VANCOUVER, BC, July 27, 2021 /CNW/ - New Pacific Metals Corp.
("New Pacific" or the "Company") (TSX: NUAG) (NYSE-A: NEWP) is
pleased to announce it has commenced a 38,000 metre ("m") diamond
drill program at its flagship Silver Sand Project ("Silver Sand" or
the "Project"), Potosí Department, Bolivia.
HIGHLIGHTS:
- 38,000 m drill program in
progress;
- ~80% of the drill program is focused on expanding the existing
Mineral Resources and on discovering additional resources; the
deposit is open along strike and at depth;
- 5,000 m of the drill program
dedicated to testing for feeder zones for the large Silver Sand
deposit;
- District exploration drilling to target the North Block and
Snake Hole Zone;
- Mineral continuity and geotechnical drilling to support the
Silver Sand Preliminary Economic Assessment ("PEA"); and
- Environmental baseline, socioeconomic and social responsibility
studies underway.
SILVER SAND 2021 DRILL PROGRAM
Two diamond drill rigs are currently active on the Project and
two additional drill rigs are scheduled to arrive at the Project
over the coming days. It is expected that four drill rigs will be
fully operational in August 2021.
The objectives of the 38,000 m
drill program are to expand the existing Silver Sand resource,
which remains open along strike and at depth, and to complete
geotechnical drilling to support the PEA study. The drill program
is comprised of three main components:
- Resource expansion: ~23,500 m planned for expansion of the
existing Mineral Resource and to complete initial dill testing for
potential feeder zones;
- Exploration: ~6,500 m planned for exploration at the newly
discovered Snake Hole Zone and the North Block properties; and
- Mineral continuity and geotechnical drilling: ~8,000 m planned
to support ongoing PEA studies.
In addition to the 2021 drill program, the Company continues to
advance and has initiated key studies and initiatives in support of
the Silver Sand Project development. These include environmental
baseline, socioeconomic and hydrogeology studies.
Details of the drill program follow in the sections below.
RESOURCE EXPANSION
Drilling to date indicates the Silver Sand hydrothermal system
remains open for expansion along strike and at depth. The Company
has allocated ~23,500 m of the drill program to potentially grow
the existing Mineral Resources by testing gaps in the current model
and by drilling exploration targets adjacent to and beneath the
current conceptual constrained Mineral Resource under National
Instrument 43-101 — Standards of Disclosure for Mineral Projects
("NI 43-101"). The primary focus will be on drilling the area
between the Central and South Zones, in the Mirador Area, with the
remainder testing the northern strike extent of the deposit (Figure
1).
Feeder Zones
To date, approximately 100,000 m
have been drilled at the Project in about 400 diamond drill holes
that have tested only the upper ~250 m to 300 m of the large, silver-rich, hydrothermal
system. None of the drill holes have encountered mineralized
intrusive source rocks and/or thicker, higher grade, structurally
controlled fluid conduits, which are postulated to be the source of
the silver mineralization.
Analysis of the data suggests an intrusive heat source and
associated structural plumbing system for the deposit may occur at
depth between the Central and South Zones, in the Mirador Area
(Figure 1). Circumstantial evidence for this hypothesis includes:
the increased structural complexity of the area; the presence of
thicker mineralized veins which were the sites of the majority of
historic mining activities; an increase in anomalous base metal
content, especially zinc, within the lower portions of drill holes
completed in the immediate area; a localized increase in alteration
assemblage minerals suggestive of higher heat flow (i.e.,
muscovite-sericite); and the presence of a post-mineral volcanic
diatreme breccia nearby. Of the 23,500
m allocated to resource expansion, ~5,000 m are designed to
explore the system at depth, with several 1,000 metre-long drill
holes planned (Figure 1).
EXPLORATION
Snake Hole Zone
Located approximately 600 m east
of the currently defined Silver Sand deposit (Figure 2), the Snake
Hole Zone was drilled in late 2019 with highlighted results of 279
g/t silver over 72.44 m, including
517 g/t silver over 32.96 m in
discovery hole DSS5218. Please refer to the Company's news release
dated January 13, 2020 for further
details.
During the first quarter of 2020, an additional eight follow-up
drill holes were completed. Multiple drill holes intersected
several zones of structurally controlled silver mineralization with
highlighted results of 126 g/t silver over 39.39 m, including 159 g/t silver over
30.93 m and 354 g/t silver over
12.26 m in hole DSS5228. Please refer
to the Company's news release dated August
6, 2020 for further details.
The objective of the 2021 drill program is to better understand
the size potential of these silver zones and to continue the
exploration of the target along the 650
m strike extent to the north. A total of 2,500 m have been allocated for this phase of
work.
North Block
At the beginning of the fourth quarter of 2021, the Company
plans to commence the inaugural drilling of the North Block
properties, which include the El Bronce, Jisas and Jardan areas.
Approximately 4,000 m in 18 drill
holes are planned for the initial test.
At the district scale, the North Block occurs within the Eastern
Intrusive Trend (Figure 2). The geology of the North Block differs
considerably from that at Silver Sand as it is comprised of
intermediate to felsic intrusive units, which are a more
geologically typical sequence for the deposit type being explored
for. Notably, the El Bronce property contains numerous historic
mine workings that exploited both steeply dipping and flat-lying,
high-grade, silver-rich polymetallic veins over an area
approximately 500 m wide by 1 km long
in strike. Detailed geological mapping indicates the intrusive host
rocks are pervasively flooded by moderate to intense alteration,
which reflects the passage of silver-rich hydrothermal fluids
(phylic alteration (sericite) with local argillic (kaolinite) and
propylitic (chlorite-epidote) zones). Surface mapping has also
identified good to moderate micro-veining and stockwork development
between the principal historically exploited structures thereby
forming an attractive bulk tonnage target.
