Vancouver, B.C. - Spanish Mountain Gold Ltd. (“Spanish Mountain” or the “Company”) (TSX-V: SPA) is pleased to announce plans for a major drill program intended to lead to a potential expansion to the pit-delineated mineral resource. The Company previously announced in a news release dated July 28, 2020 that Phase 1 of its Spanish Mountain gold project (the “Project”) is fully funded to be “shovel ready”. The recently completed private placement allows the Company to simultaneously pursue the additional objective of rapid resource expansion.
Management has immediately activated plans to add a drilling campaign to the 2020 summer field program. The drilling will strategically focus on areas in the Main Zone where gold mineralization is expected to expand the Project’s overall mineral resource. The Company believes the mineral deposit comprising the Main Zone is highly prospective and may lead to a further drilling program next year. The drilling initiative will be fully funded from currently available cash. Additional details of the program will be announced as they are finalized.
The planned program does not currently cover the Phoenix Zone, which is located less than two kilometers from the Main Zone. Previous drilling at the Phoenix Zone revealed a broad northwest trend to the mineralization along a 3,500 m long corridor, more than three times the strike length of the Main Zone. The trend remains open and untested to the northwest and southeast. The Company’s technical team will investigate potential targets within this new zone, which may be pursued in future drilling exercises.
Larry Yau, CEO, commented: “With no doubt, we are now fully funded to execute our strategy to demonstrate our Project’s robust economic value and its vast potential. We look forward to aggressively advancing our Project with the dual objectives of fast tracking Phase 1 to be ‘shovel ready’ and significantly expanding the mineral resource.”
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. 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.