South Pacific Minerals Corp.
TSX VENTURE : SPZ

South Pacific Minerals Corp.

September 26, 2005 11:36 ET

South Pacific Minerals Corp.: Mt. Andewa Property Description and Exploration Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 26, 2005) - South Pacific Minerals Corp. (TSX VENTURE:SPZ) -

SUMMARY

Geological reconnaissance and initial sampling has been completed at Mt Andewa (EL 1345) and results from 107 samples have been received. The program was conducted in the caldera of an extinct, Pleistocene strato-volcano and was the first exploration in the sub-district for approximately 16 years.

The best continuous chip channel samples of quartz veins included: 3m of 14.26 g/t gold (containing 1m of 21.9 g/t), 5m of 8.61 g/t, 2m of 4.86 g/t, 6.7m of 1.2 g/t, 6m of 1.21 g/t, 1m of 5.90 g/t and 1m of 5.41 g/t gold. A peak of 87 g/t silver in a 1m channel sample was noted and more than 90% of the samples collected were mineralised at greater than 0.1g/t gold.

Siliceous breccia veins averaging approximately 3m in width are noted within a 1000m long zone at Komsen Prospect that contains a 250m section historically averaging 4.93 g/t gold. Previous trench assay results included up to: 15.6m of 5.12 g/t, 9m of 6.44 g/t, 9m of 5.64 g/t, 6m of 8.49 g/t, 15m of 1.83 g/t and 5.9m of 3.86 g/t + 5.1m of 3.27 g/t gold.

Management believe the gold mineralised silica-clay veins at Komsen offer attractive exploration targets. There is also the possibility that large-tonnage, bulk-mineable lower-grade epithermal gold mineralisation could occur in a favourable tuff horizon proximal to the silica-clay veins, that are hosted by more competent overlying andesites.

South Pacific's initial program consisted of general geological evaluation of part of the central sector of the caldera, along with re-opening and sampling of selected trenches at the approximately 2,500m long x 600m wide Komsen Prospect to track the clay-silica veins and attempt to document their gold grades.

Deep hand trenching is now being conducted and specific mineralised sections of some existing trenches are also being deepened to better assess and sample the mineralised zones. In addition, a grid based soil sampling program has commenced on an initial area 3.5km long x 1km wide. This work will attempt to define additional discrete gold mineralised exploration/trenching/drilling targets within known gold anomalous drainages.

An Aster satellite imagery study has been completed and it defined several new targets/anomalous areas, being 6 alteration anomalies, 2 silicified structures and 2 circular features. Some of these alteration anomalies/structures are particularly promising and are being targeted by the soil sampling program.

The Ekhos Prospect also warrants evaluation and is located approximately 4km to the east of Komsen. Ekhos consists of a mineralised shear zone to approximately 4m wide, within a 650m by less than 50m zone that is open to the NW. The best historic trench continuous chip channel sample gold results were: 15m of 1.83 g/t + 9m of 1.96 g/t and 2.5m of 5.19 g/t. In addition, fault breccia cropping out at Ler Creek assayed 48 g/t Au, was identified as a Dickite anomaly in the Aster evaluation and requires further assessment.

DETAILS

EL 1345 covers an area of approximately 492km2 and is located in West New Britain Province, approximately 130 kilometres west of the Provincial capital/deep water port of Kimbe. The prospect area is reached from Kimbe by boat or helicopter. Mt Andewa is a deeply eroded strato-volcano with the Tamo River breaching the crater wall to the northwest. The other flanks of the crater are steep near the rim and slope away with radial drainages. The area is covered by dense tropical rain forest and patches of kunai grass on the lower flanks. Local villages are mainly along the north coast and none are situated in the area being explored. The area receives rain all year, peaking most during the NW monsoon between October and April each year. Temperatures range from about 22 to 32 degrees Celsius.

