New Pacific Metals Corp.

 

2004

High Grade Nickel Sample Results Received on the AZ Prospect, Kang Dian Project, Sichuan, China

Nu XMP Ventures Limited ("NUX") is pleased to report progress on the acquisition of the Kang Dian Nickel project, Sichuan China through SKN Resources Ltd. ("SKN"). As reported March 4, 2004, NUX entered into an option letter agreement with SKN by which NUX may acquire 100 per cent of SKN's wholly owned subsidiary, SKN Nickel & Platinum Inc. (SNP). SNP has the right to acquire 75-percent and 90-per-cent interests in exploration permits located in Sichuan Province, China constituting the Kang Dian Project.

A final joint venture contract has now been signed between SNP and the Chinese partner. In addition, a 43-101 Technical report on the Kang Dian Project has been completed by NUX and accepted for filing by the TSX Venture Exchange.

The Kang Dian Project is situated in the centre of the Panxi rift, which is developed along the western margin of the South China craton. The Panxi rift shows marked similarities to the Noril'sk rift in western Siberia, with respect to the age of the volcanic eruption event, composition of the continental flood basalts and the occurrence of significant Ni-PGM (nickel â€" platinum group) mineralization associated with mafic to ultramafic intrusive phases genetically linked to the flood basalts.

An initial sampling program on the AZ Prospect by NUX's geologists has returned significant nickel results on the massive sulfide outcrops, as follows:

Sample# Sample Length
(meter)
Pt
(g/t)
Pd
(g/t)
Cu
(%)
Ni
(%)
Co
(%)
I-1 0.30 1.42 2.90 1.05 2.65 0.148
I-2 1.38 1.35 2.84 0.98 3.23 0.183
I-3 1.40 3.26 9.33 2.25 1.97 0.097
average 3.08 2.22 5.80 1.56 2.60 0.141
III-1 0.30 1.55 2.43 0.76 1.00 0.054
III-2 1.28 0.29 0.64 0.19 0.43 0.021
III-3 1.46 0.01 0.02 0.03 0.18 0.008
average 3.04 0.28 0.28 0.28 0.28 0.282


The AZ Prospect contains a number of mafic -ultramafic sills and a stock that intruded into Devonian limestones. A discovery was made in 2003 through field mapping and trenching. Three mineralization zones were defined by surface channel sampling in the AZ prospect. Based on these discovery outcrops, a preliminary exploration program on the Kang Dian Project has been focused on the AZ Prospect. The exploration program on the AZ Prospect will include 500 to 1,000 meters of underground tunneling, and geological and magnetic mapping covering an approximately 10 square kilometer area. Tunnels are favoured over drilling for a number of reasons, including the very steep topography, drill rigs are not readily available and the fact that tunneling costs per meter are one half the cost of drilling.

NUX is also in the process of setting up an office in Chengdu City to facilitate the effort. Once Exchange approval of the SNP acquisition has been received, a full program will be implemented.

ON BEHALF OF THE BOARD OF NU XMP VENTURES LIMITED
Per: "Joanne Yan"

Joanne Yan
Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.

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