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New Pacific Metals Reports an updated Mineral Resource Estimate for the Silver Sand Deposit, Bolivia - Increases Silver Ounces in Measured and Indicated Mineral Resources by 30%

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PR Newswire

New Pacific Metals Corp. logo (CNW Group/New Pacific Metals Corp.)

VANCOUVER, BC, Nov. 28, 2022 /PRNewswire/ - New Pacific Metals Corp. ("New Pacific" or the "Company") (TSX: NUAG) (NYSE American: NEWP) is pleased to announce an updated Mineral Resource Estimate for the Silver Sand Project (the "Project'), which is part of the on-going Preliminary Economic Assessment ("PEA") study of the Project. The PEA study is on track to be completed by the end of 2022. The Mineral Resource is reported in accordance with National Instrument 43‐101 ("NI 43‐101") for its 100% owned Silver Sand Project, Bolivia. The estimate was completed by AMC Mining Consultants (Canada) Ltd. ("AMC Consultants").

MINERAL RESOURCE ESTIMATES

The Mineral Resource Estimate used conceptual open pit mining constraints for reporting purposes and is presented in Table 1. Mineral Resources are stated at a 30 g/t silver cut‐off grade and the model is depleted for historical mining activities:

Table 1. Silver Sand Deposit Mineral Resource as of 31 October 2022

Resource category

Tonnes (Mt)

Ag (g/t) 


ARIVA.DE Börsen-Geflüster

Ag (Moz) 

Measured

14.88

131

62.60

Indicated

39.38

110

139.17

Measured & Indicated          

54.26

116

201.77

Inferred

4.56

88

12.95

Notes:

  • CIM Definition Standards (2014) were used for reporting the Mineral Resources.
  • The Qualified Person is Dinara Nussipakynova, P.Geo. of AMC Mining Consultants (Canada) Ltd.
  • Mineral Resources are constrained by optimized pit shells at a metal price of US$22.50/oz Ag, recovery of 91% Ag and cut-off grade of 30 g/t Ag.
  • Drilling results up to 25 July 2022.
  • The numbers may not compute exactly due to rounding.
  • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Source: AMC Consultants.

The assumptions for the open pit optimization exercise to constrain the Mineral Resource and conform to reasonable prospects for eventual economic extraction are shown in Table 2.

Table 2. Assumptions for pit optimization

Input

Units

Value

Silver price

US$/oz Ag

22.5

Silver process recovery          

%

91

Payable silver

%

99

Mining recovery factor

%

100

Mining cost

US$/t mined

2.6

Process cost

US$/t minable material > COG          

16

G&A cost

US$/t minable material > COG

2

Slope angle

Degrees

44 – 47 

A comparison of the 2019 and 2022 Mineral Resource Estimates are shown in Table 3. The footnotes to Table 1 and Table 3 summarize the differences in the assumptions between the two estimates, most notably silver price, recovery, and cut-off grade. An increased mining cost assumption for the 2022 estimate has resulted in an optimum pit shell that does not go as deep as the 2019 estimate.

Table 3. Comparison between 2019 and 2022 Mineral Resources


Class

Tonnes (Mt) 

Ag (g/t) 

Ag (Moz) 

2019

(Cut-off 45 g/t Ag)          

Measured

8.40

159

43.05

Indicated

26.99

130

112.00

Measured and Indicated          

35.39

137

155.05

Inferred

9.84

112

35.55

2022

(Cut-off 30 g/t Ag)

Measured

14.88

131

62.60

Indicated

39.38

110

139.17

Measured and Indicated

54.26

116

201.77

Inferred

4.56

88

12.95

Difference

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