Canada’s New Pacific Metals and its Bolivian joint venture (JV) partner have obtained the exploration licences and environmental permits to start exploration activities at the Carangas Silver Project in Bolivia.
The partners are now planning to commence an initial 5,000m discovery drill programme at the Carangas Silver Project, where four drill target areas were identified to test for bulk tonnage and high-grade silver mineralisation.
Comprising two exploration licences covering an area of 6.25km², the Carangas Project is 100% owned by New Pacific Metals’ undisclosed Bolivian JV partner.
As per the mining association agreement signed earlier with the Bolivian partner, New Pacific has to fully fund the future cost of exploration, mining, development, and production activities in exchange for a 98% economic interest in the project.
Valid for five years, the project’s two exploration licences allow for early to advanced-stage exploration activities including drilling, underground development, geological mapping, geochemical sampling and geophysical surveying.
The license also allows the holder to request and sign an administrative mining contract (AMC) with the Bolivian Jurisdictional Mining Administrative Authority (AJAM).
In a press statement, New Pacific Metals said: “While the company believes the Joint Venture is legally compliant with the Restricted Area requirements and the Mining Law, there is no assurance that the Company’s Bolivian partner will be successful in obtaining the approval of AJAM to convert the two exploration licences into an AMC.”
New Pacific CEO Dr Mark Cruise said: “Our exploration team has identified and prioritized several drill targets to test for bulk tonnage and high-grade silver vein potential. Contingent on results, we will evaluate further exploration work at the Project.
“We are well-funded to continue executing on our strategy, including the completion of the Silver Sand Project PEA, exploration work at our properties and continued project generation efforts, all of which are geared toward creating shareholder value.”
The project is located within the South American Epithermal Belt, which hosts large precious metal deposits and operations in neighbouring countries.