14 Jun, 22

New Pacific Commences Drilling at the Silverstrike Project, Bolivia

Download PDF Version

VANCOUVER, British Columbia – JUNE 14, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP) is pleased to announce that a 6,000-metre (“m”), one rig drilling program has commenced at the Silverstrike Project.  The program will initially focus on testing a broad gold zone identified by the Company and by historical drilling.

The Silverstrike Project with an area of approximately 13km² is located approximately 140 kilometres (“km”) southwest of La Paz, Bolivia, or approximately 450 km northwest of New Pacific’s Silver Sand Project.  The Company has 98% interest in the Silverstrike Project with its Bolivian partner and will cover 100% of the future expenditures of exploration, mining, development and production activities.

In the previous news releases (September 29, and November 19, 2020), the Company identified near-surface broad-zones of silver mineralization in altered sandstones to the North, with similarities to that at Silver Sand; and  in the Silverstrike Central area, a near surface broad Silver zone that occurs near the top of  a 900 m diameter volcanic dome of ignimbrite (volcaniclastic sediments) units with intrusion of rhyolite dyke swarm and andesite flows; and a broad gold zone occurs half way from the top of the dome.  

The Gold Zone at the Silverstrike Central

Gold-rich mineralization at Cerro Tatitu Kkollu occurs adjacent to the contact zones between the ignimbrites and the rhyolite dyke swarm.

A total of 277 channel chip samples were collected over three key outcropping areas, the best results were 4.7 m grading 14.76 g/t Au and 27 g/t Ag from a historical mining adit; 42m @ 1.02g/t Au and18g/t Ag, and 10m @ 1.45g/t and14g/t Ag. 

A single dump grab sample collected from a historic exploration adit returned 1.66g/t Au, 154g/t Ag, and 7.97% Cu.

Three holes Drilled by Rio Tinto in 1995 on the gold zone returning broad intervals of Au mineralization from surface:

Hole BER-02 – 302m grading 0.27 g/t Au, including 42m grading 0.52g/t Au.

Hole BRC-04 – 110m grading 0.46 g/t Au, including 22m grading 1.42 g/t Au.

Hole BRC-12 – 258m grading 0.19 g/t Au.

Based on the Company’s field mapping, chipping sample and limited historical drilling results, the Company interprets the gold zone as very similar to the gold discovery in the Carangas Project that the silver rich zone sits at the top of the system stacking on top of the gold mineralization in volcaniclastic sediments that intruded by rhyolitic porphyry dyke swarms.

Qualified Person

The scientific and technical information contained in this news release have 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 waiting for a new Mineral Resource Estimate Update and a PEA by the end of this year. Recently discovered Carangas silver-gold project is undergoing a 40,000 m drill program. The third project, the Silverstrike silver-gold project, will commence an initial test drilling in June 2022.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

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

E-mail: investor@newpacificmetals.com

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 the anticipated timing, amount and completion of exploration, drilling, development, construction, and other activities or achievements of the Company; anticipated outcomes therefrom; future economics of the Company’s projects; timing of receipt of permits and regulatory approvals; 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 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 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 disclosure in this news release and referred to herein was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the “SEC”).  The terms “proven mineral reserve”, “probable mineral reserve” and “mineral reserves” used in this news release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the “CIM Definition Standards”), which definitions have been adopted by NI 43-101.  Accordingly, information contained in this news release providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to the United States federal securities laws and the rules and regulations thereunder.

Investors are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, “Inferred mineral resources” are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity.  An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable.  Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7.  Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning on or after January 1, 2021.  The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7.  As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”.  In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to corresponding definitions under the CIM Definition Standards.  During the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or reserves contained or referenced in this news release may not be comparable to similar information made public by companies that report according to U.S. standards.  While the SEC Modernization Rules are purported to be “substantially similar” to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards.  Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

07 Jun, 22

New Pacific Commences Drilling at Jisas Prospect, A Satellite Concession North of the Silver Sand Project

Download PDF Version

VANCOUVER, British Columbia – June 7, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP) is pleased to announce the commencement of drilling at Jisas prospect, a satellite concession located in the north block, approximately 3 kilometres north of the Silver Sand Project. The Company owns 100% interest in the Jisas prospect. 

As the infill and step-out drilling at the Silver Sand Project for mineral resource update to be incorporated into the Preliminary Economic Assessment (the “PEA”) due by the end of 2022 has been concluded in mid-May, 2022, the Company has now deployed one rig to carry out an initial 2,000 metre (“m”) exploration drilling program at the Jisas prospect.

The Jisas prospect has undergone small scale underground mining prior to acquisition by the Company. Silver mineralization in bleached sandstones is similar to that at Silver Sand. Chip samples from surface outcrops and underground workings as well as grab samples from mining dumps taken by the Company returned silver grades ranging from tens of grams up to nine hundreds of grams per tone.

Qualified Person

The scientific and technical information contained in this news release have 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 waiting for a new Mineral Resource Estimate Update and a PEA by the end of this year. Recently discovered Carangas silver-gold project is undergoing a 40,000 m drill program. The third project, the Silverstrike silver-gold project, will commence an initial test drilling in June 2022.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

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

E-mail: investor@newpacificmetals.com

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 the anticipated timing, amount and completion of exploration, drilling, development, construction, and other activities or achievements of the Company; anticipated outcomes therefrom; future economics of the Company’s projects; timing of receipt of permits and regulatory approvals; 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 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 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 disclosure in this news release and referred to herein was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the “SEC”).  The terms “proven mineral reserve”, “probable mineral reserve” and “mineral reserves” used in this news release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the “CIM Definition Standards”), which definitions have been adopted by NI 43-101.  Accordingly, information contained in this news release providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to the United States federal securities laws and the rules and regulations thereunder.

Investors are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, “Inferred mineral resources” are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity.  An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable.  Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7.  Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning on or after January 1, 2021.  The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7.  As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”.  In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to corresponding definitions under the CIM Definition Standards.  During the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or reserves contained or referenced in this news release may not be comparable to similar information made public by companies that report according to U.S. standards.  While the SEC Modernization Rules are purported to be “substantially similar” to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards.  Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

31 May, 22

New Pacific Intersects 60.48 Metre Interval Grading 236 Grams Per Tonne Silver at the Silver Sand Project

Download PDF Version

VANCOUVER, British Columbia – May 31, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP) is pleased to announce the assay results of additional 20 holes from the 2022 drill programs at the Silver Sand Project as part of its 15,000 metres (“m”) resource infill and step-out drilling for a mineral resource estimate update. An expanded program of total 21,309 m in 94 holes have been completed so far in 2022. The assay results for the remaining 59 drill holes are pending.  Assay results for the 20 drill holes are summarized in Table 1 and hole specifications are presented in Table 2. 

