New Pacific Acquires the Carangas Silver Project, Bolivia
1
NEWS RELEASE
Trading Symbol: TSX: NUAG
OTCQX: NUPMF
NEW PACIFIC ACQUIRES THE CARANGAS SILVER PROJECT,
BOLIVIA
VANCOUVER, BRITISH COLUMBIA – APRIL 12, 2021: New Pacific Metals Corp. (“New Pacific”
or the “Company”) (TSX:NUAG; OTCQX: NUPMF) is pleased to announce that the Company has
signed an agreement with a private Bolivian company (the “Vendor”), to acquire a 98% interest in
the Carangas silver project (the “Carangas Project” or the “Project”), located in the Oruro
Department, Bolivia. New Pacific will cover 100% of the future expenditures on exploration, mining,
development, and production activities. The agreement has a term of 30 years and is renewable
for an additional 15 years. An initial discovery diamond drill program is planned to commence
upon receipt of the related permit from the local authorities.
CARANGAS PROJECT HIGHLIGHTS:
▪ Former silver mining district, located on La Ruta de la Plata (the Silver Road), containing
broad zones of outcropping silver mineralization and historically exploited high -grade
silver veins;
▪ Highlights of due diligence sampling include 30 meters (“m”) at an average grade of 101
grams per tonne (“g/t”) silver, 15 m at an average grade of 252 g/t silver, and 8 m at an
average grade of 512 g/t silver;
▪ Near surface bulk tonnage and high-grade vein targets identified;
▪ Leverages New Pacific’s exploration and project development expertise and cements the
Company’s first mover status in an under-explored silver district; and
▪ 5,000-meter discovery diamond drill program planned for 2021.
Dr. Mark Cruise, CEO of New Pacific, stated “The addition of the Carangas Project fits well with
the Company’s strategy to become a premier Latin American focused precious metal explorer
and developer. Initial field work, including target generation, positions us well for a successful drill
program and compliments our planned exploration programs at our Silverstrike Project, in addition
2
to the advanced exploration and development studies currently in progress on our flagship Silver
Sand project.”
CARANGAS PROJECT OVERVIEW
The Carangas Project consists of two exploration concessions totaling 6.25 square kilomet ers
(“km”), located approximately 180 km southwest of the city of Oruro, in southwest Bolivia (Figure
1). Situated in the Bolivian altiplano at an average elevation of 3,800 m, ac cess to the Project is
via paved Highway 12 and a municipally maintained 30 km gravel road.
Geologically, the Project lies within the South American Epithermal Belt which hosts large
precious metal deposits and operations in neighboring countries but re mains under-explored in
Bolivia. The Project is comprised of a Tertiary volcanic complex approximately 1.6 km long in
east-west direction and 1.4 km wide in north -south direction, which stands 150 m above the
surrounding fluvial plains. An ephemeral stream divides the volcanic complex into two separate
domes known as West and East Domes, respectively (Figure 2).
Figure 1: Location of the Carangas Project in the Department of Oruro, Bolivia
3
Figure 2: Satellite Imagery of the Carangas Project, Bolivia, including West and East Domes
GEOLOGY AND MINERALIZATION
West Dome consists of felsic to dacitic volcanic facies (lithic and/or ash fall tuffs ) cross-cut by
multi-phase mineralized hydrothermal and/or structural breccia bodies and rhyo-dacitic dykes.
East Dome consists of lithic tuffs cut by faults and associated minor breccia zones.
The Domes are dissected by a series of laterally extensive , steeply dipping to sub -vertical,
extensional fault and fracture zones of half meter to more than one meter wide, predominantly
striking east-west, west-northwest and northwest. Silver-rich polymetallic mineralization occurs
as millimeter to multi-meter-wide veins (which were historically exploited), veinlets and
disseminations in the matrix of the breccias and/or associated volcanic host units.
The area between the West Dome and East Dome is a flat valley, approximately 200 m wide,
filled by fluvial sediments (Figure 2).
4
HISTORY OF MINING AND EXPLORATION
Mining is thought to have commenced in the sixteenth century and continued intermittently until
the early twentieth century. The Project, and in particular West Dome, contains extensive surface
workings in addition to underground mine adits, shafts and ass ociated processing and smelting
infrastructure. There is no active mining at the present time.
Modern mineral exploration, by local mining interests, occurred in the early 1980’s. The first drill
program comprising of nine reverse circulation holes for a total of 1,000 m was carried out in 1995.
Written records for the program report a drill intercept (1) of 116 m at an average grade of 95 g/t
silver (from 18 m to 134 m downhole), including 16 m at 325 g/t silver (from 66 m to 82 m
downhole), including a 4-m mined-out interval in hole RC-05.
A second drill program was conducted in 2000 , also by a local Bolivian group, with six diamond
drill holes for a total of 914 m completed. The results are in line with prior exploration and include
a drill intercept (1) of 76 m at an average grade of 90 g/t silver, 0.96% lead, and 0.12% zinc (from
0 m to 76 m downhole), including 8 m at 266 g/t silver, 1.02% lead, and 0.06% zinc (from 26m to
34 m downhole) in hole DDH-01. No exploration activities were recorded after the year 2000.
Note:
(1) The drill results are historic in nature and should not be relied upon. The historical drill intercepts were not
verified by the Company as the drill cores and sample pulp/rejects are not available and there are other
inherent limitations and uncertainties. The drill intercepts are not considered as true width of mineralization
due to little knowledge of spatial morphology of mineralization at this early stage.
