Spanish Mountain Gold Announces Assay Results From Spanish Mountain & Drilling at Thunder Ridge Nears Completion
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/28/10 -- Spanish Mountain Gold Ltd. ('the Company') (TSX VENTURE: SPA) announces details of assay results received from twenty four large-diameter (HQ) drill holes completed on the Spanish Mountain Gold Project in southern central British Columbia. Most of the holes were drilled to a depth of 150 metres (m) with the deepest to 160 m. The drilling was completed in late 2009 in a known area of near-surface higher grade gold mineralization. The samples from these holes are also being used for ongoing metallurgical test work being carried out at G&T Metallurgical Laboratory in Kamloops, British Columbia. Work to date has continued to confirm that gold recoveries of 90% can be achieved by a conventional process utilizing flotation and Carbon-in-Leach processing of the concentrate. All core samples were fire assayed at ALS Chemex Laboratory in Vancouver, British Columbia.
The Company also announces that drilling of seven holes at Thunder Ridge is underway and should be completed within one week.
Spanish Mountain Project Highlights
Highlights of assay results include:
-- 40.0 metres (m) grading 1.19 g/t gold including 8.0 m grading 2.25 g/t
gold in Hole 09-DDH-892.
-- 27.5 m (starting at 38.0 m down the hole) grading 1.56 g/t gold
including 17.0 m grading 2.29 g/t gold in Hole 09-DDH-891.
-- 55.5 m grading 0.93 g/t gold including 12.0 m grading 1.71 g/t gold in
Hole 09-DDH-871.
-- 39.5 m (starting at 14.5 m down the hole) grading 1.18 g/t gold
including 8.0 m grading 2.35 g/t gold and a second interval of 27.0m
grading 0.87 g/t gold including 10.5 m grading 1.35 g/t gold in Hole 09-
DDH-886.
-- 20.0 m grading 1.30 g/t gold including 3.0 m grading 5.39 g/t gold in
Hole 09-DDH- 888 and,
-- 56.5 m (starting at 39.0 m down the hole) grading 0.81 g/t gold
including 12.5 m grading 1.66 g/t gold in Hole 09-DDH-896.
Significant assay results are contained in the table (Table 1) appended to this news release.
These results confirm the presence of a near-surface higher grade area of gold mineralization within the Main Zone, which is being assessed as the economically advantageous location for a potential starter pit. The Company will incorporate these results and the results from other holes drilled in 2009 into an updated geological model as part of the current Preliminary Economic Assessment ('PEA') (See Company News Release dated June 23, 2010). The PEA is progressing as planned and the Company expects delivery of the final report in the fourth quarter of this year.
The core from five additional HQ drill holes completed this spring has been shipped to SGS Lakefield in Ontario for test work designed to provide detailed information for crushing and grinding circuit design.
The Company anticipates that the current drilling programme at Spanish Mountain will be completed in August and assay results should be available in September.
Thunder Ridge Project Highlights
The Thunder Ridge property is located approximately 100 km south of Spanish Mountain and the Company has completed 23 holes to date. The current programme comprises seven holes for a total of approximately 1,700 m. All assay results from this drilling are expected in September.
Stuart Morris, P.Geo., the Company's VP, Development Geology is a qualified person (as defined in NI 43-101) and has reviewed the contents of this news release.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd is focused on advancing its flagship Spanish Mountain gold project in central southern British Columbia. The Company has a current cash position of approximately $5.0 million and has applied for Mineral Exploration Tax Credit refund from the Province of British Columbia totaling $1.9 million. These funds are expected to be received in the third quarter of 2010.
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD.
Brian Groves, President and CEO
Table 1: Significant Assay Results
------------------------------------------------------------------------
Drill Hole Core size From To Width (m) Gold g/t
------------------------------------------------------------------------
09-DDH-869 HQ 79.5 84.5 5 0.63
------------------------------------------------------------------------
and 89 102.5 13.5 0.38
------------------------------------------------------------------------
and 107 141 34 0.95
------------------------------------------------------------------------
Including 108.5 110 1.5 3.59
------------------------------------------------------------------------
Including 118 121 3 3.51
------------------------------------------------------------------------
Including 124 129 5 1.39
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-870 HQ 8.5 11.5 3 0.73
------------------------------------------------------------------------
and 34 41.5 7.5 0.34
------------------------------------------------------------------------
and 47.5 64.5 17 0.37
------------------------------------------------------------------------
and 76.5 85 8.5 1.19
------------------------------------------------------------------------
Including 76.5 81.5 5 1.68
------------------------------------------------------------------------
and 107.5 138 30.5 0.97
------------------------------------------------------------------------
Including 112 113.5 1.5 6.70
------------------------------------------------------------------------
Including 127 128.5 1.5 6.29
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-871 HQ 46 101.5 55.5 0.93
------------------------------------------------------------------------
Including 50.5 59.5 9 1.45
------------------------------------------------------------------------
Including 67 79 12 1.71
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-872 HQ 40 48 8 0.85
------------------------------------------------------------------------
and 54 70 16 0.55
------------------------------------------------------------------------
Including 61.5 64 2.5 1.31
------------------------------------------------------------------------
and 80.5 125 44.5 0.72
------------------------------------------------------------------------
Including 94 104.5 10.5 1.30
------------------------------------------------------------------------
and 132.5 139 6.5 1.17
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-873 HQ 65.5 86.5 21 0.52
------------------------------------------------------------------------
Including 67 68.5 1.5 1.60
------------------------------------------------------------------------
and 95.5 115 19.5 0.46
------------------------------------------------------------------------
Including 113.5 115 1.5 1.61
------------------------------------------------------------------------
and 122.5 131.5 9 0.37
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-874 HQ 63.5 69.5 6 0.35
------------------------------------------------------------------------
and 93.5 111.5 18 0.46
------------------------------------------------------------------------
Including 110 111.5 1.5 1.25
