Author: Alberto Montoto

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VANCOUVER, BRITISH COLUMBIA – NOVEMBER 21, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP), together with its local Bolivian partner, are pleased to report the preliminary metallurgical testwork results of the five variability samples from its Carangas Silver-Gold Project in Oruro Department, Bolivia (the “Carangas Project” or the “Project”).  This ongoing metallurgical testwork program consists of scoping-level cyanide leach and flotation testing and is carried out by Bureau Veritas’s Metallurgical Division in Richmond, British Columbia, Canada. 

Mineralized materials sampled from rejects of selected Carangas drill cores with assays were composited to five samples based on the type of mineralization and degree of oxidization.  Host rock sample is altered volcanoclastic rocks of dacitic-rhyolitic composition.

HIGHLIGHTS

Cyanide leach tests for the fresh gold samples for the sample with less than 1% sulfur content have achieved 98.8% gold recovery and the second gold sample with approximately 3% sulfur content achieved 98.5% gold recovery. 

The near surface, overlying oxidized, oxidized to semi-oxidized, and fresh silver-lead-zinc samples were tested with cyanide leaching and flotation. The cyanide leach tests achieved silver recoveries of 84.1%, 85% and 74.3%, respectively.   Whole ore flotation tests achieved silver recoveries of 72-77%, 90-94% and 99%, respectively.  Flotation tests for oxidized to semi-oxidized samples also achieved zinc recoveries of 93-95%.   Furthermore, 98-99% lead and 96-97% zinc flotation recoveries were achieved for the fresh silver-lead-zinc sample.

These preliminary test results clearly demonstrate that high recovery rates can be expected for gold using cyanide leaching and for silver, lead, and zinc through conventional cyanide leaching and flotation for silver-lead-zinc mineralized materials. The results of testwork are summarized below in Table 1.

Table 1 Summary of scoping level metallurgy tests of Carangas Project

Detailed Description

Sample 1

Sample 1 was an oxidized composite silver-lead sample consisting of drill core rejects from shallow depth (25-66 m) with head grades of 183 g/t silver and 1.20% lead. Zinc content was negligible. The majority of the lead was present in an oxidized form.

Initial whole ore cyanide leach testing showed that silver dissolved rapidly in cyanide solution with 84.1% silver recovery. Further cyanide leach tests along with gravity concentration will be carried out to improve silver recovery.

Early flotation testing indicated that silver recovery during rougher flotation was modest in the 72-77% range, and lead recovery was very poor. Further improvement work is in progress.

Sample 2

Sample 2 was an oxidized to semi-oxidized composite silver-lead-zinc sample consisting of core rejects from shallow depth (9-46 m) with head grades of 106 g/t silver, 0.86% lead and 0.47% zinc. A portion of the lead was present in an oxidized form.

Silver in this sample also dissolved rapidly in cyanide solution, and silver recovery was 85.0% based on a single cyanide leach test. Silver recovery is expected to improve further with additional cyanide leach testing.

Sequential selective flotation was applied to Sample 2 to produce a silver/lead concentrate and a zinc concentrate. Initial flotation testing demonstrated promising recoveries for silver (90-94%) and for zinc (93-95%) into the combined silver/lead and zinc rougher concentrates. Lead recovery was relatively poor due to partially oxidized lead minerals. Based on what has been learned from Sample 1, lead recovery of Sample 2 is expected to increase considerably when the same approaches are applied.

Sample 3

Sample 3 was a fresh composite silver-lead-zinc sample consisting of core rejects from 110-172 m depths with head grades of 151 g/t silver, 0.85% lead and 1.28% zinc. Oxidation has not occurred in this sample.

Silver in Sample 3 dissolved very slowly in cyanide solution. After 72 hours, silver dissolution was still incomplete. Silver recovery was only 74.3% based on a single cyanide leach test. A number of options are available to increase silver recovery and will be explored in future testwork.

As with Sample 2, sequential selective flotation was applied to Sample 3 to produce separate silver/lead and zinc concentrates. Initial flotation testing showed excellent flotation performance for silver, lead and zinc. When silver/lead concentrate and zinc concentrate are combined, total recoveries were 99% for silver, 98-99% for lead and 96-97% for zinc.

Sample 4

Sample 4 was a fresh composite gold sample consisting of core rejects with low sulfur content from 425-754 m depths and a head grade of 2.5 g/t gold and 0.62% sulfur. Contents of silver, lead and zinc were very low. Preliminary cyanide leach testing demonstrated exceptionally high gold recoveries in a range of 98.2-99.2%. Gold recovery was very robust and dropped only by 1.0% after grind size was coarsened from 80% passing 50 µm to 80% passing 150 µm, and cyanide concentration was reduced from 1.0 g/L NaCN to 0.50 g/L NaCN and oxygen sparging was replaced with air sparging. Sample 4 did not show any preg-robbing issue.

Sample 5

Sample 5 was a fresh composite gold sample consisting of core rejects with high sulfur content from 430-746 m depths and a head grade of 3.88 g/t gold and 3.07% sulfur. Contents of silver, lead and zinc were also insignificant. As with Sample 4, exceptionally high gold recoveries (97.2-99.0%) were achieved from initial cyanide leach tests. Gold recovery dropped only by 1.8% after grind size was coarsened from 80% passing 50 µm to 80% passing 150 µm, cyanide concentration was reduced from 1.0 g/L NaCN to 0.50 g/L NaCN and oxygen sparging was replaced with air sparging. Sample 5 also did not show any preg-robbing issue.

Preliminary Conclusion

Based on the preliminary metallurgical test results, the following recommendations can be made with respect to the selection of flowsheet for the future process plan:

For gold materials represented by Sample 4 and Sample 5, a simple process based on cyanide leach and carbon-in-pulp (CIP) can potentially achieve an average of 98.6% gold recovery. A gravity concentration may be included to reduce gold lockup in the circuit. Gold dore will be the final product.

