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New Pacific Metals Corp. Announces Assay Results Of 20.2 Meters @ 7.08 G/T Au, 143.95 G/T Ag, And 9.7 Meters @ 8.43 G/T Au, 322.26 G/T Ag

VANCOUVER, BRITISH COLUMBIA - (October 31, 2011) - New Pacific Metals Corp. (TSX-V: NUX) (the “Companyâ€) is pleased to announce assay results from the recently completed 2011 underground drilling program at the Skukum Creek gold-silver deposit and surface drilling at the Raca prospect of its Tagish Lake Gold Project in Yukon (see the Company’s news release dated as at October 25, 2011).

Highlights of the most prominent drill results include (note - widths are core length not true widths):

  • 8.23m @ 6.52 g/t Au, 321.81 g/t Ag, 1.0% Pb and 1.52% Zn from 89.08 meters to 97.31 meters, including 2.62m @ 16.63 g/t Au, 853.33 g/t Ag, 2.51% Pb and 2.94% Zn from 90.48 meters to 93.1 meters in the hole SC11-05-UG.
  • 9.65m @ 8.43 g/t Au, 322.26 g/t Ag, 1.18% Pb and 1.63% Zn from 81.83 meters to 91.48 meters, including 6.26m @ 11.34 g/t Au, 434.15 g/t Ag, 1.48% Pb and 1.79% Zn from 81.83 meters to 88.09 meters in the hole SC11-07-UG.
  • 20.15m @ 7.08 g/t Au, 143.95 g/t Ag, 0.71% Pb and 0.99% Zn from 103 meters to 123.15 meters, including 6.8m @ 12.94 g/t Au, 225.32 g/t Ag, 1.23% Pb and 1.12% Zn from 113.7 meters to 120.5 meters in the hole SC11-13-UG.

Underground Drilling at Skukum Creek

Skukum Creek is a mesothermal quartz sulphide vein type gold-silver deposit hosted in Cretaceous granodiorite. The deposit is comprised of a few separate sub-vertical mineralized veins with the prominent one called the Rainbow Zone. Historically from 1985 to 2008, a total of 348 diamond drill holes were completed with a total meterage of 44,097 meters, plus a total of 4,050 meters of underground tunnel development. Underground drilling in 2011 was carried out at the south end of the Xcut-3 of the 1300m level, targeting an area about 150 meters long by 60 meters wide of the Rainbow Zone near the bottom of the 1225m ramp. The program aimed to confirm both the high grade intercepts evidenced by the historical hole 86-R8 which yielded 2.95m @ 30.01 g/t gold and 603.55 g/t silver, historical hole 87-UG17R which had 25.6m @ 11.24 g/t gold and 291.78 g/t silver including 8.29m @ 28.19 g/t gold and 748.54 g/t silver, and to infill drill this area to upgrade the confidence in the resources. This high grade area could be a “starter pocket†for an initial bulk sampling program to study metallurgy and other parameters, if it is confirmed by the drilling. A total of 1,709.3 meters in 14 holes were drilled from July 23 to August 19, 2011 with one hole abandoned. Assay results of the 13 completed holes are as follows:

Table-1  Drill Intercepts at Skukum Creek Underground Drilling in 2011

hole_id
depth_from
depth_to
interval (m)
Au_g/t
Ag_g/t
Pb_%
Zn_%
SC11-01-UG
85.76
90
4.24
3.23
135.57
0.59
0.65
SC11-02A-UG
88.9
91.17
2.27
3.3
93.59
0.58
0.54
SC11-03-UG
76.65
78.54
1.89
3.44
95.72
0.30
0.47
81.51
82.55
1.04
1.93
90.4
0.68
0.72
SC11-04-UG
81.35
85.76
4.41
3.02
122.09
0.52
0.73
87.65
89.21
1.56
4.99
126.68
0.28
0.43
92.3
94.62
2.32
4.9
54.98
0.30
0.54
SC11-05-UG
89.08
97.31
8.23
6.52
321.81
1.10
1.52
Including
90.48
93.1
2.62
16.63
853.33
2.51
2.94
 
103.8
105.9
2.1
1.61
43.88
0.57
0.28
 
108.64
110
1.36
5.1
27
0.13
0.18
SC11-06-UG
123
124.11
1.11
4.28
378
0.74
0.50
142.08
143.08
1
1.18
3.2
0.01
0.18
SC11-07-UG
81.83
91.48
9.65
8.43
322.26
1.18
1.63
Including
81.83
88.09
6.26
11.34
434.15
1.48
1.79
 
