New Pacific Metals Corp.
TSX VENTURE : NUX

New Pacific Metals Corp.

January 16, 2007 09:00 ET

New Pacific Metals Corp.: High Grade Copper-Silver Zone Discovered in the Jinhe Permit and Layered Copper-Nickel-Cobalt-Platinum-Palladium Mineralization Discovered in the Nantianwan Permit

Kang Dian Project, Sichuan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - New Pacific Metals Corp. ("NUX") (TSX VENTURE:NUX) reports its exploration progress on the Jinhe and the Nantianwan prospects of the Kang Dian Project, Sichuan Province, China for the year of 2006. The Jinhe and the Nantianwan permit areas are located at the north and south ends of a Permian aged gabbro-pyroxenite layered batholith approximately 20 km in length and about 10 km in width in late Precambrian dolomatic limestone sequences within the Panxi Rift. Numerous ultramafic sills that intruded in the batholith and late Cambrian sediments contain Copper (Cu), Silver (Ag), Nickel (Ni), Platinum (Pt), Palladium (Pd) mineralization.

Jinhe Permit Area

A rich copper-silver mineralized zone was discovered through testing the soil geochemical anomalies of about 2,500 metre long and 400 metre wide toward the east boundary of the Jinhe Permit area. The copper-silver mineralization zone (HCW zone) occurs in the Cambrian dolomatic limestone interbedded with silt slates that were intruded by ultramafic sills. The HCW copper-silver mineralization zone was traced almost 2,000 m long by surface trenches and mapping, extending near north-south direction and dipping to the west at about a 60 degree angle. In additional to the HCW main zone, two branch copper-silver zones were also mapped out.

In surface outcrops and trenches, copper-silver mineralization exists as copper-bearing limonitic fracture materials due to weathering, whereas in the tunnels, carbonate vein structure containing massive tedrahedrite (copper-silver bearing mineral) nodules or bands occurs along the shear fault near the contacts between ultramafic sill (hanging wall) and dolomatic limestones (footwall). Two tunnels, PD1 (1670 metre elevation) and PD2 (1590 metre elevation) at about 80 metre vertical interval have been developed to access the HCW zone and only 150 metre long drift tunnels through PD1 were completed along the vein so far. An old tunnel, LD1 (elevation 1715 m) is located about 40 metres above the tunnel PD1 at 1710 metre elevation. Massive tedrahedrite (copper-silver bearing mineral) nodules or bands were exposed at all three cross-cut and drift tunnels.

Assay results from surface trenches are outlined in Table 1 and results from tunnels are outlined on Table 2. Trench results are much lower than those from tunnels as a result of surface leaching. The highest assay results from surface trenches are from TC 2009, grading 11.05% Cu and 1,090 gram per tonne (g/t) Ag. The highest result from tunnels yields grades of 26% copper and 876 g/t Ag over a 0.24 m true width at tunnel PD1.



TABLE 1 Surface Trench Assay Results

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Sampling
Trench No. Sample No. Length (metre) Cu (%) Ag (g/t) remark
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TC208 H1 Grab sample 0.011 less than 5 grab
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TC209 H9 Grab sample 11.05 1090 grab
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TC201 M380066 1 0.09 no assay channel
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TC201 M380067 1 0.17 no assay channel
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TC201 M380068 1 0.08 no assay channel
---------------------------------------------------------------------------
BT202 M380076 0.3 0.09 no assay channel
---------------------------------------------------------------------------
TC201S M380107 1 0.2 no assay channel
---------------------------------------------------------------------------
TC215 TC215-H8 1.2 0.1 6.55 channel
---------------------------------------------------------------------------
TC216 TC216-H1 0.4 1.52 112 channel
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TC217 TC217-H3 1.1 0.022 less than 5 channel
---------------------------------------------------------------------------
TC217 TC217-H5 0.7 0.022 less than 5 channel
---------------------------------------------------------------------------
TC220 TC220-H1 0.25 0.15 less than 5 channel
---------------------------------------------------------------------------
TC220 TC220-H2 1.5 0.015 less than 5 channel
---------------------------------------------------------------------------
TC220 TC220-H3 Grab sample 0.45 17.3 grab
---------------------------------------------------------------------------


