New World Resources Looks to Expand High-Grade Antler Copper Project in Arizona

New World Resources Limited (ASX: NWC) is an Australian exploration and development company focused on advancing its Antler Copper Project in Arizona, USA. The company holds a 75% interest in the project, with the remaining 25% held by Antofagasta Minerals.

In a recent announcement, New World Resources outlined plans to resume exploration drilling at Antler in early October 2023. The drilling aims to expand the current high-grade copper resource and test several promising nearby targets that could provide additional ore feed for a proposed mine at Antler.

About New World Resources

New World Resources is led by a highly experienced management team with track records of exploration success and mine development. The company was founded in 2014 and listed on the Australian Securities Exchange (ASX) in 2015.

The flagship Antler Copper Project covers around 2,000 acres in northern Arizona. Mineralization was first discovered at Antler in the late 1800s, with small-scale mining continuing until 1970. Historic production totaled approximately 70,000 tonnes at reported grades of 3-6% copper.

New World's exploration work since acquiring the project has delineated a large copper-zinc-silver deposit with an Indicated and Inferred Resource of 11.4 million tonnes at 2.1% copper, 5.0% zinc, 0.9% lead, 32.9g/t silver and 0.36g/t gold.

With continued exploration success, the company aims to expand the resource base and advance the project towards production. A scoping study released earlier this year outlined the potential for a low-cost, 10-year mine producing up to 30,000 tonnes of copper per year.

Resuming Drilling to Expand Resources and Test Nearby Targets

In September 2023, New World Resources announced it had contracted a drilling company to resume exploration drilling at Antler in early October. The planned drilling has two main aims:

1. Expand the current resource at the Antler deposit, which remains open at depth with high-grade intersections including 21.3 meters at 5.3% copper equivalent.
2. Test several nearby targets that could provide additional shallow, high-grade mineralization to supplement Antler's resources.

These nearby targets include:

• Extensions of the Antler deposit's 1,500+ meter copper-in-soil anomaly.
• A 3,000+ meter corridor northeast of Antler with multiple copper-in-soil and geophysical anomalies including Rattlesnake Ridge, Copper Knob, Insulator and West World. Extensive copper mineralization is visible on surface but there are no records of previous drilling.
• A newly discovered 1.2 x 1.0 km geophysical anomaly at the Javelin project, located near Antler.

The company believes testing these targets could significantly expand the resource base for a potential mine at Antler. Additional high-grade ounces found close to planned infrastructure could enhance project economics by increasing production volumes and mine life.

Managing Director Mike Haynes commented: "We have two clear corporate objectives: 1) Advance Antler to production as quickly as practicable; and 2) Increase the resource base at Antler and within trucking distance. We continue to make excellent progress on the first goal...With respect to the second goal, we have delineated numerous high-quality exploration targets that could further enhance Antler's already robust potential economics. We are very excited to begin testing these priority targets for the first time."

Advancing Mine Development

Alongside its exploration efforts, New World continues to advance mine development and permitting activities for the Antler project.

Recent progress includes:

• Drilling and flow testing a water well located 14km west of the deposit. Results indicate all water needs for mining and processing can likely be met from this single source on private land owned by the company.
• Preparing to submit a Mine Plan of Operations to regulators in the coming weeks to kick off the mine permitting process.
• Drilling hydrological holes and monitoring wells around planned mining and processing areas to support baseline environmental studies and refine the site hydrogeological model.
• Ongoing pre-feasibility study work on track for completion in late 2023.

The company remains on schedule with mine development activities to support a potential construction decision within the next 1-2 years.

Upside from Continued Exploration Success

The combination of a large existing high-grade resource, simple oxide metallurgy and excellent infrastructure in Arizona give New World Resources' Antler Copper Project robust potential economics, as outlined in the scoping study.

However, continued exploration success from the upcoming drill program and other targets could significantly enhance the project's upside. Expanding the current resource and adding new near-mine deposits to supplement Antler's ore feed would support increased production levels and extend mine life.

The junior copper developer offers investors exposure to a rising copper price environment and the potential boost of exploration-driven resource growth. With drilling set to resume within weeks, key catalysts are approaching that could drive a rerating of the stock if positive results are achieved.

New World offers an attractive risk/reward opportunity for investors seeking leveraged copper exposure from a project advancing rapidly toward development.

Conclusion

• New World Resources' 11.4Mt Antler Copper Project already hosts a substantial high-grade resource open for expansion.
• Planned drilling from October 2023 aims to grow Antler's resource base and test several nearby targets to add supplemental ore feed.
• Additional exploration success could significantly boost Antler's production profile and economics.
• Mine development and permitting activities continue to advance on schedule.
• Further positive progress at Antler has potential to catalyze a rerating of New World's share price.
• New World offers investors quality copper exposure combined with meaningful exploration upside.
• With drilling set to resume within weeks, catalysts for a potential value rerating are approaching.