The island of New Britain and other islands off the north coast of Papua New Guinea contain a chain of Pleistocene to Holocene calc-alkaline strato-volcanoes called the Bismarck Island Arc. The Mt Andewa caldera is characterised by multiphase intrusions with a long history of differentiation and re-intrusion accompanied by areas of hydrothermal alteration, within a major east-west corridor 7 kilometres long by 2-3 kilometres wide. The Mt Andewa complex was recognised as a volcanic hosted precious metal target in the early 1980's at the time of the discovery of the Lihir Island Deposit. A decade earlier the area was briefly explored for porphyry copper deposits.

Five high stratigraphic level prospects have been defined at Andewa and none have yet been drilled. Gold/arsenic anomalous soil geochemistry is reported to cover an embayed triangular shaped area of approximately 18km2. Historic assays include many stream sediments (to 0.629 g/t Au), pan-concentrates (to 525ug contained gold/12.1 g/t Au), soils (to 4.06 g/t Au), outcrop rock (to 58.4 g/t Au (often with high silver +/- Pb/Zn)) and trenches.

The Mt Andewa volcano is host to low temperature (150-230 degrees C), high-level epithermal vein gold mineralisation. A higher temperature porphyry-style base metal event is also evident. A model is a strato-volcano that had an acid cap near its apex under which acidic fluid condensed/collected. This fluid then flowed back down into the hydrothermal system and mixed with up-welling warmer, neutral chloride-rich fluids depositing gold at the mixing interface. Mt Andewa is likely to have patterns of alteration similar to many caldera hosted epithermal deposits with their acid cap removed and the "mixing zone" now exposed. The up-flow zone may have been in the central caldera area and outflow taken place along the NNW trending fractures toward the sea.

Komsen Prospect - Gold mineralisation is located in an area of approximately 2,500 x 500m and is contained within a prominent east-west and northeast trending fracture/vein system. Silica-clay veins have historic gold grades to 8.80 g/t over 3.3 m true width. The main vein (Vein 2) is consistent in size, grade and alteration characteristics, with gold assays averaging 2.53 g/t over an average true width of 3.0m for approximately 1,000m of strike length. It also contains a higher-grade core averaging 4.93 g/t gold over 250m of strike length. The best historic trench gold results at Komsen include: 5.6m of 5.12 g/t, 9m of 6.44 g/t, 9m of 5.64 g/t, 6m of 8.49 g/t, 15m of 1.83 g/t, 5.9m of 3.86 g/t + 5.1m of 3.27 g/t. Float samples in Komsen creek assayed up to 54.4 g/t gold, with outcrop grab samples up to 42 g/t gold.

The Komsen vein system is hosted within a sequence of moderately dipping lavas and pyroclastic volcanics located at the intersection of the extension of a 300 degrees trending linear with a 340 degrees linear observed on a Landsat image. The other prominent sets trend 0 degrees, 270 degrees and 85 degrees. Mineralisation has strong structural influences evidenced by the predominantly east-west and northeast trending gold bearing quartz reefs. Parallel quartz vein structures up to 5 metres wide have been noted, with better gold grades hosted in brecciated quartz base-metal veins. The underlying tuff offers an attractive bulk-tonnage epithermal exploration target.

The gold mineralisation appears to post date the base metal mineralisation and has developed as a lower temperature epithermal event. Hydrothermal alteration, at the present level of erosion, is predominantly pervasive propyllitic cut by strong fractures that are often quartz/clay filled (sericite-illite), +/- quartz +/- pyrite/base metal veins. Hydraulic fracturing and hydrothermal brecciation has been observed in the prospect. Petrological studies show complex overprinting, but overall alteration zoning is evident. At lower elevations, higher temperature assemblages such as sericite or epidote occur, while higher up lower temperature clays such as illite-smectites are common.

Ekhos Prospect - The Ekhos Prospect is located in the eastern sector of the Mt Andewa caldera. Historic outcrop samples from Ekhos creek returned 7.6 g/t gold and follow-up sampling/mapping outlined a cigar shaped area 650m by 50m. The gold in soil anomaly is elongate to the northwest and apparently related to various Landsat lineaments.

The dominant rock types in the area are flows and tuffs of pyroxene-feldspar propyllitic andesite later intruded by andesite. Pervasive propyllitic alteration (pyrite +/- chlorite +/- illite) is widespread, however, higher temperature, structurally controlled phyllic alteration (pyrite-sericite-illite-quartz) zones are also present and normally trend northwest to north-northwest, dipping steeply to the northeast or southwest.

Gold is present in narrow veins of quartz-pyrite-sphalerite +/- galena which are normally narrow (up to 20cm width). The main mineralised shear zone is approximately 4m wide (within the 650m x 50m zone) and open to the NW. The best historic trench gold results at Ekhos included: 15m of 1.83 g/t + 9m of 1.96 g/t and 2.5m of 5.19 g/t. Gold mineralisation appears to be closely associated with elevated arsenic /mercury and argillic fracture fill which contains kernels and pods of sphalerite +/- galena with a light green mineral (fuchsite or roscoelite?).

Program Completed - A reconnaissance program was completed that concentrated on locating historic trenches at the Komsen Prospect and re-sampling their obviously mineralised zones. A total of 107 samples were collected, consisting of 105 outcrop and 2 float rocks. Of these, 49 continuous chip channel samples were collected from the trenches at Komsen, 49 samples were collected in Ler Creek (47 outcrop and 2 float), 3 samples were collected from a creek at Ekhos (no trenches were sampled) and 6 samples were collected from the Samarung Prospect.

The best gold anomalous intervals were from Komsen and included: 3m of 14.26 g/t (including 1m of 21.9 g/t), 5m of 8.61 g/t, 2m of 4.86 g/t, 6.7m of 1.2 g/t, 6m of 1.21 g/t, 1m of 5.90 g/t, 1m of 5.41 g/t, 1m of 3.25 g/t and 1m of 2.99 g/t. A peak of 87 g/t silver over a 1m channel sample was noted.

The Ler Creek sampling was conducted on 30 discrete and generally narrow quartz veins over a 300m width, with a peak result of 0.5m of 3.77 g/t gold + 12.7 g/t silver. Most samples were gold anomalous with the group of 30 outcrop samples averaging 0.42 g/t gold. Three discrete wider gold mineralised zones were sampled returning weighted averages 5m of 0.35g/t, 10m of 0.25 g/t and 3m of 0.92 g/t. Silver was occasionally noted, averaging about 12:1 (Ag:Au).

Kodu Drilling Results - The first 4 drill holes at the Kodu project were designed to refine the margins of the Inferred Resource and to attempt to consolidate/validate it. Drill holes KD001 and 002 tested the eastern margin of the intrusion in the northern and north-central sectors of the Inferred Resource zone and also tested the depth extent of the mineralisation on that margin. Final assay results are awaited due to customs, shipping and laboratory turnaround times. Both holes are testing similar targets and will be released together in early to mid-October.

KD003 and 004 (still being drilled), were designed to refine the position of the northern margin of the mineralisation, test part of the annulus model extending to the NE (KD003) and evaluate the width of the mineralised zone as it extends to the west (KD004). It is intended to ship, analyse and report the results from holes 3 and 4 concurrently.

South Pacific Minerals Corp. is at the forefront of mineral exploration in Papua New Guinea with an effective 85% interest in three porphyry copper /gold +/- molybdenum and epithermal/intrusive related gold exploration licenses, plus 5 EL applications covering a total area of approximately 7,500sq kms. Most of these properties have advanced stage projects with significant known gold +/- copper in trench and drill hole, with additional drill ready targets.

Mr. Peter McNeil (B.Sc., M.Sc.) is the qualified person supervising the Mt Andewa exploration program and the information contained herein.

South Pacific Minerals Corp.

P.A.McNeil, President/CEO, M.Sc.

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the company.

The TSX Venture Exchange has not reviewed and does not accept the responsibility of the adequacy or accuracy of this release.

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