South Pacific Metals Reports Exceptional Surface Trenching Results at Osena Gold-Copper Project, Including 8.82g/t Gold Sample at Ontenu Prospect, Kainantu District

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Aug 28, 2024

Assays Confirm Mineralization Across Entire 79 m trench, Including 4 m Averaging 4.52g/t Au

VANCOUVER, BC / ACCESSWIRE / August 27, 2024 / South Pacific Metals Corp. (TSXV:SPMC, Financial)(FSE:6J00) ("SPMC" or the "Company"), an emerging gold-copper exploration company operating in the heart of Papua New Guinea's proven production corridors, is pleased to announce initial assay results from its Osena Gold-Copper Project surface exploration program, completed September 2023 at the Ontenu Prospect and surrounding areas.

Highlights:

  • Trench 1 returned significant results including a peak trench rock sample value of 8.82 g/t Au, 13.8 g/t Ag, 0.25% Cu, 580 ppm Mo, 0.93% Zn.

    • 79 m averaging 0.75 g/t Au, 981 ppm Cu, 1.73 g/t Ag, 1877 ppm Zn, including:

      • 16 m averaging 1.25 g/t Au, 0.15% Cu, 0.18% Zn; and

      • 4 m averaging 4.52 g/t Au, 0.13% Cu, 0.23% Zn.

  • Trench 1 mineralization occurs across the entire 79 m trench and is expected to extend to the east and west over more than 200 m width.

  • Regional rock samples returned up to 2.69 g/t Au, 71.3 g/t Ag, 0.26% Cu, 5.3% Zn.

  • The Ontenu Prospect is part of an interpreted multi-intrusive, large-scale gold-copper porphyry system spanning an area of at least 2.5 km by 1 km. Metal signatures (Au-Te-Bi) in assayed soils and rocks suggest a later metal-bearing event overprinting an earlier porphyry Cu-Au-Mo event, similar to that observed at other major deposits such as at the Kainantu and Porgera Mines.

"We are thrilled to see Ontenu results as high as 8.82 g/t gold within a broad alteration halo, confirming the significance of this prospect that remains open in all directions," commented Cathy Fitzgerald, President and Chief Geologist. "We are also highly encouraged by the continuity of gold mineralization found in Trench 1 assays, demonstrating excellent gold endowment potential that bodes well for future exploration efforts. These results, along with Ontenu's location at the southwestern end of the Kainantu Transfer Zone, make this a high-priority prospect for the Company. A comprehensive review of all historical and modern data for the Ontenu Prospect and broader area is underway, with the aim to fully characterize the scale and size of this mineralized system, identify additional targets and inform further exploration."

Ontenu Prospect Exploration Program

From July to September 2023, the Company (then operating as Kainantu Resources Ltd. under previous management), conducted surface sampling and detailed geological, alteration and structural mapping over the core area of the Ontenu Prospect. A total of 118 reconnaissance rock samples, 150 trench samples from five trenches and 116 soil samples were collected and secured in storage until being sent for assay this year (see news release dated July 3, 2024). These samples have now been assayed by Intertek Laboratory, Port Moresby, Papua New Guinea, with preliminary results discussed in this news release.

Initial Surface Trenching Results

The Company interprets that the Ontenu Prospect at surface is the upper part of a significant gold-copper porphyry system.

Trench 1 is a 79 m long, east-west oriented channel excavated to a depth of 1 to 1.5 metres (see Figure 1). This trench targeted an area associated with high tenor gold in soils (between 80-360 ppb Au) over a line-length of 260 m. The exposed rocks in the trench revealed weathered gossanous material and was mapped as a combination of microdiorite, diorite porphyry and diorite breccia. The trench was oriented E-W and is proximal to mapped silica ledges and feldspar-hornblende porphyries intruding the sampled microdiorite. Stockwork veins and gossanous material (iron oxides from weathering of sulphide material) were mapped in the trench. The area has not been previously drilled, and based on regional interpretation, may link along a WNW-ESE striking structural corridor to a gold-in-soil anomaly (80 to 210ppb Au) located 300m to the ESE. The area to the north (and northwest) of Trench 1 has not yet been soil sampled by the Company. Further, many rock samples peripheral to Ontenu's core area returned high grade results that warrant following: Regional rock samples returned up to 2.69 g/t Au, 71.3 g/t Ag, 0.26 %Cu, and 5.3 %Zn.

