Spanish Mountain Gold Reports Completion of In-fill Drilling Program in Main Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/12/11 -- Spanish Mountain Gold Ltd. ('the Company') (TSX VENTURE: SPA) is pleased to announce the results from the final group of drill holes completing the in-fill drilling program within the Main and North Zones of its Spanish Mountain Gold Project (the 'Project') located in central British Columbia, Canada. The results from the in-fill drilling program are designed to provide additional information to enable a re-classification from the Inferred to Measured and Indicated categories for gold contained within the Main and North Zones of mineralization at the Project. The program was designed to also test for extensions to gold mineralization laterally and at depth. The results of the drilling conducted to date continue to confirm the continuity of potentially economic mineralization in areas presently classified as inferred resources.
Brian Groves, President and CEO, said today, 'With the completion of the in-fill drilling program and new geological model, the Company will now focus on integrating the forthcoming updated resource estimate in the pre-feasibility study currently underway for the Project. We are encouraged by the presence of areas of higher grade gold mineralization at depth as indicated in holes such as DDH-988.'
Highlights of Drilling Results include:
MAIN ZONE HIGHLIGHTS:
-- 39.50m grading 1.09g/t gold in hole 11-DDH-965
-- 61.00m grading 0.65g/t gold in hole 11-DDH-987.
-- 70.29m grading 0.53g/t gold, a second interval of 45.50m grading 0.54g/t
gold and a third interval of 39.00m grading 0.96g/t gold in hole 11-DDH-
963.
-- 34.50m grading 0.82g/t gold in hole 11-DDH-974.
-- 30.00m grading 0.77g/t gold in hole 11-DDH-979.
-- 116.50m grading 0.36g/t gold and a second interval of 45.00m grading
0.42 g/t gold in hole 11-DDH-964.
-- 102.00m grading 0.33g/t gold and 9.00m grading 1.32 g/t gold (near
bottom of hole) in hole 11-DDH-988.
NORTH ZONE HIGHLIGHTS:
-- 82.50m grading 0.54g/t gold in hole 11-DDH-966
-- 50.00m grading 0.62g/t gold in hole 11-DDH-968.
-- 57.50m grading 0.41g/t in hole 11-DDH-972.
Significant assay results are contained in Table 1 appended to this news release.
Discussion of Results
The 2011 drilling program on the Main and North Zones of the Spanish Mountain gold deposit has now been completed. The program was designed primarily to provide in-fill data for an updated resource calculation. The results from new zones of mineralization that have been encountered during this program will be included in the updated model. An updated geological model has been completed and will serve as the basis for the updated resource estimate to be completed in late October.
Drilling of additional holes is underway to provide geotechnical data that will enable the optimization of pit wall slopes for conceptual open pit designs within the ongoing Pre-feasibility study for the Project.
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 core samples are assayed at ALS Chemex Laboratory in Vancouver, BC.
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, Canada. The Company has more than $20 million in working capital, has no debt and owns 100% of 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 statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as 'may', 'should', 'expects', 'plans', 'anticipates', believes', 'estimates', 'predicts', 'potential', or 'continue' or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Management has assumed that these will be our major projects going forward. Risks include that we are unable to satisfy environmental or other regulators, that we determine that our resources are not commercially viable, or that we have difficulties due to unavailability of labour or equipment.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.
Table 1: Significant Assay Results
(i)Under the Area Column: MZ = Main Zone; NZ = North Zone; Expl =
Exploration/ Step-out Hole
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Length
Hole From To (m) Au g/t Area(i)
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11-DDH-962 98.00 135.50 37.50 0.33 MZ
including 98.00 105.50 7.50 0.66 MZ
and 98.00 99.50 1.50 1.29 MZ
and 123.50 135.50 12.00 0.50 MZ
and 134.00 135.50 1.50 2.77 MZ
11-DDH-962 188.70 232.87 44.17 0.34 MZ
including 211.50 212.25 0.75 1.61 MZ
and 225.00 232.87 7.87 0.94 MZ
and 229.50 232.87 3.37 1.14 MZ
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11-DDH-963 6.71 77.00 70.29 0.53 MZ
including 6.71 13.50 6.79 1.48 MZ
and 33.50 35.00 1.50 1.05 MZ
and 45.50 50.25 4.75 1.47 MZ
and 75.50 77.00 1.50 1.14 MZ
11-DDH-963 107.00 152.50 45.50 0.54 MZ
including 116.00 117.50 1.50 1.92 MZ
and 134.00 135.50 1.50 3.14 MZ
and 151.00 152.50 1.50 1.45 MZ
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11-DDH-963 209.00 248.00 39.00 0.96 MZ (Capped to 10g/t Gold)
including 227.69 229.00 1.31 38.80 MZ
