Project Overview
High-grade Primary Silver Deposit
The Silver Sand Project is a primary silver deposit located within the prolific Andean silver-tin belt, 100% owned by New Pacific. The project is located in Potosi Department in southwestern Bolivia. It is approximately 35 km northeast of Potosi city, home to the producing world-class Cerro Rico de Potosi silver mine, which has produced approximately 1.6 billion ounces of silver since it began operating in the 16th century.
A Technical Report on the Silver Sand project entitled "Technical Report Silver Sand Deposit Mineral Resource Report (Amended)" with an effective date of January 16, 2020 was issued on June 3, 2020.
Project Highlights
- Large silver Measured and Indicated Mineral Resources: 35.39 Mt at a grade of 137 g/t silver containing 155.86 Moz of silver. Inferred Mineral Resources of 9.84 Mt at a grade of 112 g/t silver containing 35.55 Moz of silver
- Preliminary Economic Study: PEA and advanced studies in progress
- Strong exploration potential: 38,000 m drill program in progress during 2021. The deposit remains open to the north and south and at depth
- Location and infrastructure: Located in Potosi Department, Bolivia, at an average elevation of 4,000 metres above sea level. The Silver Sand Project benefits from year-round access via paved highway and maintained municipal gravel roads. Well developed infrastructure present at site
- Ownership: 100% owned by New Pacific Metals, the project is comprised of an administrative mining contract ("AMC") covering an area of approximately 3.17 km2 and Temporary Special Authorizations ("ATEs") covering 2.25 km2.
Project Video
Technical Report
Technical Report and Metallurgical Test Results Highlights
- Near-surface deposit: Mineralization amenable to open-pit extraction, with - 70% of the Mineral Resources within 200 m of the conceptual open pit surface
- High recovery: 80% silver recovery was achieved through heap leach column testing
- Heap leach process: Defined as the preferred processing method
- Lower CAPEX and operating costs compared to alternative process methods
- Silver doré production on site: Further improves project economics
- Significantly de-risks the project: Low technical complexity
- Increases project efficiency: Heap leach may allow for lower cut-off grade, leading to increased minable resource; and requires lower power consumption
- Good mineral continuity: Significant Measured and Indicated Mineral Resource thereby lowering geological risk
- Upside potential: The deposit remains open to the north and south and at depth
Mineral Resources Table
| Mineral Resources (As at December 31, 2019) | Tonnes (Mt) | Ag (g/t) | Ag (Moz) |
|---|---|---|---|
| Measured | 8.4 | 159 | 43.05 |
| Indicated | 26.99 | 130 | 112.81 |
| Measured & Indicated | 35.39 | 137 | 155.86 |
| Inferred | 9.84 | 112 | 35.55 |
*Mineral Resources estimate based on US$18.70/oz silver price
Exploration Potential
Silver Sand Project
- planned 38,000 m drill program initiated in 2021 with the objective to expand the existing resource, which remains open along strike and at depth, and to complete geotechnical drilling to support the PEA study
- 80% of the drill program is focused on expanding the existing Mineral Resources and on discovering additional resources
- 5,000 m of the 2021 drill program is expected to test for the source of mineralization. With over 100,000 metres in approximately 400 holes completed at the Silver Sand Project over the history of the project, none have encountered mineralized intrusive source rocks and/or thicker, higher grade, structurally controlled fluid conduits, which are postulated to be the source of the silver mineralization
- Numerous exploration targets adjacent to and below the Silver Sand deposit remain to be tested by diamond drilling
Snake Hole Zone
- Exploration potential at Silver Sand is exemplified by the discovery at the Snake Hole Zone in 2019, located ~ 600m east of the Silver Sand deposit. The Snake Hole Zone is highlighted by drill results of 279 g/t Ag over 72.44 m, including 517 g/t Ag over 32.96 m in discovery hole DSS5218
- During the first quarter of 2020, an additional eight follow-up drill holes were completed. Multiple drill holes intersected several zones of structurally controlled silver mineralization
- The objective of the 2021 drill program at the Snake Hole Zone is to better understand the size potential of these silver zones and to continue the exploration of the target along the 650 m strike extent to the north
For further details, please refer to our news releases related to the Snake Hole Zone dated January 13, 2020 and August 6, 2020.
North Block
- The North Block is comprised of three properties: El Bronce, Jardan, and Jisas
- Numerous historic workings and dumps present, similar to the core area of the Silver Sand project.
- Surface mapping has identified good to moderate micro-veining and stockwork development between the principal historically exploited structures, thereby forming an attractive bulk tonnage target
- The objective of the 2021 drill program at the North Block is to perform initial testing of the area, with approximately 4,000 m planned
- The geology, alteration and style of existing silver mineralization at the North Block provides compelling evidence that the Silver Sand deposit forms part of a larger regional to district-scale, silver-rich, hydrothermal system or systems whose exploration potential remains to be unlocked
History and Geology
- High-grade, narrow-vein silver mineralization was mined at the Silver Sand Property by Spanish Colonials as early as the 16th century. Artisanal, small-scale mine workings and waste pile dumps are present over much of the property
- Property-scale geology of the resource area comprises thick successions of weakly deformed Cretaceous continental sandstone, siltstone and mudstone units in addition to more strongly deformed Paleozoic marine sediment basement rocks, all within the mineralized La Puerta Trend
- Silver mineralization is contained within concentrated zones of local faulting, fractures, fissures and crackle breccia zones hosted by pervasively sericite-silica-oxide altered and brittle sandstone units of the La Puerta Formation
- Geology of the North Block properties, which lie along the silver mineralized Intrusive Eastern Trend, contrasts the geology at Silver Sand as it comprises predominantly of altered, porphyritic, intrusive rocks
Project News
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Mineral Concessions & Ownership
The Silver Sand Project is 100% owned by New Pacific.
The AMC for the Silver Sand Project, which hosts the Silver Sand deposit, covers an area of 3.17 km2. The total area under full control of New Pacific will be 5.42 km2 after completing the consolidation and conversion procedures for the North Block, which is comprised of three ATEs (Jisas, Jardan and El Bronce).
The AMC for Silver Sand was registered in Bolivia’s Jurisdictional Mining Administrative Authority (Autoridad Jurisdiccional Administrativa Minera) official gazette in July 2021 and establishes clear title to the mineral rights covered thereby. For additional information, please see our news release dated August 12, 2021.