New Pacific Metals Corp. is pleased to announce that the Company has commenced an initial discovery drill program at the Carangas Silver Project, Oruro Department, Bolivia (the “Carangas Project” or the “Project”).
The Company has identified near-surface bulk-tonnage and high-grade vein-hosted silver-rich polymetallic targets centred on and adjacent to the historically exploited West and East Dome areas. For additional details, please refer to the Company’s news releases dated April 12, 2021 and June 14, 2021.
Phase I of the 5,000-metre drill program will be comprised of approximately 20 drillholes for initial 3,000 metres to be completed over an eight-week period. Contingent on the success of initial results, follow-up drilling will complete the budgeted 5,000-metre program.
The Carangas exploration camp and support facilities are now fully operational and the Project’s Bolivian drill contractor has commenced drilling with a single diamond drill rig. Drill core samples will be sent to ALS Global in Oruro, Bolivia for preparation and to ALS Global in Lima, Peru for geochemical analysis. The Company will announce results as they become available.
Dr. Mark Cruise, CEO of New Pacific, said “We are excited by the potential offered at the Carangas Project located on La Ruta de la Plata (the Silver Road), which hosts outcropping silver mineralization and historically exploited high-grade silver veins. We look forward to sharing the results as they become available.”
CARANGAS PROJECT JOINT VENTURE
The Carangas Project is comprised of two exploration licenses covering an area of 6.25 km2 and owned 100% by the Company’s Bolivian joint venture partner. New Pacific has entered into a mining association agreement with the Bolivian partner (the “Joint Venture”), under which New Pacific is required to cover 100% of the future expenditures on exploration, mining, development, and production activities in return for 98% economic interest in the Project.
The Carangas Project is located within 50 km of the Bolivian border with Chile, approximately 180 km southwest of the city of Oruro. In line with many South American countries, Bolivia does not permit foreign entities to own property within 50 km of international borders (the “Restricted Area”). Property owners in the Restricted Area are, however, permitted to enter into mining association agreements, or joint ventures, with third parties, including foreign entities, for the development of mining activities under Bolivian Law No. 535 on Mining and Metallurgy (the “Mining Law”).
While the Company believes the Joint Venture is legally compliant with the Restricted Area requirements and the Mining Law, there is no assurance that the Company’s Bolivian partner will be successful in obtaining the approval of the Jurisdictional Mining Administrative Authority in Bolivia (Autoridad Jurisdiccional Administrativa Minera or AJAM) to convert the two exploration licenses into an Administrative Mining Contract.
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). Certified reference materials, blank samples and field duplicate samples are inserted to normal drill core sample sequences prior to delivery to laboratory for preparation and analysis.
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:
Stacey Pavlova, CFA
VP, Investor Relations and Corporate Communications
New Pacific Metals Corp.
Phone: (604) 633-1368
U.S. & Canada toll-free: 1-877-631-0593
To receive company news by e-mail, please register using New Pacific’s website at www.newpacificmetals.com.