Welcome!

Microsoft Cloud Authors: Dana Gardner, Jayaram Krishnaswamy, Yung Chou, David Bermingham, Pat Romanski

News Feed Item

New Pacific Enters Into Agreement to Acquire Majority Interest in RZY Silver-Lead-Zinc Project in Qinghai Province, China

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/21/12 -- New Pacific Metals Corp. (TSX:NUX) ("New Pacific" or the "Company") is pleased to announce it has signed a binding letter of agreement (the "Agreement") with Silvercorp Metals Inc. ("Silvercorp") to acquire majority interest in its wholly owned subsidiary, Fortress Mining Inc. ("FMI"). Pursuant to the terms of the Agreement, the Company will pay US$3.5 million to acquire an 80% interest of FMI, with an option to acquire the remaining 20% within two years for US$5 million after the Company has spent US$15.9 million on the project. Since the Transaction is a related party transaction it is subject to approval from the Toronto Stock Exchange.

In 2007 FMI and the Qinghai Geological Survey Institute ("QGSI") established a Sino-Foreign Co-Operative Company; Qinghai Found Mining ("QFM"), with a term of 30 years. FMI owns an 82% interest and QGSI owns an 18% carried interest in QFM. Currently, QFM's assets consist of approximately US$2.0 million in net cash and a 67% interest in the RZY exploration project (the "Project").

In April 2011, QFM entered into an exploration agreement with its shareholder, QGSI to jointly explore its RZY project, an early stage exploration project located in Qinghai Province, China (collectively, the "Exploration Agreement"). The major terms of the agreement are:


--  The RZY project exploration permit is held by QGSI. QFM has a 67%
    interest in the RZY project by funding exploration and drilling in 2012.
--  The exploration permit will be transferred to QFM when one of two events
    occur (1) QFM completes funding of RMB30 million (US$4.8 million) on RZY
    project exploration or capital expenditures; or (2) the RZY project
    matures to a development stage project. Once transferred; QFM will have
    a 100% interest in the RZY project, giving FMI an 82% interest in the
    project. 
--  QFM, funded 100% by FMI; is then committed to invest an additional
    RMB170 million (US$27.2 million) on RZY project exploration and capital
    expenditures to have a total investment of RMB200 million (US$32.0
    million) in exploration and capital expenditures on the RZY project. 
--  If QFM does not fund the required exploration and capital expenditures,
    the Exploration Agreement will be terminated while QFM maintains its
    interest in the Project. 

To date, pursuant to the Exploration Agreement, FMI has invested US$3.5 million in QFM and QFM has spent US$1.5 million on exploration and development expenditures in the RZY Project.

RZY Project Location, Background, and Geological Exploration

The RZY Project is an early stage silver-lead-zinc exploration project, situated on a high plateau with an average elevation of 5,000 metres above sea level. The Project is located approximately 237 kilometres via paved and gravel roads from the capital city of Yushu Tibetan Autonomous Prefecture, or 820 kilometres via paved highway from Qinghai Province's capital city of Xining. Regular commercial flights are available from Xining to Yushu.

Known mineralization is silver-lead-zinc veins controlled by altered structure zones developed in the lower Permian marine clastic sediments. Two silver-lead-zinc mineralized zones, MI-1 and MI-2 with a strike extent of 6.5 kilometres and width of 25 to 100 metres have been identified by historical surface work conducted by QGSI including trenching, pitting, geology mapping and geophysics surveying. The geochemical profile indicated that the silver-lead-zinc mineralization is likely in situ, not floats of dispersion from sources in the surrounding mountainous area. The soil geochemical anomaly also indicated there could be another mineralized zone to the north in a flat area about one kilometre from the mountains.

In 2006, Silvercorp retained Golder Associates Ltd. ("Golder") to complete a National Instrument 43-101 ("NI 43-101") report on the RZY Project and Golder conducted a site visit between October 15 and 25, 2006. Samples taken by Golder from trenches and shallow pits are listed in Table 1 below. The results indicate that silver-lead-zinc mineralization exists at RZY.


Table 1 Assay Results of Check Samples by Golder                            
                                                                            
----------------------------------------------------------------------------
                         Ag    Pb    Zn                                     
Sample #   Location   (g/t)   (%)   (%)  Description                        
----------------------------------------------------------------------------
ZDTC1-1    E95.35148    327  5.28  1.33  grab sample, disseminated sulphides
           N33.26569                                                        
----------------------------------------------------------------------------
ZDTC1-1    E95.35148      -     -     -  grab sample, wallrock              
           N33.26569                                                        
----------------------------------------------------------------------------
RZY001     TC1          836 17.18 15.33  grab sample, disseminated sulphides
----------------------------------------------------------------------------
RZY002     QJ2          105   2.2   4.5  grab sample, wallrock              
----------------------------------------------------------------------------
RZY003     TC2        3,015 17.64 11.93  grab sample, disseminated sulphides
----------------------------------------------------------------------------
RZY004     QJ1          723  1.49  0.29  grab sample, wallrock              
----------------------------------------------------------------------------

