Spanish Mountain Gold Reports First Set of 2018 Drilling Results: Intercepting More High Grade Areas within Proposed Pit
Spanish Mountain Gold Reports First Set of 2018 Drilling
Results: Intercepting More High Grade Areas within
Proposed Pit
Vancouver, British Columbia--(Newsfile Corp. - December 4, 2018) -
Spanish Mountain Gold Ltd.
(TSXV: SPA) (the
"
Company
") is pleased to announce the assay results from its strategic 2018 drilling program for the
Spanish Mountain Gold
Project (the "
Project
") located in British Columbia, Canada.
The highly selective program targeted areas within the high-grade, near-surface First Zone of the Project's multi-million ounce
gold resource as described in the news release dated April 10, 2017.
The objective of the program is to increase the total
number of gold ounces captured in a possible future mine plan by reclassifying certain Inferred Resources to the Measured &
Indicated categories.
By design, the 2017 Preliminary Economic Assessment only incorporated M&I resources in the mine plan
and thereby treated the extracted Inferred Resources as "waste", which had the effect of artificially inflating the Project's strip
ratio and operating cost.
If the current drilling program is successful in upgrading the targeted ounces in a future resource
estimate, it is expected to further improve the Project's robust economics as it effectively converts mined "waste" into mill feed
and production ounces.
Highlights of
the First Set of
Drilling Results include:
27.43 metres (m) grading 1.76 grams per tonne (g/t), including 12.19m grading 3.62 g/t gold in hole 18SMRC-1221
67.06m grading 0.82 g/t, including 13.72m grading 1.22 g/t and 12.19m grading 1.86 g/t gold in hole 18SMRC-1224
16.76m grading 1.03 g/t, including 4.57m grading 2.28 g/t gold in hole 18SMRC-1225
41.15m grading 0.63 g/t, including 10.67m grading 1.32 g/t gold in hole 18SMRC-1226
Significant assay results are summarized in Table 1 appended to this news release.
The results of all six holes included in this first set of assays clearly indicate additional higher grade gold mineralization at
shallow depths, most of which is at less than 100 metres from the surface.
The holes are all located in areas that are proposed to
be mined during the early years (Phase I) under the mine plan developed in the 2017 PEA.
As announced in the news release dated September 13, 2018, the Company has executed a number of work programs during
the year in order to actively advance the Project in multiple technical areas.
These programs were designed to fulfil the
objectives of achieving higher feed grades, lower capital cost and a more robust resource than those assumed in the 2017 PEA.
The initial results appear to support the distinct and welcome possibility for further scaling down from the 2017 mill throughput,
which is expected to potentially reduce the initial capital cost significantly while maintaining the robust economics.
In contrast
with the previously assumed (2012 PEA) throughput of 40,000 tonnes per day for the Project, the 2017 PEA presented a 20,000
tpd scenario focused exclusively on mining the high-grade/ near-surface First Zone resulting in a reduction of initial capital by
$257 million.
The lower throughput case has materially improved all the economic metrics for the Project in spite of a significantly
lower gold price assumption (US $1,250 vs. US $1,462).
Please refer to the Company's website for a detailed comparison of
these two scenarios at:
www.spanishmountaingold.com/project/2017-pea-vs-2012-pea/
Management expects to report the remaining assay results as well as the results of the other programs over the next few months.
Larry Yau, Chief Executive Officer, commented: "We are delighted with this first set of assay results, which clearly sit well with our
objective of converting 'waste' into mill feed in the next mine plan.
Of note, this is the third consecutive drilling program over a
number of years in which we have consistently encountered results with grades higher than 1 g/t over long intercepts at shallow
depths, far exceeding the average grade for the entire resource.
I believe that these results call for a comprehensive
reassessment of the quality of our large resource as well as the economic model for its development.
I look forward to reporting
our progress on multiple fronts in due course."