For silver-lead-zinc materials represented by Sample 2 and Sample 3, separate silver/lead concentrate and zinc concentrate will be produced by sequential selective flotation. The silver/lead concentrate may further be treated by cyanide leach to enable silver dore production at the mine site. The residue after cyanide leach can still be sold as silver/lead concentrate, although with significantly lower silver content.

For silver-lead-zinc materials represented by Sample 1, if lead can be effectively concentrated via flotation, the silver/lead concentrate will be produced first via bulk flotation. Gravity concentration may be included to increase silver and lead recoveries. The resultant silver/lead concentrate may also be treated by cyanide leach to enable silver dore production at the mine site. The residue from cyanide leach will be sold as silver/lead concentrate. If the residue from cyanide leach cannot be sold as silver/lead concentrate, a fallback option for the materials similar to Sample 1 is the whole ore cyanide leach for silver dore production.

qualified person

This metallurgy test program was designed and supervised by Dr. Jinxing Ji who is an internationally recognized metallurgist with more than 25 years experience in working for senior Canadian mining companies related to gold, silver, copper, zinc and lead recovery, including mineral/metallurgical research and test work, development of process flowsheet and process design criteria, scoping study, pre-feasibility study, feasibility study, engineering design, plant commissioning and plant operational support/optimization for projects/mines in Turkey, Greece, Canada, China, Romania, Brazil and Papua New Guinea. Dr. Ji was the Director, of Metallurgical Services for Eldorado Gold Corp. for 15 years and the Consulting/Research Metallurgist for Placer Dome Inc. for 10 years.

The scientific and technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”). The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The Company’s flagship Project, the Silver Sand Silver Project, is expected to deliver a new Mineral Resource Estimate Update and a PEA by the end of 2022. The recently discovered Carangas Silver-Gold Project is undergoing a 40,000 m drill program. The third project, the Silverstrike Silver-Gold Project, commenced a 6,000 m discovery drill program in June 2022 and a near surface broad gold zone was discovered its first drill hole.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

U.S. & Canada toll-free: 1-877-631-0593

E-mail: invest@newpacificmetals.com

For additional information and to receive company news by e-mail, please register using New Pacific’s website at www.newpacificmetals.com.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

 

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Such statements include but are not limited to statements regarding anticipated exploration, drilling, development, construction, and other activities or achievements of the Company; timing of receipt of permits and regulatory approvals; timing and content of the PEA and estimates of the Company’s revenues and capital expenditures; and other future plans, objectives or expectations of the Company.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: global economic and social impact of COVID-19; fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, general economic conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management, uncertainties relating to the availability and costs of financing needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada; risks associated with community relations and corporate social responsibility, and other factors described under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2022 and its other public filings.  

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.   

The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company’s ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate in Bolivia; the Company’s ability to obtain and maintain social license at its mineral properties; the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits, including the ratification and approval of the Mining Production Contract with COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company’s Bolivian partner to convert the exploration licenses at the Carangas Project to AMC; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.

Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. These forward-looking statements are made as of the date of this news release.

 

CAUTIONARY NOTE TO US INVESTORS

 

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada which differ from the requirements of United States securities laws. The technical and scientific information contained herein has been prepared in accordance with NI 43-101, which differs from the standards adopted by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the technical and scientific information contained herein, including any estimates of mineral reserves and mineral resources, may not be comparable to similar information disclosed by U.S. companies subject to the disclosure requirements of the SEC.

Additional information relating to the Company, including the Company’s Annual Information Form, can be obtained under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.newpacificmetals.com.

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VANCOUVER, British Columbia – November 14, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP), together with its local Bolivian partner, report additional assay results from the 2022 drill program at its Carangas Silver-Gold Project, Oruro Department, Bolivia (the “Carangas Project” or the “Project”).  Six new deep drill holes were completed to define the extent of the gold mineralization beneath a shallow silver mineralization zone, which, to date, measures approximately 1,000 metres (“m”) long, 800 m wide, and up to 200 m thick.  Detailed results and drill hole specifications are provided in Tables 1 and 2. 

The Company also completed a 3D Bipole-Dipole IP-MT geophysical survey, which showed a clear correlation between high gold tenors and high chargeability anomalies.  This IP signature will help refine gold targets and guide future exploration drilling at Carangas.

HIGHLIGHTS

Hole DCAr0049: 591.85 m interval (from 176.25 m to 768.1 m) grading 1.03 grams per tonne (“g/t”) gold (“Au”), 6 g/t silver (“Ag”), 0.11 percent (“%”) lead (“Pb”), and 0.18% zinc (“Zn”), including higher grade intervals of 14.64 m (from 412.1 m to 426.74 m) grading 2.16 g/t Au, 9 g/t Ag, 29.07 m (from 446.63 m to 475.7 m) grading 2.76 g/t Au, 18 g/t Ag, and 29.31 m (from 501.9 m to 531.21 m) grading 4.15 g/t Au, 9 g/t Ag.

Hole DCAr0052: 513.35 m interval (from 157.65 m to 671.0 m) grading 0.23 g/t Au, 8 g/t Ag, 0.26% Pb and 0.61% Zn, including 18.82 m (from 625.8 m to 644.62 m) grading 2.07 g/t Au, 9 g/t Ag, 0.1% Zn and 0.15% copper (“Cu”).

Hole DCAr0060: 84.17 m interval (from 714.43 m to 798.6 m) grading 0.7 g/t Au, 5 g/t Ag and 0.2 % Cu, including 8.65 m (from 729.52 m to 738.17 m) grading 3.98 g/t Au, 20 g/t Ag and 0.78% Cu.

