New Pacific Metals (TSX:NUAG, NYSE:NEWP) Inc said that a successful discovery drill program last year at its Carangas project in Bolivia means it aims to carry out a resource definition program this year.
The firm today reported assays from six holes from the asset, while results from 17 have so far been received, with all of them hitting near-surface silver-rich polymetallic mineralization.
The six holes were sunk in the Central Valley in the middle of the Carangas property along a near north-south cross section.
A highlight was a 148.48 metre (m) interval, starting from just 8.7m depth, which graded 78 grams per ton (g/t) silver and 2.07% lead plus zinc (Pb+Zn) in one hole.
That was above another interval hit in the same hole, which showed 453m at a grade of 0.49 g/t gold, including a length of 95m at 1.14 g/t of the yellow metal and 31 g/t silver.
In the Central Valley, New Pacific said the near-surface mineralization was controlled by "dense mineralized fractures" which continue to a depth of 100m to 200m, and stretch a width of at least 700m from north to south.
READ: New Pacific Metals eyes preliminary economic assessment for Silver Sand by year-end; updated resource estimate underway
"Encouraged by the successful Discovery Drilling in 2021, the company plans to initiate a resource definition drilling program at Carangas Project in 2022," it said in the statement.
"An initial 30,000m drill program has been budgeted for this year and the company will review the drill program from time to time which could be extended to 40,000m or more if on-going drill results continue to be encouraging.
"Currently, the resource definition drilling has commenced with two rigs operating on site, and a third one may be added in due course after the rainy season," it added.
New Pacific is a Canadian exploration and development company with precious metal projects, including its flagship Silver Sand project, the Silverstrike project and the Carangas project, all of which are in Bolivia.
Contact the writer at giles@proactiveinvestors.com