New Pacific Metals (TSX:NUAG, NYSE:NEWP) Inc has told investors that it expects to complete a preliminary economic assessment (PEA) for its flagship Silver Sand project in south-central Bolivia by the end of this year.
The company said drilling with one rig is currently underway at the asset with a further two expected to arrive by mid-February.
A 15,000 metre (m) drill program is expected to be completed by the end of April, with all assays expected by the end of June, and an updated mineral resource expected to be completed by September this year, which will be included in the PEA, it added.
Silver Sand is a 'significant new global primary' silver discovery, noted the firm. The 2020 estimate put measured and indicated (M&I) contained ounces at 155.86 million at a grade of 137 grams per ton (g/t).
READ: New Pacific Metals has working capital of US$38.1 million at end of fiscal second quarter to advance Bolivia assets
Mineralization is potentially amenable to being mined via an open pit and remains open to the north and south and at depth and starts at or near-surface. Around 70% of the resources are within 200m of the conceptual open pit surface.
The resource update will reflect the new drill results since the 2020 document and will include Silver Sand, the Snake Hole area, along with selected properties covered by the mining production contract (MPC) surrounding the project.
A revised MPC was recently signed with Bolivian state-owned group COMIBOL. The latter desires that New Pacific drill and yield an initial resource in limited and selected MPC properties by granting a special temporary permit for the company, noted New Pacific.
Thus, the firm plans to complete a further 15,000m of exploration and in-fill drilling, including 2,500m within the MPC properties and 12,500m at Silver Sand.
"With this drilling, the company may push part of the potential open-pit boundary onto the MPC ground to include Silver Sand MRE and MPC MRE in a total combined MRE," New Pacific told investors in a statement.
New Pacific is a Canadian explorer with precious metal projects, including its flagship Silver Sand project, the Silverstrike project and the Carangas project - all in Bolivia.
The company is focused on progressing the development of Silver Sand while growing its resources through exploration and acquisition of properties in the Americas.
Contact the writer at giles@proactiveinvestors.com