Spanish Mountain Gold Announces Positive Findings From Targeted Metallurgical Study
1120‐1095 West Pender Street
Vancouver, British Columbia, V6E 2M6
Tel: 604.601.3651
January 31, 2017
Spanish Mountain Gold Announces Positive Findings
From Targeted Metallurgical Study
Spanish Mountain Gold Ltd. (the “ Company”) (TSX-V:SPA) is pleased to report on
findings from its targeted metallurgical pr ogram for the Spanish Mountain Gold Project
(the "Project") located in central British Columbia, Canada.
The Company previously announced (Oct ober 12, 2016 and November 22, 2016) that it
had commissioned Met Solve Laboratories to conduct additional meta llurgical testwork
in order to evaluate the simplification of th e process flowsheet through the elimination of
gravity concentration and the prefloat circuit. The resulting flowsheet is a standard grind-
float-regrind-concentrate leach flowsheet used throughout the industry.
Test results received by the Company successfully demonstrate that both these unit
operations can be eliminated from the flowsheet used in the 2012 Preliminary Economic
Assessment without any detrimental effect on either gold recovery or concentrate quality.
The most recent tests achieved a gold recovery to the concentrate in open circuit batch
tests as high as 86.8% with an organic carbon content of 0.17 to 0.31%, well below the
target value of 0.5% for optimal gold recove ry. Recirculation of the cleaner circuit
tailings within the process is expected to re sult in a flotation recove ry in excess of 90%.
Furthermore, the reagent required for carbon control to the concentrate has been
significantly reduced from the 122 g/t assumed for the 2012 PEA to 68 g/t.
Previous testwork has demonstrated gold recovery by cyanidation of such concentrates to
be 95% to 97% for an overall gold recovery of approximately 89%. The Company is
satisfied that the process simplifications have been adequately supported and will proceed
with further evaluation of the deposit on the basis of a simplified flowsheet.
Larry Yau, CEO, commented: “Our invest igative studies have now successfully
demonstrated that our project can be advanced on the bases of a lower throughput and a
simplified flowsheet. They both highlighted the prospects of lower capital and operating
costs in our new two-zone pr oject approach. We look forw ard to incorporating all the
identified benefits in a new PEA in the near future.”
About Spanish Mountain Gold
Spanish Mountain Gold Ltd is focused on a dvancing its flagship Spanish Mountain gold
project in southern central British Colu mbia. The positive economics of the multi-
million ounce Mineral Resource have been de monstrated in a previous Preliminary
Economic Assessment. The Company is curr ently investigating a two-zone project
approach in which the resource’s high grade core (the First Zone) is expected to sustain a
profitable standalone operati on exceeding 20 years. Add itional information about the
Company is available on its website: www.spanishmountaingold.com
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD.
Larry Yau,
Chief Executive Officer
Inquiries:
Phone: (604) 601-3651
E-mail: [email protected]
Website: www.spanishmountaingold.com
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.