Soil sampling was designed to complement two soil lines previously collected by the Company in 2022 (see news release dated March 23, 2023). Soils were collected at a nominal 50 m spacing along E-W lines with 100 metres spacing between lines. Nearly the entire area sampled, over 1 km by 800 m has highly anomalous gold in soils. The peak soil assay result returned was 1,560 ppb Au (1.56 g/t Au). As evidenced by high tenor gold in soils on the last lines of the soil survey, the soil anomaly is likely to continue farther to the west, north and south of the current area sampled.

The Company anticipates reporting full results, including review and interpretation of all assays and historical data in September 2024.

Figure 1: Ontenu Porphyry Prospect Geology and Recent Soil and Rock Results

spm0827-fig1.jpg

Figure 2: Ontenu Porphyry Prospect Trench 1 Gold Assay Results

spm0827-fig2.jpg

About the Osena Project

Covering 626 km² of strategic ground, the Osena Project is located southwest of and adjacent to K92's tenements that host the Kainantu Gold Mine. Priority prospects include Ontenu, a porphyry copper-gold and epigenetic gold prospect with exposed porphyritic diorite intrusive phases hosting supergene copper minerals, and overprinted by a later gold mineralized event associated. The Ontenu Prospect is one of many occurring within a highly mineralized corridor that extends more than 40 km northeast across the Kainantu District.

Figure 3: Osena Project Location in the Kainantu Gold District

spm0827-fig3.png

Quality Assurance and Quality Control

All Ontenu samples were collected under previous management, with the samples securely stored in the Kainantu office of the Company for the past year, prior to being sent to the laboratory for assaying.

Trenching and Rock Sampling

Trench samples are collected from a hand-excavated trench to a depth of approximately 1 m. The trench wall and floor is mapped and a representative sample is collected each metre along the length of the trench. Rock samples are collected from in-situ outcrops during reconnaissance work.

Trench and rock samples were sent to the ITS (PNG) Ltd (Intertek) Laboratory in Port Moresby. Gold assays were conducted using 30 g charge Fire Assay with Atomic Absorption Spectra finish (Intertek Code FA25/OES), with a detection limit of 0.01ppm. Samples >1 ppm (1 g/t) Au were re-assayed as a check with no significant difference noted.

Multi-element assays were determined using 4-acid digestion with Induced Coupled Mass-Spectrometry (ICPMS) (Intertek code 4A/MS48). Certified reference material, duplicates and blanks were inserted into the sample stream to monitor laboratory performance, with no significant variations from expected results.

Soil Sampling

Soil sampling involves sieving a c-horizon soil to a <2 mm in the field with the sample secured on site before being staged. Soil samples were sent to the ITS (PNG) Ltd (Intertek) Laboratory in Port Moresby for assay. Assaying for gold and other elements is determined by aqua regia digestion with a mass-spectrometry finish (Intertek code AR01/MS). Certified Reference Material, duplicates and blanks are inserted in the sample stream to monitor laboratory performance.

Qualified Person

The scientific and technical information disclosed in this release has been compiled by Company geologists reviewed and approved by Darren Holden, Ph.D., FAusIMM, a "Qualified Person" as defined under the Canadian Institute of Mining National Instrument 43-101, 2014 Standards of Disclosure for Mineral Projects. Dr. Holden is a Technical Advisor to the Company.

About South Pacific Metals Corp.

