Spanish Mountain Gold Ltd. ("the Company") (SPA-TSXV) is pleased to announce details of assay results received from drill holes completed on the Spanish Mountain gold project in southern central British Columbia this year. Twenty NQ and HQ diameter holes were drilled for exploration, geotechnical and metallurgical purposes. All exploration holes intersected gold mineralization that confirm or extend the known mineralization up to 350 m from the current limits of the Main and North zones.
Significant Drillhole Intercepts
Highlights of assay results include:
- 26.50 metres (m) grading 1.18 grams per tonne (g/t) gold including 2.25 m grading 5.06 g/t gold in Hole 10-DDH-912 drilled 150 m west of the Main Zone
- 29.00 m grading 1.21 g/t gold including 13.00 m grading 2.25 g/t gold in Hole 10-DDH-918
- 119.50 m (starting at 5.50 m down the hole) grading 0.74 g/t gold including 27.00 m grading 1.50 g/t gold and a second zone of 25.50 m grading 1.56 g/t gold in Hole 10-DDH-902.
- 42.15 m grading 1.15 g/t gold in Hole 10-DDH-915.
- 76.00 m grading 0.87 g/t gold in Hole 10-DDH-906.
- 82.00 m grading 0.62 g/t gold including 12.50 m grading 1.04 g/t gold in Hole 10-DDH-911
Tables 1 & 2 presenting significant assay intervals and a drill hole location map (Fig. 1) are appended to this news release.
Discussion of Results and PEA Update
The exploration holes intersected gold mineralization in areas to the west of the Main zone and north and east of the North Zone. The new intercepts confirmed or extended the known mineralization up to 350 m from these zones. Of particular note is Hole 10-DDH-912 which intersected 26.5 m grading 1.18 g/t gold in an area 150 m west of the Main Zone. The Company is encouraged by these results which would suggest that areas of potential exist west of the Main Zone and around the North Zone. Further drilling is warranted in these areas.
Brian Groves, President and CEO, stated: "The exploration drilling was successful in demonstrating that the potential exists to expand the areas of mineralization to the east and west. Additional drilling will be done in 2011 to better define the continuity of mineralization in these areas."
The holes completed for geotechnical and metallurgical purposes were drilled within the Main and North Zones of gold mineralization. The results are consistent with those from previous drilling within the known mineralized areas and will be included in the PEA for the Spanish Mountain gold project. The economic model for the project will be released in November 2010. The full report is scheduled for release in December 2010 and is expected to incorporate tailing facilities that do not impact any lakes or streams in the project areas.
All core samples were fire assayed at ALS Chemex Laboratory in Vancouver, BC. Stuart Morris, P. Geo, the Company's Vice-President, Development Geology is a qualified person as defined under National Instrument 43-101 and has reviewed the contents of this news release.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd is focused on the responsible development of its flagship Spanish Mountain gold project in southern central British Columbia. The Company has no debt and owns 100% of all four gold properties located in British Columbia. Additional information about the Company is available on its website: www.spanishmountaingold.com
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD
President and CEO
B&D Capital Partners
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological and metallurgical data, risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Forward-looking statements can often be identified by the use of words such as "plans", "expects", "is expected", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
|Table 1: Significant Exploration Results—Spanish Mountain Gold Project|
|10-DDH-901||273.5||290.0||16.5||0.87||0.86||NQ||90m West of Main Zone||Exploration|
|10-DDH-906||178.0||220.0||42.0||0.41||0.59||NQ||40m Southwest of North Zone||Exploration|
|10-DDH-906||242.5||318.5||76.0||0.87||0.90||NQ||40m Southwest of North Zone||Exploration|
|10-DDH-907||138.0||193.0||55.0||0.43||0.87||NQ||100m Southwest of North Zone||Exploration|
|10-DDH-910||148.2||171.0||22.8||0.46||0.45||NQ||350m West of Main Zone||Exploration|
|10-DDH-910||286.9||326.0||39.1||0.43||0.55||NQ||350m West of Main Zone||Exploration|
|10-DDH-912||343.5||370.0||26.5||1.18||0.37||NQ||150m West of Main Zone||Exploration|
|10-DDH-913||397.5||300.8||3.3||0.98||0.25||NQ||15m Northwest of North Zone||Exploration|
|10-DDH-914||118.0||137.5||19.5||0.45||0.42||NQ||290m East of North Zone||Exploration|
|10-DDH-916||46.0||98.5||52.5||0.31||1.17||NQ||110m Southeast of North Zone||Exploration|
|Table 2: Significant Metallurgical & Geotechnical Results—Spanish Mountain Gold Project|
|10-DDH-911||55.5||137.5||82.0||0.62||0.49||HQ3||East boundary of Main Zone||Geotechnical|
|10-DDH-911||301.0||355.0||54.0||0.53||0.69||HQ3||East boundary of Main Zone||Geotechnical|
|10-DDH-915||44.0||86.2||42.2||1.15||0.83||HQ3||Northeast boundary of Main Zone||Geotechnical|
|10-DDH-915||208.5||264.5||56.0||0.34||0.75||HQ3||Northeast boundary of Main Zone||Geotechnical|
|10-DDH-918||32.5||61.5||29.0||1.21||0.96||HQ3||East of North Zone||Geotechnical|
Figure 1: Drill Hole Location Map - Spanish Mountain Gold Project