Vancouver, British Columbia--(Newsfile Corp. - January 24, 2024) - Spanish Mountain Gold Ltd. (the "Company" or "Spanish Mountain Gold") (TSX-V: SPA) is pleased to announce a new metallurgical test program and assay results from the 2022 metallurgical drill program for its Spanish Mountain Gold Project ("Project") located in the Cariboo Gold Corridor near Likely, British Columbia, Canada.
A new metallurgical test program has been scoped and tendered to assess the potential benefits and flowsheet improvements using coarse ore floatation. The Company anticipates to award and begin testing later in Q1 2024. The program will include using the 2022 metallurgical diamond drill hole samples. The results of the test program will provide inputs for the Whittle Enterprise Optimization.
Peter Mah, Spanish Mountain Gold's President, CEO and Director comments, "We are excited about this new program which may show that a coarser grind decreases power consumption, improves downstream processes such as tailings and water management, and favourably impacts costs and production."
Metallurgical Drill Result Highlights
- 0.77 grams per tonne ("g/t") gold ("Au") over 56.6 metres ("m") from 119.4 m in drill hole 22-DH-1259
- 0.59 g/t Au over 99.5 m from 3.0 m, in drill hole 22-DH-1261
- 1.03 g/t Au over 101.5 m from 15.0 m in drill hole 22-DH-1262
- 0.79 g/t Au over 76.0 m from 20.0 m in drill hole 22-DH-1263
Drill Program Summary
The drill program consisted of five (5) HQ2 diamond drill holes totaling 1,026 m. The drill holes were collared at specific locations within the 2021 Prefeasibility Study Report ("PFS") defined pit Main Zone area designed to maximize the mineralized intercepts within the major geometallurgical domains to provide optimal samples for the metallurgical test work. The mineralized intervals were calculated on downhole weighted gold assay results using parameters from the PFS mineral resource estimate including a cut-off grade of 0.15 g/t Au and a minimum five (5) m width.
Drill hole collar locations are shown in Figure 1 and the details are provided in Table 1. Significant mineralized interval assay results are summarized in Table 2.
Figure 1: Drill hole location
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Table 1: Drill Hole Collar Details
| Hole_ID | NAD83z10 East (m) | NAD83z10 North (m) | Elevation (m) | Dip (°) | Azimuth (°) | Final Depth (m) |
| 22-DH-1259 | 604304.04 | 5827733.04 | 1178.19 | -82 | 000 | 176 |
| 22-DH-1260 | 604518.57 | 5827597.24 | 1193.77 | -64 | 270 | 221 |
| 22-DH-1261 | 604394.83 | 5827798.92 | 1147.70 | -90 | 000 | 244 |
| 22-DH-1262 | 604556.30 | 5827811.76 | 1126.09 | -85 | 270 | 191 |
| 22-DH-1263 | 604501.73 | 5827729.33 | 1158.60 | -85 | 270 | 194 |
Table 2: Summary of Significant Assay Results
| Hole | From | To | Interval | Au (g/t) | Ag (g/t) | ||
| 22-DH-1259 | 13.50 | 19.50 | 6.00 | 0.31 | 0.25 | ||
| 22-DH-1259 | 51.50 | 58.00 | 6.50 | 0.92 | 0.32 | ||
| Including | 56.00 | 57.00 | 1.00 | 4.74 | 0.25 | ||
| 22-DH-1259 | 65.00 | 70.40 | 5.40 | 0.23 | 0.33 | ||
| 22-DH-1259 | 85.65 | 93.00 | 7.35 | 0.15 | 0.29 | ||
| 22-DH-1259 | 100.50 | 105.50 | 5.00 | 0.41 | 0.50 | ||