DETAILED DESCRIPTION

Hole DCAr0049 was drilled in the Central Valley area.  As expected, shallow broad silver-lead-zinc mineralization hosted in strongly altered volcanoclastic sediments was intersected from surface down to a depth of around 170 m, as represented by an upper interval of 61.18 m (from 5.44 m to 66.62 m) grading 21 g/t Ag, 0.44% Pb and 1.02% Zn, and a lower interval of 82.4 m (from 79.4 m to 161.8 m) grading 35 g/t Ag, 0.1 g/t Au, 0.27% Pb and 0.93% Zn.  Beneath the silver zone, the hole intersected a gold interval of 591.85 m (from 176.25 m to 768.1 m) grading 1.03 g/t Au, 6 g/t Ag, 0.11% Pb, 0.18% Zn and 0.07% Cu, including several higher grade sub-intervals such as 14.64 m (from 412.1 m to 426.74 m) grading 2.16 g/t Au, 9 g/t Ag, 29.07m (from 446.63 m to 475.7 m) grading 2.76 g/t Au, 18 g/t Ag, and 29.31 m (from 501.9 m to 531.21 m) grading 4.15 g/t Au, 9 g/t Ag.  Deeper in the hole, weaker argillic alteration and chalcopyrite mineralization continues to persist, as represented by 6.25 m (from 924.55 m to 930.8 m) grading 0.18 g/t Au, 6 g/t Ag and 0.46% Cu, and 38.98 m (from 1055.24 m to 1094.22 m) grading 0.04 g/t Au, 4 g/t Ag and 0.25% Cu, indicating a trend of increasing copper mineralization with depth.

Hole DCAr0043 was drilled on the southern limit of the Central Valley, about 120 m south of hole DCAr0049, and intersected multiple intervals of silver-lead-zinc mineralization from 24.92 m to 369.43 m.  Gold mineralization intensifies with depth and multiple gold-dominant intervals were intersected, as represented by 120.55 m (from 410.75 m to 531.3 m) grading 0.15 g/t Au, 5 g/t Ag, 0.45% Pb and 0.99% Zn, 66.0 m (from 668.0 m to 734.0 m) grading 1.22 g/t Au, 5 g/t Ag, 0.03% Pb, 0.12% Zn and 0.17% Cu, including a higher grade sub-interval of 10.02 m (from 678.28 m to 688.3 m) grading 3.76 g/t Au, 3 g/t Ag, 0.06% Pb, 0.16% Zn and 0.1% Cu, 13.41 m (from 801.72 m to 815.13 m) grading 0.43 g/t Au, 10 g/t Ag and 0.86% Cu, and 8.36 m (from 955.91m to 964.27 m) grading 0.14 g/t Au, 5 g/t Ag and 0.16% Cu.  The mineralization style is generally similar to hole DCAr0049, but DCAr0043 has weaker argillic alteration.  Furthermore, it appears that mineralization hits in hole DCAr0043 are splays and down plunges of hole DCAr0049.

Hole DCAr0052 was drilled at South Dome near the southern limit of the Central Valley.  It intersected silver-lead-zinc mineralization close to the surface, represented by an interval of 151.31 m (from 4.95 m to 156.26 m) grading 18 g/t Ag, 0.57% Pb and 1.19% Zn, followed by a broad gold mineralization interval of 513.35 m (from 157.65 m to 671.0 m) grading 0.23 g/t Au, 8 g/t Ag, 0.26% Pb and 0.61% Zn, including a higher grade sub-interval of 18.82 m (from 625.8 m to 644.62 m) grading 2.07 g/t Au, 9 g/t Ag, 0.1% Zn and 0.15% Cu, and a short interval of 3.75 m (from 715.1 m to 718.85 m) grading 0.32 g/t Au, 28 g/t Ag, 01% Pb and 0.42% Cu.

Hole DCAr0059 was drilled at South Dome near the western limit of the Central Valley. It intersected silver-lead-zinc mineralization close to the surface, represented by 167.2 m (from 12.5 m to 179.7 m) grading 20 g/t Ag, 0.2% Pb and 0.46% Zn, and 150.6 m (from 198.5 m to 349.1 m) grading 10 g/t Ag, 0.37% Pb and 0.65% Zn.  Beneath the silver-lead-zinc horizon, multiple weak-moderate gold mineralization intervals were intersected, including 18.74 m (from 419 m to 437.74 m) grading 0.16 g/t Au, 6 g/t Ag, 0.62% Pb and 0.97% Zn, 20.46 m (from 625.43 m to 645.89 m) grading 0.8 g/t Au, 12 g/t Ag, 0.18% Pb, 0.4% Zn and 0.06% Cu.  These gold intervals appear to be the west splays from the broad mineralization zones intersected in the Central Valley.

Hole DCAr0060 was drilled about 190 m to the south of hole DCAr0049 near the southern limit of the Central Valley.  It intersected multiple narrow silver-lead-zinc mineralization intervals in the upper (~700 m) portion of the hole, followed by a gold mineralization interval of 84.17 m (from 714.43 m to 798.6 m) grading 0.7 g/t Au, 5 g/t Ag and 0.2% Cu, including a higher grade sub-interval of 8.65 m (from 729.52 m to 738.17 m) grading 3.98 g/t Au, 20 g/t Ag and 0.78% Cu, which appears to be the southern extension of the gold zone intersected in hole DCAr0043.

Hole DCAr0062 was drilled near the western limit of West Dome, about 470 m to the west of hole DCAr0049.  This hole intersected multiple moderate silver-lead-zinc mineralization intervals, but did not return any gold interval.  Rocks are dominated by volcanoclastic sediments, which are pervasively sericitic altered but missing strong argillic alteration, cut by dykes of rhyolite and andesitic basalt.  It appears to be the peripheral alteration halo of the strongly argillic altered and mineralized zone in the Central Valley area.

UPDATE ON THE PROGRESS OF THE DRILLING PROGRAM

With five rigs running at Carangas, a total of 39,862 meters in 86 drill holes has been completed to date in 2022. Assay results of 39 holes have been received and released.  With the success of resource definition drilling, the Company plans to engage independent consultants to carry out an inaugural mineral resource estimate once the drilling is completed by the end of 2022.

