes||Cu %||Zn %||Pb %||Ag (g/t)|
Sourced: New World Resources
Almost 5 million tonnes of high-grade ore had been delineated. It all sounded so promising. But the copper price was still hovering around US$0.55/lb in 1975. So no further mining went ahead.
Now, New World is seeking to rectify that.
"Now is an exciting and potentially very rewarding time to be a shareholder of New World Resources," Mike noted.
A maiden drilling program
With due diligence on the acquisition settled in early March 2020 New World kicked off its maiden drilling program just weeks later. And some exceptional results are already being announced.
Shareholders were provided with an overview of initial findings in a market announcement released last week.
So far, the company has completed 1252 metres of diamond drilling across six holes in the initial 2500 metre program.
In all six of the holes drilled to date, New World intersected massive sulphides.
Individual horizons of sulphide-rich mineralisation measuring up to 8.2 metres thick have been recorded; with many holes containing multiple mineralized horizons.
And the drilling completed so far has indicated mineralisation exists over at least 250 metres of strike and to depths greater than 250 metres.
Then today, New World announced initial assay results from its first three holes.
Very high-grade mineralisation is present in all three holes, with the extremely promising results including:
- 5.45 metres at 2.49 per cent copper, 11.83 per cent zinc, 0.94 per cent lead and 31.6 g/t silver from 193.5 metres
3.93 metres at 4.18 per cent copper, 11.13 per cent zinc, 0.56 per cent lead, 34.4 g/t silver and 0.52 g/t gold from 112.5 metres; and
5.15 metres at 1.13 per cent copper, 8.53 per cent zinc, 1.07 per cent lead and 39.6 g/t silver from 308.3 metres
On a copper-equivalent basis, these grade up to 7.5 per cent copper equivalent – putting these results up there with some of the highest grades returned from all base metal projects currently being explored around the world.
Results from the remaining three holes – all of which also intersected considerable widths of massive sulphide mineralisation, are expected next month.
Unfortunately, like many other mining companies, New World has had to temporarily suspend drilling as it waits out the COVID-19 storm.
But the company expects to resume drilling operations in four to six weeks’ time. Which provides the perfect window to integrate all assay results into its planning before the drilling rigs start turning again.
What else is in store?
As it waits on the remaining Antler assay results, New World isn't sitting idle.
"In quick succession, we completed due diligence, secured drill permits, and commenced drilling operations. We now have assays pending, metallurgical testwork underway, will be undertaking geophysical surveys, and will be recommencing drilling again in the very near term, all as part of our pre-feasibility studies," Mike explained.
"Accordingly, we will be implementing concerted work programs over the near-term, and with that, there will be substantial news flow. And investors like good news!"
As it continues progressing the Antler Project, it seems like the company is intent on keeping the good news flowing. And it's clear that New World is emerging as an explorer to watch.