New Risk • Jul 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 15% per year over the past 5 years. Shareholders have been substantially diluted in the past year (33% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (CA$29.0m market cap, or US$20.5m). Announcement • Jun 16
South Pacific Metals Corp. 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 Metals Corp. reported new high-grade gold drill results from its Ontenu NE project and to provide a corporate update across its portfolio of gold-copper exploration projects in Papua New Guinea ("PNG"). Drill hole ONED26-007, the first hole testing the new Megabe target at Ontenu NE, returned 12 m at 3.1 g/t Au, including 1 m at 18.1 g/t Au. The Company has two diamond drills turning at Ontenu NE, within the Osena Project on the southwest border of K92 Mining Inc.'s Kainantu Gold Mine, while drill targeting is being finalised at the adjacent Ontenu Central prospect; surface exploration and drill targeting are that secured community consent and confirmed site access. Ontenu NE is the engine of the current campaign. Two rigs are now turning, with Exploration Manager Octavio Garcia overseeing the program. The Company has drilled both the Onki target and the Jorkol vein system and is currently drilling newly identified NW-trending structures at Megabe (between Onki and Jorkol). Assays from the first Megabe hole, ONED26-007, have now been received and are reported below; holes ONED26-008 (Jorkol) and ONED26-009B (Megabe) have recently been completed and are pending assay results. New High-Grade Gold at the Megabe Target New high-grade gold zone intersected at the Megabe target, in the corridor between the Jorkol and Onki prospects at Ontenu NE. 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. Mineralisation hosted in NW-SE-striking fault breccia within metasediments - a comparable geological host and orientation to K92 Mining's nearby Kora-Judd operations. The Megabe area is located at Otitapa Creek, a notable source of alluvial gold mined by local artisanal miners. Two drill rigs continue to operate at Ontenu NE; a second Megabe hole, ONED26-009, has been completed and dispatched to the laboratory for assay. Hole ONED26-007 was the first hole into the Megabe area, which lies within a package of interlayered metasediments and porphyry rocks, proximal to the Onki Diorite contact, and is transected by Otitapa Creek. The hole intersected a recently surface-mapped NW-SE structure in the hanging wall of the main Megabe structure and returned 1 m @ 18.1 g/t Au within 12 m @ 3.1 g/t Au. Other assays within the intercept include up to 1,462 ppm copper and 84 g/t silver. Reported intervals are downhole (core) lengths; based on the interpreted orientation of the host structure relative to the drill hole, true width is estimated at approximately 30% of the downhole interval, preliminary and subject to confirmation by further drilling. Mineralisation is dominantly gold and silver associated with sulphides (mainly pyrite) within a fault breccia zone. The hole was terminated at 198.8 m. Ontenu NE is a single project area that contains several distinct drill targets along one mineralised corridor. To date the Company has reported drilling from three of these - Jorkol, Onki and, for the first time in this release, Megabe. Jorkol - the western target. Hosts gold-silver mineralisation in structurally controlled zones; drilling to date has returned assays up to 3.16 g/t Au (holes ONED25-001 and ONED26-001, -004 and -005). Onki - the north-eastern target, centred on the Onki Diorite. Carries copper-gold porphyry-style andhigher-grade vein mineralisation; drilling to date has returned peak assays of 9.92 g/t Au and 2.35% Cu (holes ONED26-002, -003 and -006). Megabe - the new central target reported in this release, in the corridor between Jorkol and Onki and transected by the gold-bearing Otitapa Creek. First-hole results (ONED26-007) returned 12 m at 3.1 g/t Au, including 1 m at 18.1 g/t Au. All three targets sit within the same NW-SE structural corridor, which the Company interprets as analogous to the setting of K92 Mining's nearby Kora-Judd system. 
