Spanish Mountain Gold Announces Assay Results From 2010 Drilling at Spanish Mountain and Provides Update on Preliminary Economic Assessment (PEA) Gold Mineralization Intersected in Step Out Drilling
Gold Mineralization Intersected in Step Out Drilling
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/04/10 -- Spanish Mountain Gold Ltd. ('the Company') (TSX VENTURE: SPA) is pleased to announce details of assay results received from drill holes completed on the Spanish Mountain gold project in southern central British Columbia this year. Twenty NQ and HQ diameter holes were drilled for exploration, geotechnical and metallurgical purposes. All exploration holes intersected gold mineralization that confirm or extend the known mineralization up to 350 m from the current limits of the Main and North zones.
Significant Drillhole Intercepts
Highlights of assay results include:
-- 26.50 metres (m) grading 1.18 grams per tonne (g/t) gold including 2.25
m grading 5.06 g/t gold in Hole 10-DDH-912 drilled 150 m west of the
Main Zone
-- 29.00 m grading 1.21 g/t gold including 13.00 m grading 2.25 g/t gold in
Hole 10-DDH-918
-- 119.50 m (starting at 5.50 m down the hole) grading 0.74 g/t gold
including 27.00 m grading 1.50 g/t gold and a second zone of 25.50 m
grading 1.56 g/t gold in Hole 10-DDH-902
-- 42.15 m grading 1.15 g/t gold in Hole 10-DDH-915
-- 76.00 m grading 0.87 g/t gold in Hole 10-DDH-906
-- 82.00 m grading 0.62 g/t gold including 12.50 m grading 1.04 g/t gold in
Hole 10-DDH-911
Tables 1 & 2 presenting significant assay intervals and a drill hole location map (Fig. 1) (to view Fig. 1 please click on: http://media3.marketwire.com/docs/spa1104.jpg) are appended to this news release.
Discussion of Results and PEA Update
The exploration holes intersected gold mineralization in areas to the west of the Main zone and north and east of the North Zone. The new intercepts confirmed or extended the known mineralization up to 350 m from these zones. Of particular note is Hole 10-DDH-912 which intersected 26.5 m grading 1.18 g/t gold in an area 150 m west of the Main Zone. The Company is encouraged by these results which would suggest that areas of potential exist west of the Main Zone and around the North Zone. Further drilling is warranted in these areas.
Brian Groves, President and CEO, stated: 'The exploration drilling was successful in demonstrating that the potential exists to expand the areas of mineralization to the east and west. Additional drilling will be done in 2011 to better define the continuity of mineralization in these areas.'
The holes completed for geotechnical and metallurgical purposes were drilled within the Main and North Zones of gold mineralization. The results are consistent with those from previous drilling within the known mineralized areas and will be included in the PEA for the Spanish Mountain gold project. The economic model for the project will be released in November 2010. The full report is scheduled for release in December 2010 and is expected to incorporate tailing facilities that do not impact any lakes or streams in the project areas.
All core samples were fire assayed at ALS Chemex Laboratory in Vancouver, BC. Stuart Morris, P. Geo, the Company's Vice-President, Development Geology is a qualified person as defined under National Instrument 43-101 and has reviewed the contents of this news release.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd. is focused on the responsible development of its flagship Spanish Mountain gold project in southern central British Columbia. The Company has no debt and owns 100% of all four gold properties located in British Columbia. Additional information about the Company is available on its website www.spanishmountaingold.com.
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD.
Brian Groves, President and CEO
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 - including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological and metallurgical data, risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses -- 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 SEDAR (see www.sedar.com). Forward-looking statements can often be identified by the use of words such as 'plans', 'expects', 'is expected', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'believes' or variations (including negative variations) of such words and phrases. 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.
