New Pacific Intersects 183 Meters Grading 92 Grams Per Tonne Silver in Step-out Drilling at the Carangas Project, Bolivia
NEWS RELEASE
New Pacific Intersects 183 Meters Grading 92 Grams Per Tonne Silver
in Step-out Drilling at the Carangas Project, Bolivia
VANCOUVER, BRITISH COLUMBIA – JULY 06, 2023 – New Pacific Metals Corp. (“New Pacific”
or the “Company”) (TSX: NUAG; NYSE American: NEWP), together with its local Bolivian partner,
reports assay results of the final 18 drill holes from its 2023 Q1 drill program at its Carangas
Silver-Gold Project, Oruro Department, Bolivia (the “Carangas Project” or the “Project”). Assay
results of all 39 holes totaling 17,623 meters have now been received and released. Detailed
results and drill hole specifications are listed in Tables 1 and 2, and Figure 1.
HIGHLIGHTS OF DRILL RESULTS (ALL INTERVALS ARE CORE LENGTHS)
Hole DCAr0184 intersected 92 g/t Ag, 0.25% Pb and 0.46% Zn over a 183.2 m interval (106.8 m
to 290 m), including 272 g/t Ag, 0.50% Pb and 0.89% Zn over a 14.5 m interval (123.5 m to 138
m) and 173 g/t Ag, 0.33% Pb and 0.43% Zn over a 18.65 m interval (149.45 m to 168.1 m). Hole
DCAr0184 was a fifty meter step-out from hole DCAr0171 which intercepted 123 g/t Ag over a
205.6 m interval (see News Release of May 30, 2023). These two holes were drilled into areas
without any surface showings or old diggings, yielding a new target area for expansion drilling.
Hole DCAr0175 intersected 55 g/t Ag, 0.26% Pb and 0.47% Zn over a 298.04 m interval (5.5 m
to 303.54 m), including 235 g/t Ag, 0.65% Pb and 1.30% Zn over a 41.66 m interval (94.6 m to
136.26 m).
Hole DCAr0182 intersected 72 g/t Ag, 0.30% Pb and 0.59% Zn over a 182 m interval (66.5 m to
248.5 m), including 132 g/t Ag, 0.49% Pb and 0.93% Zn over a 64.5 m interval (116.5 m to 181
m).
Hole DCAr0173 intersected 51 g/t Ag, 0.57% Pb and 1.37% Zn over a 72.7 m interval (29 m to
101.7 m).
Hole DCAr0189 intersected 90 g/t Ag, 1.14% Pb and 1.22% Zn over a 45.81 m interval (42.26 m
to 88.07 m), 71 g/t Ag, 0.32% Pb and 0.75% Zn over a 25.66 m interval (105.24 m to 130.9 m)
and 0.95 g/t Au and 9 g/t Ag over a 184.5 m interval (532 m to 716.5 m), including 11.21 g/t Au,
94 g/t Ag and 0.17% Cu over a 7.5 m interval (651.5 m to 659 m). This hole shows broad silver
mineralization stacked above broad gold mineralization near the north end of the Central Valley.
Drill results from this hole indicate that deep gold mineralization remains open to the northeast in
the Central Valley.
The assay results of these final holes continue to demonstrate a significant shallow horizon of
silver mineralization that has been extended to the southwest of the previously drilled area. Drill
results from the step-out hole to the northeast in the Central Valley demonstrate a broad shallow
silver zone stacked over broad gold mineralization, and gold remains open to the northeast.
PROGRESS OF INAUGURAL MINERAL RESOURCE ESTIMATE
The Company is working closely with RPMGlobal to complete a technical report on the mineral
resource estimate of the Carangas Project in accordance with the National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”). The technical work is progressing well
and on schedule with the outcome of the mineral resource estimate expected by August 2023.
