Investing in a country with a history of animosity towards foreign investment is a risk most companies would not take. However, one company is laying the groundwork that could be a model for future investment by the mining industry.
Drill results are the tip of the iceberg in mine development, a press release with a nice intercept betrays the complex work it took to deliver them, even more so in Bolivia.
New Pacific Metals (TSX-V: NUAG) (US OTC: NUPMF) released results from its 55,000-metre drill program on its Silver Sand Project, in Bolivia about 25 kilometers from the historic mines of Potosi. 
The property is one of the earliest discoveries, before the discovery of Cerro Rico in the mid-1500’s, made by Spanish Colonials.
The drill results hit mineralization in 190 out of 195 drill holes with a headline intercept of 99.91 meters grading 244 g/t Ag.
These results did not come overnight but are the product of strong relationships in Bolivia and an experienced management team and shareholder support. It could attract the interest of its shareholders to take over the project.
Pan American Silver (TSX: PAAS) became a shareholder of the company acquiring 16% of the company and the right to appoint a director to the board. In addition, Silvercorp Metals (TSX: SVM) owns 27.9% and Rui Feng owns another 7.5% of the company, which equals to 51.8% insider ownership (fully diluted).
Recently, New Pacific secured a Mining Production Contract (MPC) with the Bolivian government and the stated-owned mining enterprise Corporación Minera de Bolivia (Comibol) for its Silver Sand Project; a unique agreement for a nation noted for its leftist policies and animosity towards foreign investment.
Gordon Neal, President of New Pacific said, “The MPC is a first of its kind agreement between a public resource company and the Bolivian government. I commend the Minister of Mines and Metallurgy and the President of Comibol for committed focus to complete this transaction. It is a benchmark achievement that shows that Bolivia is open to foreign investment.”
The MPC with COMIBOL, gives the company exploration and mining rights over an area covering approximately 57 sq. kilometers, surrounding the Silver Sand project.
These types of agreements do not come easily in a nation skeptical of foreign investment and gives an edge for New Pacific and its team to explore and develop its in-country assets.
"It's steady ahead now for New Pacific," Neal stated. "We are cashed up. We are going to keep drilling and I suspect that we're going to put out a resource by early next year."
The company has a cash position of $35,212,000 CAD, no debt, and has planned a further 55,000 meters of drilling to complete on the Silver Sand property. If the last batch results indicate anything, there is more good news to come.
Despite its past, Bolivia presents significant opportunities for discovery and investors that have deep industry experience. The world is watching and Silver Sand could be Bolivia’s next silver mine.
New Pacific Metals Corp. trades on the TSX Venture Exchange under the symbol “NUAG” and “NUPMF” in the U.S on the OTC market.
Nicholas LePan
Senior Mining Reporter at SilverSeek.com
Nicholas LePan has been following the metal markets for over a decade as a marketing manager at Stockwatch.com and writer at GoldSeek.com and Visual Capitalist.
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