TAGISH LAKE GOLD PROJECT
New Pacific acquired the Tagish Lake Gold Project in 2010 through acquisition of Tagish Lake Gold Corp. and carried out limited drilling in 2011 that intercepted significant gold results. The Project consists of 1,051 mineral claims covering an area of 170 square kilometres and is located approximately 55 kilometres (km) south of Whitehorse, Yukon in the Wheaton River Valley region. The Project hosts the advanced-stage Skukum Creek, Goddell and Mt. Skukum high-grade gold deposits and multiple high-priority exploration targets.
Project infrastructure includes an all-weather access road, an all-weather 50-person camp, approximately 4.8 km of underground workings, an extensive surface road network and a previously operating 300 tonne per day mill along with a tailings management facility and service buildings. Over 140,000 metres of drilling has been completed on the Project and the Mt. Skukum Mine saw historical underground operations from 1986 to 1988 with reported production of approximately 79,000 ounces of gold, at an average grade of 13 g/t gold under a previous operator.
Mineral Resource Estimate1
Table 1: Indicated Mineral Resources ^2
| Deposit | Cut-off Grade g/t ^2 | Tonnes | Au g/t | Ag g/t | AuEq g/t | Contained oz Au | Contained oz Ag | Contained oz AuEq |
|---|---|---|---|---|---|---|---|---|
| Skukum Creek | 3.0 | 1,086,800 | 5.54 | 159 | 8.72 | 193,700 | 5,547,600 | 304,600 |
| Goddell | 3.0 | 329,700 | 8.13 | - | 8.13 | 86,210 | - | 86,210 |
| Total Indicated | 3.0 | 1,416,500 | 6.14 | - | 8.58 | 279,910 | 5,547,600 | 390,810 |
Table 2: Inferred Mineral Resources ^2
| Deposit | Cut-off Grade g/t ^3 | Tonnes | Au g/t | Ag g/t | AuEq g/t | Contained oz Au | Contained oz Ag | Contained oz AuEq |
|---|---|---|---|---|---|---|---|---|
| Skukum Creek | 3.0 | 586,000 | 4.74 | 105 | 6.83 | 89,200 | 1,972,700 | 128,700 |
| Goddell | 3.0 | 483,900 | 7.13 | - | 7.13 | 110,867 | - | 110,867 |
| Mt. Skukum | 3.0 | 90,500 | 9.25 | 13 | 9.51 | 26,900 | 37,800 | 27,656 |
| Total Inferred | 3.0 | 1,160,400 | 6.09 | - | 7.16 | 226,967 | 2,010,500 | 267,223 |
Notes:
- “Amended and Restated Technical Report Skukum Gold-Silver Project” prepared for New Pacific Metals Corp. by Geosim Services, Inc. effective date July 16, 2012. A copy of this technical report is available on SEDAR under the Company’s profile. The Company does not consider this estimate to be current for the purposes of NI 43-101.
- By prescribed definition, "Mineral Resources" do not have demonstrated economic viability. An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.
- Cut-off grade is 3.0 g/t Au equivalent (AuEq) for Mt. Skukum and Skukum Creek, 3 g/t Au for Goddell. Metal prices were assumed $US1,300/oz Au and US$26/oz Ag. The AuEq formula is as follows: Au + (Ag *0.02) = Au Eq.
Plan of Arrangement
It is proposed that the spin-out will occur by way of a plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia) pursuant to which New Pacific shareholders will be entitled to receive common shares of Whitehorse Gold on a pro rata basis. It is also proposed that Whitehorse Gold will conduct a private placement to be completed concurrently with the Arrangement (the "Private Placement").
The Arrangement and the Private Placement will be subject to the approval of the Company’s shareholders at a special meeting that is expected to be held by the end of September 2020, requisite regulatory and stock exchange approval, and the continued discretion of New Pacific's management and board of directors. The Arrangement will also be subject to court approval. The listing of Whitehorse Gold’s common shares on the Exchange will be subject to acceptance by the Exchange and Whitehorse Gold fulfilling all the requirements of the Exchange, including closing of the Private Placement.
Further details of the Arrangement and the Private Placement, including, without limitation, the applicable ratio for the number of Whitehorse Gold common shares to be received by New Pacific shareholders, the record date for determining which shareholders will be entitled to receive Whitehorse Gold common shares and vote on the Arrangement and Private Placement at the special meeting, and the date for the special meeting, will be provided in due course. There can be no assurance that the Arrangement or the Private Placement will be completed on the terms described herein or at all, or that the Whitehorse Gold common shares will be listed on the Exchange.
Technical information contained in this news release has been reviewed and approved by Alex Zhang, P.Geo., Vice President of Exploration of the Company.
Investor Relations Agreements
The Company is pleased to announce that it has entered into three separate investor relations agreements.
The Company has entered into an advertising agreement with Aspermont Media Ltd. (dba Mining Journal Online) ("Mining Journal") pursuant to which Mining Journal will provide certain advertising services to the Company. Such services include investor outreach, organizing investor meetings and online marketing services for a period of 15 months. As consideration, the Company will pay Mining Journal a fee of £4,000 (plus tax). Based out of London, United Kingdom, Mining Journal, an independent third party, publishes a journal which covers all aspects of the mining industry. To the Company's knowledge, Mining Journal does not have any direct interest in the Company or its securities.
The Company has also entered into an arrangement with Revolve Marketing Inc. (dba Visual Capitalist) ("Visual Capitalist") pursuant to which Visual Capitalist will provide certain media services to the Company. Such services include the creation and distribution of infographics for a period of six weeks. As consideration, the Company will pay Visual Capitalist a fee of US$7,500 (plus tax). Based out of Vancouver, British Columbia, Visual Capitalist, an independent third party, is a media company that creates and curates rich, visual content on businesses. To the Company's knowledge, Visual Capitalist does not have any direct interest in the Company or its securities.
Finally, the Company has entered into an agreement with Dig Media Inc. (dba Investing News Network) ("INN") pursuant to which INN will provide certain advertising services to the Company. Such services include the creation of a profile for the Company, which will include interviews, videos and articles related to the Company. INN will provide such services until March 22, 2021. As consideration, the Company will pay INN a fee of $30,000 (plus tax). Based out of Vancouver, British Columbia, with officers around the globe, INN is an independent firm, which is dedicated to providing independent news and education to investors. To the Company's knowledge, INN does not have any direct interest in the Company or its securities.