VANCOUVER, BC, Aug. 25,
2022 /PRNewswire/ - New Pacific Metals Corp. ("New
Pacific" or the "Company") reports its financial results for the
three months and year ended June 30,
2022. All figures are expressed in US dollars unless
otherwise stated.
FISCAL 2022 HIGHLIGHTS
- Commenced the 2022 drill program at the Silver Sand Project
which includes resource infill drilling to improve the confidence
in the continuity of mineralization and step-out drilling to test
the extension of the major mineralized zones up and down dip as
well as on strike. To date, a total of 21,309 metres ("m") in 94
drill holes have been completed, of which assay results for 35
drill holes have been received;
- Completed the 2021 drill program of 13,313.7 m in 55 drill holes and received assay
results for all drill holes at the Silver Sand Project;
- Commenced the 2022 drill program at the Carangas Silver-Gold
Project, a total of 21,980 m in 43
drill holes have been completed so far, of which assay results for
12 drill holes have been received. The assay results continue to
show near surface silver horizons stacking over a broad bulk of
gold mineralization below;
- Completed the 2021 initial discovery drill program at the
Carangas Silver-Gold Project for a total of 13,209 m in 35 drill holes and received assay
results for all drill holes. All assay results intersected
silver-rich polymetallic mineralization near surface, with some
deep holes intersecting a wide zone of gold mineralization
below;
- Commenced a 6,000 m initial
discovery drill program at the Silverstrike Project and a
2,000 m initial discovery drill
program at the Jisas prospect, a satellite concession located in
the north block of the Silver Sand Project;
- Continue to advance the preliminary economic assessment ("PEA")
study for the Silver Sand Project, including a mineral resource
estimate ("MRE"). The PEA is expected to be completed by the end of
2022; and
- Maintained working capital of $29.3 million, sufficient to advance the existing
exploration projects and other regional exploration
initiatives.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company
for the year ended June 30, 2022 was
$6.42 million or $0.04 per share (year ended June 30, 2021 – net loss of $6.57 million or $0.04 per share). The Company's financial
results were mainly impacted by the following: (i) operating
expenses of $6.78 million compared to
$5.95 million in the prior year; (ii)
income from investments of $0.22
million compared to $0.40
million in the prior year; and (iii) foreign exchange gain
of $0.19 million compared to loss of
$1.02 million in the prior year.
For the three months ended June 30,
2022, net loss attributable to equity holders of the Company
was $2.34 million or 0.01 per share
(three months ended June 30, 2021 -
net loss of $1.97 million or 0.01 per
share).
Operating expenses for the three months and year ended
June 30, 2022 were $2.29 million and $6.78
million, respectively (three months and year ended
June 30, 2021 - $1.57 million and $5.95
million, respectively).
Income from investments for the three months and
year ended June 30, 2022 was
$0.01 million and $0.22 million, respectively (three months and
year ended June 30, 2021 – loss of
$0.21 million and income of
$0.40 million, respectively).
Foreign exchange gain for the year ended
June 30, 2022 was $0.19 million (year ended June 30, 2021 – loss of $1.02 million). The Company holds a portion
of cash and short-term investments in USD to support its
operations in Bolivia. Revaluation of these USD-denominated
financial assets to their Canadian dollar ("CAD") functional
currency equivalents resulted in unrealized foreign exchange gain
or loss for the relevant reporting periods. For the year
ended June 30, 2022, the USD
appreciated by 4.0% against the CAD (from 1.2394 to 1.2886) while
in the prior year the USD depreciated by 9.1% against the CAD (from
1.3628 to 1.2394).
For the three months ended June 30,
2022, foreign exchange gain was $0.02
million (three months ended June 30,
2021 – loss of $0.20
million).
Working Capital: As of June 30,
2022, the Company had working capital of $29.3
million.
PROJECT OVERVIEW
SILVER SAND PROJECT
In 2021, the Company completed a drill program of 13,313.7 m in 55 holes. The 2021 drill
program comprised structure orientation drilling, step-out and
infill drilling as well as exploration drilling. Assay
results of all drill holes have been received. Detailed
structural logging and assay of the oriented drill cores confirmed
previous understanding of the orientation of mineralized structures
and resource model which are dominantly striking in the direction
of north and northwest and dipping in direction of west at high
angles which are also evidenced at surface outcrops and historical
underground workings. Step-out drilling was carried out
mainly outside of the major mineralized trends with results
indicating the existence of multiple smaller satellite mineralized
zones between the major mineralized trends. For details of
the 2021 drill program, please refer to the Company's news release
dated April 6, 2022.
In the first half of 2022, the Company commenced a resource
infill drilling and step-out drilling program. The resource
infill drilling aims to improve the confidence in the continuity of
mineralization in the core area of the project and upgrade resource
categories, while the step-out drilling is designed to test the
extension of the mineralized zones up and down dip as well as on
strike. The results of the infill and step-out drilling will
be included in the MRE and will be incorporated into the PEA
expected to be completed by the end of 2022. To date,
a total of 21,309 m in 94 drill holes
have been completed, of which assay results for 35 drill holes have
been received. For details of the 2022 drill program, please
refer to the Company's news releases dated May 31, 2022 and April 6,
2022.
