New Pacific Raises $19,950,000 from Exercise of Warrants by Pan American Silver and Silvercorp

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VANCOUVER, BRITISH COLUMBIA – May 22, 2019 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) is pleased to announce that it has raised gross proceeds of $19,950,000 as a result of 9,500,000 previously issued common share purchase warrants (the  “Warrants”) being exercised (the “Warrant Exercise”) by Pan American Silver Corp. (“Pan American”) and Silvercorp Metals Inc. (“Silvercorp”).   

The Warrants were issued in connection with the Company’s strategic private placement of units completed in November 2017 pursuant to which Pan American subscribed for 16,000,000 units and Silvercorp subscribed for 3,000,000 units.  Each unit was comprised of one common share of the Company (a “Common Share”) and one half of one Warrant.  Each whole Warrant was exercisable into one Common Share at an exercise price of $2.10 per Common Share.   

Early Warning Report Information

Pan American

Prior to the Warrant Exercise, Pan American held approximately 12% of the total number of issued and outstanding Common Shares on a non-diluted basis, and approximately 16% of the issued and outstanding Common Shares on a fully-diluted basis, assuming the exercise of the Warrants then held by Pan American.  Immediately following the Warrant Exercise, Pan American directly owned 24,000,000 Common Shares, including 16,000,000 previously acquired Common Shares pursuant to the November 2017 private placement and 8,000,000 Common Shares acquired through the Warrant Exercise, representing approximately 16.85% of the total number of issued and outstanding Common Shares on a non-diluted basis, and approximately 16.20% of the issued and outstanding Common Shares on a fully-diluted basis.

Pan American’s acquisition of the additional Common Shares was made for investment purposes, and it may, in the future, acquire ownership and control over additional securities of New Pacific for investment purposes. 

The foregoing disclosure regarding Pan American’s holdings is being disseminated pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues.  A copy of the early warning report will be filed on the System for Electronic Document Analysis and Review (SEDAR) under New Pacific's profile at www.sedar.com and may be obtained by contacting Ms. Siren Fisekci, VP, Investor Relations for Pan American, at 604-684-1175. 

Silvercorp

Prior to the Warrant Exercise, Silvercorp held approximately 29.81% of the total number of issued and outstanding Common Shares on a non-diluted basis, and approximately 27.76% of the issued and outstanding Common Shares on a fully-diluted basis, assuming the exercise of the Warrants then held by Silvercorp.  Immediately following the Warrant Exercise, Silvercorp owned, directly or indirectly, 41,096,300 Common Shares, including 3,000,000 previously acquired Common Shares pursuant to the November 2017 private placement and 1,500,000 Common Shares acquired through the Warrant Exercise, representing approximately 28.87% of the total number of issued and outstanding Common Shares on a non-diluted basis, and approximately 28.76% of the issued and outstanding Common Shares on a fully-diluted basis. 

Silvercorp’s acquisition of the additional Common Shares was made for investment purposes, and it may, in the future, acquire ownership and control over additional securities of New Pacific for investment purposes. 

The foregoing disclosure regarding Silvercorp’s holdings is being disseminated pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues.  A copy of Silvercorp’s early warning report will be filed on the System for Electronic Document Analysis and Review under New Pacific's profile at www.sedar.com and may be obtained by contacting Lon Shaver, VP for Silvercorp at 604-669-9397.

 

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc., and Pan American Silver Corp., one of the world's largest primary silver producers, which operates ten mines, including the San Vicente mine located in the Potosí Department of Bolivia. 

For further information, please contact: 

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.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.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express  or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any  of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements in this news release relate to, among other things, the timing and receipt of stock exchange approvals; and the closing of the Transaction.

 

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: satisfaction or waiver of all applicable conditions to closing of the Transaction including, without limitation, receipt of all stock exchange approvals.

 

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

New Pacific Appoints Market-Maker

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VANCOUVER, BRITISH COLUMBIA – May 6, 2019 – New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) is pleased to announce that it has retained PI Financial Corp. (“PI”) to provide market making services in accordance with TSX Venture Exchange policies. 

PI will trade the securities of New Pacific on the TSX-V for the purposes of maintaining an orderly market.  In consideration of the services provided by PI, the Company will pay PI a monthly cash fee of $5,000 for a minimum term of three months and renewable thereafter.  New Pacific and PI are unrelated and unaffiliated entities.  PI will not receive shares or options as compensation.  The capital used for market making will be provided by PI. 

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc., and Pan American Silver Corp., one of the world's largest primary silver producers, which operates ten mines, including the San Vicente mine located in the Potosí Department of Bolivia.

For further information, please contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.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.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express  or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any  of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements in this news release relate to, among other things, the timing and receipt of stock exchange approvals; and the closing of the Transaction.

 

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: satisfaction or waiver of all applicable conditions to closing of the Transaction including, without limitation, receipt of all stock exchange approvals.

 

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

New Pacific Resumes Drilling Programs at Silver Sand Project and Receipt of Environmental Permits for Exploration

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VANCOUVER, BRITISH COLUMBIA – April 25, 2019: New Pacific Metal Corp. (“New Pacific” or the “Company”) (TSXV: NUAG) (OTCQX: NUPMF) is pleased to announce the commencement of the 2019 drill programs at the Silver Sand Project in the Department of Potosi, Bolivia.  The total budgeted metreage for 2019 drilling campaign is about 55,000 metres of diamond coring drilling.  

