Vancouver, BC. - Spanish Mountain Gold Ltd. (“Spanish Mountain” or the “Company”) (TSX-V: SPA) is pleased to announce that its technical team and contractors have been mobilized to the project site near Likely, B.C. to execute the first module of the field program for its Spanish Mountain gold project (the “Project”). The Company expects the summer program to contribute significantly to the realization of the dual objectives of fast tracking the Project’s Phase 1 to be “shovel ready” and expanding the multi-million ounce gold resource as stated in a news release dated August 10, 2020.
In accordance with the health and safety protocols mandated by the health authorities, company personnel have put in place various safety features and procedures that will be strictly enforced by management on-site throughout the duration of the field program. The camp and the enhanced operating procedures have been inspected and approved by the provincial health agency. Management believes that the necessary precautions have been taken to safeguard the health of our employees, consultants and community members and to avoid potential interruptions to the field work.
The first module of the field program will last approximately six weeks and will immediately be followed by a drilling campaign designed to further expand the Project’s multi-million ounce gold resource. This first module consists of a series of geotechnical drill holes and test pits that will develop additional data to sustain the proposed project infrastructure as outlined in the Preliminary Economic Assessment (“PEA”) filed in December 2019, which delineates the Project’s current mineral resource. The program will also develop additional data that will assist in the evaluation of the potential for an expanded Phase 1 scenario as part of the Preliminary Feasibility Study that could be undertaken later this year. The field program will be monitored by independent engineers from Knight Piésold Ltd.
The latest PEA highlighted the potential viability of Phase 1 operations, which target exclusively the near-surface/ higher-grade portion of the mineral deposit, comprising less than 30% of the measured and indicated ounces of the Project’s multimillion ounce gold resource. The Company believes that an expanded Phase 1, if supported by the underlying data, may further enhance the potential economics and multiple key metrics of the Project.
Larry Yau, CEO, commented: “In just over a month, we have achieved full funding for our dual project objectives and successful mobilization for our summer program. I believe it speaks volumes for our technical team’s competence and effectiveness as well as the strong support from our expert consultants. We look forward to a productive field program that could potentially add significant value to our Project.”
About Spanish Mountain Gold
Spanish Mountain Gold Ltd. is focused on advancing its multi-million ounce Spanish Mountain gold project in southern central British Columbia. The Project is fully funded to pursue the dual objectives of fast tracking Phase 1 of the Project to be “shovel ready” and actively expanding the mineral resource. Phase 1 focuses on the pit-delineated high-grade core of the deposit that is potentially expected to sustain a stand-alone operation of 11 years. The potential viability of Phase 1 has been demonstrated in a Preliminary Economic Assessment. The PEA illustrates the project potential with a combination of modest capital requirements (US$270m) and low operating cost (AISC $549/oz) over its mine life. Additional information on the PEA and about the Company is available on www.sedar.com and on the Company’s website: www.spanishmountaingold.com
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD.
Chief Executive Officer
SPANISH MOUNTAIN GOLD LTD.
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FORWARD LOOKING STATEMENTS: Certain of the statements and information in this press release constitute "forward-looking statements" or "forward-looking information", including statements regarding the completion of the Preliminary Feasibility Study on the Spanish Mountain Project. Further, any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "believes", "plans", "estimates", "intends", "targets", "goals", "forecasts", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.
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.