Vancouver — Initial drilling by New World Resource (NW-V, NWFFF-O) on its Lipea project in southwestern Bolivia has returned a wide intercept of copper, gold and silver mineralization.
Hole 06DLP-45 intersected 219 metres (from 159 metres down-hole) grading 0.87% copper, 1.09 grams gold per tonne and 8.8 grams silver per tonne. The intercept had a true width of 191.1 metres and occurs within a broader envelope of mineralization extending from near surface (24 metres down-hole) to a drill depth of 458.6 metres that averaged 0.47% copper, 0.58 gram gold and 5.7 grams gold.
New World is drilling further holes to test extensions of this mineralization. The intercept confirms 1996 drilling by Battle Mountain Gold, now part of Newmont Mining (NMC-T, NEM-N), that encountered widespread copper-gold mineralization at Lipea over 1 km of strike along a northwest-trending structure. Battle Mountain’s program returned intersections up to 108 metres grading 2.2% copper, 2 grams gold and 25.5 grams silver, with a number of shorter, higher-grade intervals. The major drilled about 12,700 metres in 44 holes from 1995-1997.
Lipea mineralization is associated with a magmatic hydrothermal breccia composed of tourmaline, quartz and specular hematite cement intruding intermediate volcanics. Subsequent epithermal alteration has overprinted mineralization on the project. Previous exploration outlined three breccia zones along the northwest-trending structure, which remains open along strike; the company believes they may coalesce at depth.
Earlier this year, New World entered an agreement to buy up to 75% of Lipea for payments totalling $1.1 million, 1.85 million shares and $2.2 million in exploration spending, all spread over four years.
Shares of the company closed up a dime on the news to close at 98 on trading volume of over 105,000. New World has a $12.5-million market capitalization based on its 12.6 million shares outstanding.
Be the first to comment on "New World drills wide intercept at Lipea (August 14, 2006)"