Antler Copper Project, Arizona, USA

Location and Infrastructure

The Antler Copper Project is located in a sparsely populated region of north-western Arizona (see Figure 1).

Access to the Project area is excellent; with direct access to the historical mine site by way of 20km of unsealed road that extends east from the town of Yucca (population approximately 6,000) which is on US interstate 40. A rail line passes through Yucca as well as Kingman (population 30,000), some 30km to the north.

The close proximity of good roads and utilities will be advantageous when exploring and developing the Project; affording opportunities to minimise operating costs and lower pre-production capital requirements.

The Antler Deposit lies within two (2) patented (private) mining claims that cover 40 acres. The Deposit is surrounded by an additional sixty seven (67) unpatented (BLM) mining claims that cover a further 1,340 acres.

Geology and Mineralisation

The Antler Deposit lies within a NE-trending belt of Precambrian gneissic and schistose rocks thought to have originally been volcanic in origin. The Deposit comprises a stratabound, pyrrhotite-rich, copper-zinc volcanogenic massive sulphide (“VMS”) body.

Numerous other VMS deposits, in similarly-aged rocks, are present in northern Arizona. These include the United Verde Deposit – where 33Mt of ore was mined between 1883 and 1975 at a grade of 4.8% Cu, and the UVX Deposit – where 3.9Mt of ore was mined between 1915 and 1992 at a grade of 10.2% Cu (see Figure 1).

Mineralisation at the Antler Deposit outcrops over more than 750m of strike at surface. The host sequence strikes in a north-easterly direction and dips to the northwest. A complex array of tight folds has been mapped, and two north-westerly trending faults have been mapped to offset and truncate the Antler Deposit (see Figure 2).

Historical Production

The Antler Deposit was discovered in the late 1800s. Intermittent production from the Deposit between 1916 and 1970 totalled approximately 70,000 tonnes of ore at a grade of around 2.9% Cu, 6.9% Zn, 1.1% Pb, 31 g/t Ag and 0.3 g/t Au. Ore was extracted over approximately 200m of strike from an inclined shaft, to a depth of around 150m (see Figure 3). The average thickness of ore was reported to be around 4 metres. Additional underground workings were developed to a depth of 200m – but no production was recorded from the deeper levels.

Historical Exploration

Between 1970 and 1975, following completion of the most recent episode of mining, a total of 19 holes were drilled from the surface and underground with the objectives being to:

The underground drilling delineated a panel of high-confidence, high-grade mineralisation immediately beneath historical stopes that could be rapidly exploited on recommencement of mining operations.

The surface drilling comprised 9 very-widely spaced diamond core holes that were drilled over more than 500m of strike. 8 of these holes intersected high-grade mineralisation, with the deepest hole intersecting mineralisation approximately 500m below the historical workings (see Figure 3). Significantly, the deepest hole also intersected the thickest interval of mineralisation.

Despite the presence of extensive and high-grade mineralisation, mining never resumed, and no further work had been undertaken at the Project – until New World’s recent involvement.

New World’s Exploration and Development Activities

Ongoing Drilling Program

In March 2020, immediately following completion of its final due diligence investigations, New World commenced its maiden drilling program at the Antler Project.

Initial drilling rapidly confirmed that considerable high-grade mineralisation remains, unmined, in areas immediately adjacent to the historical stopes. Results from initial holes included:

The Company’s attention then turned to defining the continuity of mineralisation between the very broadly-spaced holes that had been drilled when the most recent exploration was undertaken in 1975, particularly in the area directly down-dip from the historical workings, where the Company interpreted there was potential to delineate a thicker zone of high-grade mineralisation.

Some exceptional results were returned from initial drilling in this area, including:

By September 2020 the Company had two diamond core rigs operating at Antler. This facilitated a concerted program to continue to drill down-dip of the thick, high-grade mineralisation that was regularly being intersected below the historical workings, with subsequent results including:

This drilling delineated a robust zone of thicker, high-grade mineralisation – the “Main Shoot”, that extends a considerable distance down-dip from the deepest historical stopes.

While initial drilling was being undertaken below the historical workings at Antler, to help assess the exploration potential along strike from the previously mined area, the Company completed an airborne magnetic survey in June 2020. This survey revealed that the mineralisation at Antler coincides directly with a strong magnetic anomaly, and that this same anomaly extends for more than 1,000m of strike (see Figure 4).

