Spanish Mountain Gold Provides Project Update and Announces 2025 Exploration Drill Program
1
Spanish Mountain Gold Ltd.
910-1111 Melville Street
Vancouver, British Columbia, V6E 3V6
Tel: 604.601.3651
Spanish Mountain Gold Provides Project Update and Announces 2025
Exploration Drill Program
Vancouver, B.C., January 21, 2025 - Spanish Mountain Gold Ltd. (the " Company" or "Spanish
Mountain Gold") (TSX-V: SPA) (FSE: S3Y) (OTC: SPAZF) is pleased to provide an update on its
Spanish Mountain Gold project (“ SMG Project ”), located in the Cariboo Gold Corridor, British
Columbia, Canada.
The Company’s strategy remains focused on optimizing, derisking and advancing the SMG Project
towards a build decision by 2027. The Company anticipates completing a new Mineral Resource
Estimate (“New MRE”) and Preliminary Economic Analysis (“New PEA”) before the end of the first
half of 2025 (“ H1 2025”). Based on positive conclusions and recommendations of the New PEA,
the Company anticipates beginning a Pre-feasibility Study (“ PFS”) or Feasibility Study (“ FS”) in
2025 and is well positioned to fast-track to a build decision by 2027. In addition to optimizing and
derisking the project, the rework and re-interpretation of historical geological information has led
to the identification of new exploration drill targets that could expand the mineral endowment,
affect the project footprint, and reduce existing pit constrained resource risks. An exploration drill
program (5,590 metres “m”) was completed on September 26, 2024 ( see press release dated
December 18, 2025, “Spanish Mountain Gold Intercepts Continuous Mineralization” ), and the
Company plans to conduct follow-up drilling beginning in the first quarter of 2025 (“Q1 2025”). A
private placement financing to support the 2025 exploration and drill program closed on
November 15th, 2024, and the Company is sufficiently funded to advance its plans with respect to
the SMG Project.
Status of the New MRE
Equity Exploration Consultants Ltd., alongside the Company’s geology team, have completed a
new three-dimensional geological model, incorporating new data from the 2024 exploration drill
program, the relogging of 174,228 m of historical diamond drill core, a structural geology
assessment, and a geochemical analysis of historical data. The New MRE is currently under third-
party review by Apex Geoscience Ltd., for inclusion in the New PEA.
HIGHLIGHTS
• The New PEA remains on track to complete during H1 2025.
• The New MRE will incorporate 5,590 m of diamond drilling from the 2024 exploration
program (the “2024 Drill Program”).
2
• The Whittle Optimization is progressing and will be completed in H1 2025 to assist in
determining the optimal operation , scale, and minimize d carbon footprint over the
proposed mine life.
• Partnered with International Technology Group ANDRITZ (“ANDRITZ”, see press release
dated May 24, 2024), and BCH to assess optimal power scenarios for various comminution
equipment options and circuits ranging from 10,000-50,000 tonnes per day (“ tpd”). A
draft report with recommendations has been received and is under review by the project
team.
• 2025 Exploration Drill Program is expected to commence in Q1 2025 targeting 10,000 m
of diamond drilling utilizing oriented core.
2025 Exploration Drill Program
During Q1 2025 , the Company will commence its 2025 exploration drill program (“ 2025 Drill
Program”), targeting 10,000 m of drilling. The targets identified in the 2025 Drill Program (see
Figure 1 – 2025 Drill Program Targets), will focus on extending mineralization near surface along
strike, and deeper high grade intercepts discovered in the 2024 Drill Program. Drilling also aims
to expand geological knowledge for specific mineralized areas such as the Slipper Zone, the K
Zone, a new third argillite horizon, and the Phoenix Target.
Figure 1 – 2025 Drill Program Targets (Plan View and Long Sections)
3
The Phoenix Target (“Phoenix”) is an area where quartz vein mineralization was previously
identified through drilling. The geological model of Phoenix was further refined following the core
relogging campaigns conducted in 2024, which warranted follow-up. Mineralization at Phoenix is
predominantly associated with quartz veins of varying orientations, including both high and low
angles. Additionally, coarse gold associated with quartz veins has been observed, guiding the
focus of future drilling. Drilling efforts will concentrate around the historic drill hole 11-CCR-023,
which returned an interval of 203.9 meters at 0.4 g/t Au and ended in anomalous Au values.
New PEA
After extensive review of the 2021 mineral resource and reserve estimate and PFS (, the “2021
PFS”), refer to the Spanish Mountain Gold Project - Prefeasibility Study (PFS) and Mineral Resource
Estimate, and associated NI 43-101 Technical Report, effective date May 10, 2023 , available on
the Company’s website or under the Company’s profile on Sedarplus.ca), the Company determined
that certain elements of the SMG Project may benefit from being redesigned. Additionally, during
this review, management identified further data requirements that would assist in evaluating
various redesign options. The collection and modelling of this information is ongoing to better
understand the geochemical and geologic characteristics that impact the project. During this
process, several opportunities were also identified such as the potential for extensions of the
mineralization endowment beneath or near the project area, scale o ptimization, improved
flowsheet options considering coarse ore floatation, reduction of carbon intensity such as the
electrification of the mine and a staged construction/expansion approach that could derisk the
time and cost to first production.
