South Pacific Metals drills 5 metres at 12.84 g/t AuEq in three mineralized zones within one drill hole at Ontenu Project, Papua New Guinea

South Pacific Metals Corp. [TSXV: SPMC; OTCQB: SPMEF; FSE: 6J00] reported outstanding assay results from drill hole ONED26-009 at its 100%-owned Ontenu Project, located adjacent to K92 Mining’s Kainantu gold-copper mine in Papua New Guinea. The results represent a significant step forward to confirming the company’s hypothesis that Ontenu hosts high-grade epithermal gold-copper veins.

Highlights: Drill hole ONED26-009 successfully targeted the Megabe structure, a NW-trending mineralised corridor located between the Jorkol and Onki zones in the Ontenu NE prospect and intersected multiple gold-bearing veins across a wide zone of mineralization.

Three intersections stand out for their grade and thickness. Zone 1 returned 8.0 metres at 8.95 g/t gold, 952 ppm copper, (0.10% copper), 16.00 g/t silver for 9.28 g/t AuEq, including 5.0 metres at 12.46 g/t gold, 1221 ppm copper (0.12% copper), 17.00 g/t silver for 12.84 g/t AuEq. Zone 2 returned 2.0 metres at 3.26 g/t gold, 2053 ppm copper (0.21% copper), 45.00 g/t silver for 4.13 g/t AuEq.

Zone 3 returned 12.2 metres at 4.93 g/t gold, 4592 ppm copper (0.50% copper), 55.00 g/t silver for 6.24 g/t AuEq, including 4.7 metres at 6.13 g/t gold, 6631 ppm copper ( 0.66% copper), 44.00 g/t silver for 7.44 g/t AuEq.

Octavio Garcia, Exploration Manager, commented, “The results from hole ONED26-009 are highly encouraging because they demonstrate that the Megabe structure is not an isolated occurrence, but part of a broader mineralised system with clear continuity and scale potential. What is particularly exciting is that we are still in the early stages of testing Ontenu, and each drill hole is helping us refine our geological model and vector towards higher-grade zones. Our team’s methodical approach is beginning to reveal a much larger field of veins than initially recognised, with significant exploration upside remaining across the project.”

The high-grade intersections in Zones 1 and 2 are interpreted as the along-strike continuation of previously announced, “hanging wall” mineralization intersected in hole ONED26-007), providing early evidence of grade and structural continuity along the Megabe vein system.

Hole ONED26-009 intersected this “hanging wall” mineralisation about 75 metres along strike to the southeast from the ONED26-007 intersection.

Zone 3 forms the Megabe structure and confirms significant width and high-grade mineralization. These results support a vectoring model pointing towards higher-grade zones to the southeast and at depth.

CEO Timo Jauristo commented, “These results from hole ONED26-009 are a major validation of our exploration model at Ontenu. Our goal is to demonstrate that Ontenu has the potential to host high grade Au-Cu veins similar to those being mined by K92 at their nearby world-class mining operation. Hitting over 28 g/t gold over 2 metres within a broader mineralized envelope, one of three significant intercepts in drill hole ONED26-009, demonstrates continuity with hole ONED26-007, and tells us that we may be on the edge of something significant at Megabe.

“Importantly, this is just one of at least eight known mineralized structures across a five-km trend at Ontenu that have been discovered so far. Only a small part of these have been tested by drilling to date. This story has evolved rapidly over a short time, and we are learning a lot from every drill hole. The entire team is excited about following up these results as well as starting to test the other structures in the Ontenu project area.”

The company considers these results significant for several reasons: They confirm the company’s geological hypothesis that the Ontenu project hosts high-grade epithermal Au-Cu veins comparable in style to those being mined at the neighbouring world-class Kainantu operation.

They provide the good evidence for along-strike continuity of one of the high-grade veins between holes ONED26-007 and ONED26-009.

Two of the three zones (Zones 1 and 2) contain a higher-grade gold core.

The distribution of grade within hole ONED26-009 and comparison with results from other holes will help the company vector towards higher-grade mineralisation. Results to date suggest the priority direction for follow-up drilling is to the southeast and at greater depth.

The Megabe structure is only one of multiple NW-trending mineralised structures identified at Ontenu NE, with similar structures also recently identified at Ontenu Central.

The company has now identified mineralized structures over a five-km trend at Ontenu, of which only small portions of three structures, Jorkol, Onki and Megabe, have been drill-tested to date. At least five further known structures remain entirely undrilled.

Finally, the mapping and drilling are starting to show that there are more mineralized structures in this area than previously thought.

Next Steps: Drill holes ONED26-010 (a separate structure 150 metres SW of Megabe) and ONED26-011 (75-metre step-out to SE from ONED26-009) have been completed and are being logged and sampled in preparation for assays.

Holes ONED26-012 (150 metre step-out SE from ONED26-011) and ONED26-013 (100 metre step-out NW from ONED26-009) are being drilled.

Drilling at Ontenu will continue, with one more hole planned to test the Megabe structure further along strike to the NW. Subsequently the company will commence testing of additional undrilled structures identified across the broader project area, including Ontenu Central.

South Pacific Metals is an emerging gold-copper exploration company operating in the heart of Papua New Guinea’s proven gold and copper production corridors. SPMC has four exploration properties: Ontenu (Osena) – Bordering K92 to the southwest. Drilling underway on K92-style targets with surface assays up to 21% Cu, 13.9 g/t Au, 645 g/t Ag and 73 g/t Au defining kilometre-scale corridors.

Anga – Bordering K92 to the northeast, along strike from K92’s Arakompa discovery; soils to 1,080 ppb Au, 3,397 ppm Cu and stream samples up to 281.8 g/t Au.

Kili Teke – 4.2 Moz AuEq NI 43-101 Inferred Resource (effective 18 November 2022) containing 1.81 Moz Au, 802 kt Cu, & 40 kt Mo; results outside of resource include drilling 7.8 m at 12.98% Cu plus 11.75 g/t Au, surface samples up to 27.5% Cu.

May River – District-scale system beside Frieda River; high-grade drilling includes 19 metres at 11.47% Cu, 2.17 g/t Au and 109 metres at 1.53 g/t Au.