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) | 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: |
|
Source: |
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) | ||
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 | Measured | 6.48 | -28 | 19.55 |
Indicated | 12.39 | -20 | 27.17 | |
Measured and Indicated | 18.87 | -21 | 46.72 | |
Inferred | -5.28 | -24 | -22.60 |
Notes: |
|
Source: |
The majority of the Mineral Resources lie within the Administrative Mining Contract ("AMC"). Table 4 shows the split of the 2022 Mineral Resource within the AMC boundary and outside the boundary. Since the 2019 Mineral Resources were reported, a subsequent agreement with COMIBOL permits the reporting of Mineral Resources outside the AMC. Mineral resources outside the AMC boundary will be subject to a royalty of 6% payable to COMIBOL during the production stage according to the agreement reached with COMIBOL.
Table 4. Mineral Resources within and outside the AMC
Restricted by AMC boundary | Outside AMC boundary | |||||
Resource category | Tonnes (Mt) | Ag (g/t) | Tonnes (Mt) | Ag (g/t) | ||
Measured | 14.57 | 131 | 61.51 | 0.31 | 108 | 1.08 |
Indicated | 34.38 | 110 | 121.38 | 5.00 | 111 | 17.79 |
Measured and Indicated | 48.95 | 116 | 182.90 | 5.31 | 111 | 18.87 |
Inferred | 3.17 | 77 | 7.88 | 1.40 | 113 | 5.07 |
HIGHLIGHTS
- Silver Sand is one of the most significant new global primary silver discoveries in the last decade.
- Mineralization remains open on strike to the North and South and at depth. No feeder zones or source intrusions have been discovered to date. The Company classifies the exploration potential as good to excellent.
- Estimated Measured and Indicated Mineral Resources have increased by 30%, this is partly the result of infill drilling upgrading Inferred Mineral Resources.
- Detailed drilling indicates good mineral continuity to provide high confidence – lower technical risk. Measured & Indicated Mineral Resources of 54.26 Mt @ 116 g/t Ag for 201.77 Moz or 94% of the total estimate.
- Mineralization starts at or near‐surface and is amenable to potential open‐pit mining extraction. Approximately 95% of the reported Mineral Resources are within 200 m of the topographic surface.
- Favorable initial metallurgical test work indicates laboratory‐based recoveries of up to 97% for the various oxide – transition and sulphide mineral domains (see news release dated
23 August 2019 for details). More detailed metallurgy testwork is being carried out to facilitate the future design of the processing plant. - The PEA study is well on track to be complete by the end of 2022.
- In addition to the currently reported Mineral Resources, there are numerous known satellite mineral occurrences in the district of six kilometers long by two and a half kilometers wide. These mineral occurrences demonstrate similar mineralization style and grades to Silver Sand, subjected to extensive artisanal mining starting from Spanish colonial times and bore little modern exploration. The Company believes these satellite occurrences have good resource potential.
The Mineral Resource Estimate is based on a geological model that included assay results received by New Pacific for the Silver Sand deposit to
AMC completed an ordinary kriging ("OK") estimate on the four largest domains and inverse distance squared ("ID2") was used in the other domains. Prior to estimation, drill hole data were composited to an average of 1.2 m samples and were capped for all variables within each domain where required. Capping value for silver was 2,000 g/t Ag for all domains.
In addition to the estimate completed inside the domains, a background OK estimate was also completed outside of mineralization wireframes.
For the mineralized domains the parent block size was 2.5 mE x 5 mN x 2.5 mRL with sub‐blocking employed. Sub‐blocking resulted in minimum cell dimensions of 1.25 mE x 0.5 mN x 1.25 mRL.
The background mineralization (outside the mineralization domains) was estimated with a parent block dimension of 5 mE x 10 mN x 5 mRL.
As mineralization is hosted in one rock type, the QP assigned bulk density measurements to the block model based on the mean bulk density. Density values of 2.54 tonnes/m3 was assigned to both blocks inside and outside of the mineralized domains.
Mineral Resource classification was completed using an assessment of geological and mineralization continuity, data quality and data density. Estimation passes were used as an initial guide for classification. Wireframes were then generated manually to build coherent volumes for the different classes. The block model was classified as Measured, Indicated, and Inferred Mineral Resources as appropriate.
HQ‐size drill core samples from altered and mineralized intervals are split into halves by diamond saw, with an average sample length of between one to one and a half metres at the Company's core processing facility located in Betanzos, a small town located 20 kilometres from the project site. Half core samples are stored in a secure storage facility in Betanzos for future reference, with the other half shipped in securely sealed bags to ALS Global in
A standard quality assurance and quality control ("QA/QC") protocol is employed to monitor the quality of sample preparation and analysis. Standards of certified reference materials and blanks are inserted into the normal core sample sequences prior to shipping to the lab at a ratio of 20:1 (i.e., every 20 samples contain at least one standard sample and one blank sample). Duplicate samples of coarse rejects at a ratio of 20:1 are sent to a second internationally accredited lab for check analysis. The assay results of QA/QC samples of standards and blanks do not show any significant bias of analysis or contamination during sample preparation.
The QP, Dinara Nussipakynova,
The QP also carried out data verification both on-site and on the database. This included a review of the assay database and collar locations. The QP considers the assay database to be acceptable for Mineral Resource estimation.
The Mineral Resource Estimate and data verification was completed by Ms Dinara Nussipakynova,
Further details supporting the geological model, estimation procedure and metallurgical test work will be available in an NI 43‐101 Technical Report disclosing the results of the PEA which will be posted under the Company's profile at www.sedar.com in early 2023.
This news release has been reviewed and approved by
New Pacific is a Canadian exploration and development company with precious metal projects in
On behalf of
Dr.
Director and CEO
For further information, contact:
New Pacific Metals Corp.
Phone: (604) 633‐1368 Ext. 222
E-mail: invest@newpacificmetals.com
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This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, socio‐ political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the
Certain of the statements and information in this news 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 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 equity prices, bond prices, commodity prices; calculation of resources, reserves and mineralization, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management and others.
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
The Company's forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward‐looking statements or 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 or information.
CAUTIONARY NOTE TO US INVESTORS
This news release has been prepared in accordance with the requirements of NI 43‐101 and the
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