TABLE 2 Tunnel Assay Results

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Distance to
PD1 (to north True
Elevations '+',to south Thickness
Tunnel No. (metre) Sample No. '-' ) (metre) (metre) Cu (%) Ag (g/t)
--------------------------------------------------------------------------
LD1 1715 M380010 0.39 1.05 no assay
--------------------------------------------------------------------------
LD1 1715 M380015 0.39 9.09 no assay
--------------------------------------------------------------------------
LD1 1710 M380417 0.18 16.82 no assay
--------------------------------------------------------------------------
LD1 1710 M380422 0.17 9.39 no assay
--------------------------------------------------------------------------
LD1 1710 M380423 0.17 2.54 no assay
--------------------------------------------------------------------------
LD1 1715 M380092 0.45 3.48 no assay
--------------------------------------------------------------------------
LD1 1715 M380093 0.32 2.36 no assay
--------------------------------------------------------------------------
LD1 1715 M380094 0.6 1.08 no assay
--------------------------------------------------------------------------
PD1-Nym1 H32 +67 0.09 1.63 19.2
-------- --------------------------------------------------
PD1-Nym1 H25 +52 0.14 11.49 112
-------- --------------------------------------------------
PD1-Nym1 H23 +47 0.23 21.48 272
-------- --------------------------------------------------
PD1-Nym1 H21 +42 0.1 4.27 58.7
-------- --------------------------------------------------
PD1-Nym1 H15 +26 0.13 4.73 47.5
-------- --------------------------------------------------
PD1-Nym1 H13 +21 0.16 2.75 51.6
-------- --------------------------------------------------
PD1-Nym1 H10 +16 0.14 17.45 307
-------- --------------------------------------------------
PD1-Nym1 H7 +11 0.12 3.71 37.7
-------- --------------------------------------------------
PD1-Nym1 H4 +6 0.22 6.87 86.9
-------- 1670 --------------------------------------------------
PD1-Nym1 H2 +1 0.09 5.94 109
-------- --------------------------------------------------
PD1-Sym1 H4 -5 0.06 1.39 54.9
-------- --------------------------------------------------
PD1-Sym1 H12 -20 0.25 10.33 135
-------- --------------------------------------------------
PD1-Sym1 H15 -24 0.33 14.59 157
-------- --------------------------------------------------
PD1-Sym1 H18 -29 0.26 15.46 224
-------- --------------------------------------------------
PD1-Sym1 H29 -50 0.27 2.09 51.8
-------- --------------------------------------------------
PD1-Sym1 H31 -55 0.27 14.03 205
-------- --------------------------------------------------
PD1-Sym2 H33 -66 0.21 8.76 236
-------- --------------------------------------------------
PD1-Sym1 H40 -71.5 0.18 26.00 876
-------- --------------------------------------------------
PD1-Sym1 H42 -75 0.4 11.71 486
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PD1 1696 SS-1 Raise 0.34 11.65 200
--------------------------------------------------------------------------
PD2 1590 PD2-H14 Cross-cut 0.73 3.73 290
--------------------------------------------------------------------------


Four massive tedrahedrite sheets or shoots ranging from 10 m to 30 metre in length yielding high copper-silver grade were identified in tunnel PD1 through sampling at 5-metre intervals along the 150 m long drift tunnel. The massive tedrahedrite sheets have a cumulated length of 75 metre out of 150 metre long drift, yielding a 50% ratio of high grade mineralization. The highest result from the drift graded 26% copper and 876 g/t silver over a 0.24 m interval. Tunnel PD2, approximately 80 metre below tunnel PD1, crosscuts the HCW zone, yielding grades of 3.73% copper and 290 g/t silver over a 0.75 m interval.

Currently access to the HCW zone is by trail and tunneling is powered by diesel fuel. Due to current weather conditions and limited access tunneling has been temporarily suspended. NUX plans to build road and install power line in 2007 to expand the tunneling program to include at least four new tunnels with the objective of defining a high grade copper-silver resource that will lead to an early production decision.

Nantianwan Permit Area

A new Cu-Ni-Co mineralization layer was discovered in layered gabbro intrusion in the Da-Ping-Zi, area located near the northern border of the Nantianwan Permit. Surface mapping and trenching has outlined an east-west Cu-Ni-Co zone of approximately 50 metres wide and over 300 metres long, which remains open along the strike. Assay results of two trenches have indicated long intervals of mineralization as listed below:



-----------------------------------------------------------
Interval
No. (metre) Cu (%) Ni (%) Pt+Pd (ppm)
-----------------------------------------------------------
TC301 36.00 0.33 0.16 0.06
-----------------------------------------------------------
TC302 57.00 0.34 0.15 0.102
-----------------------------------------------------------


A diamond drill hole, ZK001, near the first trench TC301 was drilled to a depth of 297.71 metres to test the surface Cu-Ni zone. Major rock units intercepted in the drill hole include medium to fine grained, layered gabbro. Assay results of the drill hole are outlined in Table 3 below:



TABLE 3

------------------------------------------------------------------------
From To Interval
(metre) (metre) (metre) Ni (%) Cu (%) Co (%) Pt+Pd (g/t)
3.15 14.91 11.76 0.17 0.43 0.01 0.17
25.41 29.53 4.12 0.15 0.38 0.01 0.26
132.54 162.77 30.23 0.15 0.35 0.01 0.08
261.13 265.83 4.70 0.13 0.20 0.01 0.06
------------------------------------------------------------------------


These results show that potentially abulk-tonage, layered intrusion type of Cu-Ni-Co-Pt-Pd deposit target exits and NUX will follow up in 2007 with a more comprehensive program, including drilling.

Quality Control

The company has implemented a quality control program to ensure best practice in sampling and analysis of the tunnel and drill hole samples. All samples are shipped directly in security sealed bags to the two certified Laboratories, the Laboratory of Sichuan Bureau of Geology and Mineral Resources in Chengdu and the Testing Centre of Yunnan Province Bureau of Non-ferrous Metals Geology for cross checking. Both laboratories are certified by China Bureau of Quality Control and Quality Assurance. In the laboratories, samples are dried, crushed, split, pulverized to 200 mesh, and then assay according the standardized ICP program. The Exploration work is carried out by Huaxi Mining Co. Ltd., a 75% subsidiary company of NUX and is directly supervised by Mr. Jigui Sun (BA, Geology), the General Manager of Huaxi and by Dr. Rui Feng, President of New Pacific.

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