Highlights 

·       Drill hole DSS646001 intersected an interval of 60.48 m grading 236 grams per tonne (“g/t”) silver (“Ag”) from 82.10 m to 142.58 m, including 6.45 m grading 1,423 g/t Ag from 103.25 m to 109.7 m. This is an infill hole drilled in the southern portion of the deposit which confirmed the continuity of high-grade mineralization in the core area of Silver Sand. An aggregate of 9.6 m of historical mining voids were intersected in this hole.  

·       Drill hole DSS644001 intersected an interval of 133.63 m grading 91 g/t Ag from 23.0 m to 156.63 m, including 8.83 m grading 296 g/t Ag from 56.92 m to 65.75 m, and 22.56 m grading 246 g/t Ag from 90.0 m to 112.56 m. This is an infill hole drilled in the southern portion which confirmed the continuity of high-grade mineralization in the core area of Silver Sand. An aggregate of 13.38 m of historical mining voids were intersected in this hole.  

·       Drill hole DSS5428 intersected an interval of 20.9 m grading 84 g/t Ag from 39.0 m to 59.9 m and an interval of 32.31 m grading 171 g/t from 82.24 m to 114.55 m, including 5.2 m grading 554 g/t Ag from 93.5 m to 98.7 m, and 4.42 m grading 461 g/t Ag from 104.42 m to 108.84 m. This is an infill hole drilled in the northern portion of the core area of Silver Sand which confirmed the continuity of high-grade mineralization. 

·       Drill hole DSS527506 intersected an interval of 77.59 m grading 102 g/t Ag from 41.39 m to 118.98 m, including 13.56 m grading 285 g/t Ag from 105.42 m to 118.98 m, and an interval of 2.77 m grading 739 g/t Ag from 171.33 m to 174.10 m. This is an infill hole drilled in the northern portion of the core area of Silver Sand. 

·       Drill hole DSS527510 intersected an interval of 59.61 m grading 100 g/t Ag from 18.42 m to 78.03 m. This is a step-out hole drilled to confirm the continuity of mineralization between sections in the northern portion of the core area of Silver Sand. 

·       Drill hole DSS542503 intersected an interval of 21.08 m grading 74 g/t Ag from 38.92 m to 60.0 m and an interval of 20.41 m grading 292 g/t Ag from 98.15 m to 118.56 m, including 4.36 m grading 685 g/t Ag from 114.2m to 118.56 m. This is a step-out hole drilled to confirm the continuity of mineralization between sections in the northern portion of the core area of Silver Sand. 

Update on 2022 Drill Programs 

Drill programs in 2022 started in late January and have progressed well and on schedule. To date, 21,309 m have been completed in 94 holes, expanding the budgeted 15,000 m announced early this year. Most of the drilling completed to date in 2022 is in the core area of Silver Sand, totaling 19,424m in 87 holes, including resource infill drilling to improve the confidence in the continuity of mineralization and step-out drilling to test the extension of the major 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 mineral resource update of Silver Sand expected to be completed in the second half of the year and will be incorporated into the Preliminary Economic Assessment (the “PEA”) due by the end of 2022.  

The remaining 1,885 m in 7 holes were drilled in the Aullagas prospect which is a satellite prospect located approximately 700 m west of the Silver Sand core area. The Aullagas prospect is within the area covered by the Mining Production Contract between the Company and COMIBOL.  

Currently, two rigs are deployed at Silver Sand – first rig is drilling some of the satellite prospects surrounding the Silver Sand Project and the second rig is drilling 10 geotechnical holes required for open pit slope angles for the PEA and further in-fill drill holes targeting upgrading inferred resource blocks for further studies subsequent to the -PEA.



Quality Assurance and Quality Control

All samples in respect of the exploration program at the Silver Sand Project, 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 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 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). Certified reference materials, various types of blank samples and duplicate samples are inserted to normal drill core sample sequences prior to delivery to 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 have 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 waiting for a new Mineral Resource Estimate Update and a PEA by the end of this year. Recently discovered Carangas silver-gold project is undergoing a 40,000 m drill program. The third project, the Silverstrike silver-gold project, will commence an initial test drilling in June 2022.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

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

E-mail: investor@newpacificmetals.com

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 the anticipated timing, amount and completion of exploration, drilling, development, construction, and other activities or achievements of the Company; anticipated outcomes therefrom; future economics of the Company’s projects; timing of receipt of permits and regulatory approvals; 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 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 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 disclosure in this news release and referred to herein was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the “SEC”).  The terms “proven mineral reserve”, “probable mineral reserve” and “mineral reserves” used in this news release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the “CIM Definition Standards”), which definitions have been adopted by NI 43-101.  Accordingly, information contained in this news release providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to the United States federal securities laws and the rules and regulations thereunder.

Investors are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, “Inferred mineral resources” are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity.  An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable.  Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7.  Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning on or after January 1, 2021.  The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7.  As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”.  In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to corresponding definitions under the CIM Definition Standards.  During the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or reserves contained or referenced in this news release may not be comparable to similar information made public by companies that report according to U.S. standards.  While the SEC Modernization Rules are purported to be “substantially similar” to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards.  Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

17 May, 22

New Pacific Intersects 595.7 m Interval Grading 1.25 g/ t Gold and 10.25 m Interval Grading 1,213 g/t Silver at the Carangas Project

Download PDF Version

VANCOUVER, British Columbia – may 17, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP), together with its local Bolivian partner, announce the assay results of the last ten drill holes from the Discovery Drill Program completed in 2021 at the Carangas Silver-Gold Project, Oruro Department, Bolivia (the “Carangas Project” or the “Project”). Assay results of all 35 holes drilled in 2021 (Figure 1) have now been received and released. Drill intercepts of mineralization and hole specifications of the last ten holes are presented in Tables 1 and 2, respectively. Drilling is underway on the 2022 drilling program of up to an additional 40,000 metres (“m”). 

Highlights 

·       Hole DCAr0031 was drilled on section 24 at the Central Valley and intersected  595.7 m (from 161.55 m to 757.25 m) grading 1.25 grams per tonne (“g/t”) gold (“Au”) and 7 g/t silver (“Ag”), including  98.9 m (from 457.3 m to 556.2 m) grading 2.58 g/t Au, 6 g/t Ag and 42.11 m grading 3.51 g/t Au, 2 g/t Ag and 0.1% copper (“Cu”) (from 711.0 m to 753.11 m). This broad gold zone occurs beneath a silver horizon of 41.63 m grading 41 g/t Ag, 1% lead (“Pb”) and 1.72% zinc (“Zn”) from 62.37 m to 104 m.  This hole was terminated in mineralization at a depth of 757.25 m due to difficult drilling conditions and capacity of the drill rig. 