Importantly, the geology, alteration and style of existing
silver mineralization at the North Block provides compelling
evidence that the Silver Sand deposit forms part of a larger
regional to district-scale, silver-rich, hydrothermal system or
systems whose exploration potential remains to be unlocked.
MINERAL CONTINUITY AND GEOTECHNICAL DRILLING
To support the current PEA and future advanced engineering and
mining studies, the Company will complete approximately
8,000 m of short-interval,
orientated, mineral continuity and geotechnical, cross-style
drill-sets, in three separate areas in the south and north portions
of the Central Zone and within the West Zone (Figure 2).
Drill spacing for these holes will vary from 5 m to 10 m on
section and along strike. The data will be used to provide
intra-hole continuity information at the current drill spacing of
under 25 m and detailed geotechnical
and vein orientation data for future studies, which are expected to
be conducted after the completion of the PEA.
In addition, the geotechnical drill holes are expected to
support the planning of mine infrastructure and pit stability
studies. The drill core derived from this phase of drilling will
also be utilized for future geometallurgical test
programs.
Figure 1: Long Section of the Silver Sand resource
model, looking west, displaying selected drill holes for the 2021
drill program: yellow drill trace = deep drill holes exploring
feeder zones; blue and green drill trace = resource expansion and
exploration drill holes. Resource model as presented in the
Company's Technical Report entitled "Silver Sand Deposit Mineral
Resource Report (Amended)" dated June 3,
2020 (effective date of January 16,
2020) and prepared by AMC Mining Consultants (Canada) Ltd.
Figure 2: Surface geology map of the Silver Sand
Project indicating locations of current drill target areas (the
Snake Hole Zone, the North Block properties and PEA-related
continuity drilling) and locations of previous diamond
drilling.
QUALIFIED PERSON
The scientific and technical information contained in this news
release has been reviewed and approved by Gary DeSchutter, M.Sc., P. Geo., Manager Silver
Sand Project, who is a Qualified Person for the purposes of 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
E-mail: info@newpacificmetals.com
www.newpacificmetals.com
To receive company news by e-mail, please register using New
Pacific's website at www.newpacificmetals.com.
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
exploration, drilling, development, construction, and other
activities or achievements of the Company; timing of receipt of
permits and regulatory approvals; and estimates of the Company's
revenues and capital expenditures.
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,
2020 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 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
The disclosure in this news release and referred to herein
was prepared in accordance with NI 43-101 which differs
significantly from the requirements of the U.S. Securities and
Exchange Commission (the "SEC"). The terms "proven mineral
reserve", "probable mineral reserve" and "mineral reserves" used in
this news release are in reference to the mining terms defined in
the Canadian Institute of Mining, Metallurgy and Petroleum
Standards (the "CIM Definition Standards"), which definitions have
been adopted by NI 43-101. Accordingly, information contained
in this news release providing descriptions of our mineral deposits
in accordance with NI 43-101 may not be comparable to similar
information made public by other U.S. companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
Investors are cautioned not to assume that any part or all of
mineral resources will ever be converted into reserves. Pursuant to
CIM Definition Standards, "Inferred mineral resources" are that
part of a mineral resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and
sampling. Such geological evidence is sufficient to imply but
not verify geological and grade or quality continuity. An
inferred mineral resource has a lower level of confidence than that
applying to an indicated mineral resource and must not be converted
to a mineral reserve. However, it is reasonably expected that the
majority of inferred mineral resources could be upgraded to
indicated mineral resources with continued exploration. Under
Canadian rules, estimates of inferred mineral resources may not
form the basis of feasibility or pre-feasibility studies, except in
rare cases. Investors are cautioned not to assume that all or
any part of an inferred mineral resource is economically or legally
mineable. Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian regulations; however, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Canadian standards, including the CIM Definition Standards
and NI 43-101, differ significantly from standards in the SEC
Industry Guide 7. Effective February
25, 2019, the SEC adopted new mining disclosure rules under
subpart 1300 of Regulation S-K of the United States Securities Act
of 1933, as amended (the "SEC Modernization Rules"), with
compliance required for the first fiscal year beginning on or after
January 1, 2021. The SEC
Modernization Rules replace the historical property disclosure
requirements included in SEC Industry Guide 7. As a result of
the adoption of the SEC Modernization Rules, the SEC now recognizes
estimates of "Measured Mineral Resources", "Indicated Mineral
Resources" and "Inferred Mineral Resources". In addition, the
SEC has amended its definitions of "Proven Mineral Reserves" and
"Probable Mineral Reserves" to be substantially similar to
corresponding definitions under the CIM Definition Standards.
During the period leading up to the compliance date of the SEC
Modernization Rules, information regarding mineral resources or
reserves contained or referenced in this news release may not be
comparable to similar information made public by companies that
report according to U.S. standards. While the SEC
Modernization Rules are purported to be "substantially similar" to
the CIM Definition Standards, readers are cautioned that there are
differences between the SEC Modernization Rules and the CIM
Definitions Standards. Accordingly, there is no assurance any
mineral reserves or mineral resources that the Company may report
as "proven mineral reserves", "probable mineral reserves",
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources" under NI 43-101 would be the same had
the Company prepared the reserve or resource estimates under the
standards adopted under the SEC Modernization Rules.
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SOURCE New Pacific Metals Corp.