New Pacific Announces Filing of Ni 43-101 PEA Technical Report FOR the Silver SAND Project
NEWS RELEASE
NEW PACIFIC ANNOUNCES FILING OF NI 43-101 PEA
TECHNICAL REPORT FOR THE SILVER SAND PROJECT
VANCOUVER, BRITISH COLUMBIA – FEBRUARY 16, 2023 – New Pacific Metals Corp. (“New
Pacific” or the “Company”) (TSX: NUAG; NYSE American: NEWP) is pleased to announce filing
of an independent Preliminary Economic Assessment (“PEA”) technical report for its Silver Sand
project located in Potosi, Bolivia, with an effective date of November 30, 2022 (the “PEA Technical
Report”).
The PEA Technical Report was prepared in accordance with the Canadian Securities
Administrators' National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI
43-101”).
The Qualified Persons for the PEA Technical Report are Mr. Wayne Rogers P.Eng and Mr. Mo
Molavi P.Eng both Principal Mining Engineers with AMC Mining Consultants (Canada) Ltd., Mr.
Morton Shannon, P.Geo, General Manager & Principal Geologist with AMC Mining Consultants
(Canada) Ltd., Mr. Andy Holloway P.Eng, Process Director with Halyard Inc., and Mr. Leon
Botham P.Eng., Principal Engineer with NewFields Canada Mining & Environment ULC. This is
in addition to Ms. Dinara Nussipakynova, P.Geo., Principal Geologist with AMC Consultants
(Canada) Ltd. who estimated the Mineral Resources. All QPs have reviewed this news release
and approved its dissemination.
Alex Zhang, P.Geo., Vice President of Exploration, who is the designated QP for the Company
has also reviewed and approved this news release.
A copy of the PEA Technical Report is available under the Company's profile on SEDAR at
www.sedar.com, on Edgar at www.sec.gov, and on the Company's website at
www.newpacificmetals.com.
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, has released its inaugural
preliminary economic assessment (the “PEA”) results in January 2023. The PEA study shows a
post-tax NPV (5% discount) of US$726 million with an IRR of 39%, underpinned by a total silver
production of 171 million ounces over 14 years of mine life. At the recently discovered Carangas
Silver-Gold Project, a resource drilling program of more than 50,000 meters was completed in
2022. The third project, the Silverstrike Silver -Gold Project, had a 6,000 metre discovery drill
program in June 2022.
FOR FURTHER INFORMATION
Andrew Williams, President
New Pacific Metals Corp.
Phone: (604) 633‐1368 Ext. 236
U.S. & Canada toll-free: 1-877-631-0593
E-mail: [email protected]
For additional information and to receive company news by e-mail, please register using New
Pacific’s website at www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING RESULTS OF PRELIMINARY ECONOMIC ASSESSMENT
The PEA study results of Silver Sand Project are preliminary in nature and are intended to provide an initial assessment
of the project’s economic potential and development options. The PEA mine schedule and economic assessment
includes numerous assumptions and is based on both Indicated and Inferred mineral resources. Inferred resources are
considered too speculative geologically to have the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty that the project economic assessments described
herein will be achieved or that the PEA results wi ll be realized. The estimate of mineral resources may be materially
affected by geology, environmental, permitting, legal, title, socio -political, marketing or other relevant issues. Mineral
Resources are not Mineral Reserves and do not have demonstrated e conomic viability. Additional exploration will be
required to potentially upgrade the classification of the Inferred Mineral Resources to be considered in future advanced
studies. AMC Mining Consultants (Canada) Ltd. (mineral resource, mining, infrastructu re and financial analysis) was
contracted to conduct the PEA in cooperation with Halyard Inc. (metallurgy and processing), and NewFields Canada
Mining & Environment ULC (tailings, water and waste management). The Qualified Persons for the PEA are Mr. Wayne
Rogers P.Eng and Mr. Mo Molavi P.Eng both Principal Mining Engineers with AMC Mining Consultants (Canada) Ltd,
Mr. Andy Holloway P.Eng, Process Director with Halyard Inc., and Mr. Leon Botham P.Eng., Principal Engineer with
NewFields Canada Mining & Envir onment ULC. This is in addition to Ms. Dinara Nussipakynova, P.Geo., Principal
Geologist with AMC Consultants (Canada) Ltd. who estimated the Mineral Resources. All QPs have reviewed the
technical content of the January 9, 2023, news release for the Silver Sand deposit and have approved its dissemination.
The Silver Sand PEA is based on the updated Mineral Resource Estimate which was reported on November 28, 2022.
The effective date of the 2022 Mineral Resource Estimate for Silver Sand is 31 October 2022. T he cut-off applied for
reporting the pit-constrained Mineral Resources is 30 g/t silver. Assumptions made to derive a cut -off grade included
mining costs, processing costs and recoveries and were obtained from comparable industry situations. The model is
depleted for historical mining activities. Mineral Resources are constrained by optimized pit shells at a silver price of
US$22.50 per ounce, silver metallurgical recovery of 91%, silver payability of 99%, open pit mining cost of US$2.6/t,
processing cost o f US$16/t, G&A cost of US$2/t, and slope angle of 44 -47 degrees. Key assumptions used for pit
optimization for the PEA mining pit include silver price of US$22.50 per ounce, silver metallurgical recovery of 91%,
silver payability of 99%, open pit mining co st of US$2.6/t, incremental mining cost of US$0.04/t (per 10 m bench),
processing cost of US$16/t, tailing storage facility operating cost of US$0.7/t, G&A cost of US$2/t, royalty of 6.00%,
mining recovery of 92%, dilution of 8%, and cut-off grade of 30 g/t silver.
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 alway s, 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 inclusion of certain drill hole results in the Project’s inaugural
mineral resource estimate and the anticipated timing for the release of such mineral resource estimate.
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, o perations and political conditions, the regulatory environment in Bolivia and Canada; risks
associated with community relations and corporate social responsibility, and other factors described under the heading
“Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2022 and its other public filings.
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 fro m 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 financin g needed in the future,
environmental risks, operations and political conditions, the regulatory environment in Bolivia and Canada; risks
associated with community relations and corporate social responsibility, and other factors described under the heading
“Risk Factors” in the Company’s Annual Information Form for the year ended June 30, 2022 and its other public filings.
This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.
The forward-looking statements are necessarily based on a number of estimates, assumptions, beliefs, expectations
and opinions of management as of the date of this news release that, while considered reasonable by management,
are inherently subject to significant busin ess, 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 an d 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 man agement believes
are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking
statements. All forward -looking statements in this news release are qualified by these cautionary statements.
Accordingly, readers should not place undue reliance on such statements. Other than specifically required by applicable
laws, the Company is under no obligation and expressly disclaims any such obligation to update or alter the forward -
looking statements whether as a result of new information, future events or otherwise except as may be required by
law. These forward-looking statements are made as of the date of this news release.
CAUTIONARY NOTE TO US INVESTORS
This news release has been prepared in accordance w ith the requirements of the securities laws in effect in Canada
which differ from the requirements of United States securities laws. The technical and scientific information contained
herein has been prepared in accordance with NI 43-101, which differs from the standards adopted by the U.S. Securities
and Exchange Commission (the “SEC”). Accordingly, the technical and scientific information contained herein, including
any estimates of mineral reserves and mineral resources, may not be comparable to similar information disclosed by
U.S. companies subject to the disclosure requirements of the SEC.
Additional information relating to the Company, including the Company’s Annual Information Form, can be obtained
under the Company’s profile on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s
website at www.newpacificmetals.com.