Gold mineralization intersected in hole DCAr0031,  is hosted in strongly argillic-sericitized lithic tuff of dacitic composition with disseminated sulfides and cut by veinlets of pyrite and chalcopyrite, similar to the holes DCAr0020, DCAr0016 and DCAr0015 reported previously (Figure 2). 

·       Hole DCAr0032 was drilled at East Dome and intersected an interval of 194.70 m (from 18.3 m to 213.0 m) grading 33 g/t Ag, 0.37% Pb and 0.71% Zn, including a high-grade interval of 14.43 m (from 129.3 m to 143.73 m) grading 158 g/t Ag, 0.29% Pb and 0.25% Zn. This hole also intersected a high-grade interval of 10.25 m grading 1,213 g/t Ag, 1.2% Pb and 0.19% Zn from 319.89 m to 330.14 m. 

·       Hole DCAr0027 was drilled at the top of West Dome and intersected an interval of 72.7 m grading 116 g/t Ag and 1.34% Pb (from 1.78 m to 74.48 m) in the near-surface hydrothermal breccia horizon, including 35.73 m grading 213 g/t Ag and 1.46% Pb (from 12.95 m to 48.68 m). 

·       Hole DCAr0028 was drilled to the bottom of West Dome and intersected an interval of 190.97 m (from 10.47 m to 201.44 m) grading 65 g/t Ag, 0.48% Pb and 1.09% Zn, including high-grade intervals of 31.82 m (from 57.18 m to 89.0 m) grading 101 g/t Ag, 0.95% Pb and 2.59% Zn, and 17.03 m (from 178.9 m to 195.93 m) grading 347 g/t Ag, 1.01% Pb and 1.79% Zn.  

·       Hole DCAr0030 was drilled to the bottom of West Dome about 100 m to the north of hole DCAr0028 and intersected an interval of 160.10 m (from 35.57 m to 195.67 m) grading 65 g/t Ag, 0.32% Pb and 0.93% Zn, including a high-grade interval of 32.65 m (from 56.2 m to 88.85 m) grading 216 g/t Ag, 0.63% Pb and 1.65% Zn.  

Nine holes in Table 1 were drilled at a shallow dip angle of -45 degrees targeting the near surface silver-rich polymetallic mineralization at various locations in Central Valley, West Dome and East Dome and intersected broad silver-rich mineralization near surface. The only deep hole, DCAr0031 was drilled at a higher dip angle of -68 degrees to a depth of 757.23 m, which intersected 595.7 m interval of gold.  The gold mineralization may represent a feeder zone that  is related to multi-stage rhyolitic/dacitic porphyry intrusive bodies.



Figure 1. Simplified geology map and drill holes of the 2021 Discovery Drill Program at Carangas Project


Figure 2. DCAr0031 on section 24 was terminated in gold mineralization due to drill difficulty

Update on the 2022 Drilling Campaign

The Company currently has four drill rigs turning at the Carangas Project and plans to complete up to 40,000 m drilling this year. Of the four drill rigs, two rigs are testing the shallow silver horizon and the other two rigs are testing the gold mineralization at depth. So far, approximately 10,000 m have been completed in 15 holes. Assay results of 15 drill holes completed in 2022 are pending.   

The Company has attempted to drill beyond 1,000 m depth to follow gold mineralization and has encountered thermal water at around 900 m depth. The Company is seeking to have a fifth rig capable of 1,500 m depth to test potential mineralization of rhyolitic bodies.


Quality Assurance and Quality Control

All samples in respect of the exploration program at the Carangas Project, 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 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 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 firstly by ICP method 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 to normal drill core sample sequences prior to delivery to 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, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, exploring the Carangas broad silver-gold Project, recently discovered in 2021 and initiating the exploration of the historic silver mining district of the Silverstrike Project.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

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

E-mail: investor@newpacificmetals.com

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; 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.

12 May, 22

New Pacific Reports Financial Results for the Three and Nine Months Ended March 31, 2022

Download PDF Version

VANCOUVER, BRITISH COLUMBIA – MAY 11, 2022: New Pacific Metals Corp. (“New Pacific” or the “Company”) reports its unaudited consolidated financial results for the three and nine months ended March 31, 2022, the third quarter of fiscal 2022.  All figures are expressed in US dollars unless otherwise stated.

QUARTERLY HIGHLIGHTS

– Reported assay results of the 2021-2022 drill program at Silver Sand Project.  The 2021 drill programs comprise structural orientation drilling, step-out and infill drilling as well as exploration drilling.  Assay results of all 55 holes completed in 2021 and results of 13 holes from 48 holes in 10,520 m completed during the quarter under the 2022 drill program have been received;

– Reported assay results of 25 drill holes from the discovery drill program completed in 2021 at the Carangas Silver-Gold Project.  All drill holes with assay results intersected silver-rich polymetallic mineralization near surface with some deep holes intersecting a wide zone of gold mineralization below; and

– Maintained working capital of $34.7 million, sufficient to advance the Silver Sand Project, the Carangas Project and other regional exploration initiatives.

FINANCIAL RESULTS

Net loss attributable to equity holders of the Company for the three months ended March 31, 2022 was $1.41 million or $0.01 per share (three months ended March 31, 2021 – net loss of $1.69 million or $0.01 per share).  The Company’s financial results were mainly impacted by the following: (i) operating expenses of $1.52 million compared to $1.60 million in the prior year quarter; (ii) income from investments of $0.12 million compared to $0.07 million in the prior year quarter; and (iii) foreign exchange loss of $0.04 million compared to loss of $0.16 million in the prior year quarter.  

For the nine months ended March 31, 2022, net loss attributable to equity holders of the Company was $4.08 million or 0.03 per share compared to net loss of $4.59 million or 0.03 per share for the nine months ended March 31, 2021.  

Operating expenses for the three and nine months ended March 31, 2022 were $1.52 million and $4.49 million, respectively (three and nine months ended March 31, 2021 – $1.60 million and $4.38 million, respectively).   

Income from investments for the three months ended March 31, 2022 was $0.12 million (three months ended March 31, 2021 – $0.07 million) and is comprised of a $60,323 gain on the Company’s equity investments  (three months ended March 31, 2021 – gain of $37,223), a $34,037 gain on bonds (three months ended March 31, 2021 – loss of $6,039), $nil income from dividends (three months ended March 31, 2021 – income of $1,411), and $30,500 interest earned from cash accounts (three months ended March 31, 2021 – $39,152). 

For the nine months ended March 31, 2022, income from investments was $0.21 million (nine months ended March 31, 2021 – income of $0.61 million).   

