Vancouver, B.C. - Spanish Mountain Gold Ltd. (the “Company”) (TSX-V: SPA) is pleased to announce the commencement of a series of field programs for its Spanish Mountain gold project (the “Project”) located in British Columbia, Canada. The planned programs were previously disclosed in a news release dated March 1, 2018.
The Company’s permanent exploration camp near Likely, BC has been re-opened to accommodate staff and work crews while the field work is being conducted. The Phase One of the 2018 program will include activities as follows:
Archeological Impact Assessment
The Archeological Impact Assessment is a critical component of the Project’s permitting process for future drilling, development and construction. The proposed open pit area has previously been investigated and found to be free of any archeological concerns. The current AIA program will assess the remaining project area to ensure that any issues of archaeological significance will be effectively addressed prior to other field work being undertaken and will enable further development work in these areas to be completed without delay.
Consistent with its longstanding practice, the Company will collaborate extensively with field technicians and heritage specialists representing the local First Nations communities throughout the AIA process.
Confirmatory Metallurgical Testwork
The Company has conducted extensive metallurgical testwork for the Project at three independent laboratories and in the latest Preliminary Economic Assessment has reported a robust flowsheet incorporating flotation followed by cyanidation of the concentrate that achieves a consistent high gold recovery. The cyanidation circuit is projected to process in the order of 3% of the plant feed. The current program will obtain fresh sample material totaling approximately 4 tonnes for a metallurgical testwork program that will provide the detailed information required for the design and costing of the process plant. This program will be directed by independent metallurgical consultants.
Exploration Drilling Program—the Phoenix Zone
While the latest PEA incorporates only mining of the resource’s high grade core (the First Zone), the Project’s growing resource size along with the Phoenix Zone have the potential to add further value. The Phoenix Zone, which was discovered in 2011, is located less than two kilometers west of the proposed pit. Preliminary metallurgical test work has shown that core samples from this area are amenable to the same gold recovery process as has been developed for the Main Zone.
The current drilling program for this area will comprise a number of shallow holes along the one-kilometre corridor between the Phoenix Zone and the additional gold-bearing area to the north acquired by the Company in 2012. Positive assay results, if any, would suggest potential continuity of mineralization over a strike length of two kilometres, approximately twice the length of the Main Zone’s resource.
The Company will report on the results of these programs as they become available.
Phase Two—Infill Drilling Program within First Zone
The Company anticipates Phase Two of the field program to start in late summer when weather conditions will permit maximum efficiency in execution. A strategic drilling program within the First Zone will be conducted in order to potentially increase the total number of gold ounces captured in a future mine plan by upgrading Inferred resources to the Measured & Indicated categories. The Company will provide additional details in due course.
The Company believes that the work programs outlined above will build on the robust results reported in the latest PEA completed in May 2017 and are expected to provide additional data to support the quality of the Project’s multi-million ounce gold resource.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd is focused on advancing its flagship Spanish Mountain gold project in southern central British Columbia. The Company has adopted a two-zone project approach in which the pit-delineated high grade core (the First Zone) of the multi-million ounce resource is expected to sustain a robust stand-alone operation exceeding 24 years. The positive economics of the First Zone have been demonstrated in a Preliminary Economic Assessment completed in 2017. Furthermore, the adjacent Second Zone could potentially expand and extend the project’s production profile for decades. Additional information about the Company is available on its website: www.spanishmountaingold.com.
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD.
Chief Executive Officer
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 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). 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.