Figure 1. Simplified geology map and drill hole traces, yellow shows gold intercepts and red for silver at the Carangas Project. Source: New Pacific Metals Corp.

New Pacific Metals (TSX:NUAG) has announced new assay results for another seven drill holes from its 2022 drill program at the Carangas Silver-Gold Project in Bolivia in conjunction with its local Bolivian partner. The results continue to expand silver and gold mineralization at the project. Near surface silver horizons are stacked over a broad bulk gold mineralization, presenting multiple opportunities for the company. 

21,980 metres across 43 drill holes have been completed to-date, with assay results for the twelve drill holes as part of the 2022 drill program being received and released. The results from the first five drill holes were released on July 13, 2022, with 7 more added on August 8. There are 31 drill holes with results still pending, with five drill rigs turning as part of the program. 

Most importantly, the company intersected 514m grading 1.1 grams per tonne gold from the 6th drilled in the emerging Gold Zone (Deep Hole DCAr0044). There are six holes remaining for this zone, all of them being relatively shallow that targeted near-surface mineralization in the northern portion of the Central Valley of the zone.

Highlights from the results are as follows:

  • Gold Hole DCAr0044: 514.85 m interval (from 266.35 m to 781.2 m) grading 1.10 g/t Au and 6 g/t silver (“Ag”), including higher grade intervals of 14.15 m (from 436.2 m to 450.35 m) grading 3.8 g/t Au, 11g/t Ag and 0.12% copper (“Cu”); 87.51 m interval (from 472.4 m to 559.91 m) grading 2.57 g/t Au, 9 g/t Ag and 0.12% Cu.

  • Silver Hole DCAr0041: 78.68 m interval (from 37.8 m to 116.48 m) grading 75 g/t Ag, 0.71% Pb and 0.69% Zn.

  • Silver Hole DCAr0042: 79.2 m interval (from 53 m to 132.2 m) grading 77 g/t Ag, 0.73% Pb and 1.43% Zn.

  • Silver Hole DCAr0045: 170.64 m interval (from 8.36 m to 179 m) grading 88 g/t Ag, 0.38% Pb and 0.61% Zn, including 72.17 m interval grading 150 g/t Ag.

  • Silver Hole DCAr0046: 74.67 m interval (from 7.68 m to 82.35 m) grading 102 g/t Ag, 0.9% Pb and 0.36% Zn.

  • Silver Hole DCAr0047: 19.95 m interval (from 77.5 m to 97.45 m) grading 163 g/t Ag, 0.41% Pb and 1.31% Zn.

  • Silver Hole DCAr0048:  33.96 m interval (from 142.5 m to 176.46 m) grading 104 g/t Ag, 0.42% Pb and 0.68% Zn.

Hole DCAr0044 intersected a silver interval of 25.12 m (from 33.88 m to 59.0 m) grading 64 g/t Ag, 0.22% Pb, 0.11% Zn  and a silver interval of 61.66 m (from 84.83 m to 146.49 m) grading 24 g/t Ag, 0.32% Pb and 0.89% Zn.  From 266.35 m to 781.2 m, a broad gold interval of 514.85 m interval grading 1.10 g/t Au and 6 g/t Ag was intersected, including higher grade subintervals of 14.15 m grading 3.8 g/t Au, 11g/t Ag and 0.12% copper (“Cu”) from 436.2 m to 450.35 m, 87.51 m grading 2.57 g/t Au, 9 g/t Ag and 0.12% Cu from 472.4 m to 559.91 m. These two higher grade intervals are hosted in strongly argillic-sericite altered ignimbrite with dissemination and crosscutting veins of pyrite and chalcopyrite. A third higher grade interval of 29.89 m grading 2.46 g/t Au. 5 g/t Ag and 0.14% Cu intersected from 717.07 m to 746.96 m, is hosted in mineralized flow-banded rhyodacite intrusive with dissemination and crosscutting veins of pyrite and chalcopyrite.

This hole was drilled across the Central Valley about 50 m to the south of and parallel to the hole DCAr0039 which intersected a 535 m interval grading 1 g/t gold (please refer to the Company’s news release on July 13, 2022).

Hole DCAr0041 intersected a 266.99 m (from 30.06 m to 297.05 m) silver zone grading 31 g/t Ag, 0.52% Pb and 0.95% Zn, including a 78.68 m interval grading 75 g/t Ag, 0.71% Pb and 0.69% Zn. This hole was drilled on grid at an angle of -45 to test the continuity of silver mineralization at a shallow level.

