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 with the country's Administrative Mining Jurisdictional Authority. The contracts, covering the approximately 39-square-kilometre project area, were signed on Aug. 21, 2026, and will now be submitted to the Plurinational Legislative Assembly of Bolivia for ratification and approval, a crucial step toward formally obtaining mining tenure.
This development comes as New Pacific prepares to launch a comprehensive drill program at Carangas, scheduled to begin the week of Sept. 8. The approximately 30,000-metre program is designed to upgrade mineral resources in the silver and gold zones, with about 25,000 metres focused on resource definition and the balance targeting potential extensions and new targets. The drilling will also gather essential data for a planned feasibility study, including metallurgical samples and geotechnical and hydrological drilling.
The signing of these contracts marks a pivotal milestone for New Pacific, which has been advancing its Bolivian projects for nearly a decade. The Carangas project, located in the Oruro department, is one of two permitting-stage precious metals projects in the company's portfolio, alongside the Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines. The Carangas project strengthens New Pacific's position through its scale, robust economics, and regional exploration potential.
The importance of this announcement lies in the fact that obtaining mining tenure is a critical de-risking step for any mining project. With the contracts now moving to the legislative assembly for approval, New Pacific is one step closer to securing the legal right to mine the silver and gold resources at Carangas. The 30-year term of the contracts provides long-term operational stability, which is essential for attracting investment and financing for the project's development.
The upcoming drill program is equally significant, as it will provide the data needed to advance the project to a feasibility study, a key step in the mine development process. The focus on upgrading mineral resources and exploring new targets could potentially expand the project's resource base, enhancing its economic viability. The inclusion of metallurgical and geotechnical drilling underscores the company's commitment to comprehensive project planning.
For investors and the mining industry, this development signals that New Pacific is making tangible progress in Bolivia, a country with significant mineral wealth but also complex regulatory processes. The company's ability to navigate these processes and secure long-term contracts is a testament to its operational experience and stakeholder relationships in the region. As the contracts await legislative approval, the outcome will be closely watched by those interested in the global silver and gold markets, as Carangas has the potential to contribute to the supply of these precious metals.
For more information on New Pacific Metals and its projects, visit the company's newsroom at http://ibn.fm/NEWP.