So in September 2020 the Company conducted an Induced Polarisation (IP) survey over the 1,000m-long magnetic anomaly to help delineate areas where there might be higher concentrations of sulphides along this trend, and accordingly to help expedite the discovery of thicker zones of mineralisation along strike from the Antler Deposit.

A strong IP chargeability anomaly was delineated immediately to the south of the historical workings – which was considered a very high-priority, previously untested target (see Figure 5). So in October 2020 the Company commenced drilling to test the along-strike potential of the Antler Deposit. The first hole drilled, ANT26, intersected a 22.4m-thick zone of high-grade mineralisation – which confirmed the IP anomaly was due to extensions of the mineralisation at Antler. Assay results from drill hole ANT26 included:

The Company subsequently drilled multiple holes to test for the extensions of the thick, high-grade mineralisation intersected in ANT26. This follow-up drilling intersected thick zones of mineralisation both up-dip and down-dip from ANT26 in what is interpreted to be a second shoot of thicker, high-grade mineralisation – now called the “South Shoot. Better results to date include:

Continuous high-grade mineralisation has now been defined in the South Shoot over a down-dip extent of more than 350m. It remains completely open at depth. These depth extensions continue to be one of the Company’s highest priority targets for further drilling and resource expansion.

Drilling Testing For Extensions of the Main Shoot

Three of the deepest holes yet drilled at the Antler Deposit – ANT70, ANT70W1 and ANT77 (see Figures 6 and 7) all intersected very thick, high-grade mineralisation at depth in the “Main Shoot”.
ANT70 intersected three intervals of mineralisation, having a combined thickness of 43.5m, over a 50.6m interval (down-hole). The intersections comprised:

The intercepts in ANT70 were located approximately 60m down-dip from the mineralisation intersected in the Company’s previous deepest drill hole, ANT53, which itself intersected:

A “wedge” was then drilled from ANT70 to test for the strike extension of the thick mineralisation to the north (ANT70W1).

ANT70W1 also intersected three intervals of mineralisation, this time with a combined thickness of 21.7m, over a 40.3m interval (down-hole). The mineralised intervals comprised:

The mineralisation intersected in ANT70W1 is located approximately 50m to the north of the mineralisation intersected in ANT70.

Concurrent with the drilling of ANT70W1, a second rig drilled a new “parent hole”, ANT77, to continue to explore the depth extensions of the Antler Deposit – this time targeting the deep mineralisation in the Main Shoot to the south of that intersected in ANT70.

ANT77 also intersected three intervals of mineralisation, this time with a combined thickness of 21.1m, over a 27.5m interval (down-hole). The intersections comprised:

ANT77 deviated off-course from its intended position, eventually intersecting mineralisation closer to ANT70 than intended – albeit that the mineralisation intersected in ANT77 is located approximately 20m to the south of the mineralisation intersected in ANT70.

As a result, the intercepts reported for ANT77W1, ANT70 and ANT77 define the strike extent of the Main Shoot to be at least 100m at the depth levels tested by these holes – which is approximately 680m down-dip from the mineralisation that outcrops at surface. This clearly demonstrates the growing scale and significance of the mineralised system at Antler at depth.

Significantly, the 43.3m of mineralisation intersected in ANT70 is the thickest interval of mineralisation ever reported from the Antler Project. With mineralisation remaining completely open at depth over the entire 500m of strike that has been drill-tested to date, this bodes well for further expanding the resource base with additional drilling, particularly at depth.

Drilling to Test For Mineralisation Between the Main and South Shoots

During H2 2021 the Company received assay results from two of the deepest holes drilled to date to test between the Main and South Shoots. Very significant results were returned, including:

While these results continue to suggest that the mineralisation between the two Shoots is slightly thinner than it is within the Shoots themselves, they continue to confirm that there is a high likelihood that intervening mineralisation should also be recoverable in a potential mining operation, as (i) the thicknesses make this mineralisation amenable to stoping; and (ii) the grades continue to be very high.

Further drilling between the two Shoots will be an important component of ongoing mine design work and Resource-to-Reserve conversion drilling.