IP SURVEY PROGRAM

In September 2022, a 3D Bipole-Dipole IP-MT survey was completed in the current (West Dome-Central Valley-East Dome) drilling area by Southern Rock Geophysics S.A., based in Santiago, Chile. This program tests how the geophysical signature of known mineralization responds to the survey, which successfully identified multiple chargeability anomalies (Figure 1). Results from the IP survey revealed that holes drilled to date overlap with one of many IP chargeability anomalies.  Furthermore, there are several anomalies north of the current drilling area, warranting follow up drill testing.

The IP survey also showed that higher chargeability at 3600 m elevation, approximately 350 m below the surface, appears to perfectly coincide with the higher-grade gold intercepts at that depth (Figure 2).  Previous gold intercepts seem to have hit the east half of the chargeability anomaly at 3600 m elevation. More drill holes are planned to test the west half of this target.

Recent geophysical results also indicate that gold mineralization is potentially related to some kind of “plume” system, which differs from our previous view that the gold may be related to regional north-west structures.

Figure 1 Multiple anomalies of IP chargeability of 3800 m elevation. Currently drilled area overlays the chargeability anomaly in the Central Valley area.

Figure 2 The most prominent high chargeability anomaly at 3600 m elevation perfectly overlays the gold intercepts from drilled holes in the Central Valley area. New drill holes (e.g. DCAr0114) are planned to target the west half of the chargeability anomaly. Based on the chargeability results, gold mineralization may be related to a “plume” type of system.

Notes:

1. Drill location, altitude, azimuth, and dip of drill holes are provided in Table 2
2. Drill intercept is core length, and grade is length weighted. True width of mineralization is unknown due to early stage of exploration without adequate drill data.
3. Calculation of silver equivalent (“AgEq”) is based on the long-term median of the August 2021 Street Consensus Commodity Price Forecasts, which are US$22.50/oz for Ag, US$0.95/lb for Pb, US$1.10/lb for Zn, US$3.40/lb for Cu, and US$1,600/oz for Au. The formula used for the AgEq calculation is as follows: AgEq = Ag g/t + Pb g/t * 0.0029 + Zn g/t * 0.00335 + Cu g/t * 0.01036 + Au g/t * 71.1111. This calculation assumes 100% recovery. Due to the early stage of the Project, the Company has not yet completed metallurgical test work on the mineralization encountered to date.
4. A cut-off of 20 g/t AgEq is applied to calculate the length-weighted intercept. At times, samples lower than 20 g/t AgEq may be included in the calculation of consolidation of mineralized intercepts.

Quality Assurance and Quality Control

The Company maintains tight sample security and QA/QC for all aspects of its exploration program at the Carangas Project.  Drill core is logged, photographed and split on-site by the company and stored under secure conditions until being shipped in security-sealed bags by New Pacific staff in Company vehicles, directly from the project to ALS Global in Oruro, Bolivia for preparation, and ALS Global in Lima, Peru for geochemical analysis. ALS Global is an ISO 17025 accredited laboratory independent from New Pacific. All samples are first analyzed by a multi-element ICP package (ALS code ME-MS41) with ore grade specified limits for silver, lead, and zinc, further analyzed using ALS code OG46. Further silver samples over specified limits are analyzed by gravimetric analysis (ALS code of GRA21). Gold is assayed first by ICP and then by fire assay with AAS finish (ALS code of Au-AA25). Certified reference materials, various types of blank samples and duplicate samples are inserted into normal drill core sample sequences prior to delivery to the laboratory for preparation and analysis. The overall ratio of quality control samples in sample sequences is around twenty percent.

qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”). The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The Company’s flagship Project, the Silver Sand Silver Deposit, is expecting a new Mineral Resource Estimate Update and a PEA by the end of 2022. The recently discovered Carangas Silver-Gold Project is undergoing a 40,000 m drill program. The third project, the Silverstrike Silver-Gold Project, commenced a 6,000 m discovery drill program in June 2022 and discovered a near surface broad gold zone in its first hole drilled.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

U.S. & Canada toll-free: 1-877-631-0593

E-mail: invest@newpacificmetals.com

For additional information and to receive company news by e-mail, please register using New Pacific’s website at www.newpacificmetals.com.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

 

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Such statements include but are not limited to statements regarding anticipated exploration, drilling, development, construction, and other activities or achievements of the Company; timing of receipt of permits and regulatory approvals; timing and content of the PEA and estimates of the Company’s revenues and capital expenditures; and other future plans, objectives or expectations of the Company.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: global economic and social impact of COVID-19; fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, general economic conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management, uncertainties relating to the availability and costs of financing needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada; risks associated with community relations and corporate social responsibility, and other factors described under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2022 and its other public filings.  

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.   

The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company’s ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate in Bolivia; the Company’s ability to obtain and maintain social license at its mineral properties; the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits, including the ratification and approval of the Mining Production Contract with COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company’s Bolivian partner to convert the exploration licenses at the Carangas Project to AMC; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.

Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. These forward-looking statements are made as of the date of this news release.

 

CAUTIONARY NOTE TO US INVESTORS

 

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada which differ from the requirements of United States securities laws. The technical and scientific information contained herein has been prepared in accordance with NI 43-101, which differs from the standards adopted by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the technical and scientific information contained herein, including any estimates of mineral reserves and mineral resources, may not be comparable to similar information disclosed by U.S. companies subject to the disclosure requirements of the SEC.

Additional information relating to the Company, including the Company’s Annual Information Form, can be obtained under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.newpacificmetals.com.

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VANCOUVER, BRITISH COLUMBIA – NOVEMBER 4, 2022: New Pacific Metals Corp. (“New Pacific” or the “Company”) reports its financial results for the three months ended September 30, 2022.  All figures are expressed in US dollars unless otherwise stated.

