VANCOUVER, BC, May 11, 2022
/PRNewswire/ - New Pacific Metals Corp. ("New Pacific" or the
"Company") reports its unaudited consolidated financial
results for the three and nine months ended March 31, 2022, the third quarter of fiscal 2022.
All figures are expressed in US dollars unless otherwise
stated.
QUARTERLY HIGHLIGHTS
- Reported assay results of the 2021-2022 drill program at Silver
Sand Project. The 2021 drill programs comprise structural
orientation drilling, step-out and infill drilling as well as
exploration drilling. Assay results of all 55 holes completed in
2021 and results of 13 holes from 48 holes in 10,520 m completed during the quarter under the
2022 drill program have been received;
- Reported assay results of 25 drill holes from the discovery
drill program completed in 2021 at the Carangas Silver-Gold
Project. All drill holes with assay results intersected silver-rich
polymetallic mineralization near surface with some deep holes
intersecting a wide zone of gold mineralization below; and
- Maintained working capital of $34.7
million, sufficient to advance the Silver Sand Project, the
Carangas Project and other regional exploration initiatives.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company
for the three months ended March 31,
2022 was $1.41 million or
$0.01 per share (three months ended
March 31, 2021 – net loss of
$1.69 million or $0.01 per share). The Company's financial
results were mainly impacted by the following: (i) operating
expenses of $1.52 million compared to
$1.60 million in the prior year
quarter; (ii) income from investments of $0.12 million compared to $0.07 million in the prior year quarter; and
(iii) foreign exchange loss of $0.04
million compared to loss of $0.16
million in the prior year quarter.
For the nine months ended March 31,
2022, net loss attributable to equity holders of the Company
was $4.08 million or 0.03 per share
compared to net loss of $4.59 million
or 0.03 per share for the nine months ended March 31, 2021.
Operating expenses for the three and nine months ended
March 31, 2022 were $1.52 million and $4.49 million, respectively (three and nine
months ended March 31, 2021 -
$1.60 million and $4.38 million,
respectively).
Income from investments for the three months ended
March 31, 2022 was $0.12 million (three months ended March 31, 2021 – $0.07
million) and is comprised of a $60,323 gain on the Company's equity
investments (three months ended March
31, 2021 – gain of $37,223), a
$34,037 gain on bonds (three months
ended March 31, 2021 – loss of
$6,039), $nil income from dividends
(three months ended March 31, 2021 –
income of $1,411), and $30,500 interest earned from cash accounts (three
months ended March 31, 2021 -
$39,152).
For the nine months ended March 31,
2022, income from investments was $0.21 million (nine months ended March 31, 2021 – income of $0.61 million).
Foreign exchange loss for the three
months ended March 31, 2022 was
$0.04 million (three months ended
March 31, 2021 – loss of
$0.16 million). The Company holds a
large portion of cash and short-term investments in USD to support
its operations in Bolivia.
Revaluation of these USD-denominated financial assets to their CAD
functional currency equivalents resulted in unrealized foreign
exchange gain or loss for the relevant reporting periods.
During the three months ended March 31,
2022, the USD depreciated by 1.4% against the CAD (from
1.2678 to 1.2496) while in the prior year quarter the USD
depreciated by 1.2% against the CAD (from 1.2732 to 1.2575).
For the nine months ended March 31,
2022, foreign exchange gain was $0.16
million (nine months ended March 31,
2021 – loss of $0.83
million).
Working Capital: As of March 31,
2022, the Company had working capital of $34.7 million.
PROJECT OVERVIEW
SILVER SAND PROJECT
On April 6, 2022, the Company
reported the assay results of the 2021-2022 drill programs for the
Silver Sand Project. The 2021 drill programs comprise structure
orientation drilling, step-out and infill drilling as well as
exploration drilling. Assay results of all 55 drill holes in
13,313.7 m completed in 2021 have
been received. The 2022 drill program is planned at
15,000 m of infill and step-out
drilling. The aim of the resource infill drilling is to improve the
confidence in the continuity of mineralization in the core area of
Silver Sand and upgrade resource categories, and the step-out
drilling is to test the extension of the major mineralized zones up
and down dip as well as on strike. As of the date of this news
release, a total of 10,520 m in 48
holes were completed, for which assay results of 13 holes have been
received.
For the three and nine months ended March
31, 2022, total expenditures of $1.02
million and $4.44 million,
respectively (three and nine months ended March 31, 2021 - $0.88
million and $2.23 million,
respectively) were capitalized under the project.
CARANGAS PROJECT
On June 29, 2021, the Company
announced the commencement of an initial 2021 discovery drill
program at the Carangas Project to test near-surface bulk-tonnage
and high-grade vein-hosted silver-rich polymetallic targets
centered on and adjacent to the historically exploited West and
East Dome areas. Total drilling of 13,209
m was completed in 35 holes under the 2021 discovery drill
program, defining a mineralized area of approximately
1,000 m long by 700 m wide and up to 400
m in depth. On February
10 and 23, 2022, the Company announced assays results of 25
drill holes, with the remaining 10 drill holes pending. All drill
holes with assay results intersected silver-rich polymetallic
mineralization near surface with some deep holes intersecting a
wide zone of gold mineralization below.