Hole DCAr0042 intersected 332.7 m interval (from 53.0 m to 385.7 m) grading 25 g/t Ag, 0.45% Pb and 0.95% Zn, including 79.2 m interval grading 77 g/t Ag, 0.73% Pb and 1.43% Zn.  This hole was drilled on grid at an angle of -45 to test the continuity of silver mineralization at a shallow level.

Hole DCAr0045 intercepted 170.64 m grading 88 g/t Ag, 0.38% Pb and 0.61% Zn (from depth 8.36 m to 179 m), including a 72.17 m interval grading 150 g/t Ag. This hole was drilled on grid at an angle of -45 to test the continuity of silver mineralization at a shallow level.

Hole DCAr0046 intersected 195.65 m (from 7.68 m to 203.33 m) grading 48 g/t Ag, 0.57% Pb and 0.82% Zn, including 74.67 m interval (from 7.68 m to 82.35 m) grading 102 g/t Ag, 0.9% Pb and 0.36% Zn. This hole was drilled on grid at a dip angle of -45 to test the continuity of silver mineralization at a shallow level.

Hole DCAr0047 intersected 109.02 m (from 72.05 m to 181.07 m) grading 57 g/t Ag, 0.24% Pb and 0.68% Zn. This hole was drilled on grid at an angle of -45 to test the continuity of silver mineralization at a shallow level.

Hole DCAr0048 intersected a silver interval of 62.31 m (from 65.0 m to 127.31 m) grading 55 g/t Ag, 0.36% Pb and 0.73% Zn, and a silver interval of 33.96 m (from 142.5 m to 176.46 m) grading 104 g/t Ag, 0.42% Pb and 0.68% Zn. This hole was drilled on grid at a dip angle of -45 to test the continuity of silver mineralization at a shallow level.

 

Table 1     Summary of Drill Intercepts
Hole_ID   Depth_from Depth_to Interval_m Ag_g/t Au_g/t Pb_% Zn_% Cu_% AgEq_g/t
DCAr0041   30.06 297.05 266.99 31 0.06 0.52 0.95 0.03 85
  incl. 37.80 116.48 78.68 75 0.00 0.71 0.69 0.02 120
    333.38 371.45 38.07 6 0.37 0.41 0.71 0.02 71
DCAr0042      53.00 385.70 332.70 25 0.03 0.45 0.95 0.02 71
  incl. 53.00 132.20 79.20 77 0.00 0.73 1.43 0.01 148
DCAr0044   33.88 59.00 25.12 64 0.00 0.22 0.11 0.00 75
    84.83 146.49 61.66 24 0.01 0.32 0.89 0.00 64
    156.80 174.10 17.30 3 0.02 0.35 1.08 0.01 52
    266.35 781.20 514.85 6 1.10 0.02 0.04 0.07 94
  incl. 436.20 450.35 14.15 11 3.80 0.05 0.02 0.12 296
  incl. 472.40 559.91 87.51 9 2.57 0.04 0.03 0.12 207
  incl. 717.07 746.96 29.89 5 2.46 0.01 0.01 0.14 195
DCAr0045   8.36 179.00 170.64 88 0.0 0.38 0.61 0.02 121
  incl. 8.36 80.53 72.17 150 0.0 0.39 0.21 0.02 170
DCAr0046   7.68 203.33 195.65 48 n/a 0.57 0.82 0.01 93
  incl. 7.68 82.35 74.67 102 n/a 0.90 0.36 0.01 141
    327.78 365.17 37.39 4 n/a 0.49 0.75 0.00 44
DCAr0047   72.05 181.07 109.02 57 n/a 0.24 0.68 0.01 88
  Incl. 77.50 97.45 19.95 163 n/a 0.41 1.31 0.02 220
DCAr0048   65.00 127.31 62.31 55 n/a 0.36 0.73 0.01 92
    142.50 176.46 33.96 104 n/a 0.42 0.68 0.03 142

 

Notes:  
1. Drill location, altitude, azimuth, and dip of drill holes are provided in Table 2
2. Drill intercept is core length, and grade is length weighted. True width of mineralization is unknown due to early stage of exploration without adequate drill data.
3. Calculation of silver equivalent (“AgEq”) is based on the long-term median of the August 2021 Street Consensus Commodity Price Forecasts, which are US$22.50/oz for Ag, US$0.95/lb for Pb, US$1.10/lb for Zn, US$3.40/lb for Cu, and US$1,600/oz for Au. The formula used for the AgEq calculation is as follows: AgEq = Ag g/t + Pb g/t * 0.0029 + Zn g/t * 0.00335 + Cu g/t * 0.01036 + Au g/t * 71.1111. This calculation assumes 100% recovery. Due to the early stage of the Project, the Company has not yet completed metallurgical test work on the mineralization encountered to date.
4. A cut-off of 20 g/t AgEq is applied to calculate the length-weighted intercept. At times, samples lower than 20 g/t AgEq may be included in the calculation of consolidation of mineralized intercepts.
5. n/a stands for no fire assay of gold was carried out.

