New Pacific Metals Corp.

 

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Surface Drilling Intercepts 1,280 Grams Per Tonne Silver and 1.9 Gram Per Tonne Gold Over 1.58 Metres at the Raca, Tagish Lake Gold-Silver Property, Yukon, Canada

VANCOUVER, BRITISH COLUMBIA – August 2, 2011 - New Pacific Metals Corp. (TSX-V: NUX) (the “Company”) is pleased to report assay results of the first step out drill-hole (Raca11-01) at the Raca area of the Tagish Lake Gold-Silver Property, Yukon, Canada.  The Raca area is located along the northeast structural extension of the Skukum Creek gold-silver deposit (Rainbow zone). Surface drilling at Raca is to test the extension of known historical drilling where a historical drill hole, Raca 97-1, intercepted 3.6 metres (m) grading 2.66 grams per tonne (g/t) gold and 561 g/t silver, and to test at least four parallel mineralized structures that have been mapped out by the Company’s geologists.

Three mineralized zones were encountered in drill-hole Raca11-01.  Zone 1 is a new mineralized zone which was never reported in historical holes. Zone 1 was intercepted over 1.58m grading 1.91 g/t gold (Au), 1280 g/t silver (Ag), 0.62% copper (Cu), 3.84% lead (Pb) and 3.38% zinc (Zn) (see table below).  Mineralization is characterized by stockwork veining of sulphides comprising pyrite, galena and sphalerite hosted in altered andesite.  Zone 2 is a 3.0m interval grading 1.92 g/t Au, 347 g/t Ag, 0.33 % Pb and 0.33% Zn, which is the extension of the zone intercepted by the historical drill-hole Raca97-1 mentioned above.  Zone 3 is a 0.66m interval grading 1.06 g/t Au, 248 g/t Ag, 0.32% Pb and 0.86% Zn. Mineralization of both Zones 2 & 3 are characterized by brecciated quartz sulphide veins hosted in shear zones developed along the hanging and foot walls of a rhyolite dyke that has intruded highly altered megacrystic K-feldspar granite.

Assay Results of Raca 11-01
Drill Hole From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%) Remark
Raca 11-01 115.2 116.78 1.58 1.91 1280 0.62 3.84 3.38 Zone 1
Raca 11-01 169.22 172.22 3.00 1.92 347   0.33 0.33 Zone 2
Raca 11-01 193.42 194.08 0.66 1.06 248   0.32 0.86 Zone 3

CEO Rui Feng stated, “The team here is very pleased to be on the ground with three active drill rigs turning at Tagish Lake. We’re particularly pleased to intersect a wholly new, very high-grade silver zone at Raca with this first hole. We anticipate ongoing drilling results for several months now, including through the winter months, and look forward to expanding and further defining the gold and silver mineralization at Tagish Lake.”

Currently, one surface drill rig is drilling at the Raca & Chieftain Hill areas, the second surface drill rig is at the Goddell area, and an underground drill rig is operating at the Skukum Creek underground tunnel. 

Drill cores are halved by diamond saw with half core samples being shipped to the preparation lab of the Stewart Group in Whitehorse, Yukon for preparation, and then being assayed at the assay lab of the Stewart Group in Kamloops, British Columbia.  Analysis methods are standard fire assay by AA finish for gold, aqua regia digestion plus AA finish for silver and base metals.  Standard reference materials, blank and field duplicate samples were inserted prior to shipment from site to monitor the quality assurance and quality control of the assay data.

Mr. Gerhard Jacob, EurGeol., BDG, a consulting geologist for the Company is the qualified person for the technical disclosure in this press release.

About New Pacific Metals Corp.

New Pacific Metals Corp. is engaged in the exploration and development of mineral resources in Canada. The Company’s strategy is to focus on projects which it believes can be developed in a relatively short time frame into high-margin operations with reasonable development capital profiles. Its goal is to get a project into production with sufficient initial resources, but before the full resource potential of the property is defined, so that further exploration and potential development costs can be funded by cash flows generated from early operations

For further information contact: New Pacific Metals Corp. Investor Relations, Phone (604) 633-1368, Fax: (604) 669-9387; or send inquires to info@newpacificmetals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.