New Pacific Metals Corp.

 

2008

New Pacific reports drill intercepts of high grade Gold, including 8.13 metres grading 55.05 grams per tonne (1.61 ounces per tonne) at the HNK Gold-Polymetallic Exploration Permit in Guangdong Province, China

VANCOUVER, BRITISH COLUMBIA -- April 7, 2008 -- New Pacific Metals Corp. (TSX-V: NUX) is pleased to report exploration results on its continuing drill program at the HNK Gold-Polymetallic Project, Guangning, Guangdong, China. The HNK project permit covers an area of approximately 56.5 square kilometers.

The Company's drill program has focused on defining and delineating a number of veins (including the V9, V18 and V11) within the extensive soil geochemical anomaly extending more than 2 kilometers by 2 kilometres wide. The V9 vein in particular has been traced on surface by more than 26 old mining tunnels for over 1,500 metres (m). To date, 19 holes have been drilled for a total of 5,523m. Assay results for ten holes have been reported in previous News Releases. Results of the recent nine holes are summarized in Table 1 noted below.

The most significant results are from drill hole ZK0003, which not only intercepted V9 vein at 278m, but also intersected a new zone â€" the R1 vein - at 92.07m down hole. The V9 intercept returned a 1.94 m interval grading 46.06 gram per tonne (g/t) gold, with visible gold grains observed in the core sample. The new R1 interception returned a 32.31 m interval (from 92.07m to 124.38m) grading 14.5 g/t gold. This extensive interval also include a weighted average grade of 55.05 g/t over 8.13m (from 92.07m to 100.2m), within which are higher grade zones grading 99.91 g/t over 4.43m from 92.07m to 96.5m, and 161.95 g/t over 2.68m from 92.37 to 95.05m with visible gold grains observed in core sample.

Table 1 Results of Recent Drill Holes

Drill Hole   From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Pb (%) Zn (%) Comment
ZK1501   241.95 245.45 3.5 1.10       V9 Vein
ZK0003   278.26 280.2 1.94 46.06       V9 Vein
ZK1001   211.4 214.4 3 6.06       V9 Vein
including 213.9 214.4 0.5 32.50       V9 Vein
ZK1002   297.59 298.49 0.9 0 4.11       V9 Vein
ZK3001   1 39.65 139.95 0.3 9.08       V9 Vein
                   
ZK0003   39. 71 41.55 1. 84 0. 73       new vein
  92.07 124. 20 32. 13 14.33       R1 vein
including 92.07 100.2 8.13 55.05       R1 vein
or including 92.07 96.5 4.43 99.91       R1 vein
or including 92.37 95.05 2.68 161.95       R1 vein
  185.7 185.86 0.16 4.36       New vein
  221.23 223.72 2.49 1.02       New vein
  271.6 272.87 1.27 1.10       New vein
ZK0003-1   28 29.44 1.44 1.74       New vein
including 29.1 29.44 0.34 5.92   7.93 3.15 New vein
ZK0003-1 is abandoned at 41.80 m depth          
ZK1002   173.62 174.12 0.5 0.86       New vein
  292.28 293.92 1.64 1.80       New vein
  324.14 324.73 0.59 3.41       New Vein
ZK5501   59.3 60.5 1.2 0.78 19.55 0.22 0.31 V18 Vein
  64.5 65.66 1.16 0.64       new vein
  66.98 68.68 1.7 1.07       new vein
ZK5502   205.65 206.81 1.16 0.92       new vein
ZK0004   253.09 253.29 0.2 21.30 40.30 1.17 7.84 V11 Vein

All widths are core intercept widths and are not true widths, for V9 vein, the intercepts are approximately 75% of the true width and relationship between the intercept and the true width for other veins is not determined.

V9 Vein

Nine drill holes have intercepted V9 vein over 500 m along its strike from the southwest (drill hole ZK1501) to northeast (drill hole ZK3001), and approximately 280 m down dip as indicated by drill hole ZK0003. The most noted drill cross section, Line Zero Section, has demonstrated V9 vein's continuity down dip: drill hole ZK0002 intercepted 10.5 g/t gold over 1.23 m at elevation 250 m, drill hole ZK0001 intercepted 13.5 g/t gold over 3.1 m at elevation 180 m and the drill hole ZK0003 intercepted 46.06 g/t gold over 1.94 m at elevation 80 m; with grades being progressively higher with depth. The mineralization of V9 occurs in thick bedded sandstone and quartz sandstone of the upper part of 2nd section of Cambrian Shuishi Formation. The mineralization occurs as grey coloured silicification associated with arsenopyrite, pyrite, sphalerite and pyrrhotite is smokey grey, fine grained dotted shaped and veinlet shaped. A core sample from the high grade interval of hole ZK0001 was examined by thin section under microscope. The petrographic study reveals the main sulfide minerals are arsenopyrite, pyrite, sphalerite and pyrrhotite. Extensive native visible gold was observed in the thin section under the microscope with most gold grains being micro-fine.