The Silver Sand Project consists of three 100% owned concessions of approximately 7 square kilometres plus an area of approximately 57 square kilometres (includes 29 Special Temporary Authorizations and 201 mining grids) covered by the Mining Production Contract (“MPC”).  As previously announced in the Company’s January 11, 2019 news release, New Pacific signed the MPC with COMIBOL which is subject to ratification by the Plurinational Legislative Assembly of Bolivia.

Grab samples of hundreds of surface dump sites and chip-samples from many artisanal mining tunnels reveal that the silver mineralized fracture zones could extend up to 6 kilometres long in the North-North-West direction and up to 2 kilometres wide in the North-East-East direction.  The targets for the 2019 drilling program include: 1) infill drilling to a point where an initial NI 43-101 compliant Mineral Resource estimate can be made for the Silver Sand area by the end of 2019; 2) drill prospects with good silver grades from historical artisanal mining dumps to expand the mineralization zones at the Silver Sand; 3) drill prospects surrounding Silver Sand showing similar silver mineralization as revealed by historical artisanal mining, and 4) drilling for samples for further metallurgical test work.  The Company currently has three drill rigs on site.  The Company has also received the environmental permits from the relevant Bolivian government authorities to conduct mineral exploration activities in the MPC areas surrounding the Silver Sand area. 

The Company has acquired land located approximately 16 kilometres south of the Silver Sand Project sufficient to build an exploration camp which will include offices, accommodation, and drill core processing and storage facilities.  This location is approximately 10 kilometres East of the Potosi airport at an elevation of 3,620 metres above sea level. 

Quality Assurance and Quality Control

Core from the 2019 drilling program will be HQ in size.  Core samples from drill holes will be split by diamond saw at the camp site.  To minimize costs and to expedite the sample preparation process, the Company will set up its own sample preparation facilities at the camp site including crushing and pulverizing in 2019.  Pulp samples will be shipped to internationally accredited commercial labs for geochemical analysis.

As was the case in 2018 drilling campaign, a thorough quality assurance and quality control protocol will be employed in 2019 to monitor the quality of sample preparation and analysis. Standards of certified reference materials, blanks and duplicates will be inserted in normal core sample sequences prior to shipment to the lab at a ratio of twenty to one, i.e., every twenty samples contain at least one standard sample, one blank sample and one duplicate sample.

Alex Zhang, P. Geo., VP Exploration of the Company and Qualified Person as defined under National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release.

About New Pacific

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosi Department of Bolivia, the Tagish Lake gold project in Yukon, Canada, and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc., and Pan American Silver Corp., one of the world's largest primary silver producers, which operates ten mines, including the San Vicente mine located in the Potosí Department of Bolivia.

For further information, contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.ca
www.newpacificmetals.ca

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express  or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any  of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements in this news release relate to, among other things, the timing and receipt of stock exchange approvals; and the closing of the Transaction.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: satisfaction or waiver of all applicable conditions to closing of the Transaction including, without limitation, receipt of all stock exchange approvals.

New Pacific Announces the Appointment of New Vice President, Corporate Development, Project Manager, and Grant of Options

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VANCOUVER, BRITISH COLUMBIA – April 23, 2019 - New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) is pleased to announce the appointment of Mr. Robert Cinits as  Vice President, Corporate Development of the Company and Mr. David Turner as Project Manager effective April 22, 2019.

Mr. Cinits has over 30 years of experience in the mineral resources industry with an extensive background in corporate development, M&A, exploration, project development, QA/QC, engineering studies, and NI 43-101 reports.  Prior to joining New Pacific, Mr. Cinits held the positions of Chief Operating Officer with Mason Resources Corp. and Vice President, Corporate Development with Entrée Resources Ltd.  Mr. Cinits received his Bachelor of Science degree in Geology from University of Toronto.  Mr. Cinits is also a P.Geo registered with the Association of Professional Engineers and Geoscientists of the Province of British Columbia.

Mr. David Turner has over 25 years experience in the mineral resources industry with a focus on precious metals exploration in Latin America.  After starting his career with BHP, Mr. Turner has gained progressive experience in managing exploration programs and operations, from grassroots to large-scale drilling campaigns in El Salvador, Honduras, Nicaragua and Nevada.  Prior to joining New Pacific, Mr. Turner was Country Manager for Oro Verde Limited in Nicaragua.  Mr. Turner, fluent in both English and Spanish, received his Bachelor of Science degree in Geology from Colorado State University.

Stock Option Grants

The Company's Board of Directors has authorized and approved a grant of 100,000 incentive stock options (the "Stock Options") each to Mr. Cinits and Mr. Turner.  The stock options are exercisable at a price of $2.30 per share, being the closing price of the Company’s shares on the TSX Venture Exchange on April 22, 2019, for a period of five years from the date of grant.  The options are subject to the terms of the Stock Option Plan and the approval of the TSX Venture Exchange.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc., and Pan American Silver Corp., one of the world's largest primary silver producers, which operates six mines, including the San Vicente mine located in the Potosí Department of Bolivia.