Foreign exchange loss for the three months ended March 31, 2022 was $0.04 million (three months ended March 31, 2021 – loss of $0.16 million).  The Company holds a large portion of cash and short-term investments in USD to support its operations in Bolivia.  Revaluation of these USD-denominated financial assets to their CAD functional currency equivalents resulted in unrealized foreign exchange gain or loss for the relevant reporting periods.  During the three months ended March 31, 2022, the USD depreciated by 1.4% against the CAD (from 1.2678 to 1.2496) while in the prior year quarter the USD depreciated by 1.2% against the CAD (from 1.2732 to 1.2575). 

For the nine months ended March 31, 2022, foreign exchange gain was $0.16 million (nine months ended March 31, 2021 – loss of $0.83 million). 

Working Capital: As of March 31, 2022, the Company had working capital of $34.7 million. 

PROJECT OVERVIEW 

SILVER SAND PROJECT 

On April 6, 2022, the Company reported the assay results of the 2021-2022 drill programs for the Silver Sand Project.  The 2021 drill programs comprise structure orientation drilling, step-out and infill drilling as well as exploration drilling.  Assay results of all 55 drill holes in 13,313.7 m completed in 2021 have been received.  The 2022 drill program is planned at 15,000 m of infill and step-out drilling.  The aim of the resource infill drilling is to improve the confidence in the continuity of mineralization in the core area of Silver Sand and upgrade resource categories, and the step-out drilling is to test the extension of the major mineralized zones up and down dip as well as on strike.  As of the date of this news release, a total of 10,520 m in 48 holes were completed, for which assay results of 13 holes have been received.  

For the three and nine months ended March 31, 2022, total expenditures of $1.02 million and $4.44 million, respectively (three and nine months ended March 31, 2021 – $0.88 million and $2.23 million, respectively) were capitalized under the project.  

CARANGAS PROJECT 

On June 29, 2021, the Company announced the commencement of an initial 2021 discovery drill program at the Carangas Project to test near-surface bulk-tonnage and high-grade vein-hosted silver-rich polymetallic targets centered on and adjacent to the historically exploited West and East Dome areas.  Total drilling of 13,209 m was completed in 35 holes under the 2021 discovery drill program, defining a mineralized area of approximately 1,000 m long by 700 m wide and up to 400 m in depth.  On February 10 and 23, 2022, the Company announced assays results of 25 drill holes, with the remaining 10 drill holes pending.  All drill holes with assay results intersected silver-rich polymetallic mineralization near surface with some deep holes intersecting a wide zone of gold mineralization below.  

Following the success of the 2021 discovery drill program, the Company has commenced a 2022 resource definition drill program during the quarter with initial planned meterage of 30,000 m which could be extended to 40,000 m or more if on-going drill results continue to be encouraging.   

For the three and nine months ended March 31, 2022, total expenditures of $1.16 million and $3.13 million, respectively (three and nine months ended March 31, 2021 – $nil and $nil, respectively) were capitalized under the project. 

SILVERSTRIKE PROJECT 

During 2020, the Company’s exploration team completed reconnaissance and detailed mapping and sampling programs on the northern portion of the project. The results to date indicate good to excellent exploration potential for hosting narrow, high-grade, near-surface broad-zones of silver mineralization.  The Company is planning a discovery drill program in 2022 to test the northern and central areas of the project. 

For the three and nine months ended March 31, 2022, total expenditures of $0.03 million and $0.04 million, respectively (three and nine months ended March 31, 2021 – $0.43 million and $1.40 million, respectively) 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 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 are 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, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, exploring the Carangas broad silver-gold Project, recently discovered in 2021 and initiating the exploration of the historic silver mining district of the Silverstrike Project. 

 

For further information, please contact: 

New Pacific Metals Corp. Investor Relations

Phone: (604) 633-1368

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

E-mail: investor@newpacificmetals.com

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, 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.

06 Apr, 22

New Pacific Intersects 86.03 Metre Interval Grading 229 Grams Per Tonne Silver at the Silver Sand Project

Download PDF Version

VANCOUVER, British Columbia – April 6, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP) is pleased to announce the assay results of the 2021-2022 drill programs at Silver Sand. The 2021 drilling programs comprise structure orientation drilling, step-out and infill drilling as well as exploration drilling. Assay results of all drill holes completed in 2021 have been received, and results of 13 holes from 48 holes in  10,520 metres (“m”) completed to date in 2022 have been received. For the 2022 drill program, the Company plans to complete a total 15,000 m of step-out and in-fill drilling by the end of April.  Assay results are summarized in Table 1 and drill hole specifications are presented in Table 2. 

Highlights 

·       Drill hole DSS529001 intersected an interval of 86.03 metres (“m”) grading 229 gram per tonne (“g/t”) silver (“Ag”) from 37.90 m to 123.93 m, including 15.35 m grading 734 g/t Ag from 37.90 m to 53.25 m. This is an infill hole completed in 2022 and confirmed the continuity of high grade mineralization in the core area of Silver Sand. 

·       Drill hole DSS507513 intersected an interval of 39.60 m grading 225 g/t Ag from 56.70 m to 96.30 m, including 11.84 m grading 434 g/t Ag from 84.46 m to 96.30 m. This is a step-out hole completed in 2022 on the eastern end of drill grid in the core area of Silver Sand 

·       Drill hole DSS487502 intersected an interval of 38.18 m grading 148 g/t Ag from 82.49 m to 120.67 m. This is a step-out hole drilled in 2022 on the eastern end of drill grid in the core area of Silver Sand. 

·       Drill hole DSS487504 intersected an interval of 26.90 m grading 189 g/t Ag from 190.30 m to 217.20 m, including 7.20 m grading 641 g/t Ag from 190.30 m to 197.50 m. This is a step-out hole drilled in 2022 to test the depth extension of mineralization in the core area of Silver Sand. 

·       Drill hole DSS5423 intersected an interval of 48.22 m grading 104 g/t Ag from 73.00 m to 121.22 m. This is an infill hole drilled in 2022 to confirm the continuity of mineralization in the core area of Silver Sand. 

·       Drill hole DSS-21-1004 intersected an interval of 53.34 m grading 114 g/t Ag from 66.72 m to 120.06 m. This is an orientation hole drilled in 2021 to confirm the attitude (dip and dip direction) of mineralized structures in the core area of Silver Sand. 

·       Drill hole DSS-21-1009 intersected an interval of 50.85 m grading 100 g/t Ag from 70.50 m to 121.35 m, including 10.31 m grading 354 g/t Ag from depth 70.50 m to 80.81 m. This is an orientation hole drilled in 2021 to confirm the attitude (dip and dip direction) of mineralized structures in the core area of Silver Sand. 

·       Drill hole DSS-21-1011 intersected an interval of 58.45 m grading 110 g/t Ag from depth 29.20 m to 87.65 m. This is an orientation hole drilled in 2021 to confirm the attitude (dip and dip direction) of mineralized structures in the core area of Silver Sand. 

