NUAG.TO · 2020-04-14 12:00:00

New Pacific Metals Reports Inaugural Resource Estimate for the Silver Sand Deposit, Bolivia

Resource Estimates

NEWS REL

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Table 1: S

Resource

Measured

Indicated

Measured

Inferred

1 Notes:

 CIM

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category

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% Ag and Cut-o

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g/t Ag to 150

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mized pit shell

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Bolivia

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rst independe

d Silver Sand

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The model is

Mineral Resou

Ag (g/t)

159

130

137

112

e Mineral Resou

C Mining Consu

at a metal pr i

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e demonstrated

of mineraliz e

g from 25m

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al engineering

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(TSX‐V: NUAG

ent National

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ril 15, 2020 a

ws release.

pit mining co

depleted fo

rce as of 31 D

urces.

ultants (Canad

ice of US$18.7

and SW.

d economic via

ed material o

to plus 100m

tween 25m a

7Mt to 15Mt a

g s t u d i e s t o

or the

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via. The stu d

t 10:30 am E

onstraints an

or historical m

December 20

Ag (Moz)

43.05

112.81

155.86

35.55

a) Ltd.

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ability.

f similar ten o

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dy was

astern

nd are

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019.

very of

or and

t a r e a

ances.

anging

in any

future mine plans. The second area occurs at the southern end of the Silver Sand deposit and has

received less exploration to dat e. The Company has defined an additional tonnages from 10Mt to 20Mt

and grades ranging from 85 g/t Ag to 150 g/t Ag exploration tar get surrounding and below the current

defined resource. Initial drilling has intersected silver min eralization over similar widths and intervals as

the main deposit, however, drill density insufficient to catego rize the zone as Inferred at this time. The

potential quantity and grade fro m these two areas are conceptua l in nature, there has been insufficient

exploration to define a mineral resource, and it is uncertain i f further exploration w ill result in the target

being delineated as a mineral resource.

HIGHLIGHTS

 Silver Sand is one of the more significant new global primary silver discoveries in the last decade.

 Mineralization remains open to the North and South and at depth. N o f e e d e r z o n e s o r s o u r c e

intrusions have been discovered to date. The Company classifies the exploration potential as

good to excellent

 Detailed drilling indicates good mineral continuity to provide high confidence – lower technical

risk. Measured & Indicated tonnes of 35.39 Mt @ 137 g/t Ag for 155.86 Moz or ~70% of the

resource estimate.

 Mineralization starts at or near‐surface and is amenable to pot ential open‐pit mining extraction:

Approximately 70% of the resources are within 200 m of the conceptual open pit surface.

 Favourable initial metallurgical test work indicates laboratory ‐based recoveries of up to 97% for

the various oxide – transition and sulphide mineral domains (se e news release dated August 23,

2019 for details).

 Resource estimate excludes the recently discovered Snake Hole z one where drilling intercepted

72.4 m grading 279 g/t Ag (see news release dated January 13, 2 020 for details) and the final 37

infill drill holes released on February 19, 2020, which returne d high‐grade intervals from the core

of the deposit.

 Technical studies to facilitate the Preliminary Economic Assess ment commenced in Q1‐2020 and

are ongoing using independent subject matter experts.

 New Pacific remains well funded to advance the Silver Sand deposit with US$32 million in the

treasury.

RESOURCE ESTIMATE DETAILS

The resource estimate is based on a geological model that inclu ded assay results received by New Pacific

for the Silver Sand deposit to December 31, 2019. The estimate does not include any drill results from

t h e r e c e n t l y d i s c o v e r e d S n a k e H o l e p r o s p e c t , l oc a t e d 6 0 0 m t o th e e a s t o f t h e S i l v e r S an d r e s o u r c e . A

mineralization wireframe was constructed by New Pacific with LeapFrog© software. The domain was

reviewed by the independent Qualified Person (QP) and minor mod ifications made prior to estimation.

O n e o f t h e m o d i f i c a t i o n s w a s t o s e p a r a t e t h e o n e d o m a i n i n t o t wo s e p a r a t e d o m a i n s b a s e d o n t h e

orientation of modelled zones of continuous mineralization.

AMC completed an ordinary krigin g (OK) estimate on these domain s. Prior to estimation, drillhole data

were composited to 1.4 m and samples were capped for all variab les within each domain where required.

Silver values for both domains were capped at 1,500 g/t Ag.

I n a d d i t i o n t o t h e O K e s t i m a t e c o m p l e t e d i n s i d e t h e d o m a i n s , a background OK estimate was also

completed outside of mineralization wireframes.

T h e p a r e n t b l o c k s i z e w a s 5 m E x 5 m N x 5 m R L w i t h s u b ‐ b l oc k i n g employed. Sub‐blocking resulted in

minimum cell dimensions of 1.25 mE x 1.25 mN x 0.5 mRL.