Judy Stoeterau, P.Geo., the Company's Vice-President of Geology and the qualified person as defined under National
Instrument 43-101, has reviewed the contents of this news release.
All samples were assayed at ALS Global Ltd. in Vancouver,
BC.
The Company has retained Discovery Consultants of Vernon, BC, to independently monitor the quality control and quality
assurance (QC/QA) data on the Spanish Mountain Gold Project.
Analytical precision and accuracy are being measured and
monitored by the use of duplicates, prep and pulp samples and by standards (reference material).
Possible contamination
during the sampling and processing procedures is being monitored by the insertion of blank samples.
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:
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
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
.
Table 1:
Summary of
Significant Assay Results
Hole
From
To
Length
Au g/t
18-SMRC-1221
0.00
10.67
10.67
0.50
including
3.05
6.10
3.05
1.17
and
3.05
4.57
1.52
1.92
18-SMRC-1221
13.72
16.76
3.05
0.46
18-SMRC-1221
19.81
21.34
1.52
0.24
18-SMRC-1221
24.38
51.82
27.43
1.76
including
28.96
41.15
12.19
3.62
and
38.10
41.15
3.05
13.26
and
38.10
39.62
1.52
25.70
18-SMRC-1221
82.30
83.82
1.52
0.47
18-SMRC-1221
89.92
96.01
6.10
0.56
18-SMRC-1221
99.06
102.11
3.05
0.35
18-SMRC-1222
27.43
28.96
1.52
0.24
18-SMRC-1222
32.00
41.15
9.14
0.30
18-SMRC-1222
45.72
47.24
1.52
0.58
18-SMRC-1222
64.01
74.68
10.67
0.38
including
64.01
65.53
1.52
1.31
18-SMRC-1222
77.73
79.25
1.52
0.83
18-SMRC-1222
91.44
92.97
1.52
0.92
18-SMRC-1222
102.11
103.63
1.52
0.20
18-SMRC-1222
106.68
111.25
4.57
0.25
18-SMRC-1222
114.30
115.83
1.52
0.22
18-SMRC-1223
0.00
24.38
24.38
0.39
including
9.14
10.67
1.52
1.56
including
21.34
24.38
3.05
0.97
and
22.86
24.38
1.52
1.26
18-SMRC-1223
30.48
32.00
1.52
0.21
18-SMRC-1223
36.58
44.20
7.62
0.23
18-SMRC-1224
4.57
71.63
67.06
0.8
2
including
4.57
18.29
13.72
1.22
and
6.10
7.62
1.52
1.37
and
12.19
18.29
6.10
1.82
and
12.19
15.24
3.05
2.78
and
12.19
13.72
1.52
4.24
including
22.86
25.91
3.05
1.73
and
22.86
24.38
1.52
3.06
including
35.05
47.24
12.19
1.86
and
44.20
45.72
1.52
4.18
18-SMRC-1225
0.00
16.76
16.76
1.03
including
7.62
12.19
4.57
2.28
18-SMRC-1225
22.86
27.43
4.57
1.23
including
22.86
24.38
1.52
3.31
18-SMRC-1225
45.72
79.25
33.53
0.42
including
68.58
79.25
10.67
0.76
and
68.58
74.68
6.10
1.06
and
68.58
70.10
1.52
2.65
18-SMRC-1225
120.40
121.92
1.52
0.41
18-SMRC-1225
126.49
128.02
1.52
0.44
18-SMRC-1226
6.10
28.96
22.86
0.72
including
12.19
13.72
1.52
2.01
and
16.76
18.29
1.52
1.10
and
27.43
28.96
1.52
1.42
18-SMRC-1226
48.77
89.92
41.15
0.63
including
60.96
67.06
6.10
1.01
and
62.48
67.06
4.57
1.27
including
70.10
80.77
10.67
1.32
including
71.63
74.68
3.05
2.32
18-SMRC-1226
99.06
100.58
1.52
0.31
18-SMRC-1226
112.78
115.82
3.05
0.48