Spanish Mountain Gold Provides Update on Environmental Assessment & Project Optimization
910 – 1111 Melville Street
Vancouver, British Columbia, V6E 3V6
Tel: 604.601.3651
June 10, 2022
Spanish Mountain Gold Provides Update on Environmental Assessment
& Project Optimization
Vancouver, BC - Spanish Mountain Gold Ltd. (the “Company”) (TSX-V: SPA) is pleased to report progress
achieved on a number of value -added initiatives for the Spanish Mountain Gold Project (the " Project")
located in British Columbia, Canada. As previously announced, the Company prioritizes its resources on
advancing the Project’s environmental assessment/ permitting process and further optimizing several
key project areas. The work programs underway build on the successful completion of the Pre-feasibility
study (PFS filed in June 2021) in which a multi-million ounce Mineral Reserve has been delineated along
with robust economics and a 14-year mine plan.
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 formal regulatory process began in
March 2022 with the submission of the Project’s Initial Project Description and timely acceptance of the
same by the provincial and federal agencies within 30 days . On an ongoing basis, s enior management
meets regularly with the agencies as well as the representatives from the First Nations and surrounding
communities to keep all stakeholders informed.
The Com pany strongly believes that support from the First Nations and surrounding communities are
critical for the success of the Project and has been diligently building a robust working relatio nship for
over a decade. Over the past six months, the Company has signed Engagement Agreements or
commenced negotiation of Life-of-mine Relationship Agreements with all three First Nations whose
traditional territories include the project area. The Compa ny initiated in -person meetings with local
stakeholders on June 2, 2022, with two open house information sessions in the town of Likely, BC, which
is approximately 6 kilometres from the proposed mine. The event, which was well attended by more
than 50 community members, provided management with an opportunity to present information about
the Project as well as to receive feedback from the attendees. The Company is grateful fo r the
participation and support from the community members and will work hard to keep them informed of
the project plans and activities . Management will continue to meet with t he First Nations, surrounding
communities, regional governments and regulatory agencies as we advance the proje ct through the
regulatory stages.
The Company is pleased to report that it is on track to achieve the ambitious EA milestones announced
in January 2022 and will continue to seek ways to improve or expedite the intricate process.
Project Optimization
The Company has a number of optimization exercises underway with the objective of identifying areas
where enhancement of project economics and process improvements are potentially achievable. The
Project’s definitive feasibility study is expected to captu re the full benefit of these exercises. Latest
results from some of these exercises are presented below.
Power Line
A study by an independent engineering and construction firm was commissioned to investigate the
constructability issues with respect to the routing for a power line to the proposed mine utilizing existing
route corridors and traversing more accommodating terrains over a shorter distance.
The Company is pleased to report that a m odified route for the power line, as suggested by the study,
may potentially lead to reductions of the overall permitting risks as well as the linear length by eight
percent relative the proposed route assumed in the PFS. Specifically, the study investiga tes a viable
route bypassing a populated area near Likely in order to reduce community impacts ; the Construction
Difficult Analysis of the bypass concluded that 62% falls into the “easy” category and another 27% in the
“medium” category. The technical tea m will continue to work with consultants and BC Hydro (the
provincial utility) to refine the parameters for the new power line and address technical and permitting
issues.
As detailed in the PFS, the Project’s location is supported by excellent infrastr ucture including an
abundance of connectivity to the provincial power grids supplied with low-cost, renewable hydro power.
There is also an established right-of-way between various substations and the proposed mine site.
Gold Recovery
The Company has engaged an independent expert consultant to conduct a targeted metallurgical
program to further optimize the milling process incorporated in the PFS. Having received the results of
the latest metallurgical work that validated and improved the current flowsheet, the Company is on track
to commence Phase 2 of the program later in the year. This program will include lithology composites to
further optimize the flowsheet followed by confirmation test work on variability composites. Upon
completion of the exercise, the optimized flowsheet and processing configuration will form the basis
for the definitive feasibility study.
Resource Expansion
While the Company’s current priority is to de-risk and optimize the Project through the environmental
assessment/ permitti ng phase, the technical team will continue to advance the objective of resource
expansion.
The ge ological team conducted a grass roots exploration program last fall testing various targets
northwest of the pit boundary. The findings from this program have help identify the areas with the best
prospect for adding ounces to the overall Mineral Resource . In due course, a drilling program will be
planned and conducted in these areas.
Larry Yau, Chief Executive Officer, commented: “ I am plea sed with the steady and meaningful progress
our team has made on multiple fronts. Particularly, we believe that the availability of cheap, renewable
grid power for our Project represents a key strategic advantage. I am confident that we can leverage this
to further enhance our performance in operational metrics as well as issues in respect of Environment al,
Social & Governance.”
About Spanish Mountain Gold
Spanish Mountain Gold Ltd. is focused on advancing its 100%-owned Spanish Mountain gold project 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 Company 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" 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",
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"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 an d 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 not assume any obligation to update forward -looking statements and information if circumstances or management's
assumptions, beliefs, expectations or opinions should change, or changes in any other events affec ting such statements or
information. For the reasons set forth above, investors should not place undue reliance on forward -looking statements and
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