New World Resources confirms 11Mt resource estimate at Antler copper project

New World Resources (ASX: NWC) has reported a substantial increase to the mineral resource estimate for its wholly-owned Antler copper deposit in northern Arizona following a year of exploration drilling.

The new estimate comprises 11.4 million tonnes at 2.1% copper, 5% zinc, 0.9% lead, 32.9 grams per tonne silver and 0.36g/t gold (11.4Mt at 4.1% copper equivalent).

It represents a 48% increase in tonnage and a 44% rise in contained metal on a maiden resource announced in November last year.

The reportable copper equivalent grade has increased marginally from 3.9% to 4.1%.

New World said 79% of the updated resource estimate had been classified in the high-confidence “indicated” category, demonstrating the robust nature of the Antler deposit.

Significant status

Managing director Mike Haynes said the updated resource estimate cements the project’s status as one of the most significant new high-grade VMS (volcanogenic massive sulphide) copper projects worldwide.

“With a much larger resource, the potential economics of developing Antler could be even more attractive at a time when demand for copper — and therefore the copper price — is increasing due to its fundamental role in the impending global energy transition as the world economy decarbonises,” he said.

“With a modest capital expenditure requirement and a relatively short timeline to production, we are very well positioned to capitalise on these highly favourable conditions.”

Mr Haynes said the company was targeting the resumption of mining operations with a view to taking advantage of the copper supply-demand equation.

Updated scoping study

New World is advancing Antler rapidly towards development with an updated scoping study due early next year followed by a pre-feasibility study by mid-2023.

The larger resource is reported to have had a material and positive impact on the economics of development, with the company now expecting a larger annual production profile and a longer mine life than what had been considered in the initial scoping study released earlier this year.

A new mine design will be completed in the coming months using the updated estimate and will be integrated into the ongoing pre-feasibility study.

Project acquisition

New World acquired the Antler project in early 2020 and has been drilling virtually uninterrupted since then in order to expand the resource base and resume mining operations as quickly as possible.

In November 2021, the company declared an interim maiden resource estimate at a 1% copper equivalent cut-off comprising indicated and inferred resources of 7.7Mt at 2.2% copper, 5.3% zinc, 0.9% lead, 28.8g/t silver and 0.18g/t gold (7.7Mt at 3.9% copper equivalent).

The resource was used as the basis of an initial scoping study to assess the potential development of the project.

New World soon realised a greater annual production rate could be achieved and the operating life extended with a larger resource, which would further enhance the project’s economics.

The Antler mineralisation is completely open at depth and an ongoing program of exploration drilling has been carried out over the past 12 months to delineate the depth extensions.

At the same time, mining studies have been conducted to integrate into documentation for mine permitting.