FISCAL 2023 Q1 HIGHLIGHTS

• Completed the 2022 resource infill and step-out drill program at the Silver Sand Project’s south block with a total of 19,323 metres (“m”) in 86 drill holes. Assay results of all drill holes have been received and released through three news releases on September 19, 2022, May 31, 2022, and April 6, 2022, respectively.  The completion of the 2022 drill program provided firm support to the project’s ongoing mineral resource estimate (“MRE”) update and Preliminary Economic Assessment (“PEA”).  The PEA is on track for completion by the end of 2022 as planned;
• Advanced the 2022 drill program at the Carangas Silver-Gold Project, a total of 36,012 m in 76 drill holes have been completed to date, of which assay results for 33 drill holes have been received and released through three news releases on October 19, 2022, August 8, 2022, and July 13, 2022, respectively. The assay results continue to intersect a broad, near surface silver horizon measuring approximately 1,000 m long, 800 m wide, and up to 200 m thick, stacked over a broad bulk gold zone;
• Advanced the 6,000 m initial discovery drill program at the Silverstrike Project, a total of 2,030 m in 7 drill holes have been completed to date, of which assay results for the first drill hole has been received and release through news release on September 12, 2022. The assay results intersected broad gold mineralization starting near-surface; and
• Maintained working capital of $20.6 million, sufficient to advance the existing exploration projects and other regional exploration initiatives.

FINANCIAL RESULTS

Net loss attributable to equity holders of the Company for the three months ended September 30, 2022 was $2.09 million or $0.01 per share (three months ended September 30, 2021 – net loss of $1.38 million or $0.01 per share).  The Company’s financial results were mainly impacted by the following: (i) operating expenses of $2.06 million compared to $1.60 million in the comparative quarter; (ii) net loss from investments of $0.04 million compared to $0.05 million in the comparative quarter; and (iii) foreign exchange gain of $0.01 million compared to $0.26 million in the comparative quarter.  

Operating expenses for the three months ended September 30, 2022 were $2.06 million (three months ended September 30, 2021 – $1.60 million).

Net loss from investments for the three months ended September 30, 2022 was $0.04 million (three months ended September 30, 2021 – $0.05 million).

Foreign exchange gain for the three months ended September 30, 2022 was $0.01 million (three months ended September 30, 2021 – gain of $0.26 million).  The Company holds a portion of cash and short-term investments in USD to support its operations in Bolivia.  Revaluation of these USD-denominated financial assets to their Canadian dollar (“CAD”) functional currency equivalents resulted in unrealized foreign exchange gain or loss for the relevant reporting periods.  For the three months ended September 30, 2022, the USD appreciated by 6.4% against the CAD (from 1.2886 to 1.3707) while in the comparative period the USD appreciated by 2.8% against the CAD (from 1.2394 to 1.2741).

Working Capital: As of September 30, 2022, the Company had working capital of $20.6 million.

PROJECT OVERVIEW

SILVER SAND PROJECT

In 2021, the Company completed a drill program of 13,313.7 m in 55 holes.  The 2021 drill program comprised structure orientation drilling, step-out and infill drilling as well as exploration drilling.  Assay results of all drill holes have been received.  Detailed structural logging and assays of the oriented drill cores confirmed previous understanding of the orientation of mineralized structures and resource model which are dominantly striking in the direction of north and northwest and dipping in direction of west at high angles which are also evidenced at surface outcrops and historical underground workings.  Step-out drilling was carried out mainly outside of the major mineralized trends with results indicating the existence of multiple smaller satellite mineralized zones between the major mineralized trends.  For details of the 2021 drill program, please refer to the Company’s news release dated April 6, 2022. 

In 2022, the Company commenced a resource infill drilling and step-out drilling program at the Silver Sand south block.  The resource infill drilling aims to improve the confidence in the continuity of mineralization in the core area of the project and upgrade resource categories, while the step-out drilling is designed to test the extension of the mineralized zones up and down dip as well as on strike.  The results of the infill and step-out drilling will be included in the MRE and will be incorporated into the PEA expected to be completed by the end of 2022.  As of the date of this news release, a total of 19,323 m in 86 drill holes have been completed and assay results for all drill holes have been received.  For details of the 2022 drill program, please refer to the Company’s news releases dated September 19, 2022, May 31, 2022, and April 6, 2022.

For the three months ended September 30, 2022, total expenditures of $2.50 million (three months ended September 30, 2021 – $2.21 million) were capitalized under the project.

CARANGAS PROJECT

In 2021, the Company completed an initial discovery drill program of 13,209 m in 35 drill holes.  Assay results of all drill holes have been received.  Results from the 2021 discovery drill program confirmed the broad silver-rich polymetallic mineralization near surface and intersected a wide zone of gold mineralization below it.  For details of the 2021 discovery drill program, please refer to the Company’s news releases dated May 17, 2022, February 23, 2022, and February 10, 2022. 

Following the success of the 2021 discovery drill program, the Company has commenced a 2022 resource definition drill program with a planned meterage of up to 40,000 m if ongoing drill results continue to be encouraging.  As of the date of this news release, a total of 36,012 m in 76 drill holes have been completed, of which assay results of 33 drill holes have been received.  The assay results continue to intersect a broad, near surface silver horizon measuring approximately 1,000 m long, 800 m wide, and up to 200 m thick, stacked over a broad bulk gold zone.  For details of the 2022 drill program, please refer to the Company’s news releases dated October 19, 2022, August 8, 2022, and July 13, 2022.

For the three months ended September 30, 2022, total expenditures of $2.98 million (three months ended September 30, 2021 – $0.55 million) were capitalized under the project.

SILVERSTRIKE PROJECT

In 2022, the Company commenced a 6,000 m initial discovery drill program at the Silverstrike Project.  As of the date of this news release, a total of 2,030 m in 7 drill holes have been completed, of which assay results of the first drill hole have been received.  The assay results intersected broad gold mineralization starting near surface.  For details of the initial discovery drill program, please refer to the Company’s news release dated September 12, 2022.

