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Spanish Mountain Gold (SPA.TSXV) announced plans to proceed with a Feasibility Study (FS) for its Spanish Mountain Gold Project in central British Columbia, Canada. The emerging gold Company reported that it will retain the same team of professionals, led by Tetra Tech (formerly Wardrop) as Project Manager, to complete a National Instrument 43-101 compliant feasibility study, by the third quarter of 2013.
Spanish Mountain Gold began a Pre-Feasibility study (PFS) on the Project in August 2011 and noted that it may choose to initiate a FS without prior completion of the PFS. In light of the recent discovery of the Phoenix Zone – located approximately two kilometers west of the Main Zone within the Project area – the Company believes that the optimal strategy is to quantify and include the new Phoenix zone in the Project’s economic studies without adversely impacting the schedules for the completion of the FS and the subsequent potential mine development.
Highlights:
* Prior to the completion of the definitive FS, the Company expects to provide a technical report during the third quarter of 2012 that will refine the estimates of capital and operating costs forming the basis for the Preliminary Economic Assessment completed in December, 2010
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* In conjunction with the ongoing economic assessment of the Project, the Spanish Mountain Gold has started in-fill drilling of the Main Zone with the objective of enabling a further re-classification of the multi-million ounce inferred resource to the measured and indicated categories
* The Company also plans to further define the Phoenix Zone with an initial drill program totalling approximately 15,000 meters with the aim of publishing an initial resource statement for this deposit in the inferred category within the next six months
Brian Groves, President and CEO stated: “The discovery of the Phoenix Zone in the Cedar Creek area has the potential to significantly enhance the economic robustness of the Project. We are focused on defining the financial impact of the discovery of Phoenix for the Project and for shareholders. It is a rare occurrence to both discover a new zone of mineralization at this stage of project development and to have the financial resources to demonstrate the value of the discovery.”
Paul Dietrich, Foxhall Capital Management:
“This Canadian gold mining development company… has, by my calculations, some of the cheapest in-the-ground gold in the world that is located in a politically stable country.”