| Including | 104.50 | 105.50 | 1.00 | 1.66 | 0.80 | ||
| 22-DH-1259 | 119.40 | 176.00 | 56.60 | 0.77 | 0.91 | ||
| Including | 123.50 | 124.50 | 1.00 | 1.03 | 1.30 | ||
| and | 130.50 | 145.00 | 14.50 | 1.44 | 1.32 | ||
| and | 163.00 | 164.00 | 1.00 | 2.53 | 2.40 | ||
| and | 172.00 | 176.00 | 4.00 | 1.83 | 1.10 | ||
| 22-DH-1260 | 8.00 | 24.50 | 16.50 | 0.54 | 0.69 | ||
| Including | 8.00 | 9.00 | 1.00 | 1.71 | 1.20 | ||
| 22-DH-1260 | 49.00 | 54.00 | 5.00 | 0.62 | 0.65 | ||
| Including | 51.00 | 52.00 | 1.00 | 1.09 | 1.10 | ||
| 22-DH-1260 | 76.00 | 83.00 | 7.00 | 0.44 | 0.76 | ||
| Including | 77.00 | 78.00 | 1.00 | 1.12 | 1.30 | ||
| 22-DH-1260 | 98.00 | 104.00 | 6.00 | 1.11 | 0.60 | ||
| Including | 101.00 | 103.00 | 2.00 | 2.11 | 1.08 | ||
| 22-DH-1260 | 109.00 | 126.00 | 17.00 | 0.21 | 0.49 | ||
| Including | 115.00 | 116.00 | 1.00 | 1.33 | 0.70 | ||
| 22-DH-1260 | 204.00 | 217.00 | 13.00 | 0.23 | 0.77 | ||
| 22-DH-1261 | 3.00 | 102.50 | 99.50 | 0.59 | 0.57 | ||
| Including | 12.00 | 13.00 | 1.00 | 1.49 | 0.25 | ||
| and | 25.00 | 35.00 | 10.00 | 1.03 | 0.51 | ||
| and | 48.00 | 50.00 | 2.00 | 1.06 | 0.65 | ||
| and | 62.00 | 64.00 | 2.00 | 1.65 | 1.00 | ||
| and | 70.00 | 73.00 | 3.00 | 1.26 | 0.33 | ||
| and | 78.00 | 83.33 | 5.33 | 1.13 | 0.72 | ||
| and | 92.50 | 97.00 | 4.50 | 1.69 | 1.01 | ||
| 22-DH-1261 | 114.00 | 130.00 | 16.00 | 0.32 | 0.68 | ||
| Including | 127.00 | 128.00 | 1.00 | 1.16 | 1.10 | ||
| 22-DH-1261 | 139.00 | 153.50 | 14.50 | 0.62 | 0.51 | ||
| Including | 143.00 | 144.00 | 1.00 | 1.78 | 0.25 | ||
| and | 149.00 | 153.50 | 4.50 | 1.13 | 0.95 | ||
| 22-DH-1261 | 158.50 | 165.50 | 7.00 | 0.65 | 0.34 | ||
| Including | 162.50 | 163.50 | 1.00 | 2.55 | 0.50 | ||
| 22-DH-1261 | 179.00 | 188.00 | 9.00 | 0.49 | 0.75 | ||
| Including | 179.00 | 180.00 | 1.00 | 1.12 | 0.80 | ||
| and | 182.00 | 183.00 | 1.00 | 1.49 | 1.90 | ||
| 22-DH-1261 | 199.00 | 242.00 | 43.00 | 0.47 | 0.72 | ||
| Including | 206.00 | 210.00 | 4.00 | 1.92 | 2.10 | ||
| and | 234.00 | 238.00 | 4.00 | 1.07 | 1.00 | ||
| 22-DH-1262 | 15.00 | 116.50 | 101.50 | 1.03 | 1.02 | ||
| Including | 35.80 | 37.00 | 1.20 | 32.2 | 2.60 | ||
| and | 37.00 | 38.00 | 1.00 | 1.30 | 1.00 | ||
| and | 55.00 | 61.00 | 6.00 | 2.66 | 0.93 | ||
| and | 70.00 | 72.00 | 2.00 | 1.58 | 0.75 | ||
| and | 83.00 | 101.00 | 18.00 | 1.63 | 1.31 | ||
| 22-DH-1262 | 143.00 | 152.00 | 9.00 | 0.56 | 0.64 | ||
| Including | 144.00 | 146.00 | 2.00 | 1.20 | 0.90 | ||
| and | 147.00 | 148.00 | 1.00 | 1.12 | 1.10 | ||
| 22-DH-1262 | 159.00 | 189.00 | 30.00 | 0.42 | 0.56 | ||
| Including | 167.00 | 168.00 | 1.00 | 3.40 | 1.30 | ||
| 22-DH-1263 | 3.00 | 13.00 | 10.00 | 0.22 | 2.08 | ||
| 22-DH-1263 | 20.00 | 96.00 | 76.00 | 0.79 | 0.63 | ||
| Including | 24.00 | 26.00 | 2.00 | 2.89 | 1.25 | ||
| and | 38.00 | 40.00 | 2.00 | 2.88 | 2.70 | ||
| and | 55.00 | 75.05 | 20.05 | 1.62 | 0.92 | ||
| 22-DH-1263 | 103.00 | 129.00 | 26.00 | 0.85 | 0.68 | ||
| Including | 114.00 | 125.00 | 11.00 | 1.42 | 0.80 | ||
| 22-DH-1263 | 135.00 | 140.50 | 5.50 | 0.88 | 0.86 | ||
| Including | 137.00 | 138.00 | 1.00 | 3.96 | 2.40 |
For a table of all assay results, click HERE.