For the three months ended September 30, 2022, total expenditures of $0.44 million (three months ended September 30, 2021 – $0.001 million) were capitalized under the project.

MANAGEMENT DISCUSSION AND ANALYSIS

This news release should be read in conjunction with the Company’s Management Discussion and Analysis (“MD&A”) and the unaudited condensed consolidated interim financial statements and notes thereto for the corresponding period, which have been filed with the Canadian Securities Administrators and are available under the Company’s profile on SEDAR at www.sedar.com,on EDGAR at www.sec.gov and on the Company’s website at www.newpacificmetals.com.

QUALIFIED PERSON

The scientific and technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Resources (“NI 43-101”). The Qualified Person has verified the information disclosed herein and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The Company’s flagship Project, the Silver Sand Silver Project, is expected to deliver a new Mineral Resource Estimate Update and a PEA by the end of 2022.  The recently discovered Carangas Silver-Gold Project is undergoing a 40,000 m drill program.  The third project, the Silverstrike Silver-Gold Project, commenced a 6,000 m discovery drill program in June 2022 and discovered a near surface broad gold zone in its first hole drilled.

For further information, please contact:

New Pacific Metals Corp. Investor Relations
Phone: (604) 633-1368
E-mail: invest@newpacificmetals.com
website: www,newpacificmetals.com

To receive company news by e-mail, please register using New Pacific’s website at www.newpacificmetals.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws.  Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Such statements include, but are not limited to: statements regarding anticipated exploration, drilling, development, construction, and other activities or achievements of the Company; timing of receipt of permits and regulatory approvals; timing and content of the PEA, and estimates of the Company’s revenues and capital expenditures.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: global economic and social impact of COVID-19; fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, general economic conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management, uncertainties relating to the availability and costs of financing needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada, risks associated with community relations and corporate social responsibility, and other factors described under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2022 and its other public filings. 
This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. 
The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  These estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company’s ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate in Bolivia; the Company’s ability to obtain and maintain social license at its mineral properties; the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits, including the ratification and approval of the Mining Production Contract with the Corporacion Minera de Bolivia (“COMIBOL”) by the Plurinational Legislative Assembly of Bolivia; the ability of the Company’s Bolivian partner to convert the exploration licenses at the Carangas Project to AMC; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.
Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements.  All forward-looking statements in this news release are qualified by these cautionary statements.  Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law.  These forward-looking statements are made as of the date of this news release.

CAUTIONARY NOTE TO US INVESTORS

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada which differ from the requirements of United States securities laws. All mining terms used herein but not otherwise defined have the meanings set forth in NI 43-101.  Unless otherwise indicated, the technical and scientific disclosure herein has been prepared in accordance with NI 43-101, which differs significantly from the requirements adopted by the U.S. Securities and Exchange Commission.
Accordingly, information contained in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder.
Additional information relating to the Company, including the Company’s Annual Information Form, can be obtained under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.newpacificmetals.com.

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VANCOUVER, British Columbia – NOVember 01, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE-A: NEWP), together with its local Bolivian partner, is pleased to announce assay results for the second drill hole from the 2022 Discovery Drill Program at the Silverstrike Project, in the Department of La Paz, Bolivia (“Silverstrike”).  Similar to the first hole, DSSk0001 (please refer to the Company’s news release on September 12, 2022), the second hole also intersected broad oxidized gold mineralization near-surface.  Ten holes for a total of 3,200 metres (“m”) have been drilled since the program started in June 2022, and assay results for the remaining eight holes are pending.

The second hole, DSSk0002, intersected a broad interval of 223.52 m (from 8.62 m to 232.14 m) grading 0.97 grams per tonne (“g/t”) gold (“Au”) and 4 g/t silver (“Ag”), including an interval of 86.13 m (from 8.62 m to 94.75 m) grading 2.18 g/t Au and 7 g/t Ag, which also included a higher grade sub-interval of 3.98 m (from 68.6 m to 72.58 m) grading 29.75 g/t Au and 23 g/t Ag (Table 1).

DSSk0002 (drilled eastward at a -45 degree dip) and DSSk0001 (drilled westward at a -45 degree dip) are scissor holes collared approximately 80 m apart (Figure 1 and Figure 2). These two holes have extended a wide surface gold zone, discovered by chip samples to approximately 200 m from the surface and a width of at least 100 m (Figure 2).

Gold mineralization is hosted in volcanic clastic sediments (breccia or ignimbrites) and controlled by fractures that extend approximately to the North-East fractures and dip at high angles.  High-grade gold intervals are shown to occur near the contacts of ignimbrites and rhyolitic dykes (Figure 3). The host rocks appear oxidized with brownish-reddish iron oxides and hydroxides filling in fractures.

Notes:   

1. Drill intercepts are core lengths, and grades are distance weighted. True width of mineralization is unknown due to early stage of exploration without adequate drill data.
2. Calculation of silver equivalent (“AgEq”) is based on the long-term median of the August 2022 Street Consensus Commodity Price Forecasts, which are US$22.50/oz for silver, US$0.95/lb for lead, US$1.10/lb for zinc, and US$3.40/lb for copper.
3. A cut-off of 20g/t AgEq is applied to calculate length-weighted intercepts.

Figure 1. A simplified geology plan map and drill holes of the Discovery Drill Program at Silverstrike Central

Figure 2. Drill cross-section of hole DSSk0001 and DSSk0002   

Figure 3. High-grade gold mineralization occurs at the contacts with rhyolite dykes in hole DSSk0002   

Notes:   

1. Drill collar coordinate system is UTM Zone 19S
2. Coordinate of drill collar is picked with handheld GPS, subject to minor modification when resurveyed with RTK GPS upon completion of the drilling program.

