Spanish Mountain Gold Mobilized for Field Program and Provides Project Update
910 – 1111 Melville Street
Vancouver, British Columbia, V6E 3V6
Tel: 604.601.3651
September 16, 2022
Spanish Mountain Gold Mobilized for Field Program and Provides Project Update
Vancouver, BC - Spanish Mountain Gold Ltd. (the “ Company”) (TSX -V: SPA ) is pleased to report
successful mobilization of contractors and employees for the fall field program for the Spanish Mountain
Gold Project (the " Project") located British Columbia, Canada. The work programs underway build on
the successful completion of the Project’s Pre -feasibility study (PFS filed in June 2021) in which a m ulti-
million ounce Mineral Reserve has been delineated along with robust economics and a 14-year mine
plan.
Project Optimization
As previously reported, the Company has initiated a number of targeted optimization exercises designed
to potentially further improve the Project’s economics and the quality of the resource.
Metallurgical & Drilling Program
Following the completion of the PFS, t he Company ’s technical team has continued to advance the
metallurgical test work with Ausenco Engineering to further improve the gold recovery process and to
develop detailed parameters for the flowsheet. The exercise thus far has successfully assessed the
metallurgical performance of samples using conventional gravity, flotation, and leaching process es. The
field program underway will extract samples from five drill holes within the defined pit in order to
complete variability sam ple testing and confirm the metallurgical performance with the optimized
flowsheet. The samples will be shipped to BaseMet Laboratories (Kamloops, BC) for analyses which
include concentrate generation for downstream testing such as oxygen uptake tests, dynamic settling
tests, cyanide detoxification and carbon adsorption tests.
Once the current metallurgical program is complete, the optimized flowsheet and the detailed
processing configuration will form the basis for ore processing and the rec overy of gold in the definitive
feasibility study.
Geotechnical Program
The Company has conducted a number of geotechnical programs to gather critical data for designing the
pit and tailings facilities and will commence additional drilling programs in due course.
To achieve efficiency in overall project costs and schedule, the Company has mobilized BCG Engineering
to conduct geotechnical work on three of the five holes drilled for t he metallurgical program. The
Company expects that the data from this exercise will give the technical team additional information to
assess rock mechanics and to design a future program more effectively.
Power Line
As previously reported, t he Company’s technical team has successfully identified a modified route for
the power line to the proposed mine that may potentially reduce the overall permitting risks as well as
the linear length relative to the proposed route assumed in the PFS. Further progress had been made in
a number of areas including power line routing and Right-of-Way for permitting, design and construction
planning needs.
The Company expects to continue work on this critical piece of infrastructure and to adjust the design as
opportunities for cost savings and permitting are identified.
Electrification
As detailed in the PFS, the Project’s location is supported by excellent infrastructure including an
abundance of connectivity to the provincial power grids supplied with low-cost, renewable hydro power.
Through the collaboration with BC Hydro (the provincial utility) , the team has identified a number of
opportunities that may potentially reduce capital and operating costs as well as green house gas
emissions from the pr oposed mine. These opportunities include trolley assist trucks and equipment as
well as various energy efficiency measures. The Company is actively assessing these opportunities with
industry experts and in due course will provide more specific plans and the details for these initiatives.
Environmental Assessment
The Company continues to execute its stated strategy of fast -tracking its multi -million ounce Resource
through the process for environmental assessment/ permitting.
The early engagement periods of both the BC and federal Environmental Assessment processes for the
Project were completed on June 23, 2022, with issuance of the Summary of Engagement by the BC
Environmental Assessment Office and the Joint Summary of Issues and Engagement by I mpact
Assessment Agency of Canada. Work is progressing on incorporating these findings into the Detailed
Project Description and draft Application Information Requirements for submission in late 2022.
First Nations and Communities
Productive negotiations of Life -of-Mine Relationship Agreements are continuing with First Nations, with
site visits by community representatives to be conducted into fall 2022. Management will continue to
meet with First Nations, surrounding communities, reg ional governments and regulat ory agencies
throughout the EA process.
Ongoing Field Work and Analyses
The Company continues to expand its environmental database to support a robust EA process.
Environmental field studies in 2022 are focussed on completing the baseline studies in advance of the
planned preparation of the site -wide water balance and water q uality model in Q1 2023 to support
preparation of the Environmental Assessment Application later in 2023. Wildlife baseline studies and
reporting were completed in Q2, 2022. The groundwater monitoring network on site was expanded in
Q1, 2022, with quarterly monitoring continuing through the year. Surface water quality, hydrology, and
aquatic habitat studies are ongoing with completion of these baseline study reports on target for Q1
2023.
Stock Option Grant
The Board of Directors has authorized granting of incentive stock options to acquire 300,000 common
shares of the Company to a director. The options, which will be vested in accordance with the
Company’s Incentive Stock Option Plan, have an exercise price of $0. 15 per share and will expire on
September 13, 2027. The foregoing is subject to regulatory acceptance.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd. is focused on advancing its 100%-owned Spanish Mountain gold proje ct in
southern central British Columbia. The Company is simultaneously pursuing the dual objectives of
delivering critical project milestones for the multi-million ounce Mineral Reserve and further expanding
the overall Mineral Resource. The Pre-Feasibility Study (2021) demonstrates the Project’s potential to be
a mining operation with a robust production profile (>150,000 oz per year) and profitability ( AISC $801
per oz ) over a mine life of 14 years. Details on the Project and the Com pany are available on
www.sedar.com and on the Company’s website: www.spanishmountaingold.com
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD.
Larry Yau
Chief Executive Officer
Inquiries:
Spanish Mountain Gold Ltd.
Phone: (604) 601-3651
E-mail: [email protected]
Website: www.spanishmountaingold.com
FORWARD -LOOKING STATEMENTS: Certain of the statements and information in this press release constitute "forward -looking statements" or
"forward -looking information" A ny 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 p hrases such as
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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.
The Company's forward -looking statements and information are based on the assumptions, beliefs, expectations and opinions of
management as of the date of this press release, and other than as required by applicable securities laws, the Company does n ot assume any
obligation to update forward -looking statements and information if circumstanc es or management's assumptions, beliefs, expectations or
opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth ab ove, investors
should not place undue reliance on forward -looking statemen ts and information.
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