New Pacific Metals Corp.

New Pacific Metals Corp.

April 29, 2009 08:30 ET

New Pacific Metals Corp.: Further High Grade Gold Mineralization Intersected by Underground Tunneling at the HNK Gold-Polymetallic Project, Guangdong Province, China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2009) - New Pacific Metals Corp. (TSX VENTURE:NUX) reports tunneling assay results from its exploration program at the HNK Gold-Polymetallic Project located in Guangning County, Guangdong Province, Peoples Republic of China. The HNK Project permit covers an area of approximately 56.5 square kilometers.

To date, the Company has completed a total of 14,925 meters (m) of diamond drilling in 51 holes and has completed 1,270 meters of underground tunneling in four levels in 40 m intervals: 260 m, 220 m, and 180 m Levels, mainly following the V9 vein. Previous drilling has traced V9 from surface to elevation -30 meters or over 400 m from surface as indicated in Cross Section Zero (to view Cross Section Zero please click on:

Tunneling Program

In the 27.6 metre newly developed drift along the V9 vein at the 180 m Level, the average grade over 27.6 m of drift is 294.8 gram/tonne (g/t) gold (Au), 123.8 g/t silver (Ag), 1.33% lead (Pb) and 1.93% zinc (Zn) at an average width of 0.37 m. These grades are significantly higher than those intersections in the previous drill holes nearby.

Please refer to Company's website for February 16, 2009 News Release and additional maps including a plan view map of the tunnels and a cross section at Line Zero.

Table 1: HNK Tunnel Sampling Results

Major Assay results from channel sampling completed on the V9 at Elevation

Width of
Sample Mineralized Elevation Distance to Vein Au Ag Pb Zn
Number Veins (m) Line 0 (m) (m) (g/t) (g/t) (%) (%)
A177 V9 180 17.0 0.3 5.69 16 0.124 0.054
A176 V9 180 21.0 0.3 276 251 3 3.5
A175 V9 180 25.0 0.35 233 138 1.385 0.773
A170 V9 180 29.4 0.5 621 181 1.985 3.82
A168 V9 180 30.5 0.5 443 146 1.86 3.28
A171 V9 180 33.0 0.4 348 141 1.06 2.7
A172 V9 180 36.9 0.3 444 199 2.03 1.28
A173 V9 180 40.7 0.35 4.99 2 0.02 0.025
A174 V9 180 44.6 0.3 2.23 less 0.016 0.019
than 1
Note: 1.0 ounce/tonne equals 31.103 grams/tonne, 1 meter equals 3.28 feet.
Unless otherwise noted, all widths are true widths. Where more than
one sample was taken, results are weighted averages. Adjustments have
not been made for mining width as this has not been determined at
this time.

Continuing Underground Tunneling Program

Based on these significant drifting results, the Company plans to continue with an extensive underground tunneling program totaling 3,260 m of drifting, cross cuts and raises on V9 vein from elevation 300 to elevation 180 on 40 m elevation intervals and on R1 vein at elevation 195. The objective is to advance the mineralized zones to mineral resources or reserves, if and where possible, between line 7 and line 20 and to mine sufficient material for a bulk sample for metallurgical testing that will be utilized in expediting the preparation of technical reports to apply for a Mining Permit.

Metallurgical Testing

The Hunan Institute for Non-Ferrous Metal Research, a Qualified Chinese Engineering firm, has completed a preliminary metallurgical testing program consisting of crushing and floatation. The ore was crushed and ground to -200 mesh and three concentrates (gold-lead, gold-pyrite and Zinc) were produced and metal recoveries were analyzed. The preliminary closed circuit tests demonstrate that the process flow, including gold-lead-pyrite mix floatation and then zinc floatation produces good mineral recoveries and thus are suitable for this type of ore. The overall metal recoveries were 92% for gold, 91% for silver, 96% for lead, and 92% for zinc.

Quality Control

The Company maintains a quality control program to ensure best practice in sampling and analysis of the samples. All samples are shipped directly in security bags to ALS Chemex (Guangzhou) Co. Ltd., a laboratory certified by China Bureau of Quality Control and Quality Assurance. In the laboratory, samples are dried, crushed, split, pulverized to 200 mesh, and then assayed using a standard 30 g nominal sample weight gold by fire assay with AAS finish.

According to ALS Chemex, for the Fire Assay - AA process, a prepared sample is fused with a mixture of lead oxide, sodium carbonate, borax, silica and other reagents are required, inquarted with gold-free silver and then cupelled to yield a precious metal bead. The bead is digested in dilute nitric acid in the microwave oven, and then concentrated hydrochloric acid is added and the bead is further digested in the microwave at a low power setting. The digested solution is cooled, diluted with de-mineralized water and analyzed by atomic absorption spectroscopy against matrix-matched standards.

The exploration work is carried out by wholly owned subsidiary, Yunnan Jin Chang Jiang Mining Co. Ltd., and is directly supervised by Mr. Jigui Sun (B.A. & M.Sc., Geology), the General Manager of Jin Chang Jiang and by Dr. Rui Feng (Ph.D., Geology), Director of New Pacific Metals.

Barry J. Price, M.Sc., P.Geo. Consulting Geologist has reviewed the contents of this News Release as the Qualified Person for the company.

About New Pacific Metals Corp.

New Pacific Metals Corp. is engaged in the acquisition and exploration of gold and polymetallic properties in the People's Republic of China ("China"). Currently, the Company is focusing on exploring and defining gold mineral resources in the Guangdong Province.


Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration, development, and mining. Production and revenue projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. As a result, actual results may vary materially from those described in the forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake any obligation to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.

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