------------------------------------------------------------------------
and 119 153 34 0.53
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-875 HQ 18 32.5 14.5 0.36
------------------------------------------------------------------------
Including 31 32.5 1.5 1.52
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-876 HQ 95.5 107.5 12 1.24
------------------------------------------------------------------------
Including 95.5 97 1.5 6.20
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-878 HQ 6.1 13 6.9 1.16
------------------------------------------------------------------------
and 96.5 114.5 18 0.68
------------------------------------------------------------------------
Including 96.5 98.5 2 2.93
------------------------------------------------------------------------
123.5 134.5 11 0.48
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-880 HQ 82 119.5 37.5 0.73
------------------------------------------------------------------------
Including 88 89.5 1.5 10.90
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-881 HQ 43.5 63.5 20 2.06
------------------------------------------------------------------------
Including 43.5 45 1.5 24.30
------------------------------------------------------------------------
and 93.5 111.5 18 0.64
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-882 HQ 8.5 17.5 9 1.14
------------------------------------------------------------------------
and 89 98 9 0.76
------------------------------------------------------------------------
and 122 134 12 0.71
------------------------------------------------------------------------
Including 128 129.5 1.5 2.10
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-883 HQ 23 32 9 1.05
------------------------------------------------------------------------
Included 26 30.5 4.5 1.46
------------------------------------------------------------------------
and 51.5 56 4.5 0.77
------------------------------------------------------------------------
and 65 72.5 7.5 1.18
------------------------------------------------------------------------
Including 71 72.5 1.5 4.21
------------------------------------------------------------------------
and 101 110 9 0.49
------------------------------------------------------------------------
and 128.5 151.49 22.99 0.63
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-886 HQ 14.5 54 39.5 1.18
------------------------------------------------------------------------
Including 19 27 8 2.35
------------------------------------------------------------------------
Including 34.5 39 4.5 2.53
------------------------------------------------------------------------
and 64.5 69 4.5 1.04
------------------------------------------------------------------------
and 88.5 91.5 3 0.68
------------------------------------------------------------------------
and 103.5 130.5 27 0.87
------------------------------------------------------------------------
Including 103.5 108 4.5 1.52
------------------------------------------------------------------------
Including 120 130.5 10.5 1.35
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-887 HQ 79 85 6 0.54
------------------------------------------------------------------------
and 95.5 103.5 8 1.14
------------------------------------------------------------------------
and 135 145.5 10.5 0.51
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-888 HQ 41.5 64 22.5 0.37
------------------------------------------------------------------------
Including 52 55 3 1.11
------------------------------------------------------------------------
and 79 101.5 22.5 0.50
------------------------------------------------------------------------
and 130 150 20 1.30
------------------------------------------------------------------------
Including 147 150 3 5.39
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-891 HQ 26 33.5 7.5 0.61
------------------------------------------------------------------------
and 38 65.5 27.5 1.56
------------------------------------------------------------------------
Including 48.5 65.5 17 2.29
------------------------------------------------------------------------
and 71.5 114 42.5 0.52
------------------------------------------------------------------------
and 133.5 148.5 15 0.57
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-892 HQ 73 113 40 1.19
------------------------------------------------------------------------
Including 73 79 6 2.16
------------------------------------------------------------------------
Including 90 97.5 7.5 1.28
------------------------------------------------------------------------
Including 102 110 8 2.25
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-893 HQ 48 57.5 9.5 0.95
------------------------------------------------------------------------
and 78.5 90.5 12 0.73
------------------------------------------------------------------------
and 102.5 117 14.5 1.21
------------------------------------------------------------------------
Including 104 107 3 2.71
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-894 HQ 21.5 39.5 18 1.22
------------------------------------------------------------------------
Including 32 38 6 2.63
------------------------------------------------------------------------
and 48.5 68.5 20 0.93
------------------------------------------------------------------------
Including 50.5 55 4.5 1.54
------------------------------------------------------------------------
and 73 100 27 0.51
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-895 HQ 16.5 66 49.5 0.76
------------------------------------------------------------------------
Including 36 42 6 1.94
------------------------------------------------------------------------
and 84 96 12 1.13
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-896 HQ 12 22.5 10.5 0.73
------------------------------------------------------------------------
and 39 95.5 56.5 0.81
------------------------------------------------------------------------
Including 57 69.5 12.5 1.66
------------------------------------------------------------------------
and 133.5 138 4.5 0.63
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-897 HQ 56.5 92.5 36 0.68
------------------------------------------------------------------------
Including 86.5 89.5 3 1.89
------------------------------------------------------------------------
------------------------------------------------------------------------
09-DDH-898 HQ 71 103 32 0.56
------------------------------------------------------------------------
Including 93.5 98 4.5 1.26
------------------------------------------------------------------------
This news release may contain certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. Actual results and future events could differ materially from those anticipated in such statements. 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 with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Spanish Mountain Gold Ltd.
Brian Groves
President and CEO
(604) 601-3651
info@spanishmountaingold.com
www.spanishmountaingold.com
B&D Capital Partners
(604) 685-6465