·       Drill hole DSS-21-3017 intersected an interval of 54.42 m grading 172 g/t Ag from 11.22 m to 65.64 m, including 4.50 m grading 1,070 g/t Ag from 17.40 m to 21.90 m. This is a step-out hole drilled in 2021 which was abandoned due to drill difficulty caused by historical underground mining voids. 

2021 Drill Programs 

Drill programs in 2021 comprised of structural orientation drilling, step-out drilling, and depth exploration drilling for a total metreage of 13,313.7 m in 55 holes (Table 1).  

Structural orientation drilling was carried out at three spots in the northern edge of the Silver Sand core area. The Boart Longyear TruecoreTM system was employed and a total of 4,626.7 m in 32 holes (holes DSS-21-1001 to DSS-22-1032) were completed at a hole spacing of 5 m along three cross sections. 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 northwest and dipping in direction of west at high angles which is also evidenced at surface outcrops and historical underground workings. 

Step-out drilling in 2021 was carried out mainly outside of the major mineralized trends aiming to discover new mineralized zones. These holes (holes DSS-21-3001 to DSS-21-3014) intersected multiple relatively narrow mineralized zones at various depth, such as hole DSS-21-3008 which intersected an interval of 7.47 m grading 275 g/t Ag and hole DSS-21-3010 which intersected an interval of 5.65 m grading 158 g/t Ag, indicating that there are multiple smaller satellite mineralized zones between the major mineralized trends. Other three holes (DSS-21-3015, DSS-21-3017, and DSS-21-3018) were drilled parallel to the dipping direction of the mineralization zones along the gaps between previously intersected zones.  

Three depth drill holes (holes DSS-21-4001, DSS-21-4002, and DSS-21-4003) designed to test the extension of mineralization at further depth were completed in 2021 for a total metreage of 1,752.3 m. Hole DSS-21-4001 intersected an interval of 7.18 m grading 285 g/t Ag from depth 202.82 m to 210.00 m, and hole DSS-21-4002 intersected an interval of 4.16 m grading 357 g/t Ag and 2.84% zinc from 407.44 m to 411.60 m. Hole DSS-21-4003 did not intersect any significant mineralized interval as it was drilled in the west hanging wall of the major mineralized trend. 

2022 Drill Programs 

The 2022 Drill program is planned  at 15,000 m  of infill  and step-out drilling. The aim of the resource infill drilling is to improve the confidence in the continuity of mineralization in the core area of Silver Sand and upgrade resource categories, and the step-out drilling is to test the extension of the major mineralized zones up and down dip as well as on strike. As of March 31, 2022, a total of 10,520 m in 48 holes were completed, for which assay results of 13 holes have been received (Table 1). The 2022 drill programs are expected to be completed by the end of April or early May 2022 as planned. 

As reported in the news release dated February 8, 2022, the Company has selected a PEA study specialist to complete the Preliminary Economic Assessment (“PEA”) report. All assays for the 2022 drilling are expected to be received by the end of June, and a mineral resource estimate updated by September 2022 to be included in the planned PEA by the end of 2022.


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. Length of drill intercept is close to true width of mineralization as drilling is normal to both strike and dip of mineralized zones.

3.        A cut-off of 20 g/t Ag is applied for calculation of length-weighted intercept. At times, samples lower than 20 g/t Ag may be included in the calculation of consolidation of mineralized intercepts.


Notes:

1.           Drill collar coordinate system is WGS1984 UTM Zone 20S.

2.           Coordinate of drill collar is picked with Real Time Kinematics (RTK) GPS.

Quality Assurance and Quality Control

All samples in respect of the exploration program at the Silver Sand Project, 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 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 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). Certified reference materials, various types of blank samples and duplicate samples are inserted to normal drill core sample sequences prior to delivery to 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, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, while growing its Mineral Resources through the exploration and acquisition of properties in the Americas.

For further information, please contact: 

New Pacific Metals Corp.

Phone: (604) 633-1368

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

E-mail: info@newpacificmetals.com

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 the anticipated timing, amount and completion of exploration, drilling, development, construction, and other activities or achievements of the Company; anticipated outcomes therefrom; future economics of the Company’s projects; timing of receipt of permits and regulatory approvals; 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 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 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 disclosure in this news release and referred to herein was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the “SEC”).  The terms “proven mineral reserve”, “probable mineral reserve” and “mineral reserves” used in this news release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the “CIM Definition Standards”), which definitions have been adopted by NI 43-101.  Accordingly, information contained in this news release providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to the United States federal securities laws and the rules and regulations thereunder.

Investors are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, “Inferred mineral resources” are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity.  An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable.  Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7.  Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning on or after January 1, 2021.  The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7.  As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”.  In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to corresponding definitions under the CIM Definition Standards.  During the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or reserves contained or referenced in this news release may not be comparable to similar information made public by companies that report according to U.S. standards.  While the SEC Modernization Rules are purported to be “substantially similar” to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards.  Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

23 Feb, 22

New Pacific Intersects Broad Gold Mineralization of 323m Interval Grading 1.03g/t Gold and 12g/t Silver at the Carangas Project

Download PDF Version

VANCOUVER, British Columbia – February 23, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP), together with its local Bolivian partner, announce the assay results of an additional eight drill holes from the Discovery Drill Program completed in 2021 at the Carangas Silver-Gold Project, Oruro Department, Bolivia (the “Carangas Project” or the “Project”). To date, assay results of 25 drill holes have been received, with the remaining 10 drill holes pending. All drill holes with assay results intersected silver-rich polymetallic mineralization near surface with some deep holes intersecting a wide zone of gold mineralization below.

 The drill holes with assay results disclosed in this news release are relatively shallow in depth  and intersected broad silver-rich mineralization near surface; for example, drill hole DCAr0019 which intersected an interval of 173.17 metres (“m”) from 9.67 m grading 102 grams per tonne (“g/t”) silver (“Ag”), 0.77% lead (“Pb”) and 1.13% zinc (“Zn”). Drill hole DCAr0020 is the only deep drill hole from this news release  and intersected an interval of 322.91 m  from 327.09 m to 650.00 m grading 1.03 g/t gold (“Au”) and 12 g/t Ag mineralization at depth.

 Highlights

 · Drill hole DCAr0020 intersected an interval of 139.96 m (from 12.04 m to 152.00 m) grading 34 g/t Ag, 0.33% Pb and 0.94% Zn, and a second interval of 322.91 m (from 327.09 m to 650.00 m) grading 1.03 g/t Au and 12 g/t Ag, including a high grade interval of 141.11 m (from 478.00 m to 619.11 m) grading 1.78 g/t Au and 12 g/t Ag (Table 1 and Photo 1).   

DCAr0020 was collared on Section 20, which is 200 m west of Section 24 (Figure 1 and Table 2) where holes DCAr0015 and DCAr0016 also intersected near-surface silver-rich zone of mineralization on top of a broad zone of gold mineralization (news release February 10, 2022). Please see Section 24 with projection of DCAr0020 (Figure 2). 