South Pacific Metals Corp ("SPMC") is an emerging gold-copper exploration company operating in the heart of Papua New Guinea's proven gold and copper production corridors. With an expansive 3,000 km² land package and four transformative gold-copper projects contiguous with major producers K92 Mining, PanAust and neighbouring Barrick Gold, new leadership and experienced in-country teams are prioritizing thoughtful and rigorous technical programs focused on boots-on-the-ground exploration to prioritize discovery across its portfolio projects: Anga, Osena, Kili Teke and May River.

Immediately flanking K92's active drilling and gold producing operations to the northeast and southwest, SPMC's Anga and Osena Projects are located within the high-grade Kainantu Gold District - each having the potential to host similar-style lode-gold and porphyry copper-gold mineralization as that present within K92's tenements. Kili Teke is an advanced exploration project situated only 40 km from the world-class Porgera Gold Mine and hosts an existing Inferred Mineral Resource with multiple opportunities for expansion and further discovery. The May River Project is located adjacent to the world-renowned Frieda River copper-gold project, with historical drilling indicating potential for a significant, untapped-gold mineralized system. SPMC common shares are listed on the TSX Venture Exchange (TSX.V: SPMC) and Frankfurt Stock Exchange (FSE: 6J00).

For further information please contact:

Michael Murphy, Executive Chairman and CEO
South Pacific Metals Corp.
Tel: +1 604-428-6128
Email: [email protected]

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer and Forward-Looking Information

Statements contained in this release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of SPMC. In making the forward-looking statements, SPMC has applied certain assumptions that are based on information available to the Company, including SPMC's strategic plan for the near and mid-term. There is no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements may involve various risks and uncertainty affecting the business of the Company. These forward-looking statements can generally be identified as such because of the context of the statements, including such words as "believes", "anticipates", "expects", "plans", "may", "estimates", or words of a similar nature. Forward-looking statements or information in this news release relate to, among other things: formulation of plans for drill testing; and the success related to any future exploration or development programs. These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic, regulatory or other unforeseen uncertainties and contingencies. These assumptions include, without limitation: success of the Company's projects, prices for metals remaining as estimated, currency exchange rates remaining as estimated, availability of funds for the Company's projects, capital, decommissioning and reclamation estimates, prices for energy inputs, labour, materials, supplies and services (including transportation), no labour-related disruptions, no unplanned delays or interruptions in scheduled construction and production, all necessary permits, licenses and regulatory approvals are received in a timely manner, and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive. The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Accordingly, readers should not place undue reliance on forward-looking information. Such factors include, without limitation: fluctuations in gold prices, fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation), fluctuations in currency markets (such as the Canadian dollar versus the U.S. dollar), operational risks and hazards inherent with the business of mineral exploration, inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, the Company's ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner, changes in laws, regulations and government practices, including environmental, export and import laws and regulations, legal restrictions relating to mineral exploration, increased competition in the mining industry for equipment and qualified personnel, the availability of additional capital, title matters and the additional risks identified in the Company's filings with Canadian securities regulators on SEDAR+ (available at www.sedarplus.ca). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described, or intended. Investors are cautioned against undue reliance on forward-looking statements or information. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company's property.

Appendix 1

Table 1: Results from Trench 1 (coordinates WGS84 UTM Zone 55)

TrenchIDGridEastingNorthingFromToLengthRock TypeGold (g/t)Silver (g/t)Copper (ppm)Zinc (ppm)Mo (ppm)
Trench 1SUTM55

