Have I been doing tremendous due diligence and believe New World Resources (NW-TSX) warrants your attention. New World is active in Lithium, amongst other metals, but unlike many, they were one of the first to see tremendous demand pressure for lithium and acquired a significant project last year.
Many have seen front page headlines regarding the huge demand and potential shortages of Lithium due to our increased use of electronics that require long life batteries and hybrid cars, most of which using lithium to store energy. 
To understand why Lithium is so important and why New World is in a opportune position in the great lithium land grab read the below timely article titled Japan and China fight it out for right to mine lithium under Bond's battlefield http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6498591.ece
New World is trading at $.13, 20m shares outstanding. In my opinion, the shares are significantly undervalued.

Introduction

The Pastos Grandes Property is located in the Sud Lipez province within the Department of Potosi Bolivia, at an elevation of approximately 4000 metres. Bolivia is known to host the world's largest undeveloped lithium (Li) brine resource. This area in the Altiplano is also home to New World Resource's new prospect, Laguna Pastos Grandes and is part of a series of alkaline-saline lakes and salt crusts known as salars. Salars are composed of brines and salts rich in many minerals including lithium, potassium and boron.

The Pastos Grandes property is 125 km2 and covers the entire laguna which is located in a basin surrounded predominantly by mountainous terrain with intermittent rivers and thermal springs that discharge waters into a central lake. The area is accessible via numerous roads, with services available at the nearby town of Uyuni 100 miles to the NE. This town of approximately 10, 600 people is an important transport hub, accessed via a network of packed dirt roads.

Geological Setting

Laguna Pastos Grandes is one of some 200 alkaline, saline lakes and salars in the area. It covers approximately 125 km2 trending NW-SE, composed of a thick sequence of sediments with a late Miocene pyroclastic basement.

Chemical analysis of the brine show that Pastos Grandes fits the Alkaline Type Salar based on the concentrations of (Na-Ca-SO4-Cl), with high concentrations of lithium, boron, and potassium totaling: 1.64g/L Li (0.165%), 945mg/L B, 14.2g/L K (1.42%)
 

Pastos Grandes as seen from space. Note the central
lake and several streams, photo courtesy of NASA


Pastos Grandes is one of the larger salars in the Altiplanto. It has been prospected in the recent past for lithium, boron, and potassium which is often found in enriched chloride brines from basins draining felsic to intermediately volcanic rocks. Brines have quickly become an increasingly important source of lithium.

The size of other major brine deposits range globally from 200 million to 1.3 billion metric tons with grades ranging from 0.015% to 0.125% lithium. One historic sample from Pastos Grandes yielded 0.165% lithium.

Economic Potential

Lithium is considered to be the 33rd most frequently occurring mineral, however hard rock concentrations are generally too low for economically viable extraction.

Historically, the main method by which North American producers, namely FMC and Cyprus Foote recovered lithium carbonate was from mining mineral deposits of spodumene in North Carolina, and from Gwalia Consolidation Mine Ltd., in Australia with typical hardrock mining techniques.

However, the cost-effectiveness of brine operations and the added capacity to the industry forced most hard-rock producers to develop their own brine sources or buy raw materials from brine producers. FMC closed its North Carolina mine in 1998, and Cyprus Foote, now Chemetall Foote Corporation, has concentrated on its brine operations. Gwalia Li hard rock mine ceased production in 1999, citing pricing and volume pressures from alternative lithium sources, and halted production while it studied ways to reduce costs. Lithium production from salt brine operations is so much more efficient than hard rock sources even large producers in China and Russia have closed plants and are now importing lithium carbonate from Chilean salars.
The richest lithium source currently being harvested is the Salar de Atacama basin located in the Atacama desert in Chile. Chemetall and SQM both obtain lithium product from its brine. The major trend in the lithium industry has been a transition from hard rock mining-based sources of lithium to brine-based ones. The economics of obtaining lithium carbonate from brine are so favorable that most of the mine-based production has been priced out of the market during the last few years.

Since the mid 1970s, lithium prices have seen steady growth as demand from technology and manufacturing industries also grew. Lithium has been in common use since the late 1940s, but has recently experienced a surge in price for its use in lithium ion batteries, fuel efficient vehicles, heat transfer contacts in electronics (cell phones, computers), glass and ceramics production, aluminum hardening in aviation industries and many other industrial applications.

