VANCOUVER, BC, Nov. 28,
2022 /CNW/ - New Pacific Metals Corp. ("New Pacific"
or the "Company") (TSX: NUAG) (NYSE American: NEWP) is pleased to
announce an updated Mineral Resource Estimate for the Silver Sand
Project (the "Project'), which is part of the on-going Preliminary
Economic Assessment ("PEA") study of the Project. The PEA study is
on track to be completed by the end of 2022. The Mineral Resource
is reported in accordance with National Instrument 43‐101 ("NI
43‐101") for its 100% owned Silver Sand Project, Bolivia. The estimate was completed by AMC
Mining Consultants (Canada) Ltd.
("AMC Consultants").
MINERAL
RESOURCE ESTIMATES
The Mineral Resource Estimate used conceptual open pit mining
constraints for reporting purposes and is presented in Table 1.
Mineral Resources are stated at a 30 g/t silver cut‐off grade and
the model is depleted for historical mining activities:
Table 1. Silver Sand Deposit Mineral
Resource as of 31 October 2022
Resource category
|
Tonnes (Mt)
|
Ag
(g/t)
|
Ag (Moz)
|
Measured
|
14.88
|
131
|
62.60
|
Indicated
|
39.38
|
110
|
139.17
|
Measured &
Indicated
|
54.26
|
116
|
201.77
|
Inferred
|
4.56
|
88
|
12.95
|
Notes:
|
- CIM Definition Standards (2014) were used for
reporting the Mineral Resources.
- The Qualified Person is Dinara Nussipakynova,
P.Geo. of AMC Mining Consultants (Canada) Ltd.
- Mineral Resources are constrained by
optimized pit shells at a metal price of US$22.50/oz Ag, recovery
of 91% Ag and cut-off grade of 30 g/t Ag.
- Drilling results up to 25 July 2022.
- The numbers may not compute exactly due to
rounding.
- Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability.
|
Source: AMC
Consultants.
|
The assumptions for the open pit optimization exercise to
constrain the Mineral Resource and conform to reasonable prospects
for eventual economic extraction are shown in Table 2.
Table 2. Assumptions for pit optimization
Input
|
Units
|
Value
|
Silver price
|
US$/oz Ag
|
22.5
|
Silver process
recovery
|
%
|
91
|
Payable
silver
|
%
|
99
|
Mining recovery
factor
|
%
|
100
|
Mining cost
|
US$/t mined
|
2.6
|
Process cost
|
US$/t minable material
> COG
|
16
|
G&A cost
|
US$/t minable material
> COG
|
2
|
Slope angle
|
Degrees
|
44 –
47
|
A comparison of the 2019 and 2022 Mineral Resource Estimates are
shown in Table 3. The footnotes to Table 1 and Table 3 summarize
the differences in the assumptions between the two estimates, most
notably silver price, recovery, and cut-off grade. An increased
mining cost assumption for the 2022 estimate has resulted in an
optimum pit shell that does not go as deep as the 2019
estimate.
Table 3. Comparison between 2019 and 2022 Mineral
Resources
|
Class
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Ag
(Moz)
|
2019
(Cut-off 45 g/t
Ag)
|
Measured
|
8.40
|
159
|
43.05
|
Indicated
|
26.99
|
130
|
112.00
|
Measured and
Indicated
|
35.39
|
137
|
155.05
|
Inferred
|
9.84
|
112
|
35.55
|
2022
(Cut-off 30 g/t
Ag)
|
Measured
|
14.88
|
131
|
62.60
|
Indicated
|
39.38
|
110
|
139.17
|
Measured and
Indicated
|
54.26
|
116
|
201.77
|
Inferred
|
4.56
|
88
|
12.95
|
Difference
|
Measured
|
6.48
|
-28
|
19.55
|
Indicated
|
12.39
|
-20
|
27.17
|
Measured and
Indicated
|
18.87
|
-21
|
46.72
|
Inferred
|
-5.28
|
-24
|
-22.60
|
Notes:
|
- These are the pertinent footnotes for the
2019 Mineral Resources.
- The notes pertaining to the 2022 Mineral
Resources are shown below Table 1.
