New World shores up mineral rights around its Antler copper project
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Special Report: New World Resources has picked up the mineral rights to “highly prospective” strike extensions to its Antler copper deposit in the US.
The ink is still drying on New World’s (ASX: NWC) $11 million royalty agreement with Trident Royalties announced yesterday, but it hasn’t stopped the company from bolstering its tenure around the Arizona-based project.
New World today confirmed it has entered into a binding agreement to purchase two parcels of mineral rights covering approximately 1,000 acres. One parcel of 640 acres is located immediately south of the Antler deposit while the other 360-acre parcel is several hundred metres due east of the deposit.
Pursuant to an agreement with Santa Fe Pacific Railway Company (which owns the mineral rights) and a subsidiary of Newmont Corporation (ASX: NEM) (which holds a lease over the mineral rights) New World has agreed to purchase 100% of the mineral rights for US$850,000 in cash and a 3% NSR royalty on any and all future production.
The new mineral rights include a 1,600×1,600m area located less than 150m south of the current 11.4Mt high-grade resource at Antler where New World believes there is “considerable potential” to discover extensions or repetitions to the company’s flagship copper deposit.
New World has already identified strong copper and zinc geochemical anomalies coinciding with the Antler deposit, which extend south to the boundary with these newly acquired areas.
There are no records of any exploration drilling having been previously undertaken to the south of the resource.
Exploration work will commence immediately to delineate targets for initial drilling. Activities will include systematic soil geochemistry sampling, geologic mapping, detailed aeromagnetic surveying and IP geophysical surveying.
A single diamond drill rig is currently turning at the Antler deposit, so this could rapidly be mobilized to test any targets arising from the initial work programs.
New World managing director Mike Haynes said all exploration work completed to date points to the Antler deposit remaining open to the south.
“From the first day we visited the Antler copper deposit, we recognised the potential for the mineralisation to extend southwards, into the area where we have now reached agreement to purchase the mineral rights,” he said.
“Strong copper and zinc soil geochemistry anomalies at surface suggest the mineralisation may extend southwards. The geology that hosts Antler is mapped to extend to the south. No drilling has ever been undertaken to the south of the deposit.
“In light of all this, we are very pleased to have executed agreements to purchase these additional, highly prospective mineral rights.”
This article was developed in collaboration with New World Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.