New Pacific Metals Corp. (TSX: NUAG) (NYSE American: NEWP) has taken a significant step forward in advancing its Carangas Silver-Gold Project in Bolivia by signing 30-year Administrative Mining Contracts with the country's Administrative Mining Jurisdictional Authority. The contracts, signed on Aug. 21, 2026, cover the approximately 39-square-kilometre project area and will now be submitted to the Plurinational Legislative Assembly of Bolivia for ratification and approval, marking the next critical milestone in securing formal mining tenure.
The signing of these contracts is a crucial development for New Pacific Metals as it moves the Carangas project closer to production. The company has been operating in Bolivia for nearly a decade and has earned the confidence of stakeholders and shareholders. The Carangas project, located in Oruro, is one of two permitting-stage precious metals projects in the country, alongside the Silver Sand project in Potosí, which has the potential to become one of the world's largest silver mines. Together, these projects position New Pacific as a significant player in the global silver and gold mining sector.
In conjunction with the contract signing, New Pacific announced the commencement of its approximately 30,000-metre 2026 drill program at Carangas, scheduled to begin the week of Sept. 8. The program is designed with multiple objectives: approximately 25,000 metres will be dedicated to upgrading mineral resources in both the silver and gold zones, while the remaining metres will target potential extensions and new exploration targets. Additionally, the drill program will collect essential data for the planned feasibility study, including metallurgical samples and geotechnical and hydrological drilling. This comprehensive approach underscores New Pacific's commitment to advancing the Carangas project through the development pipeline.
The Carangas project is a key component of New Pacific's portfolio, offering scale, robust economics, and regional exploration potential. The company's focus on Bolivia, a country with rich mineral resources but also complex regulatory and social dynamics, requires a long-term perspective and strong local relationships. The signing of the 30-year contracts is a testament to New Pacific's successful navigation of these challenges and its commitment to responsible development.
The ratification by the Plurinational Legislative Assembly is the next hurdle, and its approval will grant New Pacific the formal mining tenure needed to proceed with project development. The company's progress at Carangas is closely watched by investors and industry analysts, as Bolivia's silver and gold resources are increasingly important in the global market. The successful execution of the drill program and feasibility study will be pivotal in determining the project's economic viability and timeline to production.
New Pacific Metals' announcement comes at a time when global demand for precious metals remains strong, driven by industrial applications, investment demand, and macroeconomic uncertainties. The development of the Carangas project could contribute significantly to Bolivia's mining output and provide a new source of silver and gold for the international market. As the company moves forward, its ability to secure legislative approval and advance the project will be key factors in its future success.
