- Robust Economics: Base case after-tax NPV5% of US$2,156M (C$2,910M) and after-tax IRR of 35.2% at US$3,600/oz gold. At spot US$4,400/oz, NPV5% rises to US$3,142M (C$4,242M) and IRR to 46.3%.
- Significant Production and Low Cost: 207 koz/yr average gold production in the first 5 years at AISC of US$1,098/oz (C$1,482/oz); 129,518 oz/yr over a 25.8-year LOM at AISC of US$1,450/oz (C$1,958/oz). 3.33 Moz payable gold LOM.
- Rapid Payback: US$1,050M (C$1,418M) initial capital paid back in 1.8 years at base case, 1.5 years at spot.
- Larger Scale vs 2025 PEA: Throughput up 19% to 31,000 tpd; LOM extended to 25.8 years (from 24.5); LOM gold up 11% to 3.33 Moz; years 1–10 average up to 173 koz/yr (from 153); strip ratio down to 1.8:1 (from 2.0:1).
- High Resource Confidence: 98.2% of PEA mill feed from Measured (41.7%) and Indicated (56.5%) Resources. Excludes upside from the Phoenix deposit and 2026 drill results.
- Optimized Process Flowsheet: Coarse particle flotation and early gangue rejection lift feed grade ahead of rougher flotation, enabling higher throughput, better dry-stack tailings characteristics and lower operating costs.
- Low Risk: Conventional open pit and mill; 70 km by road to Williams Lake; renewable grid power via a new 75 km, 230 kV transmission line to a BC Hydro switching station. Facilities Study Interconnection Agreement signed with BC Hydro (Oct 27, 2026).
- Permitting Advancing: BC Environmental Assessment Office (Aug 27, 2026) accepted the plan to resume the combined provincial/federal Environmental Assessment. Draft Detailed Project Description Q4 2026; formal submission Q1 2027.
- Funded to a Build Decision: US$55M sale of a 1.5% NSR to Wheaton Precious Metals (US$22.5M first tranche received May 1, 2026). Fully funded feasibility study initiated Q2 2026; build decision targeted H1 2028.
- Significant Opportunities: Phoenix deposit (629 koz Inferred), ongoing endowment potential extensions and preconcentration/ore sorting as feasibility study expansion options; potential rutile/titanium by-product.
- Strong Discovery Growth Potential: 60,000 m 2026 feasibility drill program, completion targeted Q4 2026.
Environmental, Permitting & Community: From March to August 2026, SMG worked closely with BC Environmental Assessment Office (“BCEAO”), Impact Assessment Agency of Canada (“IAAC”), participating Indigenous Nations and local communities to secure authorization in August from BCEAO to resume the previously paused combined provincial and federal Environmental Assessment (“EA”) processes. This authorization, received in August from BC EAO avoids EA termination and reduces duplicate components of early engagement and the Initial Project Description processes. Consequently, pending geotechnical and condemnation drill results, SMG is on track trending towards delivering an updated draft Detailed Project Description (“DPD”) in Q4 and formal submission of the DPD in Q1 2027. These are the next steps in resuming the EA process to advance to Spanish Mountain Gold project towards a build decision in 2028.
Source: Spanish Mountain Gold news release dated September 21, 2026.
