VANCOUVER, BC, Nov. 4, 2022
/PRNewswire/ - New Pacific Metals Corp. ("New Pacific" or the
"Company") reports its financial results for the three months ended
September 30, 2022. All figures
are expressed in US dollars unless otherwise stated.
FISCAL 2023 Q1 HIGHLIGHTS
- Completed the 2022 resource infill and step-out drill program
at the Silver Sand Project's south block with a total of 19,323
metres ("m") in 86 drill holes. Assay results of all drill holes
have been received and released through three news releases on
September 19, 2022, May 31, 2022, and April 6,
2022, respectively. The completion of the 2022 drill program
provided firm support to the project's ongoing mineral resource
estimate ("MRE") update and Preliminary Economic Assessment
("PEA"). The PEA is on track for completion by the end of 2022 as
planned;
- Advanced the 2022 drill program at the Carangas Silver-Gold
Project, a total of 36,012 m in 76
drill holes have been completed to date, of which assay results for
33 drill holes have been received and released through three news
releases on October 19, 2022,
August 8, 2022, and July 13, 2022, respectively. The assay results
continue to intersect a broad, near surface silver horizon
measuring approximately 1,000 m long,
800 m wide, and up to 200 m thick, stacked over a broad bulk gold
zone;
- Advanced the 6,000 m initial
discovery drill program at the Silverstrike Project, a total of
2,030 m in 7 drill holes have been
completed to date, of which assay results for the first drill hole
has been received and release through news release on September 12, 2022. The assay results intersected
broad gold mineralization starting near-surface; and
- Maintained working capital of $20.6
million, sufficient to advance the existing exploration
projects and other regional exploration initiatives.
FINANCIAL RESULTS
Net loss attributable to equity holders of the Company
for the three months ended September 30,
2022 was $2.09 million or
$0.01 per share (three months ended
September 30, 2021 – net loss of
$1.38 million or $0.01 per share). The Company's financial
results were mainly impacted by the following: (i) operating
expenses of $2.06 million compared to
$1.60 million in the comparative
quarter; (ii) net loss from investments of $0.04 million compared to $0.05 million in the comparative quarter; and
(iii) foreign exchange gain of $0.01
million compared to $0.26
million in the comparative quarter.
Operating expenses for the three months ended
September 30, 2022 were
$2.06 million (three months ended
September 30, 2021 -
$1.60 million).
Net loss from investments for the three months ended
September 30, 2022 was $0.04 million (three months ended September 30, 2021 – $0.05
million).
Foreign exchange gain for the three
months ended September 30, 2022
was $0.01 million (three months ended
September 30, 2021 – gain of
$0.26 million). The Company
holds a portion of cash and short-term investments in USD to
support its operations in Bolivia. Revaluation of these
USD-denominated financial assets to their Canadian dollar ("CAD")
functional currency equivalents resulted in unrealized foreign
exchange gain or loss for the relevant reporting periods. For
the three months ended September 30,
2022, the USD appreciated by 6.4% against the CAD (from
1.2886 to 1.3707) while in the comparative period the USD
appreciated by 2.8% against the CAD (from 1.2394 to 1.2741).
Working Capital: As of September
30, 2022, the Company had working capital of $20.6 million.
PROJECT OVERVIEW
SILVER SAND PROJECT
In 2021, the Company completed a drill program of 13,313.7 m in 55 holes. The 2021 drill
program comprised structure orientation drilling, step-out and
infill drilling as well as exploration drilling. Assay
results of all drill holes have been received. Detailed
structural logging and assays of the oriented drill cores confirmed
previous understanding of the orientation of mineralized structures
and resource model which are dominantly striking in the direction
of north and northwest and dipping in direction of west at high
angles which are also evidenced at surface outcrops and historical
underground workings. Step-out drilling was carried out
mainly outside of the major mineralized trends with results
indicating the existence of multiple smaller satellite mineralized
zones between the major mineralized trends. For details of
the 2021 drill program, please refer to the Company's news release
dated April 6, 2022.
