Spanish Mountain Gold Ltd. ("the Company") (SPA-TSXV) announces details of assay results received from twenty four large-diameter (HQ) drill holes completed on the Spanish Mountain Gold Project in southern central British Columbia. Most of the holes were drilled to a depth of 150 metres (m) with the deepest to 160 m. The drilling was completed in late 2009 in a known area of near-surface higher grade gold mineralization. The samples from these holes are also being used for ongoing metallurgical test work being carried out at G&T Metallurgical Laboratory in Kamloops, British Columbia. Work to date has continued to confirm that gold recoveries of 90% can be achieved by a conventional process utilizing flotation and Carbon-in-Leach processing of the concentrate. All core samples were fire assayed at ALS Chemex Laboratory in Vancouver, British Columbia.
The Company also announces that drilling of seven holes at Thunder Ridge is underway and should be completed within one week.
Spanish Mountain Project Highlights
Highlights of assay results include:
- 40.0 metres (m) grading 1.19 g/t gold including 8.0 m grading 2.25 g/t gold in Hole 09-DDH-892.
- 27.5 m (starting at 38.0 m down the hole) grading 1.56 g/t gold including 17.0 m grading 2.29 g/t gold in Hole 09-DDH-891.
- 55.5 m grading 0.93 g/t gold including 12.0 m grading 1.71 g/t gold in Hole 09-DDH-871.
- 39.5 m (starting at 14.5 m down the hole) grading 1.18 g/t gold including 8.0 m grading 2.35 g/t gold and a second interval of 27.0m grading 0.87 g/t gold including 10.5 m grading 1.35 g/t gold in Hole 09-DDH-886.
- 20.0 m grading 1.30 g/t gold including 3.0 m grading 5.39 g/t gold in Hole 09-DDH- 888 and,
- 56.5 m (starting at 39.0 m down the hole) grading 0.81 g/t gold including 12.5 m grading 1.66 g/t gold in Hole 09-DDH-896.
Significant assay results are contained in the table (Table 1) appended to this news release.
These results confirm the presence of a near-surface higher grade area of gold mineralization within the Main Zone, which is being assessed as the economically advantageous location for a potential starter pit. The Company will incorporate these results and the results from other holes drilled in 2009 into an updated geological model as part of the current Preliminary Economic Assessment ("PEA") (See Company News Release dated June 23, 2010). The PEA is progressing as planned and the Company expects delivery of the final report in the fourth quarter of this year.
The core from five additional HQ drill holes completed this spring has been shipped to SGS Lakefield in Ontario for test work designed to provide detailed information for crushing and grinding circuit design.
The Company anticipates that the current drilling programme at Spanish Mountain will be completed in August and assay results should be available in September.
Thunder Ridge Project Highlights
The Thunder Ridge property is located approximately 100 km south of Spanish Mountain and the Company has completed 23 holes to date. The current programme comprises seven holes for a total of approximately 1,700 m. All assay results from this drilling are expected in September.
Stuart Morris, P. Geo, the Company's VP, Development Geology is a qualified person (as defined in NI 43-101) and has reviewed the contents of this news release.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd is focused on advancing its flagship Spanish Mountain gold project in central southern British Columbia. The Company has a current cash position of approximately $5.0 million and has applied for Mineral Exploration Tax Credit refund from the Province of British Columbia totaling $1.9 million. These funds are expected to be received in the third quarter of 2010.
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD
President and CEO
B&D Capital Partners
Table 1: Significant Assay Results
|Drill Hole||Core size||From||To||Width(m)||Gold g/t|
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. Actual results and future events could differ materially from those anticipated in such statements. Important factors 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 with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.