364554.8

9294562.6

0

1

1

Gossan

1.57

5.2

868

490

133

Trench 1SUTM55

364555.6

9294562.2

1

2

1

Gossan

1.1

0.9

687

493

40

Trench 1SUTM55

364556.5

9294561.8

2

3

1

Gossan

0.39

1.4

682

454

48

Trench 1SUTM55

364557.3

9294561.4

3

4

1

Porphyry

0.34

2.1

1045

539

33

Trench 1SUTM55

364558.2

9294561.1

4

5

1

Porphyry

0.79

1.9

1563

587

99

Trench 1SUTM55

364559.0

9294560.9

5

6

1

Porphyry

0.25

0.25

610

359

25

Trench 1SUTM55

364559.9

9294560.6

6

7

1

Porphyry

0.31

1.3

667

428

48

Trench 1SUTM55

364560.8

9294560.4

7

8

1

Porphyry

0.51

0.25

725

525

33

Trench 1SUTM55

364561.7

9294560.1

8

9

1

Porphyry

0.11

4.2

556

428

40

Trench 1SUTM55

364562.6

9294559.8

9

10

1

Porphyry

0.2

2.6

761

696

55

Trench 1SUTM55

364563.5

9294559.5

10

11

1

Porphyry

0.15

1.1

595

755

27

Trench 1SUTM55

364564.4

9294559.1

11

12

1

Porphyry

0.12

0.8

609

958

35

Trench 1SUTM55

364565.3

9294558.8

12

13

1

Porphyry

0.1

0.25

456

744

24

Trench 1SUTM55

364566.3

9294558.7

13

14

1

Microdiorite

0.09

0.25

271

501

29

Trench 1SUTM55

364567.2

9294558.6

14

15

1

Microdiorite

0.1

0.25

184

595

107

Trench 1SUTM55

364568.1

9294558.4

15

16

1

Microdiorite

0.13

0.25

340

1268

38

Trench 1SUTM55

364569.1

9294558.3

16

17

1

Microdiorite

0.94

0.25

310

1352

24

Trench 1SUTM55

364570.0

9294558.2

17

18

1

Microdiorite

1.92

0.25

426

2825

16

Trench 1SUTM55

364570.9

9294558.0

18

19

1

Microdiorite

0.17

1

1484

2760

32

Trench 1SUTM55

364571.9

9294557.9

19

20

1

Microdiorite

2.44

0.25

2048

2722

76

Trench 1SUTM55

364572.8

9294557.8

20

21

1

Microdiorite

0.28

0.25

2271

2106

118

Trench 1SUTM55

364573.8

9294557.5

21

22

1

Microdiorite

1.91

0.25

2142

2086

218

Trench 1SUTM55

364574.7

9294557.2

22

23

1

Microdiorite

0.24

0.6

2040

2787

91

Trench 1SUTM55

364575.7

9294557.0

23

24

1

Microdiorite

0.5

0.6

1549

2865

77

Trench 1SUTM55

364576.6

9294556.7

24

25

1

Microdiorite

0.17

1.2

1769

2532

88

Trench 1SUTM55

364577.6

9294556.4

25

26

1

Microdiorite

1.5

1

2485

849

172

Trench 1SUTM55

364578.5

9294556.1

26

27

1

Microdiorite

3.36

0.5

1668

951

136

Trench 1SUTM55

364579.5

9294555.9

27

28

1

Microdiorite

2.31

0.9

1390

1491

250

Trench 1SUTM55

364580.4

9294555.6

28

29

1

Volcanic Dike

0.54

0.25

910

1009

155

Trench 1SUTM55

364581.4

9294555.6

29

30

1

Volcanic Dike

0.94

0.8

1365

550

580

Trench 1SUTM55

364582.4

9294555.6

30

31

1

Volcanic Dike

1.32

0.25

954

1255

195

Trench 1SUTM55

364583.3

9294555.5

31

32

1

Volcanic Dike

1.41

0.25

1251

886

106

Trench 1SUTM55

364584.3

9294555.5

32

33

1

Hornblende Diorite

0.41

0.25

1246

2872

44

Trench 1SUTM55

364585.3

9294555.5

33

34

1

Hornblende Diorite

0.13

1

794

3193

59

Trench 1SUTM55

364586.2

9294555.5

34

35

1

Hornblende Diorite

0.15

0.7

742

5380

32

Trench 1SUTM55

364587.2

9294555.5

35

36

1

Hornblende Diorite

0.22

0.7

947

4653

48

TrenchIDGrid

Easting

Northing

From

To

Length

Rock Type

Gold (g/t)

Silver (g/t)

Copper (ppm)

Zinc (ppm)

Mo (ppm)

