South Pacific Metals Corp. (SPMC:TSX) reported results from the first drill program at its Ontenu NE project in Papua New Guinea, with seven holes totaling 2,266 meters completed within the wider Osena Project area on the Kainantu Transfer Zone. The company stated that assays have been received for six holes, while the seventh remains pending. Holes 8 and 9 are currently being drilled.
According to the company, gold mineralization was confirmed in five of seven holes across the Onki and Jorkol zones. The company reported two high-grade intercepts, including hole ONED26-006 at the Onki Zone, which returned 2 meters grading 5.74 g/t gold, 1.49% copper, and 35 g/t silver, with a peak re-assay of 9.92 g/t gold and 2.35% copper. At the Jorkol Zone, hole ONED25-001 returned a 0.5-meter peak interval grading 3.16 g/t gold, 0.62% copper, and 96 g/t silver with 602 ppm bismuth.
The company also reported broader lower-grade mineralized intervals, including 92 meters grading 0.34 g/t gold at Onki and 4.5 meters grading 0.77 g/t gold at Jorkol. South Pacific Metals stated that geological evidence at Onki included phreatic breccia overlying an intensely silicified horizon interpreted as a silica cap above a preserved hydrothermal system.
Additional drilling results included 99 meters grading 0.23 g/t gold from 1 meter in hole ONED26-002 at Onki, including 11 meters grading 0.22% copper, 0.18 g/t gold, and 1.1 g/t silver from 42 meters. Hole ONED26-004 at Jorkol returned 8 meters grading 0.74 g/t gold and 8.5 g/t silver from 51 meters, along with 3 meters grading 1.03 g/t gold and 68 g/t silver from 43 meters.
South Pacific Metals stated that the strongest bismuth signature in the program was identified within the 0.5-meter peak sample from ONED25-001, which returned 602 ppm bismuth. The company stated that elevated bismuth-tellurium values in the presence of gold are indicators of intrusion-related gold-vein mineralization.
The company also reported that Ontenu Central is advancing in parallel, where a 2-kilometer zoned alteration footprint with a porphyry signature has been mapped, with a relatively shallow porphyry target defined beneath surface gold-copper anomalies.
CEO Timo Jauristo stated in the news release, "This maiden drill program has achieved many milestones. We targeted and have been drilling Ontenu NE to confirm our concept that we have signatures of Kora-Judd style mineralization on our ground, and the answer is yes."
Jauristo also stated, "We have intersected mineralization in 5 of 7 holes; hit two high-grade Au-Cu intercepts within wider lower-grade halos; are developing a better understanding of the geology, structure, and mineralization in the area; and are compiling a geological model that will help guide future drilling towards more productive parts of the veins."
The company announced the appointment of Octavio Garcia as Exploration Manager. According to South Pacific Metals, Garcia has 30 years of mineral exploration experience worldwide, including in Papua New Guinea, and has previously held roles with Mt Isa Mines, Barrick, and Xstrata.
South Pacific Metals stated that all drill holes were logged on site by the company's geology team, with drill core shipped to Intertek Laboratory in Lae, Papua New Guinea, for analysis. The technical and scientific information in the release was reviewed and approved by Darren Holden, Ph.D., a Qualified Person under National Instrument 43-101.
Gold and Copper Markets Draw Support From Lower Oil Prices, Supply Pressures, and Recycling Demand
According to a May 24 Reuters report, gold prices rose more than 1% as lower oil prices and a weaker U.S. dollar supported bullion markets following optimism surrounding possible U.S.-Iran negotiations. Spot gold rose 1.2% to US$4,561.51 per ounce, while U.S. gold futures for June delivery gained 0.9% to US$4,563.60. Reuters reported that equities rallied while oil prices fell below US$100 a barrel and reached two-week lows.
UBS analyst Giovanni Staunovo told Reuters that "Financial assets are strongly influenced by oil prices at present, and gold prices are not an exception." Staunovo also stated that "Lower oil prices lift gold, in anticipation that it impacts the monetary policy of the Federal Reserve."
Reuters further reported that gold had fallen about 14% since the Iran conflict began in late February, with elevated energy prices contributing to inflation concerns and expectations for higher U.S. interest rates. The report stated that traders were pricing in a 40% chance of a 25-basis-point Federal Reserve rate increase in December.
CNBC, also citing Reuters on May 25, reported that spot gold rose 1.1% to US$4,559.07 per ounce, while U.S. gold futures gained 0.8% to US$4,559.80. The report stated that the weaker U.S. dollar made bullion more affordable for holders of other currencies, while declining oil prices softened inflation expectations.