- Other than the following the same notes apply
for both estimates.
- Mineral Resources are constrained by an
optimized pit shell at a metal price of US$18.70/oz Ag, recovery of
90% Ag and cut-off grade of 45 g/t Ag.
- Mineral Resources are reported inside the
Claim boundary.
- Pit optimization allows waste mining to
extend outside the claim to the NE and SW, but no mineralization
outside the Administrative Mining Contract is included.
- Drilling results up to 31 December 2019.
|
Source: AMC
Consultants.
|
The majority of the Mineral Resources lie within the
Administrative Mining Contract ("AMC"). Table 4 shows the split of
the 2022 Mineral Resource within the AMC boundary and outside the
boundary. Since the 2019 Mineral Resources were reported, a
subsequent agreement with COMIBOL permits the reporting of Mineral
Resources outside the AMC. Mineral resources outside the AMC
boundary will be subject to a royalty of 6% payable to COMIBOL
during the production stage according to the agreement reached with
COMIBOL.
Table 4. Mineral Resources within and outside the AMC
|
Restricted by AMC
boundary
|
Outside AMC
boundary
|
Resource
category
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Ag
(Moz)
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Ag
(Moz)
|
Measured
|
14.57
|
131
|
61.51
|
0.31
|
108
|
1.08
|
Indicated
|
34.38
|
110
|
121.38
|
5.00
|
111
|
17.79
|
Measured and
Indicated
|
48.95
|
116
|
182.90
|
5.31
|
111
|
18.87
|
Inferred
|
3.17
|
77
|
7.88
|
1.40
|
113
|
5.07
|
HIGHLIGHTS
- Silver Sand is one of the most significant new global primary
silver discoveries in the last decade.
- Mineralization remains open on strike to the North and South
and at depth. No feeder zones or source intrusions have been
discovered to date. The Company classifies the exploration
potential as good to excellent.
- Estimated Measured and Indicated Mineral Resources have
increased by 30%, this is partly the result of infill drilling
upgrading Inferred Mineral Resources.
- Detailed drilling indicates good mineral continuity to provide
high confidence – lower technical risk. Measured & Indicated
Mineral Resources of 54.26 Mt @ 116 g/t Ag for 201.77 Moz or 94% of
the total estimate.
- Mineralization starts at or near‐surface and is amenable to
potential open‐pit mining extraction. Approximately 95% of the
reported Mineral Resources are within 200
m of the topographic surface.
- Favorable initial metallurgical test work indicates
laboratory‐based recoveries of up to 97% for the various oxide –
transition and sulphide mineral domains (see news release dated
23 August 2019 for details). More
detailed metallurgy testwork is being carried out to facilitate the
future design of the processing plant.
- The PEA study is well on track to be complete by the end of
2022.
- In addition to the currently reported Mineral Resources, there
are numerous known satellite mineral occurrences in the district of
six kilometers long by two and a half kilometers wide. These
mineral occurrences demonstrate similar mineralization style and
grades to Silver Sand, subjected to extensive artisanal mining
starting from Spanish colonial times and bore little modern
exploration. The Company believes these satellite occurrences have
good resource potential.
RESOURCE ESTIMATE DETAILS
The Mineral Resource Estimate is based on a geological model
that included assay results received by New Pacific for the Silver
Sand deposit to 25 July 2022.
Mineralization wireframes were constructed by New Pacific with
LeapFrog© software. The 131 domains were reviewed by the
independent Qualified Person ("QP") and were accepted for
estimation purposes. Over 82% of the volume was contained in the
two largest domains.
AMC completed an ordinary kriging ("OK") estimate on the four
largest domains and inverse distance squared ("ID2") was
used in the other domains. Prior to estimation, drill hole data
were composited to an average of 1.2 m samples and were capped
for all variables within each domain where required. Capping value
for silver was 2,000 g/t Ag for all domains.
