New World Resources completes scoping study at Antler copper project during June quarter

New World Resources (ASX: NWC) has received “very encouraging” results from a scoping study completed as an initial evaluation of the historic Antler copper deposit in the US state of Arizona.

In its June quarterly report released this week, the company said the study contemplated the potential development of mineralisation defined in the project’s maiden mineral resource estimate of 7.7 million tonnes grading 2.2% copper, 5.3% zinc, 0.9% lead, 28.8 grams per tonne silver and 0.18g/t gold.

The development pathway includes the mining of 9.3Mt from an underground operation at a rate of 1Mt per annum over an initial 10-year life, delivered to a “standalone” on-site processing plant.

There would be eight years of operations at steady-state before production rates decline as the current resource is depleted.

New World said it has made a deliberate decision to pursue an underground-only operation minus a starter open pit to minimise the project’s surface footprint and its impact on the environment and the local community.

There is reportedly considerable scope to extend the mine life with further exploration success.

Extensional drilling

During the quarter, assay results were received for two holes drilled to test the depth extensions of the Main Shoot at Antler.

The parent hole intersected very high-grade mineralisation between the Main and South Shoots, including 3.8 metres at 4.6% copper, 8% zinc, 0.7% lead, 40.9g/t silver and 0.27g/t gold from 946.2m.

It is believed to be the second deepest hole completed to date.

The first wedge drilled from the parent hole returned 18.2m at 2.0% copper, 3.4% zinc, 0.9% lead, 30.8g/t silver and 0.2g/t gold from 987.8m.

New World said mineralisation at Main Shoot has now been demonstrated to extend continuously down-dip over at least 900m from where it outcrops at surface.

It is reported to remain completely open at depth and warrants further extensional drilling.

South Shoot assays

Results were also returned from three holes drilled to test the down-dip extension of the South Shoot.

The parent hole intersected a fault zone at its target depth, and was followed by two wedges which intersected very high-grade mineralisation more than 250m down-dip from the deepest previous holes in the South Shoot.

Significant intersections included 6.8m at 3.2% copper, 10.6% zinc, 1.6% lead, 55.6g/t silver and 0.2g/t gold from 794m; 10m at 4.87g/t gold from 798m; and 3m at 3.9% copper, 8.2% zinc, 1.5% lead, 65.3g/t silver and 0.33g/t gold from 842.4m.

Pre-feasibility study

New World has commenced a pre-feasibility study for the Antler project to further optimise, refine and de-risk the development proposition.

The study will seek to enhance the project’s economics and will include consideration of a mineral resource expansion, an upgrade to inferred resources, optimisation of the mine schedule, and improvements to metallurgical recoveries and concentrate grades.

Capital raising

Subsequent to the end of the quarter, New World launched an $8 million capital raising to fund the Antler pre-feasibility study and ongoing extensional drilling.

The share placement will see the company issue 250 million new shares at $0.032 each, with directors investing up to $160,000.

It has been strongly supported by institutional, sophisticated and professional investors, including a number of New World’s largest shareholders.

Corporate costs

New World spent approximately $5.3 million on exploration at Antler during the June quarter, comprised of drilling and assaying ($4.14 million), metallurgical testwork ($40,000), a mine study ($166,000) and contractor and staff costs ($667,000).

Payments to related parties totalled $126,000 and included director fees and consulting services and serviced office costs.

In May, the company completed a demerger of its cobalt assets into a separate listed entity known as Koba Resources (ASX: KOB).

At the end of June, New World had $4.2 million cash at hand and a further $93,000 in listed investments.