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NEW WORLD RESOURCE CORP.: The forgotten story of 172 METRES of 2.57g/t Au & 1.48% Cu by John Lee 03/04/2008 Symbol: NW.V, NWFFF.PK
Lipeña is a complex system that boasts long intercepts of high grade gold, copper and traces of silver. There are several visible alternations and anomalies:
Both NW and Lipeña’s previous operator came up with spectacular drill results on the property, including 172 meters of 2.57 g/t Au and 1.48% Cu. Lipeña Zone Drilling:
No one has really figured out what type of system Lipeña is. Recently, when NW geologists compared Lipeña’s rocks to that of Rio Blanco (an 8 billion tonne porphyry system boasting 0.85%) and found the rocks to be identical. NW believes Lipeña could be a huge porphyry system with the main ore body yet to be found.
Yet, there seemed to be one problem with the Lipeña project, as claim area was only about 1km sq. To make the deposit economical, additional ore had to be located outside of the project. Throughout 2007, NW seemed very quiet when in fact it was active in negotiating with the State Mining Corporation of Bolivia (COMIBOL) for the areas surrounding Lipeña. In January 2008, after one year of talks and visits to Bolivia, NW finally got the Lipeña surroundings through a joint venture (JV) with the Bolivia state mining firm. The size of the concession is over 10 times the size of the Lipeña project (Click here for the news release). This was huge news. Right now, the company intends to conduct surveys to locate drill targets, and has already located a rig that could start as early as April of this year. This is company making news.
Almost two years after president Morales came into power, Bolivia has not confiscated any western mines and Apex Silver Mines Ltd. (SIL) just successfully commenced its massive silver-zinc commercial production at San Cristobal (target production of 20 million oz Ag and 400 million pounds of Zinc a year). Also, in late 2007 Apogee Minerals Ltd. (APE.v) received a signed agreement to exploit the Pulacayo project. Jindal Steel & Power (JINDALSWH.NS) and Coeur D’Alene Mines (CDE) have both invested hundreds of millions in Bolivia.
NW got the claim in March 2006 when the stock traded at 40 cents; Sprott then noticed Lipeña’s potential in June 2006 and bought 2 million shares (13% of the company at the time) at 80 cents; and in September 2006, when the LP047 drill hole yielded 172 meters of 2.57 g/t Au and 1.48% Cu, the stock went vertical to over $2. Subsequently, the stock suffered the same fate as other Bolivia explorers and has spent the past 2 years languishing back to 40 cents. Now, having left the Bolivia uncertainty behind and with a much increased land holding, the company represents tremendous value at 45 cents ($8 million market cap). Technically, there is not much resistance to $1 once the stock breaks out of the 50 cent downtrend. Granted it maybe a stretch to reference Rio Blanco next to Lipeña’s, nonetheless it doesn’t take much tonnage to make the project economical with the grades and thickness of the intercepts to date. I am not aware of any company selling at $8 million market cap with multiple 100m+ intercepts of 1% Cu and 1g/t Au. In my view, NW is as perfect of a speculation as there could be. John Lee
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