The background mineralization (out side the mineralization domai ns) was estimated with a parent block

dimension of 10 mE x 10 mN x 10 mRL.

As mineralization is hosted in one rock type, the QP assigned d ensity measurements to the block model

based on the mean density. Density values of 2.54 tonnes/m3 and 2.50 tonnes/m3 were assigned to

blocks inside and outside of the mineralized domains respectively.

Mineral Resource classification was completed using an assessment of geological and mineralization

continuity, data quality and data density. Estimation passes we re used as an initial guide for classification.

Wireframes were then generated manually to build coherent volumes for the different classes.

Table 2 shows the search parameters and number of samples used for each pass. The highest confidence

level is Pass 1. The lowest confidence level is Pass 3.

Table 2: Minimum and maximum sample parameters

Pass X (m) Y (m) Z (m) Minimum no. of samples Maximum no. of

samples

Minimum no. of

drillholes

1 30 30 10 8 24 4

2 60 60 20 6 20 3

3 90 90 30 4 20 2

The block model was assigned Measured, Indicated, and Inferred Mineral Resource classifications.

QA/QC and DATA VERIFICATION

Qualified Person, Simeon Robinson, P.Geo., considers sample pre paration, analytical, and security

protocols employed by New Pacific to be acceptable. The QP has reviewed the Quality Assurance and

Quality Control (QA/QC) procedures used by New Pacific including certified reference materials, blank,

duplicate, and umpire data, and has made some recommendations. The QP does not consider these to

have a material impact on the Mineral Resource estimate and con siders the assay database to be

adequate for Mineral Resource estimation.

Dinara Nussipakynova, P.Geo., is the QP for Mineral Resources and data verification. Data verification

included a review of the assay database and collar locations. T he QP considers the assay database to be

acceptable for Mineral Resource estimation.

COVID‐19 ‐ FUTURE WORK

New Pacific’s commitment to the health and safety of our team and the communities in which we

operate is one of the core values of the Company. In response to the COVID‐19 pandemic and based on

guidance and directives from relevant public health authorities , the Company has elected to temporarily

suspend all field‐based operations in Bolivia. The Company’s Health & Safety Team has implemented

Company‐wide safety protocols such as 14‐day self‐isolation whe re necessary, travel restrictions, remote

working and enhanced hygiene controls. Both of the Company’s c orporate offices in Vancouver and La

Paz are closed with all staff h aving implemented work‐from‐home protocols. New Pacific continues to

monitor the situation and will return to normal operations when i t i s d e e m e d s a f e t o d o s o b y t h e

respective public health authorities.

In the interim, the Company is actively completing detailed geo logical (structural and

geochemical/geometallurgical) studies on the Silver Sand Deposi t to support future advanced technical

studies. Advanced discussions with multiple Subject Matter Experts continue in preparation for when

field studies are permitted to restart.

In addition, members of the Exploration Team are compiling and interpreting results from recently

completed detailed mapping and sampling work along with target identification/generation at the Silver

Sand North Block including for the high priority El Bronce and Jisas targets.

W i t h r e g a r d s t o i t s r e g i o n a l e x p l o r a t i o n p r o g r a m s , i m p l e m e n t a t io n o f t h e S i l v e r s t r i k e P r o j e c t h a s b e e n

completed in addition to first‐pass detailed surface mapping and sampling programs.

QUALITY ASSURANCE AND QUALITY CONTROL

HQ‐size drill core samples from altered and mineralized interva ls are split into halves by diamond saw,

with an average sample length of between one to one and a half metres at the Company’s core

processing facility located in Betanzos, a small town located 20 kilometres from the project site. Half

core samples are stored in a secure storage facility in Betanzo s for future reference, with the other half

shipped in securely sealed bags to ALS Global in Oruro, Bolivia for preparation, and ALS Global in Lima,

Peru for geochemical analysis. All samples are first analyzed by a multi‐element ICP package (ALS code

ME‐MS41) with ore grade over limits for silver, lead and zinc further analyzed using ALS code OG46.

Further silver over limits are analyzed by gravimetric analysis (ALS code of GRA21).

A standard quality assurance and quality control (“QAQC”) proto col is employed to monitor the quality of

sample preparation and analysis. Standards of certified refere nce materials and blanks are inserted into

the normal core sample sequences prior to shipping to the lab a t a ratio of 20:1 (i.e., every 20 samples

contain at least one standard sample and one blank sample). Duplicate samples of coarse rejects at a

ratio of 20:1 are sent to a second internationally accredited l ab for check analysis. The assay results of

QAQC samples of standards and blanks do not show any significant bias of analysis or contamination

during sample preparation.