Drill Core Processing and Quality Assurance - Quality Control Program
Atlas Drilling Ltd. of Kamloops, BC were contracted to undertake the drill program. Drill core was emptied into core boxes directly from the core tube at the drill site for every three (3) m run and the core boxes securely delivered to the Spanish Mountain Gold core shack facility at the end of every shift. The core is measured for recovery and this information is logged along with other geotechnical data. Any discrepancies with the drill shift report are noted and rectified. The Company is not aware of any drilling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to in this new release.
The drill core processing was conducted by Discovery Consultants of Vernon, BC under the supervision of the Company's Exploration Manager. The drill core was geologically logged to identify lithologies, structure and the gold mineralized zones. Sample intervals of nominally one (1) m were selected based on the geological logging and are allocated unique sample number tickets and marked for cutting. The geological and sample logging data was collated and verified by the Company.
The sample intervals are cut in halves using a purpose-built diamond blade rock saw. Half core samples were collected in labelled bags and the other half remains in the original core box stored on site. Quality control (QC) samples including certified reference material standards, blanks and duplicates are inserted into the sample sequence at regular intervals on a rotating basis to monitor laboratory performance and provide quality assurance (QA) of the assay results. Sample bags are securely shipped to the lab labelled with Company and lab contact information to ensure sample security and chain of custody during transport.
The samples were submitted to the ALS Geochemistry lab in Vancouver, BC for preparation and assaying. The entire sample is crushed to 70% passing -2 millimeters and a 1,000 gram aliquot is split and pulverized to 85% passing -75 microns. Analysis for gold was by metallic screen fire assay and Atomic Absorption (AA) finish. A suite of 30 other elements were analyzed by four acid digest digestion Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES). ALS Canada Ltd. is accredited by the Standards Council of Canada and is an ISO/IEC 9001:2015 and 17025:2017 certified analytical laboratory in North America. ALS Geochemistry is independent of the Company.
When the assay lab certificate of analysis were received, the QA / QC data was assessed for accuracy and precision of the results and, if found to be within certain parameters, the assay data was accepted as final and merged with the other down hole drill hole logging data for further interpretation.
Qualified Person
Troy Gill, MAIG, Vice President Exploration for Spanish Mountain Gold Ltd., is the Qualified Person as defined under National Instrument 43-101 who reviewed and approved the contents, and verified the data disclosed in this news release.
About Spanish Mountain Gold Ltd.
Spanish Mountain Gold is advancing it's 100% owned Spanish Mountain Gold project towards construction of the next gold mine in the Cariboo Gold Corridor, British Columbia. Our immediate focus is to conduct an integrated Whittle Enterprise Optimization to identify 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 and will add to this leadership position by leveraging technology and innovation to build the 'greenest' gold mine in Canada. Our goal for the Spanish Mountain Gold project is to reset the bar for lowering open pit gold mining carbon intensity and greenhouse gas emissions while contributing to the circular economies of the region.
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:
Investor Relations
(604) 601-3651
info@spanishmountaingold.com
www.spanishmountaingold.com
Neither 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 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", "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 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 affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward looking statements and information.
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