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VANCOUVER, BC, June 14, 2021 /CNW/ - New Pacific
Metals Corp. ("New Pacific" or the "Company") (TSX: NUAG) (NYSE
American: NEWP) is pleased to announce that the Company's Bolivian
joint venture partner has received the exploration licenses and
environmental permits required to commence multi-disciplinary
exploration activities at the Carangas Silver Project, Oruro
Department, Bolivia (the "Carangas
Project" or the "Project"). Drilling is anticipated to commence
shortly.
HIGHLIGHTS:
- Received exploration licenses, environmental permits, and
community approvals for exploration activities at the Carangas
Project;
- Identified four drill target areas for bulk tonnage and
high-grade silver mineralization;
- Commencing an initial 5,000-metre ("m") discovery drill
program; and
- Establishing support facilities on site.
Dr. Mark Cruise, CEO of New
Pacific, said, "I am pleased to announce that exploration licenses
are in hand to commence our Phase I drill program at the Carangas
Project. Our exploration team has identified and prioritized
several drill targets to test for bulk tonnage and high-grade
silver vein potential. Contingent on results, we will evaluate
further exploration work at the Project. We look forward to
providing updates on the progress of the drill program."
"We are well-funded to continue executing on our strategy,
including the completion of the Silver Sand Project PEA,
exploration work at our properties and continued project generation
efforts, all of which are geared toward creating shareholder
value."
EXPLORATION LICENSES AND DRILL PROGRAM
The two exploration licenses for the Project are valid for five
years and can be renewed upon expiry. They allow a wide
variety of early to advanced stage exploration activities including
drilling, underground development, geological mapping, geochemical
sampling and geophysical surveying. An exploration license
gives the holder the preferential right to request and enter into
an Administrative Mining Contract ("AMC") with the Jurisdictional
Mining Administrative Authority in Bolivia (Autoridad Jurisdiccional
Administrativa Minera or "AJAM").
The Company's exploration team has identified multiple targets
with the potential to host near-surface bulk tonnage and/or
high-grade silver mineralization. An initial discovery drill
program of up to approximately 5,000
m is planned for 2021. Community approvals are in hand and
the logistics team is currently establishing support facilities on
site.
TARGET GENERATION
The Carangas Project is comprised of a Miocene aged,
multi-phase, rhyo-dacitic, volcanic dome complex cut by
silver-bearing hydrothermal breccias and veins. Interpreted to
occur on the flank of a larger caldera collapse system, it has a
surface expression of approximately 1.6 kilometers ("km") east-west
by 1.4 km north-south before dipping under a younger cover
sequence. The volcanic complex is divided by an ephemeral stream
into two separate domes called West and East Domes, both sitting
150 m above the surrounding alluvial
plains.
The exploration team has identified four principal target areas
based on analysis of extensive historic workings, limited prior
exploration programs, and New Pacific due diligence, including
extensive surface sampling and detailed geological and structural
mapping in addition to mineral system analysis. For additional
details, see the Company's news release dated April 12, 2021. The four target areas are
discussed below.
West Dome
Extensive historic workings on multiple levels exploited
mineralized structures and hydrothermal vein breccias over an area,
which measures 600 m by 400 m (Figure 1 and Figure 2). Surface
sampling and prior exploration documented broad areas of
silver-rich polymetallic mineralization. These samples vary from
individual characterization "grab" samples to systematic channel
chip samples in excess of 100 m in
length, with silver grades ranging from 65 g/t to 512 g/t and
anomalous zinc and lead values. For additional details, see the
Company's news release dated April 12,
2021.
Initial drilling is designed to test the lateral and vertical
extents of the system for a bulk tonnage and/or high-grade vein
targets.
Figure 1: Simplified Geology Map of the Carangas
Project
Figure 2: Extensive historical mining dumps at West
Dome (looking West), Carangas Project
East Dome
Less extensive historic workings exploited individual narrow
east-west trending fractures and fracture zones up to 350 m wide, traceable over 500 m strike. Characterization and surface
channel chip sampling returned silver grades ranging from 52 g/t
over 54 m to 1,100 g/t over
2 m with anolamous zinc and lead
values. For additional details, see the Company's news
release dated April 12, 2021.
Initial drilling is designed to test the potential of the
mineralized system adjacent to the Valley Zone (see below) where it
trends below cover towards the West Dome target.
Valley Zone
The area between the East and West domes is a flat river valley
200 m wide east-west and 800 m long north-south, filled by younger
Quaternary sediments estimated to be up to 30 m thick. Predominantly east-west
trending fractures are mappable from East Dome to the Valley margin
where they trend towards West Dome before dipping under
cover. At the south end of the valley, an isolated outcrop
suggests the Valley Zone may host mineralization at relatively
near-surface depths. This outcrop, called South Dome, is
200 m long and 80 m wide and is comprised of hydrothermally
brecciated lithic tuff, which is cut by geochemically anomalous
silver mineralized fractures, including silver grades of up to 113
g/t.
Initial drill targets are planned to test this concept.
Volcanic Basin
Regionally, the Carangas mineralized domes are interpreted to
occur on the southwest periphery of a large, now collapsed, 5 km by
3 km volcanic caldera complex (Figure 3 and Figure 4). The
postulated center of the complex is now partially infilled by
younger sediments. Occasional sparse outcrop of pervasively
altered (sericite to argillic) lithic tuffs are indicative of high
levels in a hydrothermal system, potentially suggesting the
presence of a target at depth.
Contingent on successful initial drill results, future work,
including petrophysical modelling, may warrant geophysical
surveying and/or initial scout drilling to test the exploration
model.
Figure 3: Morphotectonic View of the Carangas
Project
Figure 4: Conceptional Model of Volcanic System at
the Carangas Project.
CARANGAS PROJECT JOINT VENTURE
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").
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.
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 AJAM to convert the two
exploration licenses into an AMC.
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, were 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).
The assay results of the grab samples are used for
reconnaissance purpose and, therefore, no certified reference
materials and blank materials were inserted to the normal sample
sequence in the field. Internal Quality Assurance/Quality
Control ("QAQC") results from ALS Global did not show any
significant bias of analysis or contamination during sample
preparation. For rock chip samples, certified reference materials,
blank samples and field duplicate samples were inserted to normal
sample sequences prior to delivery to the laboratory for
preparation and analysis. The results of QAQC samples did not show
any significant bias of analysis or contamination during sample
preparation.
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 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,
which owns 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.