South Pacific Metals Identifies Additional Large Copper-Gold Target at Osena Project, Papua New Guinea Data Review Now Shows Cluster of Five Large-Scale Copper- Gold Targets Across 5 Km x 3 Km Expanded Ontenu Prospect
South Pacific Metals Identifies Additional
Large Copper-Gold Target at Osena Project,
Papua New Guinea
Data Review Now Shows Cluster of Five Large-Scale Copper-
Gold Targets Across 5 Km x 3 Km Expanded Ontenu Prospect
Vancouver, British Columbia--(Newsfile Corp. - October 16, 2024) -
South Pacific Metals Corp.
(TSXV: SPMC) (OTCQB: SPMEF) (FSE: 6J00) ("
SPMC
" or the "
Company
"), an emerging gold-
copper exploration company operating across Papua New Guinea, is pleased to announce another
significant Copper-Gold intrusive target has now been identified at the Ontenu Cu-Au Prospect. The new
target, Ontenu Northeast is now the fifth large-scale target discovered within an expanded 5 km by 3 km
mineralized area, located along strike in the Kainantu Transfer Zone adjacent to K92 Mining's tenement
(
see Figures 1 & 2
).
Highlights:
Newly identified Ontenu Northeast target
- geophysical and geochemical target indicating a
mineralized intrusive is present. Historical data review also reveals this area was first sampled in
1985 by Renison Goldfields Consolidated ("RGC") who
determined to likely
host lode-gold
style mineralization
(consistent with what K92 is now mining)
;
Target footprint expansion
- with at least five highly-prospective geophysical targets with
coincident surface Cu-Au anomalies, Ontenu now represents a large-scale, multi-intrusive Copper-
Gold porphyry, vein and skarn complex extending over 5 km x 3 km;
Confirmed gold-bearing breccias
- recent results from Ontenu Central include 79 m averaging
0.75 g/t Au, including
4 m at 4.52 g/t Au
and individual samples up to
8.82 g/t Au;
Significant historical rock samples targeted for on-the-ground follow-up
including surface
samples that returned
73 g/t Au, 960 g/t Ag, 3.17% Cu & 10.6% Zn
(in different locations); and
Exploration program being prepared for execution in Q4, 2024, along with 3D geological
and structural modeling to assist with drill planning efforts.
"Following a comprehensive review of historic and recent exploration data, Ontenu has quickly
emerged as a very exciting prospect in the Kainantu District,"
said Cathy Fitzgerald, President and
Chief Geologist.
"Our integration and validation of historic data from previous explorers, along with
contemporary analysis of geophysics, geological and alteration mapping and surface sampling,
demonstrates what may be an extensive gold-copper mineralized intrusive-hydrothermal system. We
are excited to get boots-on-the-ground here at Ontenu, and are looking forward to near-term results of
a 3D geological and geophysical modeling exercise and drill planning."
The Ontenu Cu-Au Prospect (
see Figure 1
) is located within a major NE-SW striking district-scale, Cu-
Au mineralized structural corridor known as the Kainantu Transfer Zone (KTZ). The KTZ is an inferred
deep transform fault, one of several across Papua New Guinea, which are interpreted to form key
conduits focusing fluid flow and mineralisation. The nearby Kainantu Gold Mine (K92 Mining) lies within
this zone and is an intermediate sulfidation epithermal and mesothermal gold-copper system that is
believed to be sourced from a significant intrusion related, porphyry-style system at depth or nearby (
see
Figure 2
).
Figure 1: Ontenu Cu-Au Prospect Area
- a 5 km by 3 km region hosting multiple large-scale, multi-
intrusive Copper-Gold targets. Image shows at least five coincident apparent conductivity / magnetic
geophysical anomalies in an ideal structural setting.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10890/226706_figure1.jpg
Ontenu Cu-Au Prospect: Multiple Targets and Deposit Styles
A recent comprehensive review of all historic and recent exploration data at Ontenu, which represents
only a small proportion of SPMC's total Osena Project landholding, has defined a large-scale, cluster of
at least five intrusive Cu-Au targets in an overall intrusion complex greater than 5 km x 3 km.
These are
located within an area of intersection of arc-parallel faults and unconformities, with northeast trending
cross-faults that parallel the KTZ. This is the structural setting of many producing deposits in PNG,
including the Kainantu Gold Mine.
Ontenu Northeast: Visible gold identified in stream sampling
from 1985, draining this
topographic high that is also a coincident apparent conductivity-magnetic geophysical anomaly.
