New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP), together with its local Bolivian partner, reports assay results from a deep drill hole DCAr0096 from the 2022 drill program at its Carangas Silver-Gold Project, Oruro Department, Bolivia.  To date, assay results of 86 drill holes from the 115 holes drilled in 2022 have been received and released while results of the remaining 29 drill holes are pending. Assay results and drill hole speifications are listed in Tables 1 and 2.

HOLE DCAR0096 DRILL RESULTS

Hole DCAr0096 stepped out 60 m from hole DCAr0044 towards the northeast at the East Dome (Figures 1 & 2) and was drilled to the southwest at a 252-degree azimuth.  As reported on August 8, 2022, hole DCAr0044 intercepted 515 m (from 266 m to 781 m) grading 1.10 g/t Au and 6 g/t Ag, including 88 m grading 2.57 g/t Au, 9 g/t Ag and 0.12% Cu (Figure 2).

Starting from surface, Hole DCAr0096 first intersected a silver horizon with a 164 m interval grading 94 g/t Ag, 0.65% Pb and 1.72% Zn, including a 44 m interval grading 289 g/t Ag, 1.61% Pb and 4.00% Zn.  Then from 192 m to 319 m a polymetallic Pb-Zn-Au zone was intercepted with a 127 m interval grading 0.24 g/t Au, 5 g/t Ag, 0.26% Pb and 0.54% Zn.

Further down hole DCAr0096, from 333 m to 857 m, a gold zone similar to hole DCAr0044 (Figure 2) was intercepted with a 524 m interval @ 1.24 g/t Au and 8 g/t Ag, including 51 m @ 4.56 g/t Au and 0.10% Cu, and 35 m @ 3.35 g/t Au, 8 g/t Ag and 0.20% Cu.  Hole DCAr0096 has extended the thick gold mineralization at least 60 m to the northeast.

The most interesting finding from this hole is that high grade gold intervals occur in rhyolites with disseminated pyrite preferentially along flow-banded textures, as shown in drill core (Figure 3). In addition, high gold assay grades also occur along the contacts of rhyolites with strongly altered volcanoclastic rocks, implying that gold mineralization is related to the rhyolite intrusion.  The mineralized rhyolites in hole DCAr0096 are likely part of a feeder zone to the northeast whereas previously, gold mineralization was thought to have extended to the south at depth.

Figure 1 Simplified Geology and Drill Plan Map of the Carangas Project

Figure 2 Cross Section DCAr0096 Showing Holes DCAr0044 and DCAr0096
(50 m section slice thickness or +/-25 m)

Figure 3 Core Photo of Mineralized Rhyolite from 453 m to 457 m in Hole DCAr0096

METAL ZONING AND MINERALIZATION MODEL

Assay results of Ag, Pb, Zn, Au and Cu are plotted for drill holes within a slice thickness of 400 m (+/- 200m) along cross section of hole DCAr0096, as shown in Figure 4 below.  The assay results show apparent metal zoning: 1) gold-copper mineralization occurs at the centre related to rhyolite intrusions; 2) surrounded by a lower temperature polymetallic lead-zinc zone; and 3) a thick silver (plus lead and zinc) zone near surface.

A reasonable geological hypothesis for the Carangas Project supposes that rhyolites intruded into sub-horizontal volcanoclastic units and introduced hydrothermal fluids and metals that precipitated according to temperature gradients.  Based on the intensity of mineralization the rhyolitic intrusive appears to dip to the northeast and will be the target of future drilling.

Based on this metal zoning and mineralization model, as well as the drill results from DCAr0096, nine deep holes are planned to step out to the east of DCAr0096 to test the potential extension of gold mineralization down dip of the interpreted orientation of the rhyolite intrusive.  Concurrently, shallow holes are planned to test the southwest limb of the near-surface silver zone.

Figure 4: Cross Section DCAr0096 Assay Results (+/- 200m) Display Clear Zoning of Mineralization

QUALITY ASSURANCE AND QUALITY CONTROL

The Company maintains tight sample security and QA/QC for all aspects of its exploration program at the Carangas Project.  Drill core is logged, photographed and split on-site by the company and stored under secure conditions until being shipped in security-sealed bags by New Pacific staff in Company vehicles, directly from the project 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 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). Gold is assayed first by ICP and then by fire assay with AAS finish (ALS code of Au-AA25). Certified reference materials, various types of blank samples and duplicate samples are inserted into normal drill core sample sequences prior to delivery to the laboratory for preparation and analysis. The overall ratio of quality control samples in sample sequences is around twenty percent.

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 using standard verification processes, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties or any limitations on the verification process 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, has released its inaugural preliminary economic assessment results in January 2023.  The PEA study shows a post-tax NPV (5% discount) of US$726 million with an IRR of 39%, underpinned by a total silver production of 171 million ounces over 14 years of mine life.  At the recently discovered Carangas Silver-Gold Project, a resource drilling program of more than 50,000 meters was completed in 2022.  The third project, the Silverstrike Silver-Gold Project, had a 6,000 metre discovery drill program in June 2022.