and 237.75 238.50 0.75 7.44 MZ
11-DDH-963 288.95 311.00 22.05 0.45 MZ
including 288.95 293.50 4.55 1.34 MZ
11-DDH-963 323.37 324.50 1.13 2.17 MZ
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11-DDH-964 11.50 128.00 116.50 0.36 MZ
including 64.50 113.50 49.00 0.53 MZ
and 69.00 70.50 1.50 1.13 MZ
and 79.50 84.00 4.50 1.70 MZ
11-DDH-964 148.75 149.50 0.75 26.10 MZ
11-DDH-964 164.00 188.00 24.00 0.82 MZ
including 164.00 165.25 1.25 1.27 MZ
and 172.50 188.00 15.50 1.14 MZ
11-DDH-964 236.00 281.00 45.00 0.42 MZ
including 257.25 258.00 0.75 3.72 MZ
and 274.50 279.50 5.00 1.32 MZ
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11-DDH-965 6.71 24.00 17.29 0.38 MZ
including 22.50 24.00 1.50 1.39 MZ
11-DDH-965 43.50 58.50 15.00 0.89 MZ
11-DDH-965 102.50 106.50 4.00 1.27 MZ
11-DDH-965 202.00 241.50 39.50 1.09 MZ
including 229.00 229.75 0.75 7.20 MZ
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11-DDH-966 6.71 38.50 31.79 0.59 NZ
including 8.50 14.50 6.00 1.38 NZ
and 17.00 18.50 1.50 1.15 NZ
and 35.50 37.00 1.50 1.16 NZ
11-DDH-966 143.50 226.00 82.50 0.54 NZ
including 158.00 159.50 1.50 1.07 NZ
and 168.50 173.50 5.00 1.83 NZ
and 200.00 206.50 6.50 1.48 NZ
and 216.50 218.00 1.50 1.18 NZ
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11-DDH-967 3.05 15.50 12.45 0.36 NZ
including 9.50 11.00 1.50 1.08 NZ
11-DDH-967 159.50 173.00 13.50 0.74 NZ
including 164.00 171.50 7.50 1.11 NZ
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11-DDH-968 14.50 15.78 1.28 1.13 NZ
11-DDH-968 59.50 109.50 50.00 0.62 NZ
including 88.00 89.50 1.50 2.13 NZ
and 94.00 95.50 1.50 1.39 NZ
and 108.00 109.50 1.50 7.51 NZ
11-DDH-968 125.50 173.00 47.50 0.33 NZ
including 171.50 173.00 1.50 1.37 NZ
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11-DDH-969 86.50 113.50 27.00 0.36 NZ
including 92.50 94.00 1.50 1.07 NZ
11-DDH-969 182.50 184.00 1.50 1.29 NZ
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11-DDH-970 83.00 102.00 19.00 0.57 NZ
including 83.00 84.50 1.50 1.35 NZ
and 89.00 90.50 1.50 1.38 NZ
11-DDH-971 20.50 22.00 1.50 1.63 NZ
11-DDH-971 40.00 56.00 16.00 0.67 NZ
including 53.50 56.00 2.50 1.80 NZ
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11-DDH-972 41.00 98.50 57.50 0.41 NZ
including 41.00 42.50 1.50 2.90 NZ
and 50.50 52.00 1.50 1.08 NZ
and 97.00 98.50 1.50 1.35 NZ
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11-DDH-973 4.57 29.50 24.93 0.54 NZ
including 21.50 29.50 8.00 1.09 NZ
11-DDH-973 81.00 103.50 22.50 0.46 NZ
including 101.00 103.50 2.50 1.33 NZ
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11-DDH-974 19.50 21.00 1.50 1.81 Expl
11-DDH-974 88.00 122.50 34.50 0.82 Expl
including 105.00 111.00 6.00 2.98 Expl
and 117.00 121.13 4.13 1.18 Expl
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11-DDH-975 182.50 184.00 1.50 4.53 Expl
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11-DDH-977 4.57 79.00 74.43 0.38 NZ
including 11.00 12.50 1.50 1.13 NZ
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11-DDH-978 113.00 114.50 1.50 2.04 Expl
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11-DDH-979 10.00 40.00 30.00 0.77 Expl
including 22.26 24.58 2.32 2.62 Expl
and 35.00 40.00 5.00 2.18 Expl
11-DDH-979 103.50 105.50 2.00 130.00 Expl
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11-DDH-980 82.09 106.50 24.41 0.92 NZ
including 83.50 85.09 1.59 1.24 NZ
and 90.00 93.00 3.00 2.38 NZ
and 101.00 105.00 4.00 1.47 NZ
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11-DDH-981 20.50 44.80 24.30 0.72 Expl
including 29.50 31.00 1.50 2.25 Expl
and 41.50 44.80 3.30 2.83 Expl
11-DDH-981 64.00 64.75 0.75 72.80 Expl
11-DDH-981 93.50 94.25 0.75 14.05 Expl
11-DDH-981 118.00 119.50 1.50 1.12 Expl
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11-DDH-985 44.50 63.00 18.50 0.47 NZ
including 56.50 58.00 1.50 2.39 NZ
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11-DDH-986 156.00 156.75 0.75 35.90 MZ
11-DDH-986 161.00 162.50 1.50 2.07 MZ
11-DDH-986 187.50 189.00 1.50 2.58 MZ
11-DDH-986 242.00 243.50 1.50 1.78 MZ
11-DDH-986 303.00 304.50 1.50 1.12 MZ
11-DDH-986 385.25 386.50 1.25 1.18 MZ
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11-DDH-987 59.50 60.25 0.75 2.68 MZ
11-DDH-987 78.50 139.50 61.00 0.65 MZ
including 59.50 60.25 0.75 2.68 MZ
and 104.00 105.50 1.50 2.38 MZ
and 109.00 112.00 3.00 5.58 MZ
and 134.00 135.50 1.50 1.68 MZ
11-DDH-987 484.50 508.00 23.50 0.58 MZ
including 499.50 502.69 3.19 1.38 MZ
11-DDH-988 49.00 50.50 1.50 1.41 MZ
11-DDH-988 72.00 109.00 37.00 0.35 MZ
including 72.00 79.28 7.28 1.14 MZ
11-DDH-988 207.50 211.00 3.50 1.64 MZ
11-DDH-988 291.00 295.50 4.50 1.08 MZ
11-DDH-988 396.00 498.00 102.00 0.33 MZ
including 415.50 417.00 1.50 1.03 MZ
and 489.00 498.00 9.00 1.32 MZ
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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.
Colin Clancy
(604) 601-3651
info@spanishmountaingold.com
www.spanishmountaingold.com
B&D Capital Partners
(604) 685-6465