101.72
103.96
2.24
16
406.88
1.54
2.66
SC11-08-UGÂ Â Â Â Â
74.8
83
8.2
2.2
53.27
0.24
0.47
86.6
89
2.4
2.63
11.07
0.07
0.20
SC11-09-UGÂ Â Â Â Â
78
79.7
1.7
4.14
119.77
0.22
0.23
83.9
91.25
7.35
2.34
22.37
0.14
0.19
93.4
96.42
3.02
2.09
33.98
0.24
0.29
SC11-10-UGÂ
61
63
2
1.82
44.09
0.21
0.36
 
65
71.1
6.1
2.75
34.1
0.16
0.43
Including
65
67.05
2.05
5.3
61.4
0.29
0.73
SC11-11-UG
68.82
73.48
4.66
2.04
174.44
0.56
0.83
75.48
77.48
2
1.27
28
0.21
0.40
SC11-13-UG
103
123.15
20.15
7.08
143.95
0.71
0.99
Including
113.7
120.5
6.8
12.94
225.32
1.23
1.12
SC11-15-UG
94.42
95
0.58
5.85
198
0.86
1.41
 
97.85
113.65
15.8
2.58
70.12
0.29
0.45
Including
105.52
107.58
2.06
5.67
53.44
0.23
0.52

Cut off of 1.0g/t Au is used in calculation of intercepts.
True thickness is around 50-80% of drill intercepts depending on the drill angles.


The Company is pleased the mineralization of the Rainbow Zone was confirmed by the underground drilling, which is planned to resume with the renewal of its exploration license.

Surface Drilling at Raca

The Raca prospect is located along the northeast structural extension of the Skukum Creek mineralization zones (Rainbow zone), and the Chieftain Hill site is located at the northeast extension of the Raca prospect.

Mineralization at Raca is characterized by quartz sulphide veins and breccia containing high grade silver, hosted along the contacts of a rhyolite dyke with volcanics in the hanging wall, and Cretaceous K-feldspar megacrystic Bennett granite in the footwall. Typically at Raca, less gold base metal grades are seen. Four holes were historically drilled totalling 1050.34 meters in 1986 and 1997, with the best intercept of 3.61m @2.66g/t gold and 561.37g/t silver from the hole RACA97-1. Drilling in 2011 at Raca was aiming to test the deep extension and strike extent of the known mineralization zone for which about 3,900 meters of core drilling was planned at the beginning of this year. Drilling started on June 26, 2011 and terminated on July 31, 2011. A total of five holes totalling 1,251.45 meters were drilled with two holes completed to planned depth and the rest abandoned due to down-hole problems, such as thick overburdens and fault zones in tuffaceous andesite horizon. Both the two completed holes hit mineralization zones at planned depth; the first hole,  Raca11-01,  hit a new zone of high grade silver in the hanging wall volcanics (see the Company’s news release dated as at August 2, 2011). Assay results are summarized as follows:

Table-2  Drill Intercepts at Raca Surface Drilling in 2011

hole_id
depth_from
depth_to
interval (m)
Au_g/t
Ag_g/t
Pb_%
Zn_%
Remark
Raca11-02
134.21
135.4
1.19
0.75
300
0.17
0.3
Zone 2
183.58
184.46
0.88
0.19
190
0.13
0.14
Raca11-03
abandoned, failed to reach target
Raca11-04
abandoned, failed to reach target
Raca11-05
abandoned, failed to reach target

Cut-off grade of 50g/t Ag is used, true thickness is about 75% of drill intercepts.


Due to down-hole problems and limited field operational time window, only two of the five holes were completed to the planned depth. The Company is pleased that both of the two completed holes hit high grade mineralization at targeted depth. However, the potential of down-dip and along strike of the mineralization zones at Raca still remains to be fully tested.

Drill cores were 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.

The Company would also like to clarify one point from its October 25, 2011 news release - the Company, through its subsidiary Tagish Lake Gold Corp, has applied for a permit for a Class 3 Exploration program as set out under the Quartz Mining Land Use Regulation, (Yukon) Dec 31/05.

About New Pacific Metals Corp.

New Pacific Metals Corp. is a Canadian near-term gold and silver production mining company engaged in the exploration and development of gold poly-metallic properties in the Yukon, Canada. The Company's only project is the Tagish Lake Gold Property in Yukon Territory. With experienced management and sufficient technical and financial resources, the Company is well positioned to build shareholder value through discovery, exploration and resource development.

Jason Nickel, P.Eng. Vice President Engineering of the Company, is a Qualified Person pursuant to NI 43-101 and has reviewed and given consent to the technical information of this press release.Â

For more information about New Pacific, visit New Pacific’s website at www.newpacificmetals.com or contact New Pacific Metals Corp., Jason Nickel, Vice President Engineering, Phone: (604) 669-9397, Fax: (604) 669-9387, or New Pacific Investor Relations at 604-633-1368 or send inquires to info@newpacificmetals.com.

Neither the 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.