· Drill hole DCAr0019 intersected an interval of 292.22 m (from 9.67 m to 301.89 m) grading 62 g/t Ag, 0.02 g/t Au, 0.56% Pb, and 0.85% Zn, which includes a high-grade interval of 173.17 m (from 9.67 m to 182.84 m) grading 102 g/t Ag, 0.77% Pb and 1.13% Zn for a silver equivalent of 166 g/t (Photo 2).  

DCAr0019, together with holes DCAr0022, DCAr0023, DCAr0024, and DCAr0035, were drilled approximately 100 m to the east of Section 24 and all intersected near surface silver mineralization, but only DCAr0024 intersected favourable mineralization at depth for which fire assay results for gold are pending. All other holes on the section may not be deep enough to intersect gold mineralization at depth.

 · Drill hole DCAr0025 intersected an interval of 82.76 m (from 4.70 m to 87.46 m) grading 68 g/t Ag, 0.81% Pb and 0.10% Zn, including a high-grade interval of 34.59 m (from 32.35 m to 66.94 m) grading 138 g/t Ag and 1.05% Pb.  

DCAr0025, together with holes DCAr0018 and DCAr0021 were drilled from the West Dome (Figure 1, Table 2) at elevations of 4,012 m to 4,036 m, also intersected multiple historical underground mining voids with an aggregate length of 10.7 m without core recovery.



Figure 1. Simplified geology map and drill holes of 2021 Discovery Drill Program at Carangas Project


Figure 2. DCAr0020 was collared at Section 20, which is 200 m west of Drill Section 24, and ploted on to Section 24 for comparison with holes DCAr0016 and DCAr0015, both intercepted Gold at depth

Drilling Plan for year 2022

The Company has commenced a resource definition drilling program at Carangas Project with two drill rigs currently and a third rig to be added after the end of the rainy season in March.  An initial 30,000 m drill program has been planned for this year which could be extended to 40,000 m or more if on-going drill results continue to be encouraging.



Photo 1. High-grade gold mineralized drill core of hole DCAr0020 including Au/Ag/Pb/Zn/Cu grades (in red) across the marked intervals


Photo 2. High-grade silver mineralized drill core of hole DCAr0019 including Ag/Pb/Zn grades (in red) across the marked intervals

Quality Assurance and Quality Control

All samples in respect of the exploration program at the Carangas Project, 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 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 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 firstly by ICP method 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 to normal drill core sample sequences prior to delivery to 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, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, while growing its Mineral Resources through the exploration and acquisition of properties in the Americas.

For further information, please contact:

New Pacific Metals Corp.

Phone: (604) 633-1368

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

E-mail: info@newpacificmetals.com

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 the anticipated timing, amount and completion of exploration, drilling, development, construction, and other activities or achievements of the Company; anticipated outcomes therefrom; future economics of the Company’s projects; timing of receipt of permits and regulatory approvals; 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 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 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.

10 Feb, 22

New Pacific Intersects 148m Interval of Silver Mineralization Grading 78g/t Silver, 2.07% Lead+Zinc Stacked on Top of 95m Interval of Gold Mineralization at the Carangas Silver Project

Download PDF Version

VANCOUVER, British Columbia – February 10, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP), together with its local Bolivian partner, announces the receipt of assay results from six additional drill holes from the Discovery Drill Program completed in 2021 at the Carangas Silver Project, Oruro Department, Bolivia (the “Carangas Project” or the “Project”).  To date, assay results of 17 drill holes have been received, with the remaining 18 drill holes awaiting additional analysis, specifically fire assay for gold. All seventeen drill holes intercepted near surface silver rich polymetallic mineralization. 

Highlights 

·       An expansive, near-surface silver-rich zone of mineralization is stacked above a broad zone of gold mineralization. 

·       Drill hole DCAr0016 intersected a 148.48 metre (“m”) interval (starting at just 8.7 m depth) grading 78 g/t Ag and 2.07% Pb+Zn and overlying a 453 m interval grading 0.49 g/t Au, including 95 m of 1.14 g/t Au and 31 g/t Ag, within which a 10.3 m interval assayed 5.66 g/t Au and 152 g/t Ag. 

The six holes, DCAr0012, DCAr0013, DCAr0014, DCAr0015, DCAr0016, and DCAr0017, listed in Table 1 below, together with previously released holes DCAr0010 and DCAr0011 are drilled in the Central Valley in the middle of the Carangas Project (Figure 1) along a near north-south cross section (Figure 2, Section 24).  The drill section is believed to be perpendicular to the east-west mineralization trend.  The assay results of these eight drill holes along Section 24 have clearly defined a broad, near surface horizon of silver-lead-zinc mineralization  ranging from tens of metres to over 100 m in thickness and a width of nearly 700 m (Figure 1).   

In addition to the near surface broad silver-rich mineralization, four deeper drill holes, namely DCAr0013, DCAr0014, DCAr0015 and DCAr0016 all intercepted a broad zone of gold mineralization below the silver horizon. 

Drill hole DCAr0016 is entirely mineralized from surface to the end of hole at 630.35 m. From 8.7 m to 157.18 m, the hole intersected a 148.8 m silver rich interval grading 78 g/t Ag, 0.81% Pb, and 1.26% Zn (147 g/t AgEq), followed by a 19.89 m interval from 157.18 m to 177 m grading 29 g/t Ag, 0.3% Pb, 0.7% Zn, 0.06% Cu, and 0.17 g/t Au (79 g/t AgEq). Further down hole, from 177.07 m to 630.35 m, a 453.28 m interval of gold-dominated mineralization grading 0.49 g/t Au, 12 g/t Ag, 0.1% Pb, 0.14% Zn, and 0.04% Cu was encountered, including a 95 m higher grade gold interval grading 1.14 g/t Au, 31 g/t Ag (121 g/t AgEq) from 535.35 m to 630.35 m, and a sub-interval of 10.32 m grading 5.66 g/t Au and 152 g/t Ag (559 g/t AgEq) from 557.08 m to 567.40 m.  

Drill hole DCAr0015 is located about 100 m north of hole DCAr0016 and was completed to depth 600 m.  From 79.87 m to 138.5 m, it returned a 58.63 m interval grading 53 g/t Ag, 0.95% Pb, and 1.58% Zn (138 g/t AgEq), then followed by 342.92 m interval of  gold mineralization  grading 0.55 g/t Au, 12 g/t Ag, 0.15% Pb, 0.21% Zn, and 0.05% Cu from 190.44 m to 533.36 m down hole, which includes an interval of 86.41 m grading 1.03 g/t Au, 26 g/t Ag, and 0.07% Cu (112 g/t AgEq) from 446.95 m to 533.36 m including a sub-interval of 8.66 m grading 6.38 g/t Au, 182 g/t Ag, and 0.39% Cu from 497.54 m to 506.20 m.


