A Diversified mineral exploration company, New World Cobalt Limited (ASX: NWC) on 9th April 2019, announced that it has signed agreements, which gives the company a right to acquire 100% interest in 20 Federal mining claims that covers more than 400 acres over the high?grade, gold?rich Jones Hill VMS Deposit that is situated in the New Mexico, USA.
Along with this acquisition, the company has also secured a 100% interest in 4,300 acres of prospective VMS tenure along strike from the Jones Hill Deposit that holds various mineral occurrences, prospects as well as historical workings.
Through this broader Tererro VMS Project, the company is presented with an outstanding opportunity to develop a new VMS camp near the Jones Hill Deposit.
As per the historical mineral resource estimate of the Jones Hill Deposits, an exploration of 5.7Mt resulted in 1.96 g/t of Gold, 1.02% of Copper, 1.46% of Zinc, 0.24% of lead and 22.0 g/t of Silver.
The thick mineralisation that comes to the surface indicates the potential of low mining cost. The significant intersection in the historical diamond drilling, includes 94.8 metres drilling resulted in 5.24 g/t of Gold, 0.83% of Copper, 0.32% of Lead, 0.68% of Zinc and 24.3 g/t of Silver.
At present, the strategy of the company is to advance the development of the Jones Hill Deposit and also to commence the exploration to expand its resource base. Itâs interesting to know that the metal prices in the current period have improved.
At present, the price of copper is US$2.93/lb, which was US$0.65?0.75/lb in 1981/90s. Similarly, the current price of gold is US$1,292/oz which was US$350? 380/oz in 1981/82.
This is an excellent opportunity for the company at the Jones Hill Deposit, which has outstanding potential to discover additional mineralisation. Since 1984, there is only one diamond core hole drilled at the Jones Hill Deposit. There are various depth and strike extensions at the Jones Hill Deposit, which are open. Several under-explored VMS prospects are situated along strike from the Jones Hill Deposit. There will be a requirement of the modern geophysics in the near future before commencing the drilling.
As per the recently released 1H FY2019 results for the period ended 31 December 2018, New World Cobalt incurred a net loss of $1,507,690 as a result of increased expenses. The balance sheet of NWC reported an increase in the net asset base. The total shareholdersâ equity for the period stood at $19,745,179.
The report also highlighted a fall in the net cash and cash equivalents as a result of a significant increase in the cash outflow through the investing activities. The companyâs payments for exploration and evaluation expenditure was $3,266,602. The net cash and cash equivalents at the end of 1H FY2019 were $1,046,183.
In the last six months, the shares of NWC generated a negative return of 58%. However, the stock gave a return of 110% over last one month.
At market close on 9th April 2019, the closing price of the stock was A$0.021, up 75% as compared to its previous closing price. Today, 10th April, the stock is trading flat at A$0.021 (As at 12:45 PM AEST). NWC holds a market capitalisation of A$11.58 million with approximately 551.52 million outstanding shares.
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