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
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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.