Drill Results
South Pacific Metals Intersects 12 m at 3.1 g/t Gold, Including 1 m at 18.1 g/t Gold, at New Megabe Target, Ontenu NE; Provides Corporate Update Across Its Multi-Asset PNG Gold-Copper Portfolio
South Pacific drills high-grade gold at Ontenu NE as the exploration phase continues without near-term production catalysts.
Executive Summary
- South Pacific Metals Corp. (SPMC) reported drill results from its first hole at the new Megabe target at the Ontenu NE project in Papua New Guinea.
- Hole ONED26-007 intersected 12 m @ 3.1 g/t Au and 15.4 g/t Ag from 185 m downhole, including 1 m @ 18.1 g/t Au and 84 g/t Ag.
- Mineralization is hosted in NW-SE-striking fault breccia within metasediments, analogous to K92 Mining's Kora-Judd system. True width is preliminarily estimated at ~30% of downhole length.
- Two diamond rigs are actively drilling at Ontenu NE. Holes ONED26-008 (Jorkol) and ONED26-009B (Megabe) are completed and pending assay. Holes ONED26-010 and ONED26-011 are in progress.
- Portfolio update provided for Ontenu Central (porphyry target), Anga (surface exploration), Kili Teke (4.2 Moz AuEq Inferred Resource), and May River (community consent and site access secured).
- Supplemental disclosure of a US$300,000 corporate marketing agreement with i2i Marketing Group, amended to comply with TSX Venture Exchange policies.
Material Impact
- The drill results are consistent with the company's previously announced high-grade rock chip assays and maiden drilling program at Ontenu NE.
- The intercepts confirm the presence of high-grade gold and silver in fault breccia settings, supporting the geological model of K92-style epithermal mineralization.
- The news is expected and incremental to prior announcements. It does not alter the company's exploration timeline or provide a path to near-term production.
- The stock price has declined significantly from a 52-week high of $0.87 to $0.35. The market has already priced in the exploration phase, and this update does not provide a catalyst for a reversal.
- The $300,000 marketing agreement represents an additional cash burn item with no immediate financial return, further diluting shareholder value in the absence of resource definition.
SPMC · Price
Company Overview
- South Pacific Metals Corp. is an exploration and development company focused on building a high-grade copper-gold portfolio in Papua New Guinea.
- The company's strategy centers on a district-scale land package surrounding the K92 Mining operation, leveraging the known mineralization trends of the Kainantu Transfer Zone.
- Flagship projects include:
- Ontenu NE: Epithermal Au-Cu veins, currently in active drilling.
- Kili Teke: Holds an NI 43-101 Inferred Mineral Resource of 4.2 Moz AuEq (1.81 Moz Au, 802 kt Cu, 40 kt Mo).
- Ontenu Central: Porphyry Cu-Au target with extensive soil anomalies.
- Anga and May River: Exploration projects with historical high-grade copper and gold intercepts.
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Jul 06, 2026 · 07:31