Exploration 2011-2012

In 2011 Silvercorp, through QFM and QGSI, conducted surface geology mapping and an induced polarization ("IP") geophysical survey program. The IP survey commenced along the western portion of the 6.5 kilometre long mineralized zone and was completed in 2012. The survey results indicate the existence of an area of high polarization to the north of the alteration break zone, and a separate minor zone of high polarization to the south. These high polarization areas may be related to mineralized alteration zones at depth.

Trenching

In 2012, seven trenches were completed by QFM. Lead-zinc-silver mineralization was identified in all trenches. The mineralization is characterized by lead-zinc sulphides and pyrite as well as oxides such as litharge and limonite. The galena is blocky or massive and is associated with quartz-carbonate veins. The width of lead-zinc mineralization exposed in trenches ranges from a few metres to more than 10 metres with individual galena-quartz veins of a few centimeters to half a meter wide. Assay results from the trenches completed in 2012 confirmed the presence of high grade silver-lead-zinc mineralization as indicated by historical results (see Table 2 below). The assay results of the new trenches are shown together with the historical results in Table 2. High grade silver is mostly associated with high grade lead and zinc which is the case of blocky or massive lead-zinc sulphides with quartz veins, but some high grade silver intervals contain relatively low values of lead and zinc, which may mean there are multiple distinct variations of mineralization.


Table 2 Assay Intervals of Trenches and Pits                                
                                                                            
----------------------------------------------------------------------------
                            Interval        Ag      Pb      Zn              
Section   Trench/Pit No.         (m)     (g/t)     (%)     (%)  Note        
----------------------------------------------------------------------------
0         TC16                  0.60     42.10    1.22    1.06  Historical  
          ------------------------------------------------------------------
          TC17                  3.80  1,337.54    1.13    1.53  Historical  
          ------------------------------------------------------------------
          2012TC5              19.20     72.25    1.93    0.33  Silvercorp  
          ------------------------------------------------------------------
          2012TC5              11.50     30.59    0.71    0.58  Silvercorp  
          ------------------------------------------------------------------
          2012TC5               1.40    126.00    0.11    0.18  Silvercorp  
----------------------------------------------------------------------------
16        2012TC6                7.8     30.15   0.138   0.085  Silvercorp  
          ------------------------------------------------------------------
          2012TC6                4.5     82.95   0.355   0.187  Silvercorp  
          ------------------------------------------------------------------
          2012TC6                4.5     12.42   0.135   0.384  Silvercorp  
          ------------------------------------------------------------------
          2012TC6               19.7    201.37   2.696   0.254  Silvercorp  
----------------------------------------------------------------------------
23        TC15                  1.50     22.80   0.048   0.094  Historical  
          ------------------------------------------------------------------
          TC15                  3.00     33.00    0.35     0.1  Historical  
          ------------------------------------------------------------------
          QJ5                   4.45     58.20    0.92    0.13  Historical  
----------------------------------------------------------------------------
24        TC6                   6.00    132.55    2.57    1.16  Historical  
          ------------------------------------------------------------------
          QJ3                   5.00    130.32    2.98    2.43  Historical  
          ------------------------------------------------------------------
          2012TC7               3.00     14.05    0.05     0.2  Silvercorp  
          ------------------------------------------------------------------
          2012TC7               8.60     66.90    0.57    0.74  Silvercorp  
          ------------------------------------------------------------------
          2012TC7               2.20    405.61    5.02    2.55  Silvercorp  
----------------------------------------------------------------------------
35        TC1                  21.80     70.75    0.88    0.84  Historical  
          ------------------------------------------------------------------
          QJ2                   5.00    217.28    3.57    8.07  Historical  
          ------------------------------------------------------------------
          2012TC3              20.80     50.21    1.24    0.79  Silvercorp  
----------------------------------------------------------------------------
40        TC7                   7.50    259.34    5.91    0.58  Historical  
          ------------------------------------------------------------------
          QJ4                   5.50  1,276.66   21.31    0.93  Historical  
          ------------------------------------------------------------------
          2012TC8               3.50     14.87    0.13    0.36  Silvercorp  
          ------------------------------------------------------------------
          2012TC8               9.00    201.27    3.69    0.66  Silvercorp  
----------------------------------------------------------------------------
51        TC2                  16.50    349.57    1.38    0.53  Historical  
          ------------------------------------------------------------------
          QJ1                   8.00  2,025.84    6.58    3.00  Historical  
          ------------------------------------------------------------------
          2012TC2              31.50     76.62     0.6    0.17  Silvercorp  
----------------------------------------------------------------------------
56        TC12                   4.2     51.61   0.035   0.883  Historical  
----------------------------------------------------------------------------
1. "QJ"- shallow pit                                                        
2. Historical assay results were analyzed by the Qinghai Geological Central 
 Laboratory                                                                 
3. Silvercorp's historical assay results were analyzed by SGS labs in       
 Tianjin, China                                                             

