New World Resources locks in option to acquire Pinafore copper deposit

New World has secured a five-year option to acquire a 100% interest in the high-grade Pinafore deposit in northern Arizona
Pinafore hosts high-grade mineralisation which could potentially be mined and trucked to the processing plant NWC intends constructing at Antler
Drilling will begin in the coming weeks

Special report: New World has agreed to purchase a total of 134 acres of mineral rights that include and immediately surround the Pinafore copper deposit in northern Arizona, 75km from the cornerstone Antler project.

New World Resources (ASX:NWC) has made another positive development in its strategy to expand its high-grade resource base after securing a low-cost option to acquire the 630,000t Pinafore copper deposit in Arizona.

The company entered into a five-year option and purchase agreement so that it can undertake exploration at Pinafore. So NWC now controls a 100% interest in three high-grade, past-producing VMS deposits including Antler where it is developing a high-grade resource base of 11.4Mt at a grade of 4.1% Cu-equivalent.

Mineralisation could potentially be mined at Pinafore and trucked to the processing plant New World intends constructing 75km away at its cornerstone Antler Copper Project.

While previous production from Pinafore totalled ~10,000t at average grades of 5% copper and 11% zinc, only nine holes have been subsequently drilled, providing scope for additional upside.

Seven of these holes intersected high-grade mineralisation, including:

4.5m at 3.7% copper and 10.4% zinc;
1.6m at 8.4% copper and 6.4% zinc;
1.8m at 4.6% copper and 8.3% zinc; and
2.9m at 1.8% copper and 5.6% zinc.

Pinafore becomes one of our “highest priority” targets

“The proposed acquisition of 630,000 tonnes of very high-grade mineralisation – at average grades of 3.4% copper and 7.1% zinc – is a very value-accretive development,” NWC managing director Mike Haynes says.

“We are very encouraged that only nine holes have ever been drilled at Pinafore previously and that the mineralisation remains open in all directions and are confident we can increase our resource base by undertaking additional drilling.

“Because of the very high-grades, the shallow nature of mineralisation and the fact that the deposit is located on private land, Pinafore now becomes one of our highest priority immediate exploration targets, amongst our multitude of other very high-priority exploration targets.”

Plans to start drilling immediately

Once diamond drilling finishes up at the Discus target, 5km to the northeast of Javelin within the coming weeks, NWC will start drilling at the Pinafore deposit.

“It’s important to note that while we are confident we can discover extensions of the mineralisation at the Pinafore even if we can only delineate around 630,000 tonnes, we could still have a very valuable development proposition on our hands as we could use the processing plant we intend building at Antler,” Haynes says.

“That’s potentially more than US$300m of revenue. For an upfront option payment of only US$300,000 – we think we’ve got a very good option.”