Phase 2 metallurgical testing was completed in the third quarter of 2024, which supports coarse
ore flotation, and therefore a new flowsheet will be incorporated in the New PEA. The results of
the metallurgical testing have supported new solutions for tailing s and water management
systems that could positively affect the project’s production scale, costs, sustainability and
permitting requirements . A high-level review of plans integrating tailings, water and waste
management has been completed by BGC Engineering, and recommendations are currently being
incorporated into the New PEA. The particle and bulk ore sorting amenability test programs have
been completed and an economic trade -off analysis is currently being conducted to determine
the potential viability of ore sorting for an enhanced feed grade and gold production, offsetting
potential mineralization losses due to the ore sorting process . Results of the optimization and
derisking improvement initiatives will be incorporated in the Whittle Optimization on the new
resource model. The Company intends to use the results of the Whittle Optimization to propose
a sustainable , permittable and executable business case for the SMG Project to ultimately
advance towards development.
Summary of the New PEA Anticipated Improvements
In August of 2024, the Company awarded Ausenco as lead consultant for a NI 43 -101 technical
report incorporating the New MRE and New PEA. As discussed above, the New PEA is targeting
several improvements and benefits over the 2021 PFS, with a summary of those targeted benefit
improvements highlighted in the table below.
Factor 2021 PFS 2025 New PEA Target Target Benefit
SCALE • 20 ktpd • Assessing range of
20ktpd – 50ktpd
Larger scale provides
greater efficiency, lower
costs and NPV uplift
4
PIT
SELECTION
• Sub-optimal Pit
Selected
• Larger Optimized Pit
• Lower Strip Ratio
Pit selection optimized
with larger pit and lower
strip ratio; detailed mine
plan options underway
MINING • Diesel • Electrification (mine
fleet and equipment)
Electrification to increase
productivity; lower
carbon intensity &
operating costs
PROCESSING • Conventional Flotation
with Gravity
• Coarse Ore Flotation
with Gravity
Improved gold
production at low capex,
power and operating
costs
WASTE
ROCK
MANAGEMENT
• Moderate Strip Ratio • Lower Strip Ratio
Enhanced sustainability
by using mine waste for
tailings
WATER
MANAGEMENT
• Large Volumes in
Valley
• New location would be
High & Dry
Lower volumes to
minimize treatment, risks
& closure costs; Targeting
innovation towards zero
discharge
GEOTECHNICAL
• Valley less suitable for
TMF (high water
run-off with overly
conservative pit slope
angles)
• Higher Risk
• New Location (TMF
requires less water)
• Improved Pit Slope
Design
• Lower Risk
Lowers safety,
environmental, and
geotechnical risk; avoids
valley bottom
infrastructure
construction
TAILINGS
MANAGEMENT
FACILITY (TMF)
• Conventional Slurry
Containment
• Higher Risk
• Clean Coarse Gangue
rejection from coarse
ore floatation
• Free Draining vs
Filtered Tails
• Lower Risk
Stable landforms utilizing
mine-waste; New
location avoids borrow-
pit costs; Eliminates
starter dyke with
expensive borrow pit
material
NEW
POWER LINE • 30 MW • 60 MW
Increased to enable
electrification and
support a larger scale
CARBON
INTENSITY • High • Lower Leverage clean renewable
power source
PERMIT &
EXECUTION • Higher risk • Lower risk
Use state of the art
commercially available
solutions
RELENTLESS PURSUIT FOR BETTER GOLD
• Lowering Carbon Intensity and Green-House Gas Emissions – Through collaboration with
BC Hydro, there are several opportunities that may potentially reduce capital and
operating costs, carbon intensity and green-house gas emissions.
• Renewable Diesel – The Company utilized alternative non fossil based fuel sources for its
2024 Drill Program and achieved a 72% reduction in emissions or a 63,653 kilogram
decrease of CO2e (see press release dated October 16, 2024 , “Spanish Mountain Gold
5
Provides 2024 Drill Program Update with Initial Results that Confirm Mineralization
Extensions”).
• Upcycled Sample Crates (“Sample Crates”) – The Company completed a small upcycling
project utilizing un-safe trees to create Sample Crates for shipping core samples achieving
a Triple Bottom Line win with a 54% cost savings, environmental and sustainable best
practices, and employing local contractors.
About Spanish Mountain Gold Ltd.
Spanish Mountain Gold Ltd. is focused on advancing its 100% -owned Spanish Mountain Gold Project
towards construction of the next gold mine in the Cariboo Gold Corridor, British Columbia . We are
conducting an integrated Whittle Enterprise Optimization to identify the highest potential value -add
improvements while increasing the understanding of the high-grade geologic controls and associated
drill targets that could upgrade and expand the gold resource. We are striving to be a leader in
community and Indigenous relations by leveraging technology and innovation to build the 'greenest'
gold mine in Canada. The Relentless Pursuit for Better Gold means seeking new ways to achieve
optimal financial outcomes that are safer, minimize environmental impact and create mean ingful
sustainability for communities. Details on the Company are available on www.sedarplus.ca and on the
Company's website: www.spanishmountaingold.com.
On Behalf of the Board,
“Peter Mah”
President, Chief Executive Officer and Director
Spanish Mountain Gold Ltd.
For more information, contact:
Suzette N Ramcharan
(604) 601-3651
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
FORWARD-LOOKING INFORMATION:
Certain of the statements and information in this press release constitute "forward -looking information".
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 "expect s", "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 considered
forward-looking information. The Company's forward -looking information is based on the assumptions,
beliefs, expectations and opinions of management as of the date of this press release, and include but are
not limited to information with respect to : the disclosure of a NI 43-101 technical report incorporating the
New MRE and PEA, and the timing and results thereof; the commencement of the 2025 Drill Program, and
the timing and results thereof; and the completion of all additional steps and technical reports among other
requirements needed to make a decision of advancing the project towards development by 2027. Other than
as required by applicable securities laws, the Company does not assume any obligation to update forward -
looking information if circumstances 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
above, investors should not place undue reliance on forward-looking statements and information.