New Pacific Metals well positioned with $41.7M to advance its flagship Silver Sand and Carangas projects in Bolivia

New Pacific Metals (TSX:NUAG, NYSE:NEWP) Corp posted its unaudited third-quarter results that demonstrated its strong financial position to advance its flagship Silver Sand project, Carangas Project and other regional exploration initiatives in Bolivia.

For the period ended September 30, 2021, the Vancouver, British Columbia-based precious metal exploration and development company reported it had working capital of $41.70 million.

The company’s operating expenses for the quarter totaled $1.60 million, compared to $1.52 million in the 3Q of 2020.

READ: New Pacific Metals reports more encouraging drill results from Phase 1 discovery program at Carangas silver project

Meanwhile, the net loss for the quarter was $1.38 million, or $0.01 per share, compared to a net loss of $1.13 million, or $0.01 per share in the corresponding period a year earlier.

The firm explained that its results were mainly impacted by operating expenses and a $0.01 million loss from investments and a foreign exchange gain of $0.26 million, compared to forex loss of $0.24 million in the same period a year earlier.

New Pacific Metals holds a large portion of cash and short-term investments in US dollars to support its operations in Bolivia. Revaluation of these US-dollar-denominated financial assets to their Canadian dollar functional currency equivalents resulted in unrealized foreign exchange gains as the strong US dollar appreciated by 2.8% against the Canadian dollar.

In a statement accompanying the numbers, New Pacific Metals (TSX:NUAG, NYSE:NEWP) CEO Mark Cruise said: “During the last quarter, we continued to advance the Silver Sand preliminary economic assessment (PEA). As part of our PEA work, we completed a metallurgical test program, which determined a path forward at Silver Sand as a bulk-tonnage, open pit, heap leach operation, producing silver doré on site.”

He added: “We are particularly pleased with this outcome as it significantly de-risks the project due to its lower capital and operating cost requirements, lower technical complexity and optimized project economics. We look forward to providing updates on our progress.”

New Pacific Metals highlighted that it recently revealed results of the 2020-2021 metallurgical test program for its flagship Silver Sand project in Bolivia. The company said it defined the heap leach process as the preferred processing method, which “achieves 80% silver recovery and significantly de-risks the project.” The PEA continues to advance and a total of 12,857 meters (m) of drilling was completed in 55 drill holes as part of the current resource expansion drill program, said the company.

Significantly, the company received an administrative mining contract for the Silver Sand project, establishing a clear title to the project mineral rights.

It addition, it completed the Phase I discovery drill program at the Carangas project in Bolivia with a total of 3,790m drilled in 13 holes. The company has subsequently announced a Phase II drill program to complete an additional minimum 7,500m of drilling by the end of 2021.

New Pacific has the Silver Sand, Silverstrike and the Carangas project all located in Bolivia.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

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