Trench 1SUTM55

364588.2

9294555.5

36

37

1

Hornblende Diorite

0.21

0.25

780

7674

24

Trench 1SUTM55

364589.1

9294555.4

37

38

1

Hornblende Diorite

0.19

0.25

920

8055

17

Trench 1SUTM55

364590.1

9294555.5

38

39

1

Hornblende Diorite

0.2

1.7

719

5578

30

Trench 1SUTM55

364591.1

9294555.6

39

40

1

Hornblende Diorite

0.08

0.25

595

5782

10

Trench 1SUTM55

364592.1

9294555.7

40

41

1

Hornblende Diorite

0.1

0.8

332

5226

8

Trench 1SUTM55

364593.1

9294555.7

41

42

1

Breccia

0.26

0.25

386

9289

24

Trench 1SUTM55

364594.1

9294555.9

42

43

1

Breccia

0.08

0.25

289

0.01

20

Trench 1SUTM55

364595.1

9294556.0

43

44

1

Breccia

0.13

1.6

312

8476

48

Trench 1SUTM55

364596.1

9294556.2

44

45

1

Porphyry

8.82

1.6

1661

4242

71

Trench 1SUTM55

364597.1

9294556.4

45

46

1

Porphyry

3.91

2.5

1043

1662

26

Trench 1SUTM55

364598.1

9294556.5

46

47

1

Porphyry

0.78

0.25

409

1314

4

Trench 1SUTM55

364599.1

9294556.7

47

48

1

Porphyry

4.74

5.2

1978

2039

30

Trench 1SUTM55

364600.0

9294557.1

48

49

1

Porphyry

0.17

1.6

962

2204

36

Trench 1SUTM55

364600.9

9294557.5

49

50

1

Porphyry

0.14

1.7

1148

2286

37

Trench 1SUTM55

364601.8

9294557.9

50

51

1

Porphyry

0.16

0.25

842

1918

49

Trench 1SUTM55

364602.7

9294558.2

51

52

1

Porphyry

0.13

0.25

688

1720

32

Trench 1SUTM55

364603.6

9294558.3

52

53

1

Porphyry

0.12

0.25

774

1512

57

Trench 1SUTM55

364604.6

9294558.4

53

54

1

Porphyry

0.25

3.3

1200

1794

32

Trench 1SUTM55

364605.5

9294558.4

54

55

1

Porphyry

0.17

1

1065

1766

30

Trench 1SUTM55

364606.5

9294558.5

55

56

1

Porphyry

0.13

1.1

1148

1716

37

Trench 1SUTM55

364607.4

9294558.6

56

57

1

Porphyry

0.19

3.5

1642

1327

24

Trench 1SUTM55

364608.4

9294558.6

57

58

1

Porphyry

0.24

1

1236

1075

59

Trench 1SUTM55

364609.3

9294558.7

58

59

1

Porphyry

0.12

1.1

941

1276

11

Trench 1SUTM55

364610.3

9294558.8

59

60

1

Porphyry

0.11

0.9

1064

1315

6

Trench 1SUTM55

364611.2

9294558.8

60

61

1

Porphyry

0.12

0.7

573

842

26

Trench 1SUTM55

364612.1

9294558.7

61

62

1

Porphyry

0.35

2.8

1085

747

33

Trench 1SUTM55

364613.1

9294558.7

62

63

1

Porphyry

0.12

2

752

955

22

Trench 1SUTM55

364614.0

9294558.6

63

64

1

Porphyry

0.19

0.6

743

889

26

Trench 1SUTM55

364614.9

9294558.5

64

65

1

Porphyry

0.27

0.25

947

767

27

Trench 1SUTM55

364615.9

9294558.4

65

66

1

Porphyry

0.64

0.25

766

267

36

Trench 1SUTM55

364616.8

9294558.3

66

67

1

Porphyry

0.22

10

1306

842

48

Trench 1SUTM55

364617.7

9294558.2

67

68

1

Porphyry

2.15

9.1

1561

597

62

Trench 1SUTM55

364618.6

9294558.1

68

69

1

Porphyry

0.12

3

636

782

36

Trench 1SUTM55

364619.6

9294558.0

69

70

1

Porphyry

