News

Initial Drill Result from the Kang Dian Project

Jun 7, 2005

VANCOUVER, BRITISH COLUMBIA -- June 7, 2005 -- New Pacific Metals Inc. ("NUX") reports its exploration program on the Jinhe-Nantianwan prospect and AZ prospect of the Kang Dian Project, Sichuan Province, China.

The Jinhe-Nantianwan prospect is within a gabbro-pyroxenite batholith approximately 20 km in length and about 10 km in width in late Precambrian limestone. Numerous ultramafic sills that intruded in the batholith and late Precambrian sediments contain Nickel (Ni)- Platinum Group Metals (PGM) mineralization. The Nantianwan Prospect was drilled in 1966 to test the magnetic and geochemical anomalies near the contact between the ultra-mafic stock and the Cambrian dolomitic sequences. One drill hole, ZK2, intercepted two layers of Ni-Copper(Cu) sulfide zones between 112 m to 134 m depth which are reported to have assayed 1.2% Ni, 0.53% Cu, and 0.06% Cobalt (Co) over a 1.46 m interval and 1.02% Ni, 0.56% Cu, and 0.041% Co. over a 1.2 m interval.

The first drill program of 4 drill holes totaling 1,000 metres was completed near the contact between the ultra-mafic stock and the Cambrian dolomitic sequences. The drill results are as follows:

At Da-Ping-Zi, about 1 km NW of the above drilling sites, a new Cu-Ni zone was discovered near the property boundary. Surface mapping and trenching has outlined an east-west Cu-Ni zone of about 50 m wide and 300 m long, which remains open along the strike. Two trenches returned 0.34% Cu, 0.15% Ni, 0.01% Co and 0.1 g/t PGM over 57 metres for the first trench and 0.33% Cu, 0.16% Ni, 0.014% Co and 0.06 g/t PGM over 36 metres for the second trench. Ni has been selectively assayed and been confirmed as >90% in sulfide form. Currently, a drill rig is completing a 300 m drill hole to test the depth extension of the zone near the first trench.

The proposed exploration program of 500m to 1,000m of underground tunneling on the AZ prospect was stopped due to blockage of road access and suspension of explosive permits for all mining operations by the County government as a fatal accident occurred at one of the mines within the county. It is unclear when the county government will re-issue explosive permits and road access will be available.

Acquisition of New Exploration Permits
Through its Sino-Foreign joint venture company, Huaxi Mining & Exploration, New Pacific has submitted applications for seven exploration permits totaling about 200 square kilometers in the Panxi rift area of Sichuan Province. The permit areas, focusing on Cu-Ni potential, have been identified based on certain geological models derived from known Cu-Ni deposits in the Panxi rift.

Quality Control
The company has implemented a quality control program to ensure best practice in sampling and analysis of the tunnel samples. All samples are shipped directly in security sealed bags to the Central Laboratory of Sichuan Bureau of Geology and Mineral Resources in Chengdu city located 240km by road from the AZ Prospect area , where they are dried, crushed, split, and then pulverized to 200 mesh. The Laboratory is certified by China Bureau of Quality Control and Quality Assurance. Pulverized samples (200 grams each) were then sent to ALS Chemex Laboratories in Vancouver, Canada for assay. Pt, Pd and Au were assayed by fire assay method and Cu, Ni and Co by wet chemistry-ICP method.

The Exploration work is directly supervised by Dr. Rui Feng, President of NUX and Dr. Scott Song, a consulting geologist for NUX. Myles Gao, P.Geo, Director of NUX, is the Qualified Person on the Project.

For Further Information:
New Pacific Metals Corp.
Rui Feng, Ph.D. President & Director
Cathy Fong, VP Corporate Development
Phone: +1 (604) 633-1368
Fax: +1 (604) 669-9387
Email: [email protected]
Website: www.newpacificmetals.com

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