quarterly report highlights, page-17

re: uranium kor nwa
market liked the annoucment today, and with drilling uranium in nt with korab at end of month things looking good

5th July, 2006
Manager of Company Announcements
Australian Stock Exchange Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
SHAREHOLDER UPDATE
New World Alloys (ASX: NWA) (the “company”) is pleased to provide a shareholder
update prior to releasing the June 2006 Quarterly Financial Report, due on 31st July 2006.
Nova Mining Project
NWA is pleased to announce that production at Nova Mining’s copper smelter for the June
Quarter has been in excess of 900 tonnes. This maintains the high output level achieved
in the March Quarter. Our target of 1,000 tonnes would have been met but for an industrywide
shortage of metallurgical coke in April which significantly impacted our production
capability. The continuing positive trends in the company’s operations and financial status
have established Nova’s position both as the leading independent producer of copper
metal in Congo, as well as a newcomer to the list of junior ASX companies with successive
‘cash-flow positive’ status.
With the completion and commissioning of furnaces 3 and 4 now scheduled for July,
production capacity at the plant will double. Under optimum conditions this can be raised
further. Presently the exceptional demand for high grade ore presents some difficulties in
the short term. However, doubling our production will have a marked improvement on the
margins earned as we move well above the breakeven point of around 240t/m at present.
The 4 furnaces are scheduled to operate on copper ore feedstock secured from existing
and new supply contracts.
A recent development in the availability of local power at transmission level has evolved in
the industrial vicinity of Nova Mining, which affords management the opportunity to
reconsider the installation of arc furnaces to increase production. The arc furnace proposal
is likely to be instead of constructing the next set of blast furnaces F5 and F6 that were
earlier planned for inclusion in the current expansion plan. An engineering and financial 2
study is in progress to assess the total cost and installation time required to support this
variation to the existing program, which will be advised in due course.
To complement the successful development of the copper smelter, a major effort has been
applied by management to conclude the acquisition of operating copper concessions for
the company during the last 6 months. The primary objective is to secure resources where
the NWA designed mini-concentrators can be installed to provide a reliable grade of
product to Nova’s furnaces. This step in the development of the company will significantly
improve operating margins and certainty of supply. Options on a number of projects in
Congo have been secured. As these are currently located in hard to access areas they are
presently earmarked for later development. Several JV opportunities within 150 km of
Nova are nearing completion with reliable companies.
Nova Management’s ability to develop existing copper deposits and operate miniconcentrators
is undergoing due diligence review on the resource projects outlined above.
Once legal and financial review is completed, approved concessions (tenements) will be
concluded into a variety of JV projects. Some of these mining projects could become
operational by the end of our September quarter, conditionally followed by erection and
operation of our first mini-concentrator before year end.
Additional details of the project will be outlined in the forthcoming quarterly report. For
further information, please contact the following executives via our Perth Office:
Yours truly,
Laurie Findlay David Mc Arthur
Managing Director / CEO Company Secretary