Figure 1 Simplified geology and drill plan map of the Carangas Project
Table 1 Summary of drill intercepts
Hole_ID Depth_from Depth_to Interval_m Ag_g/t Au_g/t Pb_% Zn_% Cu_% AgEq_g/t
DCAr0172 19.48 42.10 22.62 17 0.27 0.18 0.01 32
81.13 141.87 60.74 36 0.33 0.84 74
150.87 153.43 2.56 30 0.29 0.64 0.17 77
213.05 228.50 15.45 20 0.12 0.48 1.09 0.01 80
245.00 252.00 7.00 26 0.25 1.07 1.31 0.03 122
264.00 387.25 123.25 4 0.15 0.36 0.78 0.01 53
401.70 420.70 19.00 11 0.46 0.44 0.68 0.06 85
492.63 709.20 216.57 5 0.12 0.37 1.05 0.01 61
DCAr0173 29.00 101.70 72.70 51 0.57 1.37 0.02 115
112.64 207.18 94.54 10 0.34 0.90 0.03 53
DCAr0174 206.30 210.45 4.15 7 0.66 1.19 0.01 67
217.55 233.00 15.45 8 0.41 1.00 0.02 55
247.30 318.00 70.70 4 0.37 0.90 46
329.36 355.32 25.96 7 0.24 0.95 0.04 50
DCAr0175 5.50 303.54 298.04 55 0.26 0.47 0.01 79
incl. 94.60 136.26 41.66 235 0.65 1.30 0.02 300
DCAr0176 10.00 252.00 242.00 14 0.26 0.75 0.03 49
DCAr0177 6.00 70.60 64.60 24 0.39 0.78 0.01 62
86.67 162.40 75.73 13 0.33 1.28 0.02 67
196.10 213.60 17.50 15 0.36 0.70 0.01 55
DCAr0178 235.23 236.43 1.20 54 0.17 0.34 70
328.49 329.70 1.21 29 0.24 0.42 0.06 56
DCAr0179 13.90 23.35 9.45 39 0.18 0.18 50
30.45 35.62 5.17 53 0.04 0.87 83
95.44 132.13 36.69 25 0.17 0.51 47
152.00 229.75 77.75 16 0.02 0.29 0.51 0.01 43
423.70 425.10 1.40 11 1.93 0.01 0.21 155
510.70 523.70 13.00 3 1.41 0.03 0.16 0.02 109
530.80 537.20 6.40 14 0.81 0.09 0.13 0.15 79
592.30 606.20 13.90 26 0.47 0.06 0.03 0.15 62
669.20 802.50 133.30 5 0.77 0.08 0.22 0.06 69
DCAr0180 113.62 118.90 5.28 59 0.08 0.10 0.01 66
130.48 131.70 1.22 83 0.08 0.14 90
170.38 212.25 41.87 26 0.20 0.40 0.01 46
222.20 247.73 25.53 20 0.43 0.83 0.01 61
266.85 270.90 4.05 31 0.19 0.45 0.03 54
344.17 346.80 2.63 19 0.70 1.05 0.03 77
DCAr0181 1.54 119.00 117.46 31 0.34 0.59 0.01 61
incl. 12.00 36.80 24.80 83 0.88 1.13 0.02 148
142.42 151.00 8.58 30 0.12 0.34 45
180.90 185.40 4.50 21 0.23 0.61 0.01 49
201.50 206.00 4.50 62 0.11 0.29 0.01 77
217.80 220.50 2.70 65 0.44 1.31 0.01 123
DCA0182 15.71 60.50 44.79 30 0.05 0.12 0.01 36
66.50 248.50 182.00 72 0.30 0.59 0.01 101
incl. 116.50 181.00 64.50 132 0.49 0.93 0.01 179
254.50 278.75 24.25 10 0.50 0.88 0.01 55
DCAr0183 259.25 276.60 17.35 36 0.15 0.40 0.01 54
300.25 304.55 4.30 20 0.07 0.03 0.08 31
316.40 317.57 1.17 401 0.30 0.61 0.03 433
DCAr0184 86.00 87.30 1.30 332 0.16 0.29 0.01 347
96.30 99.30 3.00 95 0.10 0.20 0.01 104
106.80 290.00 183.20 92 0.25 0.46 0.01 117
incl. 123.50 138.00 14.50 272 0.50 0.89 0.03 320
incl. 149.45 168.10 18.65 173 0.33 0.43 0.02 198
301.20 311.50 10.30 40 0.30 0.54 0.01 68
332.50 338.30 5.80 27 0.32 0.89 0.08 75
DCAr0185 115.88 116.94 1.06 32 0.16 0.43 0.01 51
154.85 156.35 1.50 57 0.05 0.10 0.01 63
186.25 187.75 1.50 56 0.08 0.16 0.00 64
212.38 228.36 15.98 51 0.11 0.24 0.01 64
237.00 238.30 1.30 187 0.38 0.67 0.06 226
245.40 249.60 4.20 40 0.02 0.07 0.06 49
275.20 276.70 1.50 33 0.07 0.13 0.01 41
327.30 328.60 1.30 41 0.33 0.47 0.09 76
DCAr0186 0.00 17.00 17.00 36 0.34 0.03 0.01 48
29.00 311.80 282.80 34 0.47 0.99 0.01 83
355.38 360.50 5.12 13 0.71 1.76 0.01 94
DCAr0187 184.55 186.03 1.48 84 0.28 0.55 0.01 111
202.30 205.20 2.90 26 0.02 0.03 0.09 36
257.73 259.12 1.39 49 0.04 0.03 0.03 54
323.40 324.70 1.30 15 0.43 0.95 0.01 61
DCAr0188 35.00 48.23 13.23 45 0.12 0.21 0.00 56
61.90 69.10 7.20 32 0.10 0.23 0.00 43
130.80 310.15 179.35 24 0.24 0.49 0.01 49
DCAr0189 42.26 88.07 45.81 90 1.14 1.22 0.03 167
105.24 130.90 25.66 71 0.32 0.75 0.05 110
153.20 156.00 2.80 66 0.12 0.09 73
165.00 169.80 4.80 48 0.29 0.28 0.02 68
176.92 178.07 1.15 112 0.27 0.19 126
202.90 212.39 9.49 205 0.25 0.33 0.47 248
459.30 460.66 1.36 4 3.36 0.03 0.14 0.06 254
532.00 716.50 184.50 9 0.95 0.03 0.04 0.02 81
incl. 651.50 659.00 7.50 94 11.21 0.17 910
755.50 797.50 42.00 4 0.95 0.10 0.02 76
874.60 876.10 1.50 1 1.65 0.08 0.05 122
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 Ag, US$0.95/lb for Pb, US$1.10/lb for Zn, US$3.40/lb for Cu, and US$1,600/oz for
Au. The formula used for the AgEq calculation is as follows: AgEq = Ag 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.