In 2022, the Company commenced a resource infill drilling and
step-out drilling program at the Silver Sand south block. The
resource infill drilling aims to improve the confidence in the
continuity of mineralization in the core area of the project and
upgrade resource categories, while the step-out drilling is
designed to test the extension of the mineralized zones up and down
dip as well as on strike. The results of the infill and
step-out drilling will be included in the MRE and will be
incorporated into the PEA expected to be completed by the end of
2022. As of the date of this news release, a total of
19,323 m in 86 drill holes have been
completed and assay results for all drill holes have been
received. For details of the 2022 drill program,
please refer to the Company's news releases dated September 19, 2022, May
31, 2022, and April 6,
2022.
For the three months ended September 30,
2022, total expenditures of $2.50
million (three months ended September
30, 2021 - $2.21 million) were
capitalized under the project.
CARANGAS PROJECT
In 2021, the Company completed an initial discovery drill
program of 13,209 m in 35
drill holes. Assay results of all drill holes have
been received. Results from the 2021 discovery drill program
confirmed the broad silver-rich polymetallic mineralization near
surface and intersected a wide zone of gold mineralization below
it. For details of the 2021 discovery drill program, please
refer to the Company's news releases dated May 17, 2022, February 23,
2022, and February 10,
2022.
Following the success of the 2021 discovery drill program, the
Company has commenced a 2022 resource definition drill program with
a planned meterage of up to 40,000 m
if ongoing drill results continue to be encouraging. As of
the date of this news release, a total of 36,012 m in 76 drill holes have been completed,
of which assay results of 33 drill holes have been received.
The assay results continue to intersect a broad, near surface
silver horizon measuring approximately 1,000
m long, 800 m wide, and up to
200 m thick, stacked over a broad
bulk gold zone. For details of the 2022 drill program, please
refer to the Company's news releases dated October 19, 2022, August
8, 2022, and July 13,
2022.
For the three months ended September 30,
2022, total expenditures of $2.98
million (three months ended September
30, 2021 - $0.55 million) were
capitalized under the project.
SILVERSTRIKE PROJECT
In 2022, the Company commenced a 6,000
m initial discovery drill program at the Silverstrike
Project. As of the date of this news release, a total of
2,030 m in 7 drill holes have been
completed, of which assay results of the first drill hole have been
received. The assay results intersected broad gold
mineralization starting near surface. For details of the
initial discovery drill program, please refer to the Company's news
release dated September 12, 2022.
For the three months ended September 30,
2022, total expenditures of $0.44
million (three months ended September
30, 2021 - $0.001 million)
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,on EDGAR at
www.sec.gov 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 is 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 in Bolivia. The Company's flagship Project, the
Silver Sand Silver Project, is expected to deliver a new Mineral
Resource Estimate Update and a PEA by the end of 2022. The
recently discovered Carangas Silver-Gold Project is undergoing a
40,000 m drill program. The
third project, the Silverstrike Silver-Gold Project, commenced a
6,000 m discovery drill program in
June 2022 and discovered a near
surface broad gold zone in its first hole drilled.
To receive company news by e-mail, please register using New
Pacific's website at www.newpacificmetals.com.
For further information, please contact:
New Pacific Metals Corp. Investor
Relations
Phone: (604)
633-1368
U.S. & Canada toll-free: 1 (877)
631-0593
E-mail:
invest@newpacificmetals.com
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,
2022 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 the Corporacion Minera de
Bolivia ("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 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. Unless otherwise indicated,
the technical and scientific disclosure herein has been prepared in
accordance with NI 43-101, which differs significantly from the
requirements adopted by the U.S. Securities and Exchange
Commission.
Accordingly, information contained in this news release
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.
Additional information relating to the Company, including the
Company's Annual Information Form, can be obtained under the
Company's profile on SEDAR at www.sedar.com, on EDGAR at
www.sec.gov, and on the Company's website at
www.newpacificmetals.com.
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SOURCE New Pacific Metals Corp.