According to the report, the deposit contains 35.4 million tons in the measured and indicated category grading at 137 grams per ton silver for a total of 155.9 million ounces of silver. The project also has 9.8 million tons at 112 grams per ton silver for 35.6 million ounces in the inferred category.
Nearly 70% of the resources are found within 200 metres of the conceptual open pit surface, according to the report.
Initial test work on the deposit indicates laboratory-based recoveries of up to 97% for the various oxide, New Pacific said in a statement. The mineralization remains open to the north and south and at depth.
The resource estimate does not include the recently discovered Snake Hole zone, where drilling intercepted 72.4 metres grading 279 grams per ton silver.
New Pacific suspended its 2020 drill program in late March amid the coronavirus pandemic, having completed nearly 2,400 metres of drilling at Silver Sand. Field operations are expected to restart once following the receipt of authorization from the Bolivian government.
Silver Sand is located in approximately 25 kilometres northeast of the renowned Cerro Rico silver and base metal mineral system near Potosi, Bolivia. Access is relatively easy, with a road distance of 54 kilometres to Potosi, of which 27 km are paved.
Vancouver-based New Pacific also reported its 1Q 2020 fiscal results for the period ended March 31, 2020, which showed the company post a net loss of C$1.7 million or C$0.01 per share. The firm’s financial results were impacted by a loss from investments of around C$1.6 million as well as higher operating expenses of C$1.5 million.
New Pacific recently acquired a 98% interest in the Silverstrike project, which consists of nine Special Temporary Authorizations known as ATEs within a 13-square-kilometre area.
The explorer recently announced a C$25 million financing courtesy of BMO Capital Markets, which will purchase will buy, on a bought deal basis, over 4.2 million shares in the company at C$5.90 per share.