New World Resources (ASX:NWC) has secured a five-year option to acquire the Pinafore copper deposit in northern Arizona, US.
Pinafore covers 134 acres and is a proterozoic-aged volcanogenic massive sulphide deposit that bears similarities with New World’s Antler copper deposit, located 75km north-west of Pinafore.
Previous production from the Pinafore deposit measures 10,000 tonnes at 5% copper and 11% zinc.
Under the agreement, New World, which has a market capitalisation of $107.75 million, paid US$300,000 ($453,860) in cash to vendor Jacobsons Mining.
Over the five-year period, New World will issue US$850,000 in staged payments to Jocobsons and is solely responsible for funding, planning, permitting, implementing, and reclaiming all work programs during the option period.
Notably, New World has the right to take 100% ownership of the Pinafore deposit at any time during the option period by paying Jacobsons US$2.5 million and issuing a 2.5% royalty on all future production.
Managing Director Mike Haynes says the acquisition is another positive development as New World implements its strategy of expanding its resource base.
“We are very encouraged that only nine holes have ever been drilled at Pinafore previously and that the mineralisation remains open in all directions,” he says.
“We are therefore confident we can increase our resource base by undertaking additional drilling at Pinafore.
“Because of the very high-grades, the shallow nature of mineralisation and the fact that the deposit is located on private land, Pinafore now becomes one of our highest priority immediate exploration targets, amongst our multitude of other very high-priority exploration targets.
“Accordingly, we plan to mobilise a drilling rig to Pinafore within the coming weeks — as we currently have a diamond core rig drilling at the Discus target, located 5km to the northeast within our Javelin Project.”
New World plans to confirm the presence of the “very high-grade” mineralisation that has been delineated previously, and will begin extensional drilling to explore for extensions and thicker zones of mineralisation.
Drill core samples will be collected for metallurgical testwork and geotechnical data will be acquired for initial mine design work.
This information will be used in initial studies for mining at Pinafore, and to assess the practicalities of integrating ore from Pinafore with that from the Antler deposit.
Pinafore comprises one patented mining claim covering 20 acres, a small area of adjoining private mineral rights covering 26 acres, and six unpatented mining claims covering 88 acres in Arizona’s Javelin VMS district.
New World will be presenting on day one of the Vertical Events 2024 Gold Coast Investment Showcase, being held on 19 and 20 June at the JW Marriott Gold Coast Resort & Spa, Queensland.
Mining.com.au is a media partner of this year’s event. To register for free click here.
Write to Aaliyah Rogan at Mining.com.au
Images: New World Resources
