New Pacific Metals Secures 30-Year Mining Contracts for Carangas Silver-Gold Project

New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has taken a significant step forward in the development of its Carangas Silver-Gold Project in Bolivia by signing 30-year Administrative Mining Contracts. The contracts, signed with the Bolivia Administrative Mining Jurisdictional Authority on Aug. 21, 2026, cover the project's approximately 39-square-kilometre area and will now be submitted to the Plurinational Legislative Assembly of Bolivia for ratification and approval. This move is essential for the company to formally obtain mining tenure and proceed with project development.

The Carangas project is one of two permitting-stage precious metals projects in Bolivia that New Pacific is advancing. The company also operates the Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines. The Carangas project, located in Oruro, strengthens the company's portfolio through its scale, robust economics, and regional exploration potential. With nearly a decade of operating experience in Bolivia, New Pacific has earned the confidence of its stakeholders and shareholders.

The signing of these contracts is a pivotal milestone, as it provides the company with long-term security over the mineral rights, which is crucial for attracting investment and planning large-scale mining operations. The 30-year term ensures stability and predictability, which are key factors in the mining industry where projects often require significant capital investment and long development timelines.

In conjunction with the contract signing, New Pacific has announced that its approximately 30,000-metre 2026 Carangas drill program is scheduled to begin the week of Sept. 8. Of this total, approximately 25,000 metres will be focused on upgrading mineral resources in the silver and gold zones, which could potentially increase the project's resource base and enhance its economic viability. The remaining metres will target potential extensions and new targets, which could lead to the discovery of additional mineralization beyond the current known zones.

The drill program will also gather essential data for the planned feasibility study, including metallurgical samples and geotechnical and hydrological drilling. This information is critical for designing the mine and processing facilities, assessing environmental impacts, and ensuring the project's technical and financial feasibility. The completion of a feasibility study is a major step towards making a final investment decision and moving the project into construction and production.

The importance of this development cannot be overstated. The Carangas project has the potential to become a significant source of silver and gold, contributing to Bolivia's economy and providing a reliable supply of these precious metals to global markets. For New Pacific, securing the mining contracts and advancing the drill program are key steps in its strategy to develop the project and create value for its shareholders. The company's long-term presence in Bolivia and its ability to navigate the regulatory environment are positive indicators for the project's successful advancement.

Investors and industry observers will be closely watching the progress of the ratification process and the results of the drill program. Positive outcomes could lead to an updated resource estimate and a feasibility study that demonstrates the project's economic viability, potentially attracting strategic partners or financing for construction. The Carangas project is a cornerstone of New Pacific's portfolio, and the recent developments mark a clear path forward for its development.