In addition to the estimate completed inside the domains, a
background OK estimate was also completed outside of mineralization
wireframes.
For the mineralized domains the parent block size was 2.5 mE x 5
mN x 2.5 mRL with sub‐blocking employed. Sub‐blocking resulted in
minimum cell dimensions of 1.25 mE x 0.5 mN x 1.25 mRL.
The background mineralization (outside the mineralization
domains) was estimated with a parent block dimension of 5 mE x 10
mN x 5 mRL.
As mineralization is hosted in one rock type, the QP assigned
bulk density measurements to the block model based on the mean bulk
density. Density values of 2.54 tonnes/m3 was assigned
to both blocks inside and outside of the mineralized domains.
Mineral Resource classification was completed using an
assessment of geological and mineralization continuity, data
quality and data density. Estimation passes were used as an initial
guide for classification. Wireframes were then generated manually
to build coherent volumes for the different classes. The block
model was classified as Measured, Indicated, and Inferred Mineral
Resources as appropriate.
QUALITY ASSURANCE AND QUALITY CONTROL and
DATA VERIFICATION
HQ‐size drill core samples from altered and mineralized
intervals 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 Betanzos 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 ("QA/QC")
protocol is employed to monitor the quality of sample preparation
and analysis. Standards of certified reference materials and blanks
are inserted into the normal core sample sequences prior to
shipping to the lab at 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 lab for check analysis. The
assay results of QA/QC samples of standards and blanks do not show
any significant bias of analysis or contamination during sample
preparation.
The QP, Dinara Nussipakynova, P.Geo. considers sample
preparation, analytical, and security protocols employed by New
Pacific to be acceptable. The QP has reviewed the QA/QC procedures
used by New Pacific including the use of certified reference
materials, blank, duplicate, and umpire data, and considers the
assay database to be adequate for Mineral Resource estimation.
The QP also carried out data verification both on-site and on
the database. This included a review of the assay database and
collar locations. The QP considers the assay database to be
acceptable for Mineral Resource estimation.
QUALIFIED PERSONS
The Mineral Resource Estimate and data verification was
completed by Ms Dinara
Nussipakynova, P.Geo., Principal Geologist with AMC
Consultants who is the QP for 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 the QP who has also 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
procedure and metallurgical test work will be available in an NI
43‐101 Technical Report disclosing the results of the PEA which
will be posted under the Company's profile at www.sedar.com in
early 2023.
This news release has been reviewed and approved by Alex Zhang, P.Geo., Vice President of
Exploration of New Pacific Metals Corp. who is the designated QP
for the Company.
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 expected to deliver a new Mineral
Resource Estimate Update and a PEA by the end of 2022. The 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 discovery drill program in
June 2022 and a near surface broad
gold zone was discovered from its first drill hole.
On behalf of New Pacific Metals Corp.
Dr. Rui Feng
Director and CEO
For further information, contact:
New Pacific Metals Corp.
Phone: (604) 633‐1368 Ext. 222
U.S. & Canada toll-free:
1-877-631-0593
E-mail: invest@newpacificmetals.com
For additional information and to receive company news by e-mail,
please register using New Pacific's website at
www.newpacificmetals.com
Cautionary Statements Regarding Estimates
of Mineral Resources
This news release uses the terms measured, indicated and
inferred resources as a relative measure of the level of confidence
in the resource estimate. Readers are cautioned that mineral
resources are not economic mineral 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 geology, environmental, permitting, 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‐feasibility 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", "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. 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: 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.
This list is not exhaustive of
the factors that may affect any of the Company's forward‐looking
statements or information. Forward‐looking statements or
information are statements about the future and are inherently
uncertain, and actual achievements of the Company or other future
events or conditions may differ materially from those reflected in
the forward looking statements or information 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, there 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
statements or information are based 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 forth 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 differ 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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SOURCE New Pacific Metals Corp.