QUALIFIED PERSONS

The Mineral Resource estimate and data verification was completed by AMC. Dinara Nussipakynova,

P.Geo., Principal Geologist with AMC is the Qualified Person fo r the purpose of NI 43‐101 for all technical

information pertaining to the current Mineral Resource. New Pacific’s quality assurance and quality

control program was reviewed by AMC. Simeon Robinson, P.Geo., Senior Geologist with AMC is the

Qualified Person for the purpose of NI 43‐101 for all technical information pertaining to the current

Mineral Resource. The Qualified Persons under NI 43‐101 have reviewed the technical content of this

news release for the Silver Sand deposit and have approved its dissemination.

Further details supporting the geological model, estimation pro cedure and metallurgical testwork will be

available in a NI 43‐101 technical report. The technical report will be posted under the Company’s profile

at www.sedar.com within 45 days from the date of this news release.

WEBCAST DETAILS

The Company will host a conferen ce call and presentation webcas t at 10:30 am Eastern Time / 7:30 am

Pacific Time on April 15, 2020 to provide further information. Participants are advised to dial in five

minutes prior to the scheduled start time of the call. A presentation will be made available on the

Company’s website prior to the webcast. Webcast details:

Date: April 15, 2020 at 10:30 am Eastern Time / 7:30 am Pacific Time

Toll‐free: Canada/USA 1‐800‐319‐4610

Toronto 1‐416‐915‐3239

International 1‐604‐638‐5340

Webcast: http://www.gowebcasting.com/10584

About New Pacific

New Pacific is a Canadian exploration and development company w hich owns the Silver Sand Project in

Potosí Department, Bolivia and the Tagish Lake gold project in Yukon, Canada.

For further information, contact:

New Pacific Metals Corp.

Gordon Neal

President

Phone: (604) 633‐1368

Fax: (604) 669‐9387

[email protected]

www.newpacificmetals.com

Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statements Regarding Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferr ed resources as a relative measure of the level of

confidence in the resource estimate. Readers are cautioned that m i n e r a l r e s o u r c e s a r e n o t e c o n o m i c m i n e r a l

reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The

estimate of mineral resources may be materially affected by geo logy, environmental, permi tting, legal, title, socio‐

political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the

Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition Standards on Mineral Resources and

Mineral Reserves" incorporated by reference into NI 43‐101. Under Canadian rules, estimates of inferred mineral

resources may not form the basis of feasibility or pre‐feasibil ity studies or economic studies except for Preliminary

Assessment as defined under NI 43‐101. Readers are cautioned not to assume that further work on the stated

resources will lead to mineral reserves that can be mined economically.

CAUTIONARY NOTE REGARDING FORWARD‐LOOKING INFORMATION

Certain of the statements and information in this news release constitute “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”, “inten ds”, “strategies”, “targets”, “goals”, “forecasts”,

“objectives”, “budgets”, “schedules”, “potential” or variations t h e r e o f o r s t a t i n g t h a t c e r t a i n a c t i o n s , e v e n t s o r

results “may”, “could”, “would”, “might” or “will” be taken, oc cur 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.

Forward‐looking statements or information are subject to a vari ety of known and unknown risks, uncertainties and

other factors that could cause actual events or results to diff e r f r o m t h o s e r e f l e c t e d i n t h e f o r w a r d ‐ l o o k i n g

statements or information, including, without limitation, risks relating to: fluctuating equity prices, bond prices,

commodity prices; calculation of resources, reserves and mineralization, foreign exchange risks, interest rate risk,

foreign investment risk; loss of key personnel; conflicts of interest; dependence on management and others.

T h i s l i s t i s n o t e x h a u s t i v e o f t h e f a c t o r s t h a t m a y a f f e c t a n y of the Company’s forward‐looking statements or

information. Forward‐looking statements or information are stat ements about the future and are inherently

uncertain, and actual achievements of the Company or other futu re events or conditions may differ materially from

those reflected in the forward‐looking statements or informatio n due to a variety of risks, uncertainties and other

factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year

ended June 30, 2019 under the heading “Risk Factors”. Although the Company has attempted to identify important

factors that could cause actual results to differ materially, t here may be other factors that cause results not to be as

anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward‐

looking statements or information.

The Company’s forward‐looking st atements or information are bas ed on the assumptions, beliefs, expectations and

opinions of management as of the date of this news release, and other than as required by applicable securities laws,

the Company does not assume any obligation to update forward‐looking statements or information if circumstances

or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events

affecting such statements or information. For the reasons set f orth above, investors should not place undue reliance

on forward‐looking statements or information.

CAUTIONARY NOTE TO US INVESTORS

This news release has been prepared in accordance with the requirements of NI 43‐101 and the Canadian Institute of

Mining, Metallurgy and Petroleum Definition Standards, which di ffer from the requirements of U.S. Securities laws.

NI 43‐101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public

disclosure an issuer makes of scientific and technical information concerning mineral projects.

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