For the three months and year ended June
30, 2022, total expenditures of $3.20
million and $7.64 million,
respectively (three months and year ended June 30, 2021 - $1.13
million and $3.36 million,
respectively) were capitalized under the project.
CARANGAS PROJECT
In 2021, the Company completed an initial discovery drill
program of 13,209 m in 35 drill
holes. Assay results of all drill holes have been
received. Results from the 2021 discovery drill program
confirmed the broad silver-rich polymetallic mineralization near
surface and intersected a wide zone of gold mineralization below
it. For details of the 2021 discovery drill program, please
refer to the Company's news releases dated May 17, 2022, February 23,
2022, and February 10,
2022.
Following the success of the 2021 discovery drill program, the
Company has commenced a 2022 resource definition drill program with
a planned meterage of up to 40,000 m
if ongoing drill results continue to be encouraging. To date,
a total of 21,980 m in 43 drill holes
have been completed, of which assay results of 12 drill holes have
been received. The assay results continue to show near
surface silver horizons stacking over a broad bulk gold
mineralization below. Currently, there are five drill rigs
deployed at the project, of which the three larger drill rigs with
a capacity of 1,000 m depth are
focusing on both near surface silver and at depth gold zones, while
the other two smaller drill rigs are focusing on near surface
silver zone. For details of the 2022 drill program, please
refer to the Company's news release dated July 13, 2022 and August
8, 2022.
For the three months and year ended June
30, 2022, total expenditures of $2.10
million and $5.22 million,
respectively (three months and year ended June 30, 2021 - $nil and $0.25 million, respectively) were capitalized
under the project.
SILVERSTRIKE PROJECT
On June 14, 2022, the Company
announced to commence a 6,000 m
initial discovery drill program at the Silverstrike Project. The
program will focus on testing a broad gold zone identified by the
Company and by historical drilling.
For the three months and year ended June
30, 2022, total expenditures of $0.10
million and $0.14 million,
respectively (three months and year ended June 30, 2021 - $0.02
million and $1.29 million,
respectively) were capitalized under the project.
RZY PROJECT
The RZY Project, located in Qinghai,
China was an early stage silver-lead-zinc exploration
project. The RZY Project was located approximately 237 km
from the city of Yushu Tibetan Autonomous Prefecture. In
2016, the Qinghai Government issued a moratorium which suspended
exploration for 26 mining projects in the region, including the RZY
Project, and classified the region as a National Nature Reserve
Area.
During Fiscal 2020, the Company's subsidiary, Qinghai Found
Mining Co., Ltd. ("Qinghai Found"), reached a compensation
agreement with the Qinghai Government for the RZY Project.
Pursuant to the agreement, Qinghai
Found will surrender its title to the RZY Project to the
Qinghai Government for one-time cash compensation of $2.99 million (RMB ¥20 million) (the "RZY
compensation transaction").
On June 25, 2022, the Qinghai
Government completed its approval process of the RZY compensation
transaction. As a result, the Company disposed its RZY
Project for cash consideration of $2.99
million (RMB ¥20 million), which is included in the
receivables balance as of June 30,
2022. For the year ended June 30,
2022, a loss of $0.09 million
(year ended June 30, 2021 - $nil) was
recognized upon disposal of the RZY Project. Subsequent to
June 30, 2022, the Company received
the cash compensation in full.
MANAGEMENT DISCUSSION AND
ANALYSIS
This news release should be read in conjunction with the
Company's Management Discussion and Analysis ("MD&A") and the
audited consolidated financial statements and notes thereto
for the corresponding period, which have been filed with the
Canadian Securities Administrators and are available under the
Company's profile on SEDAR at www.sedar.com and on the Company's
website at www.newpacificmetals.com.
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, who is a Qualified Person for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral Resources
("NI 43-101"). The Qualified Person has verified the information
disclosed herein 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 in Bolivia. The Company's flagship Project, the
Silver Sand Silver Project, is waiting for a new Mineral Resource
Estimate Update and a PEA by the end of 2022. Recently
discovered Carangas Silver-Gold Project is undergoing a
40,000 m drill program. The
third project, the Silverstrike Silver-Gold Project, commenced a
6,000 m initial test drilling program
in June 2022.
For further information, please contact:
New Pacific Metals Corp. Investor Relations
Phone: (604) 633-1368
U.S. & Canada toll-free: 1
(877) 631-0593
E-mail: invest@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; timing and content of the PEA,
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,
2021 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. All
mining terms used herein but not otherwise defined have the
meanings set forth in NI 43-101. Unless otherwise indicated,
the technical and scientific disclosure herein has been prepared in
accordance with NI 43-101, which differs significantly from the
requirements adopted by the U.S. Securities and Exchange
Commission.
Accordingly, information contained in this news release
containing descriptions of the Company's mineral deposits may not
be comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of
United States federal securities
laws and the rules and regulations thereunder.
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.
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SOURCE New Pacific Metals Corp.