New World drills wide intercept at Lipea (July 06, 2006)

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 downhole depth) 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 downhole) 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 to this mineralization. The intercept confirms 1996 drilling by Battle Mountain Gold, now part of Newmont Mining (NMC-T, NEM-N), at Lipea that encountered widespread copper-gold mineralization over one 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 intervals of higher grade. 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. Past exploration reviewed three breccia zones along the one km structure, which remains open along strike, with the company hypothesizing they may coalesce at depth.

In early-2006, New World entered its agreement to acquire up to 75% of Lipea for cash payments totaling $1.1 million, 1.85 million shares and expenditures of $2.2 million all staged over four years.

Shares of the company closed up a dime on the July 6th drill result 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.