New Pacific Metals Corp. (TSX: NUAG) (NYSE: NEWP), together with its local Bolivian partner, announce the assay results of the first five drill holes of the 2022 drill program at the Carangas Silver-Gold Project, Oruro Department, Bolivia. Results are summarized in Table 1 and the drill specifications are provided in Table 2 (see also Figure 1).

So far, 16,754 meters in 31 drill holes have been completed at Carangas in 2022, of which the assay results of the first five holes are released herein.  Assay results for the remaining 26 holes are pending with estimated turnaround time of up to 10 weeks after sample delivery.  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 capability of 1,000 m capacity depth are focusing on both near surface silver and at deeper gold zones, while the other two smaller drill rigs are focusing on near surface silver zone only.

Highlights

• Hole DCAr0039 intersected 535.63 m interval (from 162.08 m to 697.71 m) grading 1.00 grams per tonne gold and 11 g/t silver, including a high-grade interval of 72.16 m grading 3.54 g/t Au and 12 g/t Ag (from 450.34 m to 522.5 m).
• Hole DCAr0038 intersected 58.1 m interval (from 10 m to 68.1 m) grading 507 g/t Ag, 0.60% lead and 0.94% zinc, including 5.17 m bonanza interval (from 43.57 m to 48.74 m) grading 6,236 g/t Ag, 2.62% Pb, 6.23% Zn and 0.42% copper.
• Hole DCAr0037 intercepted an interval of 98.65 m (from 10.85 m to 109.5 m) grading 88 g/t Ag, 0.70% Pb and 0.80% Zn.
• Hole DCAr0036 intersected 57.83 m interval (from 13.17 m to 71 m depth) grading 166 g/t Ag, 0.47% Pb and 0.25% Zn and 215.81 m interval (from 280.74 m to 496.55 m) grading 0.73 g/t Au and 18 g/t Ag.

Detailed Description

Hole DCAr0039 intersected a silver horizon of 152.73 m (from 9.35 m to 162.08 m) grading 55 g/t Ag, 0.53% Pb and 1.07% Zn, including 36.75 m grading 195 g/t Ag, 1.19% Pb and 2.57% Zn. Immediately below the silver horizon, the hole intercepted 535.63 m interval (from 162.08 m to 697.71 m) grading 1.00 g/t Au and 11 g/t Ag, including a high-grade interval of 72.16 m grading 3.54 g/t Au and 12 g/t Ag from 450.34 m.

Gold mineralization is hosted in strongly argillic-sericitized ignimbrites and volcanic tuff of dacitic composition with disseminated sulfides and cut by veinlets of pyrite and chalcopyrite, similar to the holes reported previously.

The hole was drilled off the drill grid and across the Central Valley from East Dome to West Dome, in an azimuth direction of 254 degrees and at a high dip angle of -66 degrees.

Hole DCAr0036 intersected two silver horizons, the first with 57.83 m (from 13.17 m to 71 m depth) interval grading 166 g/t Ag, 0.47% Pb and 0.25% Zn, the second interval is 95.55 m (from 114 m to 209.65 m depth) grading 35 g/t Ag, 0.32% Pb and 1.06% Zn. Below the silver horizons, the hole intercepted a gold interval of 215.81 m (from 280.74 m to 496.55 m) grading 0.73 g/t Au and18 g/t Ag. This hole was drilled off grid in the Central Valley in azimuth direction of 230 degrees and at a shallow dip angle of -45 degrees.

Hole DCAr0038 intersected a silver interval of 58.10 m (from 10.0 m to 59.1 m) grading 507 g/t Ag, 0.60% Pb and 0.94% Zn, including a bonanza interval of 5.17 m (from 43.57 m to 48.74 m) grading 6,236 g/t Ag, 2.62% Pb, 6.23% Zn and 0.42% copper. A second silver horizon with an interval of 90.90 m grading 28 g/t Ag, 0.47% Pb and 1.25% Zn was intersected from depth 99.25 m. At further depth, a gold interval of 68.03 m grading 0.41 g/t Au, 3 g/t Ag, 0.31% Pb and 0.52% Zn was intersected from depth 334.27 m.  This hole was drilled on a grid close to East Dome in an azimuth direction of 20 degrees and at a shallow dip angle of -45 degrees.

Hole DCAr0037 intercepted an interval of 98.65 m grading 88 g/t Ag, 0.70% Pb and 0.80% Zn from depth 10.85 m to 109.5 m.  This hole was drilled off grid across the Central Valley in an azimuth direction of 350 degrees and at a shallow dip of -45 degrees.

Hole DCAr0040 was drilled off grid at East Dome in an azimuth direction of 50 degrees and at a shallow dip angle of -45 degrees and intersected a silver mineralization interval of 38.03 m grading 18 g/t Ag, 0.22% Pb and 0.42% Zn from depth 26.42 m and another silver zone of 157.72 m grading 24 g/t Ag, 0.26% Pb and 0.80% Zn from depth 87.55 m, including a high-grade interval of 34.32 m grading 61 g/t Ag, 0.59% Pb and 1.73% Zn from depth 92.25 m.

Figure 1: Simplified geology map and drill holes of the 2021 Discovery Drill Program at Carangas Project (CNW Group/New Pacific Metals Corp.)

Preliminary Metallurgy Tests

The Company has initiated preliminary metallurgy tests including flotation and leaching on the mineralized materials of Carangas Project. Five composite samples from rejects of drill cores have been collected and delivered to Bureau Veritas Minerals based in Richmond, BC, Canada.

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, are 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). Gold is assayed firstly by ICP method 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 to normal drill core sample sequences prior to delivery to 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, 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 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.