New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has taken a significant step forward in advancing its Carangas Silver-Gold Project in Bolivia. The company announced the signing of Administrative Mining Contracts covering the approximately 39-square-kilometre project area. These contracts, signed with the Bolivia Administrative Mining Jurisdictional Authority on Aug. 21, 2026, have a 30-year term and will now be submitted to the Plurinational Legislative Assembly of Bolivia for ratification and approval. This is a crucial milestone in the process of formally obtaining mining tenure for the project.
The Carangas project is one of two key precious metals assets in New Pacific's portfolio, the other being the Silver Sand project in Potosí. The signing of these contracts underscores the company's progress in Bolivia, where it has nearly a decade of operating experience. The move also aligns with the company's strategy to develop large-scale, economically robust projects in the region.
In addition to the contract signing, New Pacific has outlined an ambitious exploration program for the remainder of 2026. The company plans to launch an approximately 30,000-metre drill program at Carangas, scheduled to begin the week of Sept. 8. Of this total, about 25,000 metres will be focused on upgrading mineral resources in the silver and gold zones, with the remaining metres targeting potential extensions and new targets. The program is designed to provide the necessary data for a planned feasibility study, including metallurgical samples and geotechnical and hydrological drilling.
The Carangas project holds significant potential, with robust economics and regional exploration upside. The drill program and the advancement of mining contracts are critical steps toward unlocking the project's value. According to the company, the contracts are a key administrative requirement, and their submission to the legislative assembly is the next step in the approval process. This development is important for New Pacific as it aims to transition Carangas from a development-stage project to one that could potentially become a producing mine.
The significance of this announcement extends beyond the company itself. Bolivia is a country with rich mineral resources, and the successful advancement of projects like Carangas could contribute to the local economy and the global supply of silver and gold. For investors, the signing of these contracts and the planned drill program signal that New Pacific is making tangible progress in de-risking the project and moving it toward production.
New Pacific's commitment to Bolivia is evident in its long-term presence and its focus on responsible development. The company has earned the confidence of stakeholders and shareholders through its operational expertise and transparent approach. As the drill program gets underway, the results will be closely watched by the market, as they will inform the feasibility study and ultimately the decision to proceed with construction.
In summary, the signing of the 30-year mining contracts for Carangas is a pivotal achievement for New Pacific Metals. It not only secures the company's tenure over the project area but also paves the way for the upcoming drill program and feasibility study. This news is important because it demonstrates the company's ability to navigate regulatory processes and advance its projects, which is crucial for its long-term growth and the potential realization of Carangas's full value.
