Dr Mark Cruise is a PhD geologist with over 25-years global experience in both mining and exploration. He has discovered, developed or operated mines in Europe, South America, Canada and Africa. Mark previously founded Trevali Mining where he grew the company from an initial discovery to a global top-ten zinc producer.
New Pacific Metals Corp (TSX:NUAG) (NYSEAMERICAN:NEWP) is an exploration and development company with a portfolio of three projects, located in Bolivia (Figure 1). Since making the discovery of the Silver Sand Deposit in 2017, which hosts over 155Moz of silver Measured and Indicated Mineral Resources, the company’s shares have risen by an incredible 347% in a dramatic uptrend.
Figure 1: The Location of New Pacific Metals’ Projects
Source: New Pacific Metals
The Silver Sand deposit is located in south-central Bolivia in the vicinity of the town of Potosi and the Cerro Rico Mine, which has produced an estimated 60,000 tons of silver in its 500 years of operation since its discovery in 1545, and is still thought to contain an estimated reserves of 1.76bn ounces (50,000 tons) of silver.
New Pacific Metals commenced exploration at the Silver Sand project in 2017 and within six months had made an exciting discovery with its discovery hole of 172m at a grade of 110 g/t silver from 18m (DSS5803).
Since then, the Company has drilled over 100,000m (400 holes), the largest greenfields discovery drill programme in South America over the period, and completed a maiden mineral resource estimate which totals 155Moz of silver Measured and Indicated. This makes the Silver Sand deposit the largest discovery in Boliva over the last 30 years and one of the largest discoveries globally in the past decade.
It appears likely that there is much more to come for the Silver Sand deposit, as it remains open to the north and south, as well as at depth (Figure 2). New Pacific Metals is undertaking a 30,000m drill programme, 70% of which will be focused on resource expansion drilling with ~10,000m focused on geotechnical and hydrological drilling. If results are positive, we could well see a resource update before the year end or in early 2022.
Figure 2: Silver Sands Mineral Resource Estimate and Exploration Targets
Source: New Pacific Metals
Alongside its drill programme, New Pacific Metals also plans to complete a preliminary economic assessment (PEA) at the Silver Sand Project before the year end. This will give us our first indications of the potential economics of this exciting project.
Another important event for the company would be the ratification by government of its joint venture licences surrounding the Silver Sand Project. These licences cover an area of 57km2 and open up the regional potential of the district for New Pacific Metals and make the project more attractive to any potential buyers. The timing of this event is uncertain but its certainly an event to keep an eye out for.
While most of the interest in New Pacific Metals has focused on the Silver Sand project, the company has two additional very interesting projects that it plans to drill test this year, both with the potential to recreate the success the company has had at Silver Sand.
At the Silverstrike project, located in western Boliva, the company is planning an 8,000m drill programme this year. While at the Carangas Project, also located in western Boliva, the company is planning a 5,000m drill programme.
The second half of 2021 is going to be a very busy period for New Pacific Metals, with a huge amount of news flow to come as the company looks to build on the remarkable success it has had to date.