Following the success of the 2021 discovery drill program, the
Company has commenced a 2022 resource definition drill program
during the quarter with initial planned meterage of 30,000 m which could be extended to 40,000 m or more if on-going drill results
continue to be encouraging.
For the three and nine months ended March
31, 2022, total expenditures of $1.16
million and $3.13 million,
respectively (three and nine months ended March 31, 2021 - $nil and $nil, respectively)
were capitalized under the project.
SILVERSTRIKE PROJECT
During 2020, the Company's exploration team completed
reconnaissance and detailed mapping and sampling programs on the
northern portion of the project. The results to date indicate good
to excellent exploration potential for hosting narrow, high-grade,
near-surface broad-zones of silver mineralization. The Company is
planning a discovery drill program in 2022 to test the northern and
central areas of the project.
For the three and nine months ended March
31, 2022, total expenditures of $0.03
million and $0.04 million,
respectively (three and nine months ended March 31, 2021 - $0.43
million and $1.40 million,
respectively) were capitalized under the project.
MANAGEMENT DISCUSSION AND ANALYSIS
This news release should be read in conjunction with the
Company's Management Discussion and Analysis ("MD&A") and the
unaudited condensed consolidated interim financial statements
and notes thereto for the corresponding period, which have been
filed with the Canadian Securities Administrators and are available
under the Company's profile on SEDAR at www.sedar.com and on the
Company's website at www.newpacificmetals.com.
QUALIFIED PERSON
The scientific and technical information contained in this news
release has been reviewed and approved by Alex Zhang, P. Geo., Vice President of
Exploration, who is a Qualified Person for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral Resources
("NI 43-101"). The Qualified Person has verified the information
disclosed herein and are not aware of any significant risks and
uncertainties that could be expected to affect the reliability or
confidence in the information discussed herein.
ABOUT NEW PACIFIC
New Pacific is a Canadian exploration and development company
with precious metal projects, including the flagship Silver Sand
Project, the Silverstrike Project and the Carangas Project,
all of which are located in Bolivia. The Company is focused on progressing
the development of the Silver Sand Project, exploring the Carangas
broad silver-gold Project, recently discovered in 2021 and
initiating the exploration of the historic silver mining district
of the Silverstrike Project.
To receive company news by e-mail, please register using New
Pacific's website at www.newpacificmetals.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this news
release constitute "forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and "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. Such statements
include, but are not limited to: statements regarding anticipated
exploration, drilling, development, construction, and other
activities or achievements of the Company; timing of receipt of
permits and regulatory approvals; timing and content of the PEA,
and estimates of the Company's revenues and capital
expenditures.
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: global economic
and social impact of COVID-19; fluctuating equity prices, bond
prices, commodity prices; calculation of resources, reserves and
mineralization, general economic conditions, foreign exchange
risks, interest rate risk, foreign investment risk; loss of key
personnel; conflicts of interest; dependence on management,
uncertainties relating to the availability and costs of financing
needed in the future, environmental risks, operations and political
conditions, the regulatory environment in Bolivia and Canada, risks associated with community
relations and corporate social responsibility, and other factors
described under the heading "Risk Factors" in the Company's Annual
Information Form for the year ended June 30,
2021 and its other public filings.
This list is not exhaustive of the factors that may affect
any of the Company's forward-looking statements or
information.
The forward-looking statements are necessarily based on a
number of estimates, assumptions, beliefs, expectations and
opinions of management as of the date of this news release that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. These estimates, assumptions, beliefs, expectations
and options include, but are not limited to, those related to the
Company's ability to carry on current and future operations,
including: the duration and effects of COVID-19 on our operations
and workforce; development and exploration activities; the timing,
extent, duration and economic viability of such operations; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; the Company's ability to meet or achieve
estimates, projections and forecasts; the stabilization of the
political climate in Bolivia; the
Company's ability to obtain and maintain social license at its
mineral properties; the availability and cost of inputs; the price
and market for outputs; foreign exchange rates; taxation levels;
the timely receipt of necessary approvals or permits, including the
ratification and approval of the Mining Production Contract with
COMIBOL by the Plurinational Legislative Assembly of Bolivia; the ability of the Company's Bolivian
partner to convert the exploration licenses at the Carangas Project
to AMC; the ability to meet current and future obligations; the
ability to obtain timely financing on reasonable terms when
required; the current and future social, economic and political
conditions; and other assumptions and factors generally associated
with the mining industry.
Although the forward-looking statements contained in this
news release are based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. All
forward-looking statements in this news release are qualified by
these cautionary statements. Accordingly, readers should not place
undue reliance on such statements. Other than specifically required
by applicable laws, the Company is under no obligation and
expressly disclaims any such obligation to update or alter the
forward-looking statements whether as a result of new information,
future events or otherwise except as may be required by law. These
forward-looking statements are made as of the date of this news
release.
CAUTIONARY NOTE TO US INVESTORS
This news release, including the documents incorporated by
reference herein, has been prepared in accordance with the
requirements of the securities laws in effect in Canada which differ from the requirements of
United States securities laws. All
mining terms used herein but not otherwise defined have the
meanings set forth in NI 43-101.
Accordingly, information contained in this news release and
the documents incorporated by reference herein containing
descriptions of the Company's mineral deposits may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of
United States federal securities
laws and the rules and regulations thereunder.
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SOURCE New Pacific Metals Corp.