Historic work by RGC identified phyllic and propylitic alteration proximal to this feature and
completed limited soil sampling returning anomalous Au and Cu. They interpreted the area to be
prospective for
lode-gold type mineralization
(they were pursuing bulk-style gold only). This is a
top-priority prospect;
Ontenu Central:
Classically zoned porphyry system with widespread propylitic to advanced
argillic (with narrow structural zones of potassic alteration associated with hydrothermal breccias
and bornite (copper sulphides)). This is suggestive that Ontenu is at the top of a preserved major
porphyry system with a large
Cu-Au porphyry target at depth
(approximately 250 m below
surface):
Associated with historic surface assays up to
73 g/t Au, 960 g/t Ag, 3.17% Cu & 10.6% Zn
and
79m averaging 0.75 g/t Au
including
16 m averaging 1.25 g/t Au
in surface trenching;
Strong coincident apparent conductivity and magnetic geophysical anomaly
with a
700 m x 600 m footprint indicating a major accumulation of sulphide at >250m depth
(porphyry Cu-Au target);
Encouraging historic drilling returned intercepts such as 100m @ 0.32 g/t Au and 0.1% Cu
from 14m downhole;
Ontenu North:
Strong coincident apparent conductivity-magnetic anomaly with 900 m x 900 m
footprint with Au in soils anomaly from historic data up to
130 ppb Au;
Ontenu Northwest:
Strong coincident apparent conductivity-magnetic anomaly with 800 m x 600
m footprint with Au in soil anomaly from historic data up to
130 ppb Au
; and
Ontenu West:
Strong apparent conductivity anomaly with 700x600m footprint, largely unsampled.
Exploration Potential and Planning
In addition to hosting
confirmed gold-bearing breccias
and
outcropping bornite, covellite and
chalcopyrite
in stockwork veined diorite, there is strong potential to host
multiple other styles of
mineralization
across the Ontenu Prospect area including:
Epithermal vein Au-Cu-Zn intermediate sulfidation systems
analogous to veins currently
being mined at the adjacent Kainantu Gold Mine (K92 Mining Ltd);
Au-Bi-Te alkalic epithermal systems
analogous to the world-class Porgera Gold Mine (Porgera
JV/Barrick Gold Corporation) located in the Western Highlands of PNG; and
Ag-Pb-Zn rich low-sulfidation skarn
associated with limestones and metasediments.
The Company is currently designing its next field program to further investigate many of these recently
identified anomalies it believes hold the greatest economic potential in the Ontenu area. Ontenu NE will
be a priority. 3D geological and structural modeling to assist with drill planning efforts are also now
underway. The Company maintains ongoing engagement with local communities ahead on further on-
ground work in this area.
Figure 2: Ontenu Cu-Au Prospect
- the highly mineralized, broader Kainantu Mineral District.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10890/226706_de774df154a15aea_004full.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 copper-gold porphyry
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.
Quality Assurance and Quality Control
The Ontenu Project area was acquired by Kainantu Resources Ltd., (now South Pacific Metals Corp) in
2020. Since that time the Company has completed two surface sampling programs (soil, rock, trenching)
at the Ontenu Prospect area and completed a Mobile magnetotellurics (Mobile MT) geophysical survey.
Trenching and soil results from a 2023 work program was reported in the release 27 August 2024 as
was associated QA/QC information. Results from the 2022 sampling program were disclosed 3 March
2023. Details on the Mobile MT geophysical survey were released by the Company on 9 June 2022.
The historic data presented in this release is compiled from statutory reports filed with the Mineral
Resources Authority of PNG by both RGC Ltd and Barrick Gold. In these reports the laboratory, QA/QC
and sample collection details are provided with minimal detail. These data are considered historic and
cannot necessarily be verified and will not be used in future resource estimation work. However, the
Company's own work including trenching, and soil sampling (partly overlapping Barrick soil samples)
along with mapping of alteration styles and mineralisation provides strong supporting evidence that the
historic information provided in this report is reasonable. Further, some historic samples have been re-
sampled with results verified by the Company (see news release 3 March 2023).
Corporate Update
Further to the Company's press release dated September 5, 2024, regarding an investor relations
consulting agreement (the "Consulting Agreement") with Zinger Ventures Inc. (the "Consultant"), the
Company has amended the vesting of the Consultant's 150,000 stock options (the "Options") at an
exercise price of $0.60 per share. The Options will vest in stages over a 12-month period with 50,000
Options vesting on the grant date (September 4, 2024), 25,000 Options vesting on March 4, 2025,
37,500 Options vesting on June 4, 2025, and 37,500 Options vesting on September 4, 2025.Also, the
Consultant will not exercise more then 37,500 Options prior to December 4, 2024.
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 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/Zijin, 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
(TSXV: SPMC), the OTCQB Marketplace (OTCQB: SPMEF) and Frankfurt Stock Exchange (FSE:
6J00).
For further information please contact:
Michael Murphy, Executive Chair
or
Investor Relations
South Pacific Metals Corp.