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Table 1: Significant Exploration Results-Spanish Mountain Gold Project
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Length Au Ag
Hole From To (m) (g/t) (g/t) Size Area Purpose
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10-DDH-901 273.5 290.0 16.5 0.87 0.86 NQ 90m West of Exploration
Main Zone
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10-DDH-906 178.0 220.0 42.0 0.41 0.59 NQ 40m Southwest Exploration
of North Zone
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----------------------------------------------------------------------------
10-DDH-906 242.5 318.5 76.0 0.87 0.90 NQ
---------------------------------------------
including 246.3 247.0 0.8 30.40 1.80 NQ 40m Southwest
---------------------------------- of Exploration
294.8 295.5 0.8 13.70 26.80 NQ North Zone
----------------------------------
301.5 302.3 0.8 12.00 5.90 NQ
----------------------------------------------------------------------------
----------------------------------------------------------------------------
10-DDH-907 138.0 193.0 55.0 0.43 0.87 NQ
--------------------------------------------- 100m Southwest
including 162.0 178.0 16.0 1.06 0.48 NQ of Exploration
---------------------------------- North Zone
176.5 178.0 1.5 7.17 0.60 NQ
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10-DDH-910 148.2 171.0 22.8 0.46 0.45 NQ 350m West of Exploration
Main Zone
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10-DDH-910 286.9 326.0 39.1 0.43 0.55 NQ 350m West
--------------------------------------------- of Exploration
including 286.9 291.7 4.8 2.27 0.67 NQ Main Zone
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10-DDH-912 343.5 370.0 26.5 1.18 0.37 NQ 150m West
--------------------------------------------- of Exploration
including 357.3 359.5 2.3 5.06 1.02 NQ Main Zone
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10-DDH-913 397.5 300.8 3.3 0.98 0.25 NQ 15m Northwest Exploration
of North Zone
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10-DDH-914 118.0 137.5 19.5 0.45 0.42 NQ 290m East of Exploration
North Zone
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10-DDH-916 46.0 98.5 52.5 0.31 1.17 NQ 110m Southeast Exploration
of North Zone
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Table 2: Significant Metallurgical & Geotechnical Results-Spanish Mountain
Gold Project
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Length Au Ag
Hole From To (m) (g/t) (g/t) Size Area Purpose
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10-DDH-899 228.2 230.0 1.8 1.03 1.10 HQ Main Zone Metallurgical
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10-DDH-900 297.5 300.5 3.0 2.21 1.35 HQ Main Zone Metallurgical
----------------------------------------------------------------------------
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10-DDH-902 5.5 125.0 119.5 0.74 1.06 HQ3
---------------------------------------------
including 5.5 7.5 2.0 4.16 3.00 HQ3 Main Zone Geotechnical
----------------------------------
44.0 71.0 27.0 1.50 0.73 HQ3
----------------------------------------------------------------------------
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10-DDH-902 166.0 191.5 25.5 1.56 0.85 HQ3
--------------------------------------------- Main Zone Geotechnical
including 172.0 173.5 1.5 12.30 5.00 HQ3
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10-DDH-902 244.5 249.3 4.8 1.22 0.66 HQ3 Main Zone Geotechnical
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10-DDH-904 64.0 67.5 3.5 1.45 1.04 HQ North Zone Metallurgical
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10-DDH-904 162.5 224.6 62.1 0.40 0.72 HQ North Zone Metallurgical
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10-DDH-911 55.5 137.5 82.0 0.62 0.49 HQ3
--------------------------------------------- East boundary
including 89.5 102.0 12.5 1.04 0.74 HQ3 of Geotechnical
---------------------------------- Main Zone
118.5 120.0 1.5 15.70 1.20 HQ3
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10-DDH-911 301.0 355.0 54.0 0.53 0.69 HQ3 East boundary
--------------------------------------------- of Geotechnical
including 335.5 340.0 4.5 1.62 1.27 HQ3 Main Zone
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10-DDH-915 44.0 86.2 42.2 1.15 0.83 HQ3 Northeast Geotechnical
boundary of
Main Zone
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10-DDH-915 208.5 264.5 56.0 0.34 0.75 HQ3 Northeast
--------------------------------------------- boundary of Geotechnical
including 249.5 254.0 4.5 1.97 1.13 HQ3 Main Zone
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10-DDH-918 32.5 61.5 29.0 1.21 0.96 HQ3 East
--------------------------------------------- of Geotechnical
including 34.5 47.5 13.0 2.25 1.52 HQ3 North Zone
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Spanish Mountain Gold Ltd.
Brian Groves
(604) 601-3651
info@spanishmountaingold.com
www.spanishmountaingold.com
B&D Capital Partners
(604) 685-6465