R1 Vein

The newly discovered R1 vein is located adjacent to a small granodioritic stock with a northeast extension and is located at about 120 m to the southeast of V9 vein. The extension and dipping direction of the R1 vein is not yet determined. R1 vein has shown different features of alteration and gold mineralization from those of the V9 vein. The silicification associated with minor arsenopyrite and pyrite in R1 vein is much more intensive and wide. In comparison to the V9 vein, the silicification in R1 vein is overprinted by one more structure featured with preferred cataclastic pathways (brittle-ductile deformation) that is cemented by arsenopyrite and pyrite fine vein lets. Fine grains of visible gold seem to be associated with the cementing arsenopyrite and pyrite vein lets.

Other Veins

In addition to V9 and R1 veins, many new veins have been discovered by these nine drill holes (see Table 1). However, at this early stage of the drilling program, their sizes, extensions and dipping directions are unclear.

Verification of Native Gold Assay

After visible gold grains were recorded in core descriptions and high gold assay results were received from drill hole ZK 0003, Michael Hibbitts, B.Sc (Geology), B.Ed, P.Geo, VP Exploration of Silvercorp Metals Corp., was engaged by the Company to visit the HNK property and the drill site to independently verify the gold assay results. After careful observation of the core sample, Mr. Hibbitts decided to resample H4645 core sample. A quarter-cut sample of H4645 with a 0.30m interval (from 93.50 to 93.80m drill depth) weighing 0.34 Kg was carefully sawed with Mr. Hibbitts on site, with Mr. Hibbitts delivering the sample personally to ALS Chemex Laboratories in Guangzhou City, China for assay verification. A comparison of the quarter-cut sample by Mr. Hibbitts and the original half-cut sample by New Pacific's field geologist is listed in the table below:

From (m) To (m) Interval (m) Assay Au (g/t)

Person Sampled

93.50 93.80 0.30 120.50 Field Geologist
93.50 93.80 0.30 286.00 Mr. Hibbitts


Based on these results, Mr. Hibbitts'sample result has confirmed New Pacific's field geologists sampling.

Further Work

At least ten additional drill holes have been planned to follow up on these high grade results. The focus will be continued drilling on the V9 further down dip and along the strike, aimed at defining continuous gold mineralization and resources for V9 vein, and drilling on the newly discovered, much wider and higher grade R1 vein. In addition, the Company plans to start an underground tunnelling program of horizontal portals and decline shafts so it can access and explore the high grade R1 vein at elevation 220m through tunnel, pending obtaining an explosives permit.

Quality Control

The Company maintain a quality control program to ensure best practice in sampling and analysis of the samples. All samples are shipped directly in security bags to ALS Chemex (Guangzhou) Co. Ltd., a certified laboratory by China Bureau of Quality Control and Quality Assurance. In the laboratory, samples are dried, crushed, split, pulverized to 200 mesh, and then assayed using a standard 30 g nominal sample weight gold by fire assay with AAS finish. According to ALS Chemex, a prepared sample is fused with a mixture of lead oxide, sodium carbonate, borax, silica and other reagents are required, inquarted with gold â€"free silver and then cupelled to yield a precious metal bead. The bead is digested in dilute nitric acid in the microwave oven, and then concentrated hydrochloric acid is added and the bead is further digested in the microwave at a low power setting. The digested solution is cooled, diluted with de-mineralized water and analyzed by atomic absorption spectroscopy against matrix-matched standards.

The exploration work is carried out by Silvercorp Metals Inc.'s wholly owned subsidiary, Yunnan Jin Chang Jiang Mining Co. Ltd., and is directly supervised by Mr. Jigui Sun (B.A. & M.Sc., Geology), the General Manager of Jin Chang Jiang and by Dr. Rui Feng (Ph.D., Geology), President of New Pacific Metals.

Barry J. Price, M.Sc., P. Geo Consulting Geologist has reviewed the contents of this News Release as the Qualified Person for the company.

About New Pacific Metals Corp.

New Pacific Metals Corp is engaged in the acquisition and exploration, of gold, copper and polymetallic properties in the People's Republic of China ("China"). Currently, the Company is exploring for gold in the Guangdong Province and for nickel, copper and precious metals in the Sichuan Province.



HNK Project Drill Hole Intersections







For Further Information:
New Pacific Metals Corp.
Lou Duarte, Director
Phone: +1 (604) 633-1368
Fax: +1 (604) 669-9387
Email: info@newpacificmetals.com
Website: www.newpacificmetals.com

CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration, development, and mining. Production and revenue projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. As a result, actual results may vary materially from those described in the forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake any obligation to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.

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

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