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 silver (“Ag”), US$0.95/lb for lead (“Pb”), US$1.10/lb for zinc (“Zn”), US$3.40/lb for copper (“Cu”), and US$1,600/oz for gold (Au). The formula used for the AgEq calculation is as follows: AgEq= Ag grams per tonne (“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 for calculation of length-weighted intercept. At times, samples lower than 20 g/t AgEq may be included in the calculation of consolidation of mineralized intercepts.

5.      For holes DCAr0014 and DCAr0017, gold values are results of semi quantitative ICP analysis, with fire assay results pending.

Silver and gold mineralization zoning from the Discovery Drilling in the Central Valley

The near-surface silver-rich mineralization is controlled by dense mineralized fractures which generally strike in northwest to west direction, and mostly dip south at high angles, continuing to a depth of 100 m to 200 m, and stretching a width of at least 700 m from north to south as shown in Section 24. Mineralization continues to depth, with the amount of silver-lead-zinc sulfides decreasing, but the amount of chalcopyrite increasing to a depth up to 700 m with the lower limit not yet defined by drilling, indicating a potentially a large silver and gold mineralized system of zonation with depth.  

The chalcopyrite mineralization occurs in the form of veins and veinlets generally associated with drusy quartz, and usually carries gold mineralization evidenced by the assay results of the long holes DCAr0013 to DCAr0016. In addition to the vein type mineralization, weakly to moderately disseminated pyrite and sphalerite are common in all drill holes. Common alteration associated both in the silver and gold zones include sericitic and argillic alteration with chloritic alteration in peripheral area, and silicification occurs as selvage near mineralized veins and veinlets. Chalcopyrite mineralization is generally associated with gold, though some high grade gold intervals carry little or no chalcopyrite (see Photos 1 & 2). 

Drilling Plan for year 2022

Encouraged by the successful Discovery Drilling in 2021, the Company plans to initiate a resource definition drilling program at Carangas Project in 2022. An initial 30,000 m drill program has been budgeted for this year and the Company will review the drill program from time to time which could be extended to 40,000 m or more if on-going drill results continue to be encouraging. Currently, the resource definition drilling has commenced with two rigs operating on site, and a third one may be added in due course after the rainy season.




Notes:

1.      Drill collar coordinate system is WGS1984 UTM Zone 19S.

2.      Coordinate of drill collar is picked with Real Time Kinematics (RTK) GPS.


Quality Assurance and Quality Control

All samples in respect of the exploration program at the Carangas Project, 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 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 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 firstly by ICP method 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 to normal drill core sample sequences prior to delivery to 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, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, while growing its Mineral Resources through the exploration and acquisition of properties in the Americas.

For further information, please contact: 

New Pacific Metals Corp.

Phone: (604) 633-1368

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

E-mail: info@newpacificmetals.com

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 the anticipated timing, amount and completion of exploration, drilling, development, construction, and other activities or achievements of the Company; anticipated outcomes therefrom; future economics of the Company’s projects; timing of receipt of permits and regulatory approvals; 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 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 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.

08 Feb, 22

New Pacific Provides an Update on the Silver Sand Project Preliminary Economic Assessment

Download PDF Version

VANCOUVER, British Columbia – February 8, 2022 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP) reports on the status and plan for the ongoing work on the preliminary economic assessment (“PEA”) study for its wholly owned Silver Sand Project in south-central Bolivia:

  • A Mineral Resource Estimate (“MRE”) update is underway as detailed below;

  • The Company plans to select an additional PEA study specialist by the end of February to supplement and complete certain remaining aspects of the PEA report; and

  • Once the MRE update is finalized, the PEA study is expected to be completed by the end of 2022.

The MRE update, that has been initiated will reflect new drill results since the 2020 MRE and the results of an ongoing mineral resource infill and expansion drill program. 

There are currently 135 drill hole results (see Table 1) received since the last MRE prepared for the 2020 Technical Report, as referenced below. The MRE update will include Silver Sand, the Snake Hole area (32 holes, many of which have intercepted significant silver intervals) and selected properties covered by the Mining Production Contract (“MPC”) surrounding the Silver Sand Project.

Recently, a revised MPC was signed with the Bolivian State-owned Corporación Minera de Bolivia (“COMIBOL”) for the properties immediately surrounding the Silver Sand Project. While the Company works with COMIBOL to receive the required approvals for the MPC from Bolivia’s Ministry of Mining and Metallurgy and the Plurinational Legislative Assembly, COMIBOL desires that the Company  drill and yield an initial mineral resource in limited and selected MPC properties by granting a special temporary permit for the Company. 

Accordingly, the Company plans to complete a further 15,000 metres (“m”) of exploration and in-fill drilling, including 2,500 m within the MPC properties and 12,500 m at the Silver Sand Project.  With this drilling, the Company may push part of the potential open-pit boundary onto the MPC ground to include Silver Sand MRE and MPC MRE in a total combined MRE.

Drilling on the Silver Sand Project has started with one rig and an additional two rigs are expected to arrive on site by mid-February.  The 15,000 m drill program is expected to be completed by the end of April, with all assays expected to be received by the end of June, and a mineral resource estimate updated by September 2022 to be included in the planned PEA.

Once the MRE update is completed, the planned PEA is expected to be completed by the end of 2022. 

2020 Silver Sand Mineral Resource Estimate

The Silver Sand deposit is one of the more significant new global primary silver discoveries in the last decade. Measured and indicated mineral resources of 35.39 million tonnes at a grade of 137 g/t silver (155.86 million contained ounces silver) have been delineated, with an additional inferred mineral resource of 9.84 million tonnes at a grade of 112 g/t silver (35.55 million contained ounces silver).

Mineralization, which remains open to the north and south and at depth, starts at or near-surface and is amenable to potential open-pit mining extraction.  Approximately 70% of the resources are within 200 m of the conceptual open pit surface.

Source: Technical Report entitled “Silver Sand Deposit Mineral Resource Report” dated May 25, 2020 (effective date of January 16, 2020) prepared by AMC Mining Consultants (Canada) Ltd., which is available on the Company’s website and under the Company’s profile on SEDAR at www.sedar.com.(the “2020 Technical Report”)

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 are 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, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, while growing its Mineral Resources through the exploration and acquisition of properties in the Americas.

For further information, please contact:

New Pacific Metals Corp.

Investor Relations

Phone: (604) 633-1368

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

E-mail: info@newpacificmetals.com

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 the anticipated timing, amount and completion of exploration, drilling, development, construction, and other activities or achievements of the Company; future economics of the Company’s projects; timing of receipt of permits and regulatory approvals; 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 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 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.