Quality Assurance and Quality Control

All samples in respect of the exploration program at Silverstrike, conducted by the Company and discussed in this news release, are shipped in securely-sealed bags by New Pacific staff in the Company’s vehicles, directly from the field to ALS Global in Oruro, Bolivia for preparation, and ALS Global in Lima, Peru for geochemical analysis. ALS Global is an independent ISO 17025 accredited laboratory. All samples are first analyzed by a multi-element ICP package (ALS code ME-MS41) with ore grade over specified limits for silver, lead, and zinc, further analyzed using ALS code OG46. Further silver samples over specified limits are analyzed by gravimetric analysis (ALS code of GRA21). Gold is assayed by fire assay with AAS finish (ALS code of Au-AA25). Certified reference materials, various types of blank samples and duplicate samples are inserted into normal drill core sample sequences prior to delivery to the laboratory for preparation and analysis. The overall ratio of quality control samples in sample sequences is around twenty percent.

qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43- 101”). The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The Company’s flagship Project, the Silver Sand Silver Deposit, is waiting for a PEA study by the end of 2022. Recently discovered Carangas Silver-Gold Project is undergoing a 40,000 m drill program. The third project, the Silverstrike Silver-Gold Project, commenced a 6,000 m discovery drill program in June 2022 and discovered a near surface broad gold mineralization through drilling.

On behalf of New Pacific Metals Corp.
Dr. Rui Feng
Director and CEO

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368 Ext. 222

U.S. & Canada toll-free: 1-877-631-0593

E-mail: invest@newpacificmetals.com

For additional information and to receive company news by e-mail, please register using New Pacific’s website at www.newpacificmetals.com.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Such statements include, but are not limited to: statements regarding anticipated exploration, drilling, development, construction, and other activities or achievements of the Company; timing of receipt of permits and regulatory approvals; timing and content of the PEA, and estimates of the Company’s revenues and capital expenditures.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: global economic and social impact of COVID-19; fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, general economic conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management, uncertainties relating to the availability and costs of financing needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada, risks associated with community relations and corporate social responsibility, and other factors described under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2021 and its other public filings.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. 

The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company’s ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate in Bolivia; the Company’s ability to obtain and maintain social license at its mineral properties; the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits, including the ratification and approval of the Mining Production Contract with COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company’s Bolivian partner to convert the exploration licenses at the Carangas Project to AMC; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.

Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law. These forward-looking statements are made as of the date of this news release.

CAUTIONARY NOTE TO US INVESTORS

The technical and scientific information contained herein has been prepared in accordance with NI 43-101, which differs from the standards adopted by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the technical and scientific information contained herein, including any estimates of mineral reserves and mineral resources, may not be comparable to similar information disclosed by U.S. companies subject to the disclosure requirements of the SEC. Additional information relating to the Company, including the Company’s Annual Information Form, can be obtained under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.newpacificmetals.com.

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VANCOUVER, British Columbia – October 19, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP), together with its local Bolivian partner, reports assay results for 21 drill holes at its Carangas Silver-Gold Project, Oruro Department, Bolivia (the “Carangas Project” or the “Project”).  Together with the first five holes released on July 13, 2022, and seven holes released on August 8, 2022, the assay results of the 33 holes from the 2022 drill program continue to intersect a broad, near surface silver horizon measuring approximately 1,000 metres (“m”) long, 800 m wide and up to 200 m thick, stacked over a broad bulk gold zone.

To date, 76 drill holes have been completed and assay results for the remaining 43 drill holes, including several deep holes targeting Carangas’ gold mineralization (samples analyzed by fire assay), are pending. Detailed results and drill hole specifications are provided in Tables 1 and 2.  

Of the 21 holes detailed in this press release, 19 were drilled in the Central Valley and West Dome, all of which intersected the a broad, near surface silver horizon. In addition, two wildcat holes, DCAr0055 and DCAr0058, were drilled approximately 1,200 m north of the Central Valley and only intersected narrow silver mineralization.

HIGHLIGHTS FROM THE Near Surface Silver Horizon

Hole DCAr0077: 163.04 m interval (from 67.71 m to 230.75 m) grading 109 grams per tonne (“g/t”) silver (“Ag”), 0.34 percent (“%”) lead (“Pb”), and 0.8% zinc (“Zn”), including 47.09 m (from 67.71 m to 114.8 m) grading 288 g/t Ag, 0.85% Pb and 1.76% Zn;

Hole DCAr0056: 180.14 m interval (from 25.09 m to 205.23 m) grading 71 g/t Ag, 0.23% Pb and 0.75% Zn, including 50.6 m (from 25.09 m to 75.69 m) grading 166 g/t Ag, 0.43% Pb and 1.5% Zn;

Hole DCAr0057: 127.41 m interval (from 9.7 m to 137.11 m) grading 60 g/t Ag, 0.35 % Pb and 0.68% Zn, including 33.24 m (from 47.8 m to 81.04 m) grading 165 g/t Ag, 0.54% Pb and 1.0% Zn;

Hole DCAr0063: 100.4 m interval (from 29.0 m to 129.4 m) grading 104 g/t Ag, 0.26% Pb and 0.45% Zn, including 18.94 m (from 107.6 m to 126.54 m) grading 247 g/t Ag, 0.48% Pb, 0.21% Zn;

Hole DCAr0064: 220.85 m interval (from 16.7 m to 237.55 m) grading 50 g/t Ag, 0.34% Pb and 0.88% Zn, including 50.9 m (from 16.7 m to 67.6 m) grading 97 g/t Ag, 0.52% Pb and 0.83% Zn;

Hole DCAr0070: 128.53 m interval (from 11.32 m to 139.85 m) grading 83 g/t Ag, 0.4% Pb and 0.83% Zn, including 64.0 m (44.0 m to 108.0 m) grading 149 g/t Ag, 0.56% Pb and 1.33% Zn.  The hole also intersected a deeper 8.13 m interval (from 207.8 m to 215.93 m) grading 629 g/t Ag, 0.58% Pb and 0.18% Zn; and

Hole DCAr0076: 127.82 m interval (from 29.0 m to 156.82 m) grading 63 g/t Ag, 0.68% Pb and 0.53% Zn, including 21.03 m (from 48.32 m to 69.35 m) grading 150 g/t Ag, 0.87% Pb and 0.72% Zn, and 7.13 m (from 98.57 m to 105.7 m) grading 315 g/t Ag, 2.5% Pb and 1.11% Zn.

