A robust maiden resource announced for New World Resources' Antler copper deposit in Arizona will underpin development studies on a high-grade operation.
On November 5, New World reported a resource of 7.7 million tonnes at 2.2% copper, 5.3% zinc, 0.9% lead, 28.8 grams per tonne silver and 0.18gpt gold, or 3.9% copper equivalent, at Antler, using a cut-off grade of 1% copper equivalent.
Almost three quarters of the estimate was in the indicated category.
The resource exceeded New World's expectations on both tonnage and grade.
The company is confident it has the critical mass to build a small, but high-grade, mine with a standalone processing facility.
The maiden resource will be fed into initial mining studies, which is a critical step in the preparation of mine permitting applications.
New World is targeting the start of construction in 2024.
In the meantime, New World believes there is plenty of potential to continue to grow Antler as mineralisation remains completely open.
There are also 12 drill holes that were not included in the maiden resource.
Three drill rigs are on site testing for extensions.
The company is aiming to increase the resource base to 10-12Mt at 3-4% copper equivalent in the next 9-12 months.
Further exploration success would continue New World's rapid progress since first securing the rights to Antler in January 2020.
The historical mine, which sits on private land, produced about 70,000 tonnes averaging 2.9% copper, 6.2% zinc, 1.1% lead, 31gpt silver and 0.3gpt gold between 1916 and 1970, all above 150m depth.
Until New World came along, Antler hadn't been drilled for 45 years.
In October, New World exercised its option to acquire 100% of the project, two-and-a-half years early.
The decision to exercise the option early reflected the exploration success since drilling got underway in March 2020.
The acquisition cost of US$1.32 million was funded from existing cash reserves, which, following that payment, still stood at A$18.2 million at the end of September.
The company is also progressing a demerger of its cobalt assets into Koba Resources, which will seek to raise $8 million in an initial public offering.
Koba will hold the Colson cobalt-copper project, Elkhorn Creek cobalt project and Panther Creek cobalt project, all in Idaho, the Goodsprings copper-cobalt project in Nevada, and two new projects acquired by New World: the high-grade, but underexplored Black Pine and Panther Creek projects in Idaho.
If approved, 20 million shares in Koba will be transferred to New World shareholders via an in-specie distribution.
Euroz Hartleys and Peloton Capital have been appointed as joint lead managers to the IPO. Koba is aiming to list in the first quarter of 2022.