Drilling at the Southern End of the Deposit, where a Possible New Shoot may have been Discovered

During April 2021 the Company announced it had completed a CSAMT geophysical survey over and along strike from the Antler Deposit, to help explore for extensions of the sulphide-rich mineralisation.

A strong CSAMT anomaly was delineated over the known mineralisation in both the Main Shoot and the South Shoot. Encouragingly, this CSAMT anomalism extended for more than 300m immediately south of the South Shoot (see Figure 8), in an area that had previously been subject to very limited exploration.

During H2 2021 the Company announced the results from the first holes drilled to begin to test the shallow levels of this target – all of which intersected high-grade mineralisation, including very encouraging results from the deepest of these initial holes, ANT62, which intersected:

These results further confirm the continuity of high-grade mineralisation at the southern end of the Deposit, increasing the Company’s confidence in the potential to mine additional mineralisation at this southern end.

With:

there is considerable potential to continue to expand the resource base in this area. Accordingly, further exploration drilling will be undertaken in this area in the near term.

Taking 100% Ownership of the Antler Project

In January 2020, the Company entered into a 4-year option agreement that provided it the right to acquire a 100% interest in the Antler Project (“the Antler Option”).

In September 2021, 21/2 years early, in line with the very positive results that were consistently being returned from its drilling program, and with a favourable outlook for the potential redevelopment of mining at Antler, the Company exercised the Option, thereby taking 100% ownership of the Project.

This was a key step towards the Company’s objective of fast-tracking the project towards development and production. Having 100% ownership enables the Company to advance the Project through mining studies and permitting activities with absolute clarity of ownership, further de-risking its development pathway.

Maiden JORC Mineral Resource Estimate

In November 2021, 20 months after commencing drilling at Antler the Company announced a maiden JORC Mineral Resource Estimate (MRE) for the Deposit.

At a 1.0% Cu-equivalent cut-off, the maiden MRE comprises:

There is a high-level of confidence in the resource, with 74% of the mineralisation classified in the high-confidence “Indicated” category (see Table 1 and Figures 9 and 10).

The robust nature of the Resource is evident when an even more rigorous 2.0% Cu-equivalent cut-off grade is applied, which results in a reduction of only 5% of the tonnes of contained metal (on a copper equivalent basis; see Table 1).

At a 2.0% Cu-equivalent cut-off, the Resource comprises:

The robustness and high-grade nature of the Resource further supports the Company’s expectation that it should be possible to re-commence mining at Antler for the first time since 1970.

The Company is now utilising the maiden MRE in initial mining studies, which is a critical step in the preparation of mine permit applications.

Exploration Target

While approvals to commence mining are being sought, the Company intends continuing to aggressively explore the Antler Project to continue to expand the Resource base. Mineralisation remains completely open:

Based on this and results to date, the Company considers there is substantial potential for Resource expansion and so has set a new Exploration Target, which is to endeavour to expand the MRE at the Antler Copper Deposit during CY2022 to 10-12Mt of high-grade mineralisation at grades between 3.0-4.0% Cu-equivalent¹. There is potential for further Resource growth beyond that.

In order to convert this Exploration Target into JORC Mineral Resources, three drill rigs are continuing to operate at the Project, targeting extensions of the resource.

Resource expansions could enhance the economics of re-commencing mining at Antler by increasing optimal throughputs (hence lowering unit operating costs) and/or by extending the life of any mining operation.

Table 1. JORC Mineral Resource Estimate for the Antler Copper Deposit at various cut-off grades.

Above 0.8% Cu-Equivalent

Above 1.0% Cu-Equivalent

Above 1.5% Cu-Equivalent

Above 2.0% Cu-Equivalent

Above 3.0% Cu-Equivalent

Mining Study

The robustness and high-grade nature of the maiden Mineral Resource Estimate for the Antler Deposit provides the Company confidence that it should be possible to re-commence mining at Antler for the first time since 1970.

Accordingly, the Company has commenced initial mining studies, with a view to developing a stand-alone processing plant at Antler.

This is a critical step in the preparation of mine permit applications. Initial results from these mining studies are expected in Q2 2022.

While mining studies are undertaken, resource exploration drilling continues.