Spanish Mountain Gold Project
The planned work for this year will focus on the following:
- Geotechnical drilling. Data obtained from this work will provide information on rock competencies to aid in the design of a potential open pit.
- Additional drilling for metallurgical samples. This work will complement the on-going metallurgical test program that is directed at the refinement of the metallurgical process for the recovery of gold. The Company has previously disclosed the results of preliminary metallurgical test work which indicates that gold recoveries of between 88% to 90% can be achieved by flotation. The planned work will include sampling of gold mineralization from several locations within the Main Zone.
- Baseline sampling for Acid Base Accounting (ABA) purposes. Samples will be gathered from existing drill core and drill core sample rejects from holes drilled across the Main Zone and the surrounding areas. This information will aid in the determination of the scope of work for additional ABA studies. These studies are required to advance the design and management of potential tailings and waste rock storage facilities.
- Exploration drilling in areas proximal to the Main Zone of gold mineralization to determine the potential for expansion of the Main Zone gold resource (see Company news release dated March 18, 2009) and to test new areas for gold mineralization.
Core samples from the twenty three large diameter HQ drill holes completed in 2009 have been submitted for assay and results are expected by the end of May, 2010. Selected samples from these holes had previously been processed at G&T Metallurgical laboratories in Kamloops, BC. These samples were used to evaluate the potential for improved gold recoveries by gravity separation.
The Thunder Ridge property is located approximately 100 km south of Spanish Mountain and the Company has completed 23 holes to date. The Company plans to complete a further 2,000 m of drilling in 10 holes.
Additional soil geochemical sampling is also planned to define possible extensions to the present area of mineralization.
Manson Creek and Prince George
Both projects are located to the north of Spanish Mountain and are earlier stage properties. Additional mapping and sampling is planned for the upcoming field season.
Stuart Morris, 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 $7.0 million (with no debt) 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 second quarter of 2010.
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD
President and CEO
B&D Capital Partners
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.