0.22

0.8

724

663

53

Trench 1SUTM55

364620.6

9294558.0

70

71

1

Porphyry

0.08

1.4

730

648

72

Trench 1SUTM55

364621.5

9294558.0

71

72

1

Porphyry

0.23

1.2

667

864

36

Trench 1SUTM55

364622.5

9294558.1

72

73

1

Porphyry

0.33

1

712

712

82

Trench 1SUTM55

364623.5

9294558.1

73

74

1

Porphyry

0.68

12.7

1480

795

43

TrenchIDGrid

Easting

Northing

From

To

Length

Rock Type

Gold (g/t)

Silver (g/t)

Copper (ppm)

Zinc (ppm)

Mo (ppm)

Trench 1SUTM55

364624.5

9294558.1

74

75

1

Porphyry

2.1

4.9

1421

1124

58

Trench 1SUTM55

364625.5

9294558.2

75

76

1

Porphyry

0.56

2.3

651

828

56

Trench 1SUTM55

364626.4

9294558.2

76

77

1

Porphyry

2.06

13.8

826

707

214

Trench 1SUTM55

364627.4

9294558.2

77

78

1

Porphyry

0.26

0.8

727

540

54

Trench 1SUTM55

364628.4

9294558.3

78

79

1

Porphyry

0.19

4.4

648

532

39

Table 2: New Rock chip results of Au >0.1g/t Au, and/or Cu >1000ppm (coordinates WGS84 UTM z55)

Sample IDEastingNorthingGold (g/t)Silver (g/t)Copper (ppm)Zinc (ppm)
E00462

365435

9294946

2.69

9.1

341

385

E00456

364455

9294638

2

5.2

2225

25957

E00083

365671

9294347

1.47

15.7

271

73

E00076

365006

9294493

1.34

4.8

1100

157

E00077

365898

9294618

1.26

8.7

61

726

E00081

365402

9294478

0.75

71.3

860

475

E00151

364523

9293952

0.7

1.6

1505

226

E00107

365397

9294479

0.66

18

419

353

E00078

365871

9294613

0.65

15.6

227

4825

E00320

364573

9294658

0.58

1.9

548

412

E00461

365407

9294976

0.38

10.7

59

182

E00119

365566

9294088

0.35

20.5

153

2112

E00121

364973

9293738

0.34

2.4

86

437

E00139

365011

9294032

0.34

29.9

982

52922

E00159

364633

9293827

0.31

13.1

200

39649

E00068

365162

9294820

0.3

13.8

319

0.01

E00116

365818

9294292

0.29

6.7

165

240

E00098

365828

9294490

0.27

5.2

106

185

E00103

365508

9294695

0.26

2.5

75

291

E00120

365560

9294086

0.25

20.6

125

3215

E00133

364992

9293902

0.24

1.7

408

489

E00138

365011

9294032

0.24

11.8

430

2961

E00075

364950

9294570

0.22

1

725

449

E00122

364971

9293743

0.2

1.8

2476

221

E00459

364993

9294607

0.2

1.3

1644

351

E00180

364587

9294473

0.17

1.8

520

2379

E00141

364127

9294308

0.15

0.25

17

43

E00123

364956

9293799

0.14

1.4

47

108

E00142

364127

9294308

0.14

0.25

366

90

E00137

365022

9294017

0.13

3.7

292

991

E00152

364556

9293881

0.13

5.8

784

93

E00458

364993

9294616

0.13

0.25

130

184

E00074

364999

9294609

0.11

2.6

296

850

E00080

365199

9294495

0.1

0.25

77

15

E00110

365819

9294413

0.09

1.5

1015

284

E00086

364447

9294542

0.04

0.7

2641

221

SOURCE: South Pacific Metals Corp.

View the original press release on accesswire.com

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