Drilling

To test the depth potential of the mineralization exposed by surface workings, over 890 metres in five drill holes were drilled in 2012. Multiple altered structure zones with narrow galena-quartz veins were hit in holes, but no massive or blocky lead-zinc sulphide quartz veins, as observed in the trenches on surface, were intercepted. Although assay results of drill cores indicated the mineralization occurs in the major east-west structural zones in the Permian clastic sediments and is continuing at depth (see Table 3 below), the width and grades of drill intercepts are inferior to the results of the surface trenches and pits. Drill hole ZK2401 did not hit any significant mineralization as exposed by the surface trenches. However, given the strike extent of the mineralization, and the high-grade nature of the silver-lead-zinc mineralization indicated by samples from the trenches and pits, New Pacific believes there is enough evidence to support the transaction and justify continued drilling at the Project in 2013.


Table 3 RZY Drill Intercepts 2012                                           
                                                                            
----------------------------------------------------------------------------
                      From        To  Interval        Ag        Pb        Zn
Section  Hole_Id       (m)       (m)       (m)     (g/t)       (%)       (%)
----------------------------------------------------------------------------
35       ZK3501       67.2      68.7       1.5       116      2.03      0.81
       ---------------------------------------------------------------------
         ZK3502       12.2      13.7       1.5       198      1.02      0.64
                ------------------------------------------------------------
                      58.9      60.4       1.5       704      1.09      0.47
                ------------------------------------------------------------
                      91.1      92.1         1       202      3.23      1.98
----------------------------------------------------------------------------
51       ZK5101       59.1      60.6       1.5       103      0.27      0.49
                ------------------------------------------------------------
                     117.6     119.1       1.5       107      1.06      1.96
       ---------------------------------------------------------------------
         ZK5102       75.4      76.9       1.5       205      3.53      1.84
                ------------------------------------------------------------
                      79.9      84.4       4.5        94      0.89      1.64
                ------------------------------------------------------------
                      87.4      88.9       1.5        31      0.51      1.81
                ------------------------------------------------------------
                     124.8     125.3       0.5        99      0.08      1.64
----------------------------------------------------------------------------
24       ZK2401 no significant results                                      
----------------------------------------------------------------------------
                                                                            
note: assay results were analyzed by SGS labs in Tianjin, China             
----------------------------------------------------------------------------

All intervals are reported as downhole lengths and are not corrected to true widths for the mineralized intervals as drill holes typically cut mineralization at variable angles and geometries of mineralized zones remain speculative until further drilling is completed.

Alex Zhang, P.Geo., is the Qualified Person on the project as defined under National Instrument 43-101. He has reviewed and approved the contents of this news release.

Sample Preparation and Assay Results

QFM employed standard QA/QC procedures to monitor and control assay quality by regular insertion of standard reference materials, blank samples and duplicate samples prior to shipment for preparation and analysis. Drill cores are halved with diamond saw on site. Half core and trench channel samples are shipped from site by security courier to the preparation facilities of SGS, Xi'an, China for preparation. Sample preparation includes the typical process of drying, crushing, splitting and pulverizing. Pulp samples then are delivered by security courier to the analytical laboratory of SGS, Tianjin, China for analysis. Analytical method is 4-acid digestion with ICP-AES finish with the over limits going to AAS finish. Routine QA/QC procedures are also carried out at the lab by itself to monitor the quality of sample preparation and analysis.

The trenching and drilling results set out in this news release, including the assays that were analyzed by SGS labs in 2012, were completed for Silvercorp Metals Inc. and QGSI, and as such, pursuant to NI 43-101 are historical. The Company has not verified the historical assay results and they should not be relied upon. The only NI 43-101 technical report completed to date was the Golder technical report in October 2006. The Company intends to complete updated technical reports as exploration continues.

About New Pacific

New Pacific is a Canadian gold and silver exploration and development company which owns the Tagish Lake gold project in Yukon, Canada.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain of the statements and information in this press release constitute "forward-looking information" within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company's material properties; the sufficiency of the Company's capital to finance the Company's operations; estimates of the Company's revenues and capital expenditures; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company's operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company's properties.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licenses; title to properties; First Nations title claims and rights; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company's existing operations; competition; operations and political conditions; regulatory environment in Canada; environmental risks; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management.

This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form for the year ended June 30, 2012 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...