4. A cut-off of 20 g/t AgEq is applied to calculate the length- weighted intercept. At times, samples lower than 20 g/t AgEq may be
included in the calculation of consolidation of mineralized intercepts.
Table 2 Summary of drill hole details
Hole_id Easting Northing Altitude Depth_m Azimuth (°) Dip (°) Target
DCAr0172 539349.02 7905238.86 3929.60 850.00 253 ‐ 66 ED
DCAr0173 538924.50 7905230.73 3905.50 302.00 20 ‐ 45 WD
DCAr0174 539186.31 7905072.00 3906.83 401.00 20 ‐ 62 CV
DCAr0175 538687.16 7905137.40 3906.07 452.00 46 ‐ 57 SW
DCAr0176 538899.47 7905162.68 3905.34 252.00 20 ‐ 55 SD
DCAr0177 539389.94 7905338.18 3928.27 801.00 244 ‐ 72 ED
DCAr0178 538487.32 7905011.21 3906.36 401.00 45 ‐ 50 SW
DCAr0179 539463.00 7905396.00 3945.00 851.00 255 ‐ 76 ED
DCAr0180 538604.00 7905129.00 3900.00 401.00 44 ‐ 57 SW
DCAr0181 538906.00 7905327.00 3923.00 251.00 20 ‐ 45 WD
DCAr0182 538714.00 7905100.00 3906.00 401.00 48 ‐ 63 SW
DCAr0183 538414.00 7905294.00 3906.00 401.00 50 ‐ 50 SW
DCAr0184 538600.00 7905062.00 3906.00 401.00 47 ‐ 55 SW
DCAr0185 538532.00 7905197.00 3906.00 401.00 45 ‐ 50 SW
DCAr0186 538838.00 7905141.00 3922.00 431.00 20 ‐ 45 SD
DCAr0187 538599.00 7905002.00 3905.00 431.00 48 ‐ 68 SW
DCAr0188 538852.00 7905033.00 3911.00 450.00 20 ‐ 52 SD
DCAr0189 539302.00 7905627.00 3908.00 930.00 203 ‐ 73 CV
Note: 1. Drill collar coordinate system is WGS1984 UTM Zone 19S
2. Coordinate of drill collar is picked with Real Time Kinematics (RTK) GPS
3. CV ‐ Central Valley; WD ‐ West Dome; ED ‐ East Dome; SW ‐ Southwest step‐out
QUALITY ASSURANCE AND QUALITY CONTROL
The Company maintains tight sample security and quality assurance and quality control for all
aspects of its exploration program at the Ca rangas Project. Drill core is logged, photographed
and split on-site by the company and stored under secure conditions until being shipped in
security-sealed bags by New Pacific staff in Company vehicles, directly from the project 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 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
first by ICP and then by fire assay with AAS fini sh (ALS code of Au-AA25). Certified reference
materials, various types of blank samples and duplicate samples are inserted into normal drill
core sample sequences prior to delivery to the 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 (the “Qualified Person”), who is
a qualified person for the purposes of NI 43-101. The Qualified Person has verified the information
disclosed herein using standard verification processes, including the sampling, preparation,
security and analytical procedures underlying such information, and is not aware of any significant
risks and uncertainties or any limitations on the verification process 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, 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 80,000 meters in 189 holes was
completed between 2021 to 2023. The third project, the Silverstrike Silver-Gold Project, had a
6,000 meter discovery drill program in June 2022.
For further information, please contact:
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 the 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 will 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 economic
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, infrastructure 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 (as defined in NI 43‐101) 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 & 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 such qualified persons have reviewed the technical
content of the January 9, 2023, news release for the Silver Sand Project deposit and have approved its dissemination. The PEA is
based on the updated mineral resource estimate in respect of the Silver Sand Project, which was reported on November 28, 2022
and has an effective date October 31, 2022. The 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 of 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 cost 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
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 timing for the
commencement and outcome of the inaugural mineral resource estimation for the Project; anticipated timing for the mapping
program for the Project; anticipated exploration, drilling, development, construction, and other activities or achievements of the
Company; 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 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 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 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. 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.