New Pacific Metals Corp.

TSX : NUX


New Pacific Metals Corp.

January 14, 2014 08:00 ET

New Pacific Intersects 7.87 Metres Grading 1,219 g/t Silver, 13.6% Lead, 11.9% Zinc, 1.69% Antimony, 0.38% Copper and 0.44% Tin Oxide at the RZY Project, China

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 14, 2014) - New Pacific Metals Corp. (TSX:NUX)("New Pacific" or the "Company") is pleased to announce the final assay results of the 2013 diamond drilling program at the RZY silver-lead-zinc exploration project (the "Project") in Qinghai province, China.

The latest assay results, (combined with results released on November 18, 2013) show that the 2013 drilling program at the Project intersected significant silver-lead-zinc-antimony-copper-tin mineralization in two mineralization zones: the known main mineralized structure zone ("Zone 1") was discovered by historical exploration; and a new mineralized structure zone ("Zone 2", previously a target of interest based upon its soil geochemical anomaly), was confirmed this year by surface trenches and drilling to the depth. The new zone is located about 300 metres to the north of, and parallel to, the main zone. Highlights of the most prominent drill results for each zone include (note - widths are core length not true widths):

Zone 1:

  • 35.30m @ 343 g/t Ag, 4.13% Pb, 4.66% Zn, 0.60% Sb, 0.12% Cu and 0.14% SnO2 from 26.00 metres to 61.30 metres, including 7.87m @ 1,219 g/t Ag, 13.63% Pb, 11.86% Zn, 1.69% Sb, 0.38% Cu and 0.44% SnO2 from 27.33 metres to 35.20 metres in the hole ZK2402.
  • 16.35m @ 204 g/t Ag, 1.53% Pb, 3.15% Zn, 0.37% Sb, 0.04% Cu and 0.02% SnO2from 110.65 metres to 127.00 metres, including 7.15m @ 412 g/t Ag, 2.69% Pb, 5.48% Zn, 0.71% Sb, 0.08% Cu and 0.04% SnO2 from 110.65 metres to 117.80 metres in the hole ZK1602.
  • 6.30m @ 271 g/t Ag, 5.61% Pb, 3.10% Zn, 0.84% Sb, 0.10% Cu and 0.13% SnO2from 80.40 metres to 86.70 metres, including 0.80m @ 1,740 g/t Ag, 38.52% Pb, 13.20% Zn, 5.63% Sb, 0.51% Cu and 0.65% SnO2 from 82.65 metres to 83.45 metres in the hole ZK2701.

Zone 2:

  • 15.00m @ 276 g/t Ag, 5.00% Pb, 6.13% Zn, 1.19% Sb, 0.08% Cu and 0.07% SnO2 from 89.00 metres to 104.00 metres, including 3.75m @ 602 g/t Ag, 10.87% Pb, 10.70% Zn, 2.63% Sb, 0.14% Cu and 0.12% SnO2 from 91.25 metres to 95.00 metres; and 2.95m @ 438 g/t Ag, 8.98% Pb, 10.45% Zn, 1.53% Sb, 0.14% Cu and 0.14% SnO2 from 99.65 metres to 102.60 metres in the hole ZK1102.
  • 5.60m @ 406 g/t Ag, 1.44% Pb, 0.96% Zn, 1.02% Sb and 0.02% Cu from 93.80 metres to 99.40 metres, including 1.50m @ 502 g/t Ag, 0.87% Pb, 1.16% Zn, 0.55% Sb and 0.03% Cu from 93.80 metres to 95.30 metres; and 1.40m @ 890 g/t Ag, 2.94% Pb, 0.29% Zn, 2.58% Sb and 0.04% Cu from 96.60 metres to 98.00 metres in the hole ZK1501.
  • 2.60m @ 598 g/t Ag, 10.61% Pb, 0.75% Zn, 3.02% Sb, 0.05% Cu and 0.15% SnO2 from 5.50 metres to 8.10 metres in the trench TC1101.

