New World Resources targeting fast-track development opportunities in Arizona
New World Resources (ASX: NWC) is looking to identify potential development opportunities it may be able to fast-track on the back of its proposed Antler copper development in Arizona.
The company has kicked-off a large induced polarisation (IP) survey at its Javelin volcanogenic massive sulphide (VMS) project that is targeting a string of historic producing sites approximately 75 km from Antler.
Satellite development targets
Managing director, Mike Haynes, said a recently completed updated Antler scoping study has confirmed the potential of an Antler development and the company is now investigating nearby opportunities for additional high-grade mineralisation which could be developed as “satellite” deposits.
That strategy would see any discoveries potentially mined and trucked to a proposed processing plant at Antler.
The company has already organised for a geophysical contractor to undertake the IP survey over the northern half of the Javelin project.
Northern section targeted initially
This survey is targeting sulphide-rich mineralisation in the vicinity of a number of strong multi-element (copper-zinc-lead-gold-silver) soil geochemical anomalies New World defined recently.
Due to the previous identification of strong geochemical anomalies in that area, the initial IP survey is only testing Javelin’s northern section of the project area.
The northern section is also closest to the six known VMS deposits where high-grade mineralisation has been mined previously.
The company will consider additional IP surveying over the southern half of the area in the future.
New World is expecting the IP data acquisition to be completed in early-mid July and plans to integrate the processed data with geological, airborne magnetic and geochemistry data to highlight prime targets for an August or September 2023 initial drilling program.
Plenty of upside potential
“With high-grade production recorded previously from six different VMS deposits over 10km of strike all around Javelin – and no exploration undertaken since 1992 – there is plenty of potential to discover additional high-grade mineralisation,” Mr Haynes said.
“Because we plan to build a processing plant 75km away at our flagship Antler Project, we have a great opportunity to unlock value from what may otherwise be high-grade but infrastructure- stranded mineralisation at our Javelin VMS Project. If we can successfully achieve that, we will significantly increase the value of both projects.”
Robust Scoping Study results
New World recently reported robust results from an updated scoping study assessing the potential development of the high-grade Antler Copper Deposit.
The 2023 scoping study identified a significantly increased production profile over a longer operating period.
The new results were based around mining a total of 15.4Mt from an underground mining operation at a rate of 1.3Mtpa to 1.5Mtpa over an initial 13+ year operating period.
This would provide for the production of 381,400 tonnes of copper-equivalent metal in concentrate over the initial operating period (including 190,300 tonnes of copper-in-concentrate) – a 41% increase in copper-equivalent metal production over the results from a previous 2022 study.
The updated scoping study identified the potential to produce an average of 32,700 tonnes of copper-equivalent metal-in-concentrate per year once steady- state production is achieved.
The project would also produce 57,400 ounces of gold and 7.7M ounces of silver in concentrate are produced over the initial operating period. This would help create a 107% increase in revenue from precious metals to US$258 million (A$381 million).
Significant economics upgrade
The updated scoping study also forecast a major improvement in project economics, including a 50% increase in revenue during the period under study, to US$3.0 billion (A$4.3 billion).
The upgrade in production would be covered by a 25% increase in pre-production capital to US$252 million (A$373 million).