Lots of news to come for New World as it closes-in on maiden copper resource, says Peloton
A maiden resource and Pre-Feasibility Study on the planned resumption of copper production at its brownfields Antler copper mine in Arizona, USA are some of the highlights to look out for early next year from copper developer New World Resources
18th December 2020
Resources Rising Stars
A maiden resource and Pre-Feasibility Study on the planned resumption of copper production at its brownfields Antler copper mine in Arizona, USA are some of the highlights to look out for early next year from copper developer New World Resources (ASX: NWC), according to boutique investment and corporate advisor Peloton Capital.
In a detailed research report, Peloton analyst Ian Spence says New World has wasted no time in undertaking aggressive drilling at the Antler mine since acquiring it in January this year, targeting extensions to known mineralisation beneath existing historical high-grade workings.
“The drilling has proven to be a standout success, delivering several better-than-expected wide intersections of copper-dominated polymetallic mineralisation,” he wrote.
“Not only are the recent intercepts high-grade and thick in nature, we note the potential of the mineralisation to significantly increase in size both along strike and at depth as the company steps out its drilling activities.
“The most recent results bolster this view, highlighting two key things that we are watching closely,” he continued.
“Firstly, the mineralisation appears to be increasing in thickness at depth, possibly indicating that a larger body may be present and, secondly, initial step-out drilling along strike to the south of the old mining are and historical resource envelope has delivered early success with new wide, high-grade mineralisation being intersected.”
Peloton says that it expected the company to continue to announce strong results, building on the historical resources, which “we anticipate should well exceed 5Mt grading ~4% CuEq, with a high-quality maiden resource estimate targeted for Q1 2021.”
With drilling set to continue through December, and the company planning to complete a PFS in Q1 2021 as well targeting re-commencement of production at Antler in 2022, “we see there being no shortage of exciting positive news coming out of the company in the coming weeks.”
Peloton says it has enough confidence to rate the Company’s shares as a Speculative Buy.
To view a full copy of the Peloton Capital research note on New World Resources, click here.
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