The assay results are summarized in Table 1 below. Mineralization style of Zone 1 and Zone 2 are similar and both zones are hosted by altered shear structures developed in Permian turbidite sediments and are generally characterized by massive and disseminated sulfides of galena-sphalerite-pyrite in altered sandstone and dacitic dykes. The 2013 drilling program covered only a two-kilometre long section of the entire six kilometre long known mineralized zones on a drill grid of one hundred metres by two hundred metres, aiming to test the size and nature of the silver-lead-zinc mineralized structure and to confirm the assay results of historical trenching and drilling. With successful drill results of 2013 the Company believes that the Project may have the potential of hosting significant silver dominated polymetallic resources, and the Company plans to commence resource definition drilling at the known mineralized Zone 1 and Zone 2, and, in addition, plans to continue with regional exploration to identify more mineralized zones at other prospects of the Project during the 2014 field campaign.

Table 1: Assay results

Hole_id Depth_
from
(m)
Depth_
to
(m)
Inter-
val
(m)
Ag_g/t Pb_% Zn_% Sb_% Cu_% SnO2_% Remarks
ZK2402 17.00 18.50 1.50 0.65 0.01 Zone 1
26.00 61.30 35.30 343 4.13 4.66 0.60 0.12 0.14
including 27.33 35.20 7.87 1,219 13.63 11.86 1.69 0.38 0.44
106.30 107.30 1.00 166 0.44 0.40 0.22 0.03
178.40 180.15 1.75 15 0.29 0.39 0.04 0.01
241.50 243.00 1.50 13 0.48 0.87 0.01 0.01
283.50 286.50 3.00 3 0.07 0.91 0.01 0.00
289.50 291.00 1.50 6 0.02 1.21 0.01
294.00 295.80 1.80 16 0.20 0.79 0.03 0.01 0.01
ZK1602 17.00 24.50 7.50 1 0.13 0.87 0.01 0.01
48.50 50.00 1.50 58 0.35 0.13 0.05 0.03
110.65 127.00 16.35 204 1.53 3.15 0.37 0.04 0.02
including 110.65 117.80 7.15 412 2.69 5.48 0.71 0.08 0.04
149.55 157.00 7.45 33 0.60 0.79 0.11 0.02
163.00 164.50 1.50 6 0.05 0.46 0.01 0.01
168.90 170.35 1.45 13 0.22 0.69 0.03 0.01
186.70 188.20 1.50 13 1.51 0.02 0.16 0.01
ZK2701 21.90 23.40 1.50 25 0.30 0.67 0.07 0.02 0.01
69.24 71.80 2.56 36 0.67 1.53 0.11 0.02 0.01
77.80 79.30 1.50 17 0.25 0.56 0.04 0.01 0.01
80.40 86.70 6.30 271 5.61 3.10 0.84 0.10 0.13
including 82.65 83.45 0.80 1,740 38.52 13.20 5.63 0.51 0.65
88.00 89.30 1.30 30 0.59 0.36 0.07 0.01
91.90 93.05 1.15 15 0.24 0.64 0.03 0.01 0.03
162.10 166.65 4.55 77 1.23 0.92 0.02 0.04 0.04
including 164.60 165.60 1.00 261 4.12 1.46 0.03 0.12 0.10
170.80 176.45 5.65 135 1.63 5.79 0.04 0.10 0.05
including 170.80 173.60 2.80 259 3.25 7.25 0.08 0.15 0.08
ZK1901 16.55 17.30 0.75 58 0.44 0.53 0.15 0.02 0.01
36.20 37.50 1.30 45 0.41 0.76 0.10 0.01
44.50 50.40 5.90 59 1.02 2.87 0.21 0.03 0.02
including 46.35 47.85 1.50 152 2.52 7.72 0.59 0.07 0.06
76.63 79.80 3.17 113 2.80 2.23 0.51 0.04 0.02
including 76.63 77.90 1.27 246 6.27 4.66 1.15 0.08 0.05
85.95 87.20 1.25 30 0.74 0.59 0.09 0.01
192.52 194.55 2.03 22 0.25 0.29 0.03 0.01
ZK1101 43.80 45.30 1.50 29 0.53 0.90 0.06 0.02
72.00 73.20 1.20 17 0.27 0.99 0.05 0.03
101.00 102.15 1.15 264 3.27 2.56 0.09 0.07 0.03
249.25 250.50 1.25 19 0.02 2.08 0.04 0.03
ZK003 70.50 71.90 1.40 139 0.81 0.53 0.64 0.03
219.30 220.50 1.20 16 0.23 0.46 0.01
234.45 237.55 3.10 28 0.40 0.61 0.05 0.02 0.01
238.80 240.00 1.20 40 0.13 0.44 0.03 0.01
376.00 377.50 1.50 8 0.09 0.45 0.02 0.01
380.50 385.00 4.50 34 0.22 0.73 0.02 0.03
ZK501 5.90 6.90 1.00 79 3.29 2.89 0.60 0.05 0.04
51.70 53.10 1.40 61 1.68 1.20 0.46 0.04 0.05
106.90 108.60 1.70 150 0.26 0.36 0.34 0.04 0.04
263.70 265.20 1.50 21 0.33 0.52 0.02 0.01
ZK801 27.20 28.70 1.50 56 0.80 1.80 0.15 0.04 0.05
37.70 40.10 2.40 18 0.27 0.71 0.04 0.01
48.80 51.00 2.20 12 0.15 0.89 0.05 0.01
60.70 61.70 1.00 55 0.29 0.10 0.08 0.02 0.01
ZK3201 66.90 70.90 4.00 209 0.51 0.84 0.18 0.04
including 69.50 70.90 1.40 440 1.23 2.07 0.44 0.06 0.01
92.00 97.00 5.00 69 0.15 1.27 0.07 0.02 0.01
141.00 142.10 1.10 22 0.29 0.51 0.03 0.02 0.01
143.20 144.25 1.05 121 1.12 5.45 0.36 0.08 0.06
201.70 205.05 3.35 53 0.58 1.48 0.02 0.01
ZK4001 6.50 7.70 1.20 5 0.08 0.76 0.01 0.02
33.35 34.20 0.85 157 0.37 2.27 0.11 0.04
38.60 42.30 3.70 33 0.09 0.78 0.03 0.01
58.70 59.80 1.10 6 0.10 0.68 0.02 0.01 0.01
118.00 119.20 1.20 214 1.35 4.95 0.27 0.05 0.01
ZK3505 199.30 213.50 14.20 45 0.69 0.98 0.08 0.03 0.03
ZK701 47.87 49.15 1.28 49 1.31 6.21 0.44 0.05 0.05 Zone 2
54.90 56.40 1.50 4 0.01 0.56 0.01 0.01
60.50 62.05 1.55 15 0.10 2.20 0.03 0.02 0.01
TC1101 5.50 8.10 2.60 598 10.61 0.75 3.02 0.05 0.15
ZK1102 63.50 65.00 1.50 105 0.30 0.24 0.17 0.01
89.00 104.00 15.00 276 5.00 6.13 1.19 0.08 0.07
including 91.25 95.00 3.75 602 10.87 10.70 2.63 0.14 0.12
including 99.65 102.60 2.95 438 8.98 10.45 1.53 0.14 0.14
ZK1103 203.60 206.10 2.50 41 0.82 1.49 0.07 0.02 0.01
210.90 212.20 1.30 24 0.26 0.44 0.04 0.01
ZK1501 93.80 99.40 5.60 406 1.44 0.96 1.02 0.02
including 93.80 95.30 1.50 502 0.87 1.16 0.55 0.03
including 96.60 98.00 1.40 890 2.94 0.29 2.58 0.04

