New World Gold Corp. is a company focused on the exploration and development of gold prospects. The company looks to take advantage of the continued high price for gold. Gold has outperformed stocks over the past decade, yet it is an asset that is in very few investors’ portfolios. Gold looks to have a shiny future too as emerging countries from China to India continue to add gold to their sovereign holdings.
The company owns gold reserves both domestically in the United States and internationally. New World Gold has decided to focus on its domestic reserves as a priority, as they can be brought into production in 2010. The company has two current gold projects in the United States:
The company’s first project is located in Montana. New World Gold has a 75% interest in the project, which has proven developed gold reserves and sapphire reserves that are ready to go into production. The project has been issued a mining permit and production is scheduled to begin almost immediately. Based on the exploration and development work, analytical work and sampling programs throughout the lease, the company estimates that the reserves on the project are as follows: Proven Reserves of 175,000 ounces of gold and Proven Developed Reserves of 105,000 ounces of gold.
The company’s second project is located in Colorado. New World Gold has a 33% interest in the project with the opportunity to increase the interest to 50%. The project has previously been in production and already has established facilities for production. It is expected that this project will be in full production by September 2010. Based on exploration and development work along with historical work, the company estimates that the reserves on the project are as follows: Proven Reserves of 200,000 ounces of gold and Proven Developed Reserves of 190,000 ounces of gold.
In addition, New World Gold has two international gold projects. Both projects have significant proven and probable reserves based on substantial drilling and development work. The company has decided to develop these gold reserves at a future date when the infrastructure in the areas involved catch up with the development of the projects.