Tel: +1-604-653-9464
Email:
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: Ontenu rock sampling results (historic and SPMC combined) (WGS84 Zone 55) >0.5g/t
ordered by grade (Au).
Sample ID
Company
Sampling
Type
Easting
Northing
Au (g/t)
Ag (g/t)
Cu (ppm)
Mo (ppm)
Pb (ppm)
Zn (ppm)
SG25304
BARRICK
Rock
364606
9295319
73
30.1
197
5
19
59
19479
RGC
Rock
365786
9294477
15
960
388
99
1880
5100
E00227
SPMC
Channel
364596
9294556
8.82
1.6
1661
71
163
4242
E00230
SPMC
Channel
364599
9294557
4.74
5.2
1978
30
279
2039
19586
RGC
Rock
364871
9294304
4.38
36
416
16
61
270
E00228
SPMC
Channel
364597
9294556
3.91
2.5
1043
26
648
1662
E00209
SPMC
Channel
364579
9294556
3.36
0.5
1668
136
50
951
19595
RGC
Rock
364677
9294419
3.18
4
580
12
37
239
SG26804
BARRICK
Rock
365783
9295378
3.16
65.8
608
0.5
4420
7820
E00462
SPMC
Rock
365435
9294946
2.69
9.1
341
1
106
385
E00202
SPMC
Channel
364572
9294558
2.44
0.25
2048
76
167
2722
19488
RGC
Rock
364636
9293446
2.4
50
2680
18
15400
67900
E00210
SPMC
Channel
364579
9294556
2.31
0.9
1390
250
37
1491
E00251
SPMC
Channel
364618
9294558
2.15
9.1
1561
62
3315
597
19560
RGC
Rock
364244
9294371
2.15
3
1550
15
57
12700
E00258
SPMC
Channel
364624
9294558
2.1
4.9
1421
58
514
1124
E00260
SPMC
Channel
364626
9294558
2.06
13.8
826
214
645
707
E00456
SPMC
Rock
364455
9294638
2
5.2
2225
5
268
25957
SG24978
BARRICK
Rock
365607
9294084
1.94
23.5
603
1
9410
25400
E00199
SPMC
Channel
364570
9294558
1.92
0.25
426
16
46
2825
E00204
SPMC
Channel
364574
9294558
1.91
0.25
2142
218
130
2086
19220
RGC
Rock
364361
9293933
1.91
7
2040
17
38
4110
19591
RGC
Rock
364676
9294419
1.9
4
630
1
32
374
19481
RGC
Rock
365667
9294500
1.88
167
93
42
770
1230
19216
RGC
Rock
364844
9294750
1.81
9
860
39
23
2000
E00182
SPMC
Channel
364555
9294563
1.57
5.2
868
133
151
490
E00010
SPMC
Rock
365898
9294618
1.55
12.2
84
0.5
84
528
E00208
SPMC
Channel
364578
9294556
1.5
1
2485
172
106
849
E00083
SPMC
Rock Float
365671
9294347
1.47
15.7
271
1
285
73
E00214
SPMC
Channel
364583
9294556
1.41
0.25
1251
106
60
886
19214
RGC
Rock
364678
9294419
1.41
2
374
14
14
640
19762
RGC
Rock
364581
9294209
1.35
1
502
40
62
436
E00076
SPMC
Rock
365006
9294493
1.34
4.8
1100
1
56
157
E00213
SPMC
Channel
364582
9294556
1.32
0.25
954
195
93
1255
E00077
SPMC
Rock
365898
9294618
1.26
8.7
61
1
190
726
SG26808
BARRICK
Rock
365738
9295387
1.24
127
168
2
2200
1140
19520
RGC
Rock
364246
9294371
1.18
2
1320
9
49
43600
19592
RGC
Rock
364677
9294419
1.16
3
1150
65
40
590
19736
RGC
Rock
364891
9294366
1.12
3
2020
1
47
2370
E00183
SPMC
Channel
364556
9294562
1.1
0.9
687
40
177
493
E00005
SPMC
Rock
365354
9294900
1.1
3.4
162
0.5
38
215
19570
RGC
Rock
364678
9294419
1.09
2
497
87
65
560
E00049
SPMC
Rock Float
364935
9294364
1.06
19.8
2715
4
43
472
SG25148
BARRICK
Rock Float
365799
9295267
1.05
53.6
380
5
12800
1690
19511
RGC
Rock
364898
9293661
1.04
27
315
40
35000
501
19518
RGC
Rock
364617
9294455
1.04
4
2380
54
2.5
404
19572
RGC
Rock
364678
9294417
0.96
1
520
26
73
680
E00198
SPMC
Channel
364569
9294558
0.94
0.25
310
24