Drill cores were halved by diamond saw with half core samples being shipped to the laboratory of ALS at Guangzhou for preparation and analysis. Analysis methods are four-acid digestion with ICP-AES finish (lab code ME-OG62) for silver, lead, zinc, and copper with overlimits going to titrimetric and gravimetric analysis, and sodium peroxide fusion plus ICP-AES finish (lab code ME-ICP881) for tin and antimony. Standard reference materials, blanks, and duplicate samples were inserted prior to shipment for assaying to monitor the quality assurance and quality control of the assay data.

Alex Zhang, P.Geo., is the Qualified Person on the project as defined under National Instrument 43-101. He has reviewed and approved the technical contents of this news release.

About New Pacific

New Pacific is a Canadian gold and silver exploration and development company which owns the Tagish Lake gold project in Yukon, Canada, and also owns the majority interests of the RZY silver-lead-zinc exploration project in Qinghai Province, China.

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 relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company's material properties; the sufficiency of the Company's capital to finance the Company's operations; estimates of the Company's revenues and capital expenditures; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company's operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company's properties.

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 commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licenses; title to properties; First Nations title claims and rights; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company's existing operations; competition; operations and political conditions; regulatory environment in Canada and or China; environmental risks; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management.

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, 2013 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 and 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 and 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 and information.

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