VANCOUVER, BRITISH COLUMBIA – (January 20, 2012) – New Pacific Metals Corp. (TSX-V: NUX) (the “Companyâ€�) is pleased to announce new assay results for the surface deep drilling program in 2011 at the Skukum Creek gold-silver deposit of its Tagish Lake Gold Project, Yukon Territory, Canada. Two holes, SC11-02 and SC11-05, confirm presence of the mineralized zone to a depth of 100m below the previously known extent of the deposit. Highlights of the drill results include:
12.1m @ 8.42 g/t Au, 82.6 g/t Ag, 0.47% Pb and 1.72% Zn from 368.3 meters to 380.4 meters, including 3.3m @ 22.75 g/t Au, 169.9 g/t Ag, 1.08% Pb and 5.42% Zn from 376 meters to 379.3 meters in the hole SC11-01.
14.22m @ 8.1 g/t Au, 75.3 g/t Ag, 0.8% Pb and 1.3% Zn from 496.78 meters to 511 meters, including 5m @ 15.19 g/t Au, 162.8 g/t Ag, 1.81% Pb and 2.56% Zn from 504 meters to 509 meters in the hole SC11-02.
2.32m @ 11.11 g/t Au, 83.9 g/t Ag, 0.14% Pb and 0.74% Zn from 437.5 meters to 439.82 meters, including 1.12m @ 21.2 g/t Au, 158 g/t Ag, 0.21% Pb and 1.38% Zn from 438.7 meters to 439.82 meters in the hole SC11-04.
Drill results are summarized in the table below.
| hole_id | depth_from | depth_to | interval (m) | Au_g/t | Ag_g/t | Pb_% | Zn_% |
SC11-01 | 368.3 | 380.4 | 12.10 | 8.42 | 82.6 | 0.47 | 1.72 |
| including | 376 | 379.3 | 3.30 | 22.75 | 169.9 | 1.08 | 5.42 |
SC11-02 | 496.78 | 511 | 14.22 | 8.1 | 75.3 | 0.80 | 1.3 |
| including | 504 | 509 | 5.00 | 15.19 | 162.8 | 1.81 | 2.56 |
SC11-03 | 384.69 | 385.69 | 1.00 | 2.03 | 59 | 2.35 | 1.72 |
SC11-04 | 437.5 | 439.82 | 2.32 | 11.11 | 83.9 | 0.14 | 0.74 |
| including | 438.7 | 439.82 | 1.12 | 21.20 | 158 | 0.21 | 1.38 |
| 465.73 | 466.94 | 1.21 | 1.70 | 36.9 | 0.2 | 1.62 |
| 473.28 | 474.28 | 1.00 | 1.14 | 10.9 | 0.13 | 0.42 |
SC11-05 | 516.4 | 523.54 | 7.14 | 4.85 | 65.2 | 0.54 | 1.11 |
| including | 516.4 | 518.4 | 2.00 | 10.03 | 147.5 | 1.28 | 2.14 |
SC11-06 | no significant results | ||||||
Note:Â cutoff of 1.0g/t Au is used in calculation of intercepts. Truth width is about 50-75% of intercepts dependent on drill angle.
Skukum Creek is a mesothermal quartz-sulphide vein type gold-silver deposit hosted in Cretaceous granodiorite with felsic dykes. The overall mineralized zone comprises a series of sub-vertical mineralized veins with the prominent one called the Rainbow Zone. Historically, from 1985 to 2008, a total of 348 diamond drill holes were completed with a total of 44,097 meters, plus a total of 4,050 meters of underground development. The aim of the deep surface drill program in 2011 was to test the down-dip extension of the Rainbow Zone. Drilling was implemented in the period between August 14 and September 24, 2011, with six holes completed totalling 3,169 meters. The first five holes were drilled to the west of the Portal rhyodacite dyke, and the expected quartz-sulphide vein mineralization was encountered in every hole. The last hole was drilled to the east of the dyke but did not intersect mineralization which could be offset by post-mineralization faulting. The deepest mineralization intersected in 2011 surface drill holes is about 450 meters from surface, meaning that the mineralized zone is expanded about 100 meters down-dip from the limit outlined by historical drilling. This mineralized zone remains open at further depth and along strike.
The Company is very pleased with the drill results of this deep drill program, and remains confident in the upside resource potential with more drilling at the down-dip extension of the Rainbow Zone contemplated for 2012.
Quality Control
Drill cores are halved by diamond saw with half core split samples being shipped to the preparation labs of the Stewart Group and ALS in Whitehorse, Yukon for preparation, and then being assayed at the assay lab of the Stewart Group in Kamloops and at the assay lab of ALS in North Vancouver, British Columbia. Analysis methods are standard fire assay by AA finish for gold, aqua regia digestion plus AA finish for silver and base metals. Standard reference materials, blank and field duplicate samples were inserted prior to shipment from site to monitor the quality assurance and quality control of the assay data.
Alex Zhang, P.Geo. Vice President Exploration of the Company, is a Qualified Person pursuant to NI 43-101 and has reviewed and given consent to the technical information of this press release.
About New Pacific Metals Corp.
New Pacific Metals Corp. is a Canadian near-term gold and silver mining company engaged in the exploration and development of gold poly-metallic properties in the Yukon, Canada. The Company’s current project is the Tagish Lake Gold Property in Yukon Territory. With experienced management and sufficient technical and financial resources, the Company is well positioned to build shareholder value through discovery, exploration and resource development.
For more information about New Pacific, visit New Pacific’s website at www.newpacificmetals.com or contact New Pacific Metals Corp., Jason Nickel, Vice President Engineering, Phone: (604) 669-9397, Fax: (604) 669-9387, or New Pacific Investor Relations at 604-633-1368 or send inquires to info@newpacificmetals.com Website: www.newpacificmetals.com.
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