17
1352
E00212
SPMC
Channel
364581
9294556
0.94
0.8
1365
580
54
550
SG26516
BARRICK
Rock
364927
9294473
0.93
0.9
2160
158
25
384
19559
RGC
Rock
364245
9294371
0.91
1
1670
14
55
15100
19648
RGC
Rock
364595
9294385
0.9
5
337
1
154
364
E00064
SPMC
Rock
364486
9294576
0.9
2.8
1903
11
49
105891
19514
RGC
Rock
364606
9294664
0.89
6
4340
39
38
1800
E00006
SPMC
Rock
365333
9294887
0.87
14.1
189
3
657
1104
SG25739
BARRICK
Rock
364790
9295582
0.85
2.7
7370
3
14
77
SG24944
BARRICK
Rock
364727
9294511
0.83
3.9
4230
6
50
1040
19561
RGC
Rock
364243
9294370
0.83
0.5
730
11
324
2650
19651
RGC
Rock
364583
9294208
0.82
3
467
1
35
365
E00186
SPMC
Channel
364558
9294561
0.79
1.9
1563
99
63
587
E00229
SPMC
Channel
364598
9294557
0.78
0.25
409
4
179
1314
19480
RGC
Rock
365732
9294505
0.78
8
408
89
9800
26500
19506
RGC
Rock
365052
9294622
0.76
0.5
1190
18
18
281
19763
RGC
Rock
364582
9294209
0.75
3
1050
36
34
469
E00081
SPMC
Rock
365402
9294478
0.75
71.3
860
1
713
475
19589
RGC
Rock
364872
9294308
0.74
2
56
1
44
740
SG21667
BARRICK
Rock
363858
9294899
0.73
0.25
261
26
15
27
19622
RGC
Rock
365154
9293763
0.72
3
550
8
1260
255
19764
RGC
Rock
364586
9294207
0.72
2
890
56
51
510
SG25336
BARRICK
Rock
364632
9295345
0.71
1.3
293
16
33
39
E00059
SPMC
Rock
365756
9293648
0.71
7.5
26
13
1300
1390
E00151
SPMC
Rock
364523
9293952
0.7
1.6
1505
12
105
226
E00257
SPMC
Channel
364623
9294558
0.68
12.7
1480
43
263
795
19585
RGC
Rock
364871
9294302
0.66
3
35
7
70
235
E00046
SPMC
Rock
364902
9294450
0.66
15.6
1424
112
702
109
E00107
SPMC
Rock
365397
9294479
0.66
18
419
1
820
353
19218
RGC
Rock
364703
9294748
0.65
22
640
13
56
305
E00078
SPMC
Rock
365871
9294613
0.65
15.6
227
5
3534
4825
E00248
SPMC
Channel
364616
9294558
0.64
0.25
766
36
826
267
19668
RGC
Rock
364593
9294218
0.64
0.5
590
13
25
289
19413
RGC
Rock
364605
9294251
0.63
0.5
1390
24
274
520
E00163
SPMC
Rock
365757
9293649
0.61
17.9
112
1
5255
9943
SG24939
BARRICK
Rock
364737
9294503
0.6
3.7
3380
3
76
511
SG25327
BARRICK
Rock
364647
9295343
0.6
1.2
340
10
136
74
19618
RGC
Rock
365170
9293735
0.6
4
435
1
31300
224
19667
RGC
Rock
364594
9294220
0.59
0.5
760
12
43
240
E00028
SPMC
Rock
364678
9294472
0.59
0.25
383
11
85
25
E00031
SPMC
Rock
364696
9294476
0.58
0.7
1978
460
14
204
E00165
SPMC
Rock
365524
9293656
0.58
13.3
8
1
418
659
E00320
SPMC
Rock
364573
9294658
0.58
1.9
548
5
144
412
19423
RGC
Rock
364612
9294226
0.57
2
580
52
38
151
E00259
SPMC
Channel
364625
9294558
0.56
2.3
651
56
473
828
SG26521
BARRICK
Rock Float
365618
9293561
0.56
46.2
448
2
6210
1930
SG25337
BARRICK
Rock
364632
9295341
0.56
3.2
256
22
11
37
E00211
SPMC
Channel
364580
9294556
0.54
0.25
910
155
36
1009
19507
RGC
Rock
364963
9294539
0.54
3
2010
170
94
155
19528
RGC
Rock
364658
9294430
0.53
3
810
23
85
2480
SG26805
BARRICK
Rock Float
365765
9295378
0.52
40.7
549
1
3360
944
19217
RGC
Rock
364708
9294789
0.52
18
210
21
1860
1870
19424
RGC
Rock
364613
9294225
0.52
2
610
50
100
120
19755
RGC
Rock
364598
9294227
0.52
0.5
158
1
44
154
E00022
SPMC
Rock
364556
9294378
0.52
0.25
35
2
74
69