NEW PACIFIC DUE DILLIGENCE
New Pacific conducted reconnaissance scale geological, structural and alteration mapping and
geochemical sampling of the Project including the collection of representative characterization
(“grab”) (1) and continuous channel chip samples (2) from surface outcropping mineralization,
historical mine dumps and, where safely accessible, underground workings.
A total of 282 characterization samples and 729 continuous channel rock chip samples were
collected from surface outcrop, underground mining faces, and open pit walls. The grab samples
returned an average silver grade of 229 g/t (range of 1 g/t to 1,950 g/t); an average lead grade of
1.02% (range of 0 % to 7.33%), and an average zinc grade of 0.16% (range of 0% to 3.28%),
reflecting the presence of widespread geochemically anomalous mineralization . In general,
continuous chip samples intercepted multiple wide mineralized zones , where outcrop or
underground workings are accessible. Table 1 contains a summary of selected composite
intervals of continuous chip samples.
5
Table 1: Selected Composite Intervals of Continuous Chip Samples from the Carangas Project,
Bolivia.
Target Location From (m) To (m) Interval (m) Ag (g/t) Pb (%) Zn (%) Note
West Dome
Chip_1 0.0 30.0 30.0 101 0.77 0.03 composite
Chip_2 0.0 6.6 6.6 280 0.79 0.01 composite
Chip_3 0.0 15.3 15.3 252 1.32 0.02 composite
Chip_4 0.0 8.0 8.0 512 1.66 0.06 composite
Chip_5 2.0 80.0 78.0 65 0.98 0.21 composite
East Dome
Chip_6 14.0 68.0 54.0 52 0.30 0.14 composite
Chip_7 18.0 56.0 38.0 98 0.66 0.21 composite
Chip_8 0.0 2.0 2.0 1,100 0.62 0.25 single sample
Chip_9 0.0 1.0 1.0 1,755 0.93 0.59 single sample
At East Dome (F igure 3), mineralization occurs as fracture and fault zones cutting the lithic tuff
host unit. Continuous rock chip sampling returned broad mineralized zones, including up to 54.0
m at 52 g/t silver, 0.30% lead and 0.14% zinc, and 38.0 m at 98 g/t silver, 0.66% lead and 0.21%
zinc. Sampling also confirmed the presence of numerous high grade narrow zones of silver-rich
mineralization including up to 2.0 m at 1,100 g/t silver, 0.62% lead and 0.25% zinc, and 1.0 m at
1,755 g/t silver, 0.93% lead and 0.59% zinc.
At West Dome (Figure 4), channel chip sampling confirmed the presence of multiple mineralized
zones including up to 30.0 m at 101 g/t silver and 0.77% lead, 6.6 m at 280 g/t silver and 0.79%
lead, and 15.0 m at 252 g/t silver and 1.32% lead. Encouraging intervals of continuous rock chip
sampling from underground include 8.0 m at 512 g/t silver and 1.66% lead, and 78.0 m at 65 g/t
silver, 0.98% lead and 0.21% zinc. All channel chip samples were collected from mineralized
hydrothermal breccias, which are cut by mineralized fractures and faults.
Notes:
(1) Grab samples are selective in nature and are not representative of the average in-situ mineralization.
(2) Rock chip samples were taken across mineralized structures from surface outcrops and underground faces.
Sample interval is close to true width of mineralization.
6
Figure 3: Geology Map of East Dome, Carangas Project, Bolivia, including Sample Results
7
Figure 4: Geology Map of West Dome, Carangas Project, Bolivia, including Sample Results
NEAR-TERM STRATEGY AND NEXT STEPS
Based on the historical mining activities evidenced by widespread mine dumps and numerous
surface and underground mining workings, historical exploration results, and the results of the
Company’s initial exploration programs, the Company believes that the Carangas Project has the
potential to host near surface bulk tonnage mineralization and high -grade mineralization ,
controlled by narrow structures, at relatively shallow depths.
8
Permitting is in progress and the Company plans an initial discovery diamond drill program of up
to 5,000 m in 2021. Upon completion of the program, New Pacific will provide an update on the
results. Contingent on these drill results, additional drilling may be conducted to expand upon and
define any new discoveries.
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, were 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).
The assay results of the grab samples are used for reconnaissance purpose and, therefore, no
certified reference materials and blank materials were inserted to the normal sample sequence in
the field. Internal Quality Assurance/Quality Control (“ QAQC”) results from ALS Global did not
show any significant bias of analysis or contamination during sample preparation. For rock chip
samples, certified reference materials, blank samples and field duplicate samples were inserted
to normal sample sequences prior to delivery to the laboratory for preparation and analysis. The
results of QAQC samples did not show any significant bias of analysis or contamination during
sample preparation.
QUALIFIED PERSON
The scientific and t echnical information contained in this news r elease 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 ha s 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, which owns the flagship Silver
Sand Project, located in the Potos i Department of Bolivia, the Silverstrike Project, in the La Paz
Department of Bolivia and the Carangas Project in the Oruro Department of Bolivia. The Company
is focused on progressing the development of its flagship project, while growing Mineral
Resources through the exploration and acquisition of properties in the Americas.
For further information, please contact:
Stacey Pavlova, CFA