New Pacific Metals Stock

New Pacific Metals Corp. operates as a Canadian mining issuer that engages in exploring and developing mineral properties in Bolivia.

The company’s precious metal projects include its flagship Silver Sand Project, the Carangas Project and the Silverstrike Project.

Silver Sand Project

The Silver Sand Project is located in the Colavi District of Potosí Department in southwestern Bolivia at an elevation of 4,072 m above sea level, 35 km northeast of Potosí City, the department capital.

The Silver Sand Project includes two claim blocks, the south and north blocks, which covers a total area of 5.42 km2. The south block of the Silver Sand Project (the ‘Silver Sand South Block’), covering an area of 3.17 km2, hosts the Silver Sand deposit.

In August 2021, the company announced the receipt of an administrative mining contract (AMC) for the Silver Sand South Block from Autoridad Jurisdictional Administrativa Minera (AJAM). The AMC establishes a clear title to the Silver Sand South Block. The north block of the Silver Sand Project (the ‘Silver Sand North Block’) covers an area of 2.25 km2 and includes three Special Temporary Authorizations (ATEs) (Jisas, Jardan and El Bronce). The company is in the process of converting these ATEs to an AMC.

In 2021, the company completed a drill program of 13,313.7 m in 55 holes (the ‘2021 Silver Sand Drill Program’). The 2021 Silver Sand Drill Program included structure orientation drilling, step-out and infill drilling, as well as exploration drilling.

In 2022, the company commenced the 2022 Silver Sand Drill Program. As of June 30, 2022, a total of 19,323 m in 86 drill holes had completed with all assay results received.

Advanced studies have commenced on the Silver Sand Project with a preliminary economic assessment (PEA), environmental and socio-economic baseline studies in progress.

Carangas Project

In April 2021, the company signed an agreement with a private Bolivian company to acquire a 98% interest in the Carangas Project. The Carangas Project is located approximately 180 km southwest of the city of Oruro and within 50 km from Bolivia’s border with Chile. The private Bolivian company is 100% owned by Bolivian nationals and holds title to the two exploration licenses that cover an area of 6.25 km2.

Under the agreement, the company is required to cover 100% of the future expenditures on exploration, mining, development and production activities for the Carangas Project. The agreement has a term of 30 years and is renewable for another 15 years.

In 2021, the company completed the 2021 Carangas Drill Program of 13,209 m in 35 drill holes. As of June 30, 2022, a total of 21,980 m in 43 drill holes had been completed, of which assay results of 12 drill holes have been received.

Silverstrike Project

The Silverstrike Project is located approximately 140 km southwest of La Paz, Bolivia. In December 2019, the company signed a mining association agreement and acquired a 98% interest in the Silverstrike Project from a private Bolivian corporation that is owned 100% by Bolivian nationals and holds the title to the nine ATEs (covering an area of approximately 13 km2) that include the Silverstrike Project.

Under the mining association agreement, the company is required to cover 100% of future expenditures, including exploration, contingent on the results of development and subsequent mining production activities at the Silverstrike Project. The agreement has a term of 30 years and is renewable for another 15 years.

Frontier Area – Carangas and Silverstrike Projects

The Carangas Project and the Silverstrike Project are located within 50 km of the Bolivian border with Chile. In line with many South American countries, Bolivia does not permit foreign entities to own property within 50 km of international borders (the ‘Frontier Area’). Property owners in the Frontier Area are, however, permitted to enter into mining association agreements with third parties, including foreign entities, for the development of mining activities under Bolivian Law No. 535 on Mining and Metallurgy.

RZY Silver-Lead-Zinc Project

The company’s RZY project (the ‘RZY Project’), located in Qinghai, China was an early-stage silver-lead-zinc exploration project. The RZY Project was located approximately 237 km from the city of Yushu Tibetan Autonomous Prefecture. In 2016, the Qinghai Government issued a moratorium, which suspended exploration for 26 mining projects in the region, including the RZY Project, and classified the region as a National Nature Reserve Area.

During 2020, the company’s subsidiary, Qinghai Found Mining Co., Ltd. (Qinghai Found), reached a compensation agreement with the Qinghai Government for the RZY Project. Pursuant to the agreement, Qinghai Found will surrender its title to the RZY Project to the Qinghai Government for one-time cash compensation (the RZY Compensation Transaction).

In June 2022, the Qinghai Government completed its approval process of the RZY Compensation Transaction. As a result, the company disposed its RZY Project.

History

New Pacific Metals Corp. was incorporated in 2003. The company was formerly known as New Pacific Holdings Corp. and changed its name to New Pacific Metals Corp. in July 2017.