 

Table 2     Summary of Drill Holes of Discovery Drill Program of the Carangas Project
Hole_id Easting Northing Altitude Depth_m Azimuth (°) Dip (°) Date_start Date_complete Target
DCAr0041 539155.52 7905285.54 3906.91 437.00 20 -45 3/8/2022 3/13/2022 C. Valley
DCAr0042 539121.24 7905335.45 3907.65 400.00 20 -45 3/15/2022 3/21/2022 C. Valley
DCAr0044 539297.60 7905378.46 3909.11 1083.30 254 -66 3/23/2022 4/19/2022 C. Valley
DCAr0045 539273.97 7905323.23 3908.27 450.00 20 -45 3/24/2022 4/2/2022 C. Valley
DCAr0046 539171.12 7905329.49 3907.10 400.00 20 -45 4/2/2022 4/9/2022 C. Valley
DCAr0047 539267.05 7905445.11 3908.45 300.00 20 -45 4/9/2022 4/15/2022 C. Valley
DCAr0048 539231.41 7905496.81 3908.35 300.00 20 -45 4/16/2022 4/22/2022 C. Valley

 

Notes:
1. Drill collar coordinate system is WGS1984 UTM Zone 19S.
2. Coordinate of drill collar is picked with Real Time Kinematics (RTK) GPS except for hole DCAr0036 which is by handheld GPS.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Silver prices have swung to new highs as investors weigh risks and equity sell-offs. Prices have swung from trading over US$25 in March to hit a YTD high of US$26.38, and after a pullback at the end of that month, another price spike in April brought it back to those highs. From an April high of US$25.91, prices have hit a low of US$22.52.

However, despite the pullback, silver has begun to trade more like its safe-haven sibling gold. But while gold is often held as a hedge against risk and inflation, silver has applications beyond that. It’s used in solar panels, water filtration, and a variety of other industrial applications. So, while it may not be as popular as gold, it certainly has its place in a portfolio.

For investors looking for silver stocks, the current sell-off has provided opportunities to value plays with massive upside as silver prices rise again.

Honey Badger Silver (TSXV:TUF)

Honey Badger Silver, a junior mining company based in Canada, has had a string of announcements during silver’s turnaround. Most recently, the company announced on March 29 that it had acquired a 100% interest in the Clear Lake deposit in the Whitehorse Mining District of the Yukon.

The transaction is subject to a 1% net smelter return royalty on all metals except silver. The Clear Lake deposit is known to be an important source of zinc and lead but holds mostly silver. With the acquisition, Honey Badger Silver Inc. is becoming the owner of a historic resource of 5.5 million ounces of silver. 

This acquisition was an important addition to Honey Badger Silver’s portfolio, as it works to enter more silver properties at different stages of production in order to allow it to offer investors high exposure to silver prices. The company continues to conduct asset evaluations.

The historical resources were reported in a NI-43-101 technical report dated February 23, 2010, and were 43-101 compliant at the time the agreement was signed.

Americas Gold and Silver (TSX:USA)

Americas Gold and Silver is based in North America and owns several producing sites, including the San Rafael mine in the Cosalá operations in Sinaloa, Mexico, which includes the Galena Complex from Idaho, US

During its quarterly earnings call on March 17, the firm revealed its complete 2021 results and addressed the disappointment seen at its Relief Canyon Mine, which failed to go into commercial operation in 2021 owing to metallurgical difficulties. The company is confident, however, due to the reopening of Cosalá and the rising silver price. Its most recent Q1 production results also showed an output of 300,000 silver ounces and 1,274,000 silver equivalent ounces.

New Pacific Metals (TSX:NUAG)

New Pacific Metals is a precious metals explorer and builder. Its main business at the moment is its Bolivian Silver Sand project, which it developed. The firm has two additional silver properties in Bolivia: Silverstrike and Carangas. New Pacific is exploring Silver Sand and Carangas for 2022.

New Pacific Metals released two news stories about exploration at Carangas in February: one announcing a grade of 78 grams per metric ton (g/t) silver and the other sharing the discovery of gold mineralization. However, until silver’s price surge in March, the company’s share price did not experience significant gains. In April, the company also announced intersections of 229 g/t silver at the Silver Sand project, and guidance that it expected to complete 15,000 meters of drilling by the end of April.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

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