For further information, please contact:
New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.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.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express  or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any  of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements in this news release relate to, among other things, the timing and receipt of stock exchange approvals; and the closing of the Transaction.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: satisfaction or waiver of all applicable conditions to closing of the Transaction including, without limitation, receipt of all stock exchange approvals.

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

New Pacific Clarification of News Release

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VANCOUVER, BRITISH COLUMBIA – April 1, 2019 - New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) is issuing this news release to clarify and further explain its news release of March 28, 2019 announcing the sale and purchase of its position in Cozy Holdings Inc. for an aggregate purchase price of US$495,495 between the Company, as vendor, and Silvercorp Metals Inc. (“Silvercorp”), as purchaser (the “Transaction”).

On February 22, 2016, the Company acquired 750,750 shares of Cozystay Holdings Inc. at a cost of US$0.33 per share for a total consideration of US$250,000 through a private placement.  At the time, New Pacific was an investment issuer under the policies of the TSX Venture Exchange (“TSXV”), engaged in investing in privately held and publicly held companies.  On July 20, 2017, New Pacific announced a change of business from an investment issuer to a mining issuer under the policies of the TSXV to focus on the exploration and development of the Company’s Silver Sand Project in Bolivia.  On April 1, 2018, the Company’s shares in Cozystay were rolled over from Cozystay Holdings Inc. to Cozy Holdings Corp. (“Cozystay”). 

As a private company, there is no readily available market for Cozystay shares and the Transaction price of US$0.66 per share was negotiated between the two parties. 

Cozystay is a startup company operating a vacation rental platform offering hotel information, online booking, payment processing, and property management services.  The sale of the shares is consistent with the Company’s strategy of rationalizing its assets to focus on its mineral interests in Bolivia and surfacing value from within its non-core assets.  The Company expects to report a gain on the sale of this investment of approximately US$245,495 on its financial statements for the quarter and year ended June 30, 2019. 

The Transaction is subject to the approval of the TSXV.  

As Silvercorp is a control person of the Company, the Transaction is considered a "related party transaction", as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the Company is relying on the exemption from the formal valuation requirement of MI 61-101 as set out in Section 5.5(a) of MI  61-101 and the exemption from the minority approval requirement of MI 61-101 as set out 5.7(1)(a) of MI 61-101 for the Transaction.
 

ABOUT NEW PACIFIC 

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc., and Pan American Silver Corp., one of the world's largest primary silver producers, which operates six mines, including the San Vicente mine located in the Potosí Department of Bolivia. 

For further information, please contact:

New Pacific Metals Corp.Z
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.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.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express  or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any  of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements in this news release relate to, among other things, the timing and receipt of stock exchange approvals; and the closing of the Transaction.  

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: satisfaction or waiver of all applicable conditions to closing of the Transaction including, without limitation, receipt of all stock exchange approvals. 

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

New Pacific Announces Sale of Cozystay Shares to Silvercorp

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VANCOUVER, BRITISH COLUMBIA – March 28, 2019 - New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) today announces it has entered into a share purchase agreement with Silvercorp Metals Inc. ("Silvercorp"), a control person of the Company, for the purchase by Silvercorp of 750,750 shares of Cozystay Holdings Inc. held by the Company for an aggregate purchase price of US$495,495 payable in cash (the "Transaction").

The Transaction is subject to the approval of the TSX Venture Exchange.

 As Silvercorp is a control person of the Company, the Transaction is considered a "related party transaction", as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the Company is relying on the exemption from the formal valuation requirement of MI 61-101 as set out in Section 5.5(a) of MI  61-101 and the exemption from the minority approval requirement of MI 61-101 as set out 5.7(1)(a) of MI 61-101 for the Transaction.

ABOUT NEW PACIFIC

New Pacific Metals Corp. is a Canadian exploration and development company which owns the Silver Sand Project, in the Potosi Department of Bolivia, the Tagish Lake Gold Project in Yukon, Canada and the RZY Project in Qinghai Province, China.

For further information, please contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.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.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express  or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any  of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements in this news release relate to, among other things, the timing and receipt of stock exchange approvals; and the closing of the Transaction.

 

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: satisfaction or waiver of all applicable conditions to closing of the Transaction including, without limitation, receipt of all stock exchange approvals.

 

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

New Pacific Announces Stock Option Grants

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VANCOUVER, British Columbia - February 22, 2019 - New Pacific Metals Corp. (TSX-V: NUAG) (OTCQX: NUPMF) (“New Pacific” or the “Company”) has granted an aggregate of 1,955,000 incentive stock options to certain directors, officers, employees, and consultants of the Company in accordance with the Company’s stock option plan today.

The options are exercisable at a price of $2.15 per share, being the closing price of the shares on the TSX Venture Exchange on February 21, 2019, for a period of five years from the date of grant.  The options will vest in equal six-month instalments over 36 months and are subject to the approval of the TSX Venture Exchange.

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in the Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc., and Pan American Silver Corp., one of the world's largest primary silver producers, which operates six mines, including the San Vicente mine located in the Potosí Department of Bolivia.

For further information, please contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.newpacificmetals.com

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

New Pacific Reports Financial Results for the Three and Six Months Ended December 31, 2018

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VANCOUVER, BRITISH COLUMBIA – February 21, 2019: New Pacific Metals Corp. (“New Pacific” or the “Company”) (TSX-V:NUAG) (OTCQX:NUPMF) today announced its unaudited condensed consolidated interim financial results for the three and six months ended December 31, 2018. 

This news release should be read in conjunction with the Company's management discussion & analysis, financial statements and notes to financial statements for the corresponding period, which have been posted under the Company’s profile on SEDAR at www.sedar.com and are also available on the Company's website at www.newpacificmetals.com.  All figures are expressed in Canadian dollars unless otherwise stated.


FINANCIALS

Net income attributable to equity holders of the Company for the three months ended December 31, 2018 was $473,838 or $0.00 per share (three months ended December 31, 2017 - net loss of $1,096,699 or $0.01 per share).  The Company’s financial results were mainly impacted by the following: (i) income from investments of $65,926 compared to income of $68,533 in the prior year quarter, (ii) operating expenses of $592,796 compared to $1,162,214 in the prior year quarter, and (iii) foreign exchange gain of $1,065,279 compared to gain of $59,635 in the prior year quarter.

For six months ended December 31, 2018, net loss attributable to equity holders of the Company was $278,745 or $0.00 per share compared to net loss of $2,647,798 or $0.02 per share for six months ended December 31, 2017.  

Income from investments for the three months ended December 31, 2018 was $65,926 (three months ended December 31, 2017 – income of $68,533).  Within the income from investments, $150,525 was gain on the Company’s equity investments and $125,677 was loss from fair value change on bonds offset by interest earned.

For the six months ended December 31, 2018, income from investments was $183,123 compared to loss of $508,411 for the six months ended December 31, 2017.

Operating expenses for the three and six months ended December 31, 2018 were $592,796 and $1,006,872, respectively (three and six months ended December 31, 2017 - $1,162,214 and $2,246,608, respectively).  

Foreign exchange gain for the three months ended December 31, 2018 was $1,065,279 (three months ended December 31, 2017 - $59,635).  The Company holds a large portion of cash and cash equivalents and bonds in US dollars while the Company’s functional currency is Canadian dollar.  The fluctuation in exchange rates between the US dollar and the Canadian dollar will impact the financial results of the Company.  During the three months ended December 31, 2018, the US dollar appreciated by 5.4% against the Canadian dollar (from 1.2945 to 1.3642) while in the prior year period the US dollar appreciated by 0.5% against the Canadian dollar (from 1.2480 to 1.2545).

For the six months ended December 31, 2108, foreign exchange gain was $720,437 (six months ended December 31, 2017 – foreign exchange loss of $409,669).

 

SILVER SAND PROPERTY

The Company started the preparation work for the planned exploration program after the acquisition of the Silver Sand Property.  In October 2017, the Company successfully received exploration permits required by the relevant Bolivian government authorities and immediately commenced its exploration drilling program on the property.  By mid-December 2018, a total of 55,010 metres in 195 HQ size diamond core drill holes had been completed.  On January 22 and February 20, 2019, through two separate news releases, the Company released the results of 195 drill holes that had assay results received and analyzed, of which 190 holes intercepted silver mineralization.  For details of the drill program, please follow the links at https://newpacificmetals.com/news-and-media/2019/1/22/new-pacific-reports-first-results-from-2018-drill-program-at-silver-sand-bolivia and https://newpacificmetals.com/news-and-media/2019/2/20/new-pacific-reports-remaining-drill-results-from-2018-drill-program-at-silver-sand-bolivia.  For the three and six months ended December 31, 2018, total expenditures of $3,413,976 and $6,593,939, respectively (three and six months ended December 31, 2017 - $966,651 and $1,354,399, respectively) were capitalized under the property.  These expenditures were mainly related to the drilling program, site and camp preparation, maintaining a regional office in La Paz, and building a competent management team and workforce for the property. 

As part of the Silver Sand Property’s expansion plan, on January 11, 2019, the Company announced that through its wholly-owned subsidiary, Empresa Minera Alcira S.A., it had entered into a Mining Production Contract (the ”MPC”) with Corporación Minera de Bolivia (“COMIBOL”) granting the Company the right to carry out exploration, mining, and production activities in the area of up to 56.9098 square kilometres adjoining the Silver Sand Property.  In addition, in July 2018, the Company entered into agreements with private owners to acquire their 100% interest in certain mineral concessions located adjacent to the Silver Sand Property.  For the six months ended December 31, 2018, the Company acquired total mineral concessions valued at $2,631,200 (US$2,000,000) by cash payments of $1,315,600 (US$1,000,000) and issuance of 832,000 of its common shares.

 

ABOUT NEW PACIFIC

New Pacific Metals Corp. is a Canadian exploration and development company which owns the Silver Sand Project, in the Potosi Department of Bolivia, the Tagish Lake Gold Project in Yukon, Canada and the RZY Project in Qinghai Province, China. 

 

For further information, please contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.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.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws.  Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management and others. 

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information.  Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended June 30, 2018 under the heading “Risk Factors”.  Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended.  Accordingly, readers should not place undue reliance on forward-looking statements or information. 

 The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information.  For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

New Pacific Reports Remaining Drill Results from 2018 Drill Program at Silver Sand, Bolivia

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Near Surface Silver Mineralization Intercepted in 190 out of total 195 holes;
Numerous Significant Intercepts include 99.91 metres grading 244 g/t Ag

VANCOUVER, British Columbia – February 20, 2019 -- New Pacific Metals Corp. (TSX-V:NUAG) (OTCQX:NUPMF) (“New Pacific” or the “Company”) is pleased to announce the second batch of drill results from its wholly-owned Silver Sand Project in Potosí Department, Bolivia.

As announced previously on the Company’s news release dated January 22, 2019, the drilling program commenced in mid-October 2017.  A total of 55,010 metres in 195 HQ size diamond core drill holes had been completed by mid-December 2018.  The drill program covers an area of approximately 1,600 m long in the north-south direction and up to 800 m wide in the east-west direction.  The holes were drilled along northeast 60 degree oriented sections with a 50 m spacing between the sections.  Most drill holes are drilled at a dip angle of 45 degrees to penetrate the principal trend of the mineralized structure zones with an average hole length of approximately 285 m.  The results for the first batch of 98 drill holes were released on January 22, 2019.  This news release discloses the assay results of the remaining 97 holes, of which 96 holes intercepted silver mineralization.  These 97 holes were drilled mainly to the north of the section 60 covering an area of approximately 1,100 m long north-south and 800 m wide in the east-west direction.

Highlights of significant drill intersections are summarized as follows (for a detailed list, please refer to Table-1 – Composited Drill Intersections of Mineralization below):

·         Drill hole DSS505003, 225.82m @ 116g/t Ag from 59.85m to 285.67m,

incl. 99.91m @ 244g/t Ag from 185.76m to 285.67m;

·         Drill hole DSS5203, 6.41m @ 290g/t Ag from 21.09m to 27.5m, and

      192.93m @ 123g/t Ag from 100.77m to 293.7m,

incl. 17.43m @ 329g/t Ag from 100.77m to 118.2m, and

incl. 74.06m @ 191g/t Ag from 219.64m to 293.7m;

·         Drill hole DSS505004, 95.2m @ 162g/t Ag from 73.5m to 168.7m,

incl. 16.7m @ 703g/t Ag from 117.7m to 134.4m, and

incl. 7.30m @ 291g/t Ag from 161.4m to 168.7m;

·         Drill hole DSS4402, 144.85m @ 86g/t Ag from 69.85m to 214.7m,

incl. 48.5m @ 211g/t Ag from 129.5m to 178.0m

·         Drill hole DSS5604, 79.48m @ 135g/t Ag from 39.92m to 119.4m,

incl. 22.73m @ 330g/t Ag from 39.92m to 62.65m;

·         Drill hole DSS425001, 118.46m @ 88g/t Ag from 63.18m to 181.64m,

incl. 15.14m @ 244g/t Ag from 63.18m to 78.32m, and

incl. 17.27m @ 333g/t Ag from 85.88m to 101.15m;

·         Drill hole DSS4204, 68.4m @ 148g/t Ag from 86.6m to 155.0m;

·         Drill hole DSS425002, 35.86m @ 277g/t Ag from 97.23m to 133.09m;

·         Drill hole DSS5204, 12.56m @ 119g/t Ag from 62.5m to 75.06m, and

      12.7m @ 261g/t Ag from 110.71m to 123.41m, and

      39.62m @ 116g/t Ag from 180.73m to 220.35m;

·         Drill hole DSS5411, 192.5m @ 50g/t Ag from 4.5m to 197.0,

incl. 1.25m @ 1865g/t Ag from 18.75m to 20.0m;

·         Drill hole DSS565003, 63.27m @ 141g/t Ag from 21.95m to 85.22m;

·         Drill hole DSS5408, 114.64m @ 76g/t Ag from 18.36m to 133.0m,

incl. 2.0m @ 2099g/t Ag from 131.0m to 133.0m;

·         Drill hole DSS4609, 83.92m @ 103g/t Ag from 63.38m to 147.3m,

incl. 10.4m @ 398g/t Ag from 84.3m to 94.7m, and

incl. 8.9m @ 414g/t Ag from 138.4m to 147.3m;

·         Drill hole DSS5201, 123.7m @ 64g/t Ag from 79.6m to 203.3m,

incl. 26.85m @ 135g/t Ag from 85.15m to 112.0m, and

incl. 7.65m @ 201g/t Ag from 124.7m to 132.35m;

·         Drill hole DSS505001, 124.02m @ 63g/t Ag from 60.9m to 184.92m,

incl. 32.65m @ 116g/t Ag from 60.9m to 93.55m;

·         Drill hole DSS445001, 99.61m @ 75g/t Ag from 95.82m to 195.43m

incl. 10.41m @ 199g/t Ag from 151.46m to 161.87m, and

incl. 2.0m @ 1930g/t Ag from 193.43m to 195.43m;

·         Drill hole DSS5807, 48.63m @ 148g/t Ag from 7.0m to 55.63m;

·         Drill hole DSS545003, 84.06m @ 80g/t Ag from 37.24m to 121.3m,

incl. 17.15m @ 172g/t Ag from 37.24m to 54.39m, and

incl. 18.7m @ 174g/t Ag from 102.6m to 121.3m;

·         Drill hole DSS485004, 116.15m @ 53g/t Ag from 54.43m to 170.58m,

incl. 23.57m @ 152g/t Ag from 54.43m to 78.0m, and

·         Drill hole DSS5210, 143.74m @ 39g/t Ag from 70.84m to 214.58m,

incl. 3.69m @ 1190g/t Ag from 70.84m to 74.53m;

·         Drill hole DSS405002, 47.24m @ 117g/t Ag from 99.22m to 146.46m

·         Drill hole DSS5006, 140.51m @ 39g/t Ag from 23.18m to 163.69m,

incl. 4.07m @ 343g/t Ag from 89.38m to 93.45m;

·         Drill hole DSS545002, 68.67m @ 79g/t Ag from 13.1m to 81.77m;

·         Drill hole DSS5207, 93.02m @ 55g/t Ag from 56.19m to 147.78m,

incl. 6.0m @ 266g/t Ag from 129.88m to 135.88m, and

incl. 4.93m @ 256g/t Ag from 142.85m to 147.78m;

·         Drill hole DSS505005, 33.47m @ 141g/t Ag from 31.83m to 65.3m;

·         Drill hole DSS465001, 36.38m @ 117g/t Ag from 70.39m to 106.77m,

incl. 17.36m @ 212g/t Ag from 70.39m 87.75m;

·         Drill hole DSS5001, 15.16m @ 152g/t Ag from 104.4m to 119.56m, and

       16.2m @ 119g/t Ag from 196.1m to 197.23m;

·         Drill hole DSS5002, 13.65m @ 308g/t Ag from 262.1m to 275.75m;

·         Drill hole DSS5208, 48.25m @ 87g/t Ag from 64.5m to 112.75m,

incl. 28.0m @ 110g/t Ag from 64.5m to 92.5m;

·         Drill hole DSS425003, 35.2m @ 118g/t Ag from 200.7m to 235.9m;

·         Drill hole DSS465005, 59.75m @ 69g/t Ag from 64.25m to 124.0m,

incl. 24.15m @ 154g/t Ag from 99.85m to 124.0m;

·         Drill hole DSS505008, 35.15m @ 117g/t Ag from 90.0m to 125.15;

·         Drill hole DSS5608, 9.31m @ 423g/t Ag from 76.0m to 85.31m;

·         Drill hole DSS5007, 53.35m @ 66g/t Ag from 89.39m to 142.74m, and

     25.1m @ 261g/t Ag from 273.7m to 298.9m;

·         Drill hole DSS5402, 63.6m @ 49g/t Ag from 141.4m to 205.5m,

(True width of mineralization zones is estimated at about 80% of drill intervals based on current understanding of the relationship between drill direction and the mineralized structures.  Please refer to Table-1 – Composited Drill Intersections of Mineralization below for details.)

Based on the drilling results, the drill holes usually penetrate first through a few metres up to more than 70 m thick layer of reddish siltstone and mudstone units of Cretaceous Tarapaya Formation, then into massive altered white colour arenites or sandstones units of the Cretaceous La Puerta Formation where silver mineralization is hosted.   At the contact of these two units, massive or densely disseminated pyrite mineralization of a few metres wide in thickness typically occurs.  Tin mineralization in the district is often associated with massive pyrite, locally called “Bolivia manto type of tin mineralization”.   At depth, many drill holes end at the unaltered reddish sandstone units of the Cretaceous La Puerta Formation.  The Cretaceous Formations sit unconformably on a basement of tightly folded and faulted Paleozoic marine clastic sediments.

The mineralized sandstone and siltstone units of the Cretaceous Formations are shallow dipping or sub-horizontal and gently folded into open synclines and anticlines with their hinges shallowly plunging to North-North-West (“NNW”) direction.   To the north of Silver Sand Project, numerous porphyrytic dacitic sills and dykes of Miocene age intrude and cut the Cretaceous sediments which are believed to be closely associated with silver mineralization in the district.

Silver mineralization is observed to be associated with fractures as sheeted veins, stockwork veinlets, crackle veins and breccia zones of sulfosalts and sulfides containing silver (Figure-1) in altered sandstones units which were bleached white due to sericite alteration of original reddish sandstones resulting in a sub-horizontal mineralized zone of up to more than 200 m in thickness beneath the Tarapaya red siltstone and mudstone (Figure-2).  The most common silver-containing sulfosalt is freibergite associated with small amounts of miargyrite, polybasite, bournonite, boulangerite, andorite and bismuthinite.

The mineralized fractures generally extend NNW sub-vertically and slightly dipping west.   The mineralized bodies within the Silver Sand Project were detected by drilling within an area of up to 1,600 m long in north-south direction and 800 m wide in east-west direction within the property limit and remain open to both the north and the west.   Mineralized bodies were oxidized to various extents to depth and could extend from near surface to a depth of up to more than 250 m. 

2019 Drilling Program

Assay results of surface sampling of hundreds of artisanal mining dumps and continuous chip-sampling from artisanal underground mining tunnels reveal the silver mineralized fracture zones could extend at least by 3,000 m to the north and 500 m to the west and the east, as well as extending up to 1,000 m to the south of the areas drilled in 2018.  These newly identified extensions of the mineralized fracture zones will be the targets of the continuing drilling program in 2019 once the rainy season ends by the end of March.

In addition, the Company is currently applying for permits to drill the areas covered under the Mining Production Contract (“MPC”) executed with COMIBOL in January 2019.  The drilling program for the MPC areas will commence once the drilling permits are granted by local authorities in two to three months.

Quality Assurance and Quality Control

HQ size drill core samples from altered and mineralized intervals were split into halves by diamond saw cutting with an average sample interval of one to one and half metres long at the Company’s core processing facility located in Betanzos, a local town 20 km away from the project site.  Half core samples are stored in secured core storages for future reference and the other half core samples are shipped in security sealed bags to ALS Global in Oruro, Bolivia for preparation, and ALS Global in Lima, Peru for geochemical analysis with the code of OG46 for elements of silver, lead and zinc.  Silver overlimits further go to gravimetric analysis with the code of GRA21.

A standard quality assurance and quality control (“QAQC”) protocol is employed to monitor the quality of sample preparation and analysis.  Standards of certified reference materials, blanks and duplicates are inserted in normal core sample sequences prior to shipment to lab at a ratio of 20:1 (i.e., every 20 samples contain at least one standard sample, one blank sample, and one duplicate sample).  The assay results of QAQC samples did not show any significant bias of analysis or contamination during sample preparation.

Technical information contained in this news release with respect to New Pacific 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”).

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in Potosí, Bolivia.  The Company is actively carrying out drilling activities at the Silver Sand Project and is looking for acquisition opportunities in Bolivia.  The Company’s non-active assets include the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  The Company’s largest shareholders are Silvercorp Metals Inc. (TSX/NYSE American: SVM) and Pan American Silver Corp. (TSX/NASDAQ: PAAS), one of the world's largest primary silver producers, which operates six mines, including the San Vicente mine located in Potosí, Bolivia.  Pan American Silver Corp. became a shareholder of the Company in 2017.

For further information, contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.newpacificmetals.com

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


CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this press release constitute “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management and others. 

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended June 30, 2018 under the heading “Risk Factors”. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

CAUTIONARY NOTE TO US INVESTORS

This news release has been prepared in accordance with the requirements of NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. Securities laws.  NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

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Figure-1

Figure-1

Figure-2

Figure-2

New Pacific Reports High Recovery of Silver Achieved for Sulphides and Transitional Mineralized Materials from Silver Sand, Bolivia

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VANCOUVER, British Columbia – February 7, 2019 – New Pacific Metals Corp. (TSX-V:NUAG) (OTCQX:NUPMF) (the “Company”) is pleased to announce the preliminary results of the  first metallurgical test work for its Silver Sand project in Potosi, Bolivia.  Metallurgical sampling and test work commenced in September 2018 – the flotation recovery and bottle roll leaching test works for the transition and sulphide mineralized materials have been completed and test work on the oxides is under way.  All tests, including column leaching test works, are expected to be completed by the end of April 2019.  Positive recovery results have been achieved in the extraction of silver by the processes of flotation and direct cyanidation from the initial metallurgical test work.  

Highlights of the Preliminary Results of Completed Test Works

· Sulphide materials have reported 96.0% silver recovery by rougher-scavenger flotation and the high silver extraction of 96.7% when leached in a bottle-roll with cyanide solution.

· Transition materials achieved 86.8% recovery of silver by flotation and the high extraction of 97.0% by cyanidation in bottle roll test.

· Test results indicate that the sulphide and transition type mineralized materials are non-refractory as per the high silver recoveries achieved during the direct cyanidation at atmospheric pressure.

· The mineralized materials were measured to be mostly in the soft to-medium competent level and abrasion from low-to medium values.  Consequently, a lower capital expenditure and operating cost would be required for the comminution circuit.

 

Programs of Metallurgical Tests

Half drilled core samples of oxides, transition and sulphides, representing naturally heterogeneous distribution of oxidation degree, silver grades and lithology of the mineralized materials at the Silver Sand minerals deposit, were collected to produce different composite samples.  Four geo-metallurgical test work programs (Mineral Characterization, Comminution, Flotation and Leaching) were developed on these samples.  Six metallurgical domains (MET1 to MET6) were identified for the flotation and leaching test work and also six geological domains (GEO1 to GEO6) were branded for the comminution test work.  This study methodology has allowed creating ore-specific test works that are producing high silver recovery results at this first stage of the metallurgical program.

Flotation

The test works of flotation were completed by SGS del Peru.  Half drilled-core samples were collected to produce three-master composite samples: oxides, transition and sulphides.  The flotation program was composed of rougher-scavenger tests at different sizes, a mixture of collectors, collector amount and pH.  Collectors from the chemical family of Xanthates, Hydroxamates and Dithiophosphates were tested.  They were: PAX (potassium amyl xanthate), SIPX (sodium isopropyl xanthate), DANA468, and OX100.

 Eighteen rougher-scavenger flotation tests for the transition (FLOATMET 5 composite) and sulphide (FLOATMET 6 composite) types have been completed.  Some of the results are presented in Table 1.  Figure 1 shows the flotation cells when transition and sulphide types were processing.  Table 1 presents silver and sulphide recoveries after floating for 20 minutes the sulphide and transition materials at specific process conditions.  The flotation for the oxide materials is under way.

Figure1.jpg

The best silver recoveries to the rougher-scavenger concentrate were achieved using PAX as the main collector for both sulphide and transition materials.  The silver recovery of 96% was the best result for sulphides materials and 86.8% was for the transition materials.  Results so far suggest the use OX100 as a secondary collector to improve silver extraction from transition materials.  Similar recoveries were obtained at natural pH and the higher pH of 9.  Though the flotation results are promising, they can be optimized at the second stage of the metallurgical test work program.

Table1.jpg

It is worth mentioning that similar silver recoveries were obtained for the sulphide materials at the particle size of P80 105µm and 74µm; being 92.8% at the biggest material size and 93.8% at 74µm for the flotation of 12 minutes long.  These results suggest that the silver minerals seem to be already liberated at the size of 105µm which would give the opportunity to use a smaller comminution circuit.

 

Bottle Roll Leaching

Four master composite samples were prepared from half drilled cores for the execution of leaching tests with sodium cyanide solution (NaCN) of which one composite sample comprises cores of sulphide materials (LEACHMET 6), the other is made of transition materials (LEACHMET 5) and two composites were composed of oxide materials (LEACHMET 1 and LEACHMET 4).

Direct cyanidation leaching in bottle-roll under conventional and intense conditions has been completed for the sulphide and transition materials.  Nineteen tests were carried out considering different materials sizes, cyanide solution strength, air or oxygen sparging and different temperatures.  Each bottle roll test was conducted at atmospheric pressure during 72 hours.  Some of these leach test results are presented in Table 2.

Bottle roll leaching of oxides is underway at SGS del Peru.

Table2.jpg

High silver extractions of up to 97% were achieved for sulphide and transition materials by intense cyanidation in bottle-rolls using oxygen at 56 – 57oC, as shown in Table 2.  None of the samples were pre-treated before the cyanidation; which is an indication of the liberation of the silver grains at the tested materails size and/or low-amount encapsulation in pyrite. Therefore, it can be claimed that the mineralized materials at Silver Sand are non-refractory. The texture and liberation will be confirmed with the QEMSCAN assays that are under way. These leaching results are very encouraging and they could be further improved in the next stage of the metallurgical program.

 

Column Leaching

The test works of column leaching are in progress at SGS del Peru and are expected to be completed by the end of April 2019.

Comminution

The test works of comminution were completed by SGS del Peru.  Four geological domains were tested for Crushing Work Index (CWi), Ball Work Index (BWi) and Abrassion Index (Ai). These domains represent the different rock lithology, type and intensity of alteration and material type that exist at the current drilled area of the Silver Sand deposit.

Twenty-one samples were tested.  CWi reported the energy consumption between 4.8 and 11.3kWh/t and the BWi measurements were from 4.8 to 15.9kWh/t, with only one sample above 14 KW/t.  Thus, the majority of the samples fell in the category of soft and medium competency level for crushing and grinding.  Consequently, a relatively low capital expenditure and operating cost could be expected for the comminution circuit.  The Ai reported values between 0.0595 and 0.5363.  Oxides and transition materials produced values below 0.3, which corresponds to low abrasion.  Sulphide materials reported the highest values in the range of medium abrasion behaviour.

 

Mineral Characterization

The test works of mineral characterization are being executed by the Research Centre for Mining and Metallurgy (CIMM) and Oruro Technical University (UTO), Bolivia.  The mineral characterization and Sink & Float tests are to assess the mineral response to gravity separation.  The tests are expected to be complete by the end of February 2019.

The Company is very pleased with the positive results achieved so far from the completed test works.  The results suggest that the mineralized materials from Silver Sand project could be amenable for extraction of silver by conventional flotation or direct-intense cyanidation at atmospheric pressure at large scale.  This is just the first stage of the metallurgical test work program and silver extraction rates can still be improved by further tuning the parameters of test works.

Technical information contained in this news release and the test programs have been designed and prepared by Mr. Alberto Galvez, an independent consulting metallurgist and a registered member of the Australasian Institute of Mining and Metallurgy (AusIMM) and reviewed and approved by Alex Zhang, P.Geo., Vice President of Exploration of the Company, who is a Qualified Person for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

 

ABOUT NEW PACIFIC

New Pacific is a Canadian exploration and development company which owns the Silver Sand Project in Potosí Department of Bolivia, the Tagish Lake gold project in Yukon, Canada and the RZY Project in Qinghai Province, China.  Its largest shareholders are Silvercorp Metals Inc. and Pan American Silver Corp., one of the world's largest primary silver producers, which operates six mines, including the San Vicente mine located in the Potosí Department of Bolivia.

For further information, contact:

New Pacific Metals Corp.
Gordon Neal
President
Phone: (604) 633-1368
Fax: (604) 669-9387
info@newpacificmetals.com
www.newpacificmetals.com

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this press release constitute “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management and others. 

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended June 30, 2018 under the heading “Risk Factors”. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. 

The Company’s forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

CAUTIONARY NOTE TO US INVESTORS

This news release has been prepared in accordance with the requirements of NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. Securities laws.  NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.