Notes:   

1. Drill hole location, altitude, azimuth, and dip are provided in Table 2.
2. Drill intercept is core length, and grade is length weighted. True width of mineralization is unknown due to early stage of exploration without adequate drill data.
3. Calculation of silver equivalent (“AgEq”) is based on the long-term median of the August 2021 Street Consensus Commodity Price Forecasts, which are US$22.50/oz for Ag, US$0.95/lb for Pb, US$1.10/lb for Zn, US$3.40/lb for Cu, and US$1,600/oz for Au. The formula used for the AgEq calculation is as follows: AgEq = Ag g/t + Pb g/t * 0.0029 + Zn g/t * 0.00335 + Cu g/t * 0.01036 + Au g/t * 71.1111. This calculation assumes 100% recovery. Due to the early stage of the Project, the Company has not yet completed metallurgical test work on the mineralization encountered to date.
4. A cut-off of 20 g/t AgEq is applied to calculate the length-weighted intercept. At times, samples lower than 20 g/t AgEq may be included in the calculation of consolidation of mineralized intercepts.
5. n/a stands for no fire assay of gold was carried out.

PROGRESS ON THE 2022 DRILLING PROGRAM

Five rigs are drilling at the Carangas project for the planned 40,000 m drill program in 2022 (36,012 m in 76 drill holes completed to date). The current program, which is expected to wrap up by mid-December, will constitute a drill grid of 50 m by 50 m to 100 m by 100 m and should be able to support an inaugural mineral resource estimate in 2023.

Notes:   

1. Drill collar coordinate system is WGS1984 UTM Zone 19S
2. Coordinate of drill collar is picked with Real Time Kinematics (RTK) GPS
3. CV – Central Valley; WD – West Dome

Quality Assurance and Quality Control

The Company maintains tight sample security and QA/QC for all aspects of its exploration program at the Carangas Project.  Drill core is logged, photographed and split on-site by the company and stored under secure conditions until being shipped in security-sealed bags by New Pacific staff in Company vehicles, directly from the project to ALS Global in Oruro, Bolivia for preparation, and ALS Global in Lima, Peru for geochemical analysis. ALS Global is an ISO 17025 accredited laboratory independent from New Pacific. All samples are first analyzed by a multi-element ICP package (ALS code ME-MS41) with ore grade specified limits for silver, lead, and zinc further analyzed using ALS code OG46. Further silver samples over specified limits are analyzed by gravimetric analysis (ALS code of GRA21). Gold is assayed first by ICP and then by fire assay with AAS finish (ALS code of Au-AA25). Certified reference materials, various types of blank samples and duplicate samples are inserted into normal drill core sample sequences prior to delivery to the laboratory for preparation and analysis. The overall ratio of quality control samples in sample sequences is around twenty percent.

qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of Exploration, who is a Qualified Person for the purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”). The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company with precious metal projects in Bolivia. The Company’s flagship Project, the Silver Sand Silver Project, is expected to deliver a new Mineral Resource Estimate Update and a PEA by the end of 2022.  The recently discovered Carangas Silver-Gold Project is undergoing a 40,000 m drill program.  The third project, the Silverstrike Silver-Gold Project, commenced a 6,000 m discovery drill program in June 2022 and discovered a near surface broad gold zone in its first hole drilled.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

U.S. & Canada toll-free: 1-877-631-0593

E-mail: invest@newpacificmetals.com

For additional information and to receive company news by e-mail, please register using New Pacific’s website at www.newpacificmetals.com.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

 

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws.  Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Such statements include, but are not limited to: statements regarding anticipated exploration, drilling, development, construction, and other activities or achievements of the Company; timing of receipt of permits and regulatory approvals; timing and content of the PEA, and estimates of the Company’s revenues and capital expenditures; and other future plans, objectives or expectations of the Company.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: global economic and social impact of COVID-19; fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, general economic conditions, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management, uncertainties relating to the availability and costs of financing needed in the future, environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada; risks associated with community relations and corporate social responsibility, and other factors described under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2021 and its other public filings.  

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.  

The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations and opinions of management as of the date of this news release that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  These estimates, assumptions, beliefs, expectations and options include, but are not limited to, those related to the Company’s ability to carry on current and future operations, including: the duration and effects of COVID-19 on our operations and workforce; development and exploration activities; the timing, extent, duration and economic viability of such operations; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; the Company’s ability to meet or achieve estimates, projections and forecasts; the stabilization of the political climate in Bolivia; the Company’s ability to obtain and maintain social license at its mineral properties; the availability and cost of inputs; the price and market for outputs; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits, including the ratification and approval of the Mining Production Contract with COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company’s Bolivian partner to convert the exploration licenses at the Carangas Project to AMC; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.

Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements.  All forward-looking statements in this news release are qualified by these cautionary statements.  Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise except as may be required by law.  These forward-looking statements are made as of the date of this news release.

 

CAUTIONARY NOTE TO US INVESTORS

 

This news release, including the documents incorporated by reference herein, has been prepared in accordance with the requirements of the securities laws in effect in Canada which differ from the requirements of United States securities laws. All mining terms used herein but not otherwise defined have the meanings set forth in NI 43-101.

Accordingly, information contained in this news release and the documents incorporated by reference herein containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder.