Skip to main content

Michael Murphy of South Pacific Metals Corp. talks to Chen Lin | Metals Investor Forum Sept. 2026

Metals Investor Forum Sep 28, 2026 10:45

Summary

A BMO-led $20 million financing, upsized from $15 million, funds South Pacific Metals' drill plans for the foreseeable future, per its chairman.

Drilling at the Ontenu project southwest of K92 Mining has hit mineralization on all three structures drilled, echoing K92's high-grade Kora vein geology.

South Pacific Metals rebuilt the social license Harmony abandoned at Kili Teke, where past drilling outlined a 4-million-ounce gold-equivalent inferred resource.

Papua New Guinea's single certified assay lab is creating a backlog, so drill-result news flow may lag despite two rigs turning.

Kili Teke drilling is targeted by year-end; exploration licences allow 2,500 metres of drilling before a roughly three-month environmental permit applies.

Key points on Harmony Gold Mining

  • Murphy says Harmony held the project for years, spent about $20 million US and drilled 37,000 meters before deciding to leave roughly 8-9 years ago due to social license issues.
  • Harmony defined the central porphyry and modeled a 4-million-ounce resource going down to about 600 meters, though it drilled to about 1,600-1,800 meters.
  • Murphy points to results outside that resource: an 8-meter intersection of 13% copper with 12 g/t gold, and some 50 samples around the porphyry averaging 1.7% copper with values up to 27%.

Key points on K92 Mining Inc

  • Murphy says South Pacific Metals' Anchnau hits are in the same geological setup and host rock as the Kora vein, K92's principal mine vein, with comparable widths and grades.
  • He describes the Kora vein as a kilometer and a half long, 1.2 kilometers deep, with 80% of it running 3 to 5 meters wide at 8 g/t.
  • Host Chen Lin recalls being an early K92 investor last year and its pattern of roughly 3-meter high-grade intervals that extended over 2-3 kilometers.

Chen Lin's takeaways

  • Top takeaway Lin, the host, says he was an early K92 investor and uses K92's high-grade vein extension trajectory as the template for what South Pacific Metals is chasing at Anchnau.
  • Lin argues the stock has had a strong run and looks set up for a 'second leg'.

Michael Murphy's takeaways

  • Top takeaway Murphy argues South Pacific Metals is hitting comparable widths and grades to K92's Kora vein in the same geological structure, with mineralization in every structure drilled so far at Anchnau.
  • He is pressing for speed: with the financing done he says commitments can now be made, and he visited drill company CEOs in Papua New Guinea to get drilling at the former Harmony project going by the end of 2026.
  • He frames the former Harmony project as low-hanging, very high grade fruit — such as an 8-meter hit of 13% copper with 12 g/t gold — sitting outside the modeled 4-million-ounce resource.
  • He sees meaningful upside, citing BMO's view that the stock trades around $11 per ounce versus a roughly $50 average, and says the company will not need to finance again for quite some time.