Project Overview
Cementing our first mover status in an under-explored world-class silver district
The silver-rich polymetallic mineralization of the Carangas Project is located within the prolific South American Epithermal Belt. This is a former silver mining district located on La Ruta de la Plata (the Silver Road), which historically exploited high-grade silver veins and currently contains broad zones of near-surface silver mineralization with strong exploration potential.
Project Highlights
- Mineralization: Polymetallic silver-lead-zinc project, containing numerous historic surface workings, underground mine adits and mining infrastructure. Mineralization starts at or near surface and is comprised of millimeter to multi-meter-wide veins (which were historically exploited), veinlets and disseminated silver mineralized material.
- Exploration potential: Inaugural 5,000 m discovery drill program underway with the objective to test four drill target areas for bulk tonnage and high-grade silver mineralization, leveraging New Pacific’s exploration and project advancement expertise in Bolivia.
- Location and infrastructure: Located in Oruro Department, Bolivia, approximately 180 km southwest of the city of Oruro. Situated in the Bolivian altiplano at an average of 3,800 metres above sea level, the Carangas Project benefits from year-round access via paved highway and maintained municipal gravel roads. Good infrastructure present at site.
- Ownership: Acquired a 98% interest in the Carangas Project in April 2021. The land package comprises of exploration concessions of approximately 6.25 square kilometers.
History and Geology
- The Carangas Project contains extensive historic surface workings in addition to underground mine adits, shafts and associated processing and smelting infrastructure. There is no active mining at the present time.
- The Carangas Project is comprised of a Tertiary volcanic complex approximately 1.6 km long in east-west direction and 1.4 km wide in north-south direction, which stands 150 m above the surrounding fluvial plains. An ephemeral stream divides the volcanic complex into two separate domes known as West and East Domes, respectively.
- Silver-rich polymetallic mineralization occurs as millimeter to multi-meter-wide veins (which were historically exploited), veinlets and disseminations in the matrix of the breccias and/or associated volcanic host units.
- Potential to host near surface bulk tonnage mineralization and high-grade mineralization, controlled by narrow structures, at relatively shallow depths.
- Highlights of due diligence sampling include: 30 meters at an average grade of 101 g/t silver, 15 meters at an average grade of 252 g/t silver, and 8 meters at an average grade of 512 g/t silver. Highlighted chip and grab samples collected by New Pacific are presented in the accompanying figure.
For further details, please refer to our news releases related to the Carangas Project dated April 12, 2021, June 14, 2021, June 29, 2021 and September 8, 2021.
Project News
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Property Ownership
In April 2021, New Pacific announced the acquisition of a 98% interest in the Carangas Project from a private Bolivian corporation. Under the agreement between New Pacific and the Carangas Property vendor, New Pacific will cover 100% of the future expenditures of exploration, mining, development and production activities. The agreement has a term of 30 years and renewable for another 15 years.
The Carangas Project is comprised of two exploration licenses covering an area of 6.25 km2 and owned 100% by the New Pacific’s Bolivian joint venture partner. New Pacific has entered into a mining association agreement with the Bolivian partner (the “Joint Venture”), under which New Pacific is required to cover 100% of the future expenditures on exploration, mining, development, and production activities in return for 98% economic interest in the Project.
The Carangas Project is located within 50 km of the Bolivian border with Chile. In line with many South American countries, Bolivia does not permit foreign entities to own property within 50 km of international borders (the “Restricted Area”). Property owners in the Restricted Area are, however, permitted to enter into mining association agreements, or joint ventures, with third parties, including foreign entities, for the development of mining activities under Bolivian Law No. 535 on Mining and Metallurgy (the “Mining Law”).
While New Pacific believes the Joint Venture is legally compliant with the Restricted Area requirements and the Mining Law, there is no assurance that New Pacific’s Bolivian partner will be successful in obtaining the approval of the Jurisdictional Mining Administrative Authority in Bolivia (Autoridad Jurisdiccional Administrativa Minera or AJAM) to convert the two exploration licenses into an Administrative Mining Contract.