Though traded internationally, lithium it is not traded on the public market and is sold directly to end use markets for a negotiated price per ton or pound of (Li, K)Cl or carbonate compounds. This makes price data difficult to confirm but some recent deals have reached $5500USD/ton driven by high demand from end use buyers and relatively low global production.

Pastos Grandes has excellent potential for volume production of the lithium rich salt compounds as well as other minerals commonly associated with alkaline type salars.

Pastos Grandes Historic Sampling

 
New World and Pastos Grandes

The letter of intent with the underlying claim owner has been finalized into a joint venture agreement ("Joint Venture"). The Joint Venture has a term of 20 years and the initial participation interests are 99% for the Company's subsidiary, New World Bolivia S.A. ("New World Bolivia") and 1% for Gonzalo Miranda Salles. The concession covers approximately 60 km2 of this highly prospective lithium brine salar.

"Pastos Grandes presents a new exciting opportunity for New World Resources in a country within which we have already established an excellent technical, logistical and legal team. Brines and their associated valuable mineral complexes are an easily extractable and an increasingly in-demand resource."

From The Times

June 15, 2009

Japan and China fight it out for right to mine lithium under Bond's battlefield

Leo Lewis, Asia Business Correspondent

The desolate, sun-baked deserts of southwestern Bolivia are poised to become the energy battleground of the 21st century, with China and Japan staking early and aggressive claims in the great lithium land-grab.
Japan, observers say, may have won the first round, but, with its mainstream resource ambitions thwarted on the Rio Tinto deal, China could redouble its efforts to gain a foothold in the salt flats of South America and the all-important technology metals.
The flurry of ruthlessly competitive diplomatic and corporate overtures to Bolivia from both Tokyo and Beijing is driven by the same dream: ultimate control of the future global market for electric vehicles. An ample supply of lithium, at least using current technology, is the critical weapon in that quest and Bolivia is to lithium what Saudi Arabia is to oil, say geologists.
Masao Kando, director-general of the metals strategy department of the Japanese Government, told The Times: ?We all know that China is becoming the world's biggest car producer and we see them as our biggest rival. Looking at the Rio Tinto case, we see that China is moving to secure resources by throwing incredibly abundant capital at the effort and it is sometimes hard to compete with that.?
At present, Chile is the world's biggest annual producer of lithium, but half the planet's known reserves of the metal are thought to lie under the Salar De Uyuni in Bolivia. The right relationship with La Paz will hold the key to everything, according to senior Japanese officials.
For the two rival Asian economic giants, control of lithium supplies - or at least a firm guarantee of stable future flows - is vital. For Japan, whose export-led economy is dominated by the lithium-hungry auto and electronics industries, it is a fight for survival of the status quo. With reliable long-term sources of lithium, Japanese companies can continue producing batteries for the world's laptops, digital cameras and mobile phones. With the same guarantee, Japanese car companies will be able to convert their manufacturing prowess to mass production of electric vehicles.
Yet for China the motivation for lithium dominance is even more compelling: the United States, Germany and Japan led the world in the development of petrol-driven cars in the 20th century and it would take many years for Chinese carmakers to match that expertise. Electric vehicles, on the other hand, represent a blank slate: these are pioneering days in the post-combustion engine era and a potentially huge opportunity for China to lunge for early leadership, increasingly nervous Japanese automaker executives believe.
Japan's latest gambit in the rush for Bolivia's lithium resources involved a delegation of corporate and government figures, including executives from Sumitomo and Mitsubishi, and what is understood to have been a promise that Japanese mining technology would be shared with their Bolivian counterparts. While the reserves under Salar de Uyuni, where Quantum of Solace, the most recent Bond film, was shot, are thought to be vast, they are not as readily extractable as sources elsewhere. Japan's expertise is thought to be the solution.
China, whose lands hold about a tenth of the estimated global reserves of lithium, is the world's third-largest producer and several of its companies have rapidly grown to become substantial global players in lithium battery production. Beijing's efforts to butter-up the authorities in La Paz have included a donation of cash to help to build a school in the town where President Morales was born and a gift of about 50 military vehicles, including two ships.

For further information call:   
Luc St-Pierre   
Phone: 514 904-1333    Phone: 514 904-1333
Email: luc@mi3.ca
 

OR:
Mario Drolet, President
Phone: 514 904-1333    Phone: 514 904-1333
Email: mario@mi3.ca