Tim Waterer, chief market analyst at KCM Trade, told Reuters that "Trump has been raising market hopes for some sort of deal with Iran, which could lead to the reopening of the Strait of Hormuz." Waterer added that "That prospect has weighed on oil prices and, by extension, given gold a welcome lift from an inflation perspective."
Separately, MarketScreener published commentary on May 25 discussing activity in Nevada's gold and antimony sector, including drilling results from historical heap leach material. The report stated that gold prices were "trading in the mid-US$4,000s" while describing renewed interest in projects containing both gold and critical minerals. According to the report, historical material from a Nevada heap leach operation returned multiple drill intervals containing antimony and gold mineralization, including 0.32% antimony and 0.39 grams per tonne gold over 14.9 meters, and 0.27% antimony and 0.41 grams per tonne gold over 18.0 meters.
According to a May 25 feature published by Recycling Product News, rising demand tied to "data centers, electrification, grid upgrades, and the wiring behind almost every new build" had placed increased focus on copper supply chains and recycling capacity. The report stated that recyclers were facing "tighter specs, more documentation, faster turnaround expectations, and rising pressure to quantify recycling's environmental benefits."
The publication reported that copper processors were increasingly operating with manufacturing-style precision as downstream customers tightened chemistry and quality requirements. Shine stated that modern supply chains required faster verification and more detailed material analysis, noting that "The only way that we could do it was bring [in] the lab equipment and be able to, in 10 minutes, know if the load passes chemistry or not."
According to the report, recyclers and processors across the sector had been investing in "tighter internal quality systems" as copper demand increased and customers became more selective about specifications and documentation standards.
The article also highlighted broader trends toward automation and advanced processing technologies within the copper recycling industry. Shine stated that recycling remained "a blue-collar, hardworking [industry], but it's starting to transition to be more technologically sensitive and focused." He added that "more automation, more analytics, and more process discipline" were becoming increasingly important as labor availability tightened and operational expectations increased.
Third-Party Highlights Ontenu Mineralization Intercept Along K92 Corridor
In a May 21 commentary, Chen Lin of the What's Chen Buying? What's Chen Selling? Newsletter referenced South Pacific Metals Corp.'s Ontenu project drill results, stating that "SPMC.v hit 92 meters of mineralization at Ontenu, best intercept, 2 m @ 5.74 g/t Au, 1.49% Cu at the K92 Mining Inc. (KNT:TSX.V; KNTNF:OTCMKTS) corridor."
Ongoing Drilling and Exploration Activities
South Pacific Metals stated that drilling is continuing at Ontenu NE, with upcoming holes designed to test newly identified northwest-trending structures at the Onki Zone, drill deeper beneath the Onki silica cap, and step out along strike and at depth at Jorkol.
Streetwise Ownership Overview*
South Pacific Metals Corp. (SPMC:TSX)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 02/09/24 | KRL | 10 | SPMC | 1 |
| 12/08/20 | PLB.P | 1 | KRL | 1 |
At Ontenu Central, the company stated that drilling is expected to commence shortly following detailed mapping activities. The company also reported that surface exploration is continuing at the Anga project area, located immediately northeast of K92.
According to company materials, Ontenu forms part of the Osena package and borders southwest of K92, with drilling underway and 10 structural corridors identified from soil sampling and mapping. The company reported rock samples grading up to 21% copper, 13.9 g/t gold, and 645 g/t silver at Ontenu.
Company materials also stated that Anga borders K92 to the northeast, where sampling and mapping are underway, with reported rocks grading up to 3.68 g/t gold and 0.27% copper, and stream sediment samples grading up to 282 g/t gold.
South Pacific Metals' Kili Teke project contains a 2022 NI 43-101 resource estimate of 4.2 million ounces gold equivalent, according to company materials. The company stated that more than US$25 million has been invested in the project and that 36,000 meters of drilling have been completed. The company also reported plans for work during the first half of 2026 following the re-establishment of initial social license activities.
The company's May River project, according to company materials, borders the Frieda River gold-copper project and has historical drilling results including 109 meters grading 1.53 g/t gold and 19 meters grading 11.9% copper and 2 g/t gold.
Ownership & Share Information1
Institutions own 7.54% of shares, Management & Insiders own 21.22%, and the remaining 71.24% of shares are held by Retail.
South Pacific Metals has a market cap of CA$30.42 million, with 69.14 million shares outstanding. The company's 52-week range is CA$0.36-CA$3.94.
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- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