04 Feb, 22

New Pacific Reports Financial Results For The Three And Six Months Ended December 31, 2021

Download PDF Version

VANCOUVER, BRITISH COLUMBIA – FEBRUARY 4, 2022: New Pacific Metals Corp. (“New Pacific” or the “Company”)(TSX:NUAG)(NYSE:NEWP) reports its unaudited consolidated financial results for the three and six months ended December 31, 2021, the second quarter of fiscal 2022.  All figures are expressed in US dollars unless otherwise stated.

QUARTERLY HIGHLIGHTS

  • Metallurgical test results for the Silver Sand Project from 2020 and 2021 identified heap leach process as the preferred processing method, which achieves 80% silver recovery and significantly de-risks the project;

  • Completed the initial discovery drill program at the Carangas Project with two phases for a total of 13,209 metres (“m”) drilled in 35 holes, defining a mineralized area approximately 1,000 m by 700 m and up to 400 m in depth;

  • Strengthened the board of directors (the “Board”) with the election of two additional directors, Mr. Terry Salman and Ms. Maria Tang.  Mr. Salman has subsequently been appointed as the Chair of the Board; an 

  • Maintained working capital of $38.1 million, sufficient to advance the Silver Sand Project, the Carangas Project and other regional exploration initiatives.

Subsequent to end of the reporting period, on January 24, 2022, the Company announced the resignation of Dr. Mark Cruise as Chief Executive Officer (“CEO”) and director of the Board and appointed Dr. Rui Feng as the CEO.  Dr. Rui Feng is the founder of the Company and served as CEO until April 27, 2020.

FINANCIAL RESULTS

Net loss attributable to equity holders of the Company for the three months ended December 31, 2021 was $1,295,940 or $0.01 per share (three months ended December 31, 2020 – net loss of $1,774,420 or $0.01 per share).  The Company’s financial results were mainly impacted by the following: (i) operating expenses of $1,364,790 compared to $1,251,752 in the prior year quarter; (ii) income from investments of $131,471 compared to loss from investments of $98,800 in the prior year quarter; and (iii) foreign exchange loss of $63,527 compared to loss of $425,437 in the prior year quarter.  

For the six months ended December 31, 2021, net loss attributable to equity holders of the Company was $2,674,167 or 0.02 per share compared to net loss of $2,904,667 or 0.02 per share for the six months ended December 31, 2020. 

Operating expenses for the three and six months ended December 31, 2021 were $1,364,790 and $2,961,321, respectively (three and six months ended December 31, 2020 – $1,251,752 and $2,773,711, respectively).  

Income from investments for the three months ended December 31, 2021 was $131,471 (three months ended December 31, 2020 – loss of $98,800) and is comprised of a $74,762 gain on the Company’s equity investments (three months ended December 31, 2020 – gain of $110,009), a $31,735 gain on bonds (three months ended December 31, 2020 – loss of $306,048), $nil income from dividends (three months ended December 31, 2020 – income of $54,026), and $24,974 interest earned from cash accounts (three months ended December 31, 2020 – $43,213).

For the six months ended December 31, 2021, income from investments was $83,552 (six months ended December 31, 2020 – income of $534,657). 

Foreign exchange loss for the three months ended December 31, 2021 was $63,527 (three months ended December 31, 2020 – loss of $425,437).  The Company holds a large portion of cash and short-term investments in US dollars (“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.  During the three months ended December 31, 2021, the USD depreciated by 0.5% against the CAD (from 1.2741 to 1.2678) while in the prior year quarter the USD depreciated by 4.6% against the CAD (from 1.3339 to 1.2732).

For the six months ended December 31, 2021, foreign exchange gain was $200,844 (six months ended December 31, 2020 – loss of $666,956).

Working Capital: As of December 31, 2021, the Company had working capital of $38.1 million.

PROJECT OVERVIEW

SILVER SAND PROJECT

On October 19, 2021, the Company reported results of the metallurgical test program for the Silver Sand Project. Highlights of the test work include:

  • Identified heap leach process as the preferred processing method;

  • 80% silver recovery achieved through heap leach column testing;

  • Approximately 80% of the resource is amenable to heap leaching and is located near the top of the deposit;

  • Lower capital and operating costs compared to alternative process methods;

  • Silver doré production on site further improves project economics;

  • Significantly de-risks the project due to low technical complexity; and

  • Increased project efficiency as the heap leach process may allow for lower cut-off grade, leading to an increased minable resource.

For the three and six months ended December 31, 2021, total expenditures of $1,216,427 and $3,421,960, respectively (three and six months ended December 31, 2020 – $669,717 and $1,352,412, respectively) were capitalized under the project.

CARANGAS PROJECT

On June 29, 2021, the Company announced the commencement of an initial discovery drill program at the Carangas Project to test near-surface bulk-tonnage and high-grade vein-hosted silver-rich polymetallic targets centered on and adjacent to the historically exploited West and East Dome areas. As of the date of this news release, total drilling of 13,209 m was completed in 35 holes, defining a mineralized area of approximately 1,000 m long by 700 m wide and up to 400 m in depth.  Assays for the first 11 drill holes include a 143 m interval from surface grading 130 g/t silver.  Following the success of the discovery drill program in 2021, a new resource definition drill program is planned for 2022.

For the three and six months ended December 31, 2021, total expenditures of $1,425,166 and $1,971,108, respectively (three and six months ended December 31, 2020 – $nil and $nil, respectively) were capitalized under the project. 

SILVERSTRIKE PROJECT

During 2020, the Company’s exploration team completed reconnaissance and detailed mapping and sampling programs on the northern portion of the project. The results to date indicate good to excellent exploration potential for hosting narrow, high-grade, near-surface broad-zones of silver mineralization.  The Company is planning a discovery drill program in 2022 to test the northern and central areas of the project.

For the three and six months ended December 31, 2021, total expenditures of $9,057 and $10,805, respectively (three and six months ended December 31, 2020 – $559,482 and $972,736, respectively) 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 and on the Company’s website at www.newpacificmetals.com.

MANAGEMENT UPDATES

The Company announces the following update to its senior management team.  Steve Stakiw has joined New Pacific as Senior Vice President.  Mr. Stakiw is a resource sector capital markets executive and geologist with over 25 years of experience encompassing mineral exploration, corporate development, and investor relations.  He has a strong track record with the financial community, mining analysts and investors.

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 are 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, including the flagship Silver Sand Project, the Silverstrike Project and the Carangas Project, all of which are located in Bolivia. The Company is focused on progressing the development of the Silver Sand Project, while growing its Mineral Resources through the exploration and acquisition of properties in the Americas.

For further information, please contact:

New Pacific Metals Corp. Investor Relations

Phone: (604) 633-1368

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

E-mail: info@newpacificmetals.com

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, 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.