Spanish Mountain Gold Announces Robust Upgrade for British Columbia Project

Spanish Mountain Gold Ltd., a mining company listed on the TSX-V, has announced significant improvements in the scale and value of its gold project in British Columbia. The Preliminary Economic Assessment (PEA) Update shows improved economic viability and increased production potential.

The PEA Update envisions a conventional open-pit mining and milling operation with a 25.8-year life of mine, producing 3.33 million ounces of payable gold at an after-tax NPV5% of US$2,156 million (C$2,910 million) and an after-tax IRR of 35.2%. Using a spot gold price of US$4,400/oz, the after-tax NPV5% increases to US$3,142 million (C$4,242 million) and the after-tax IRR to 46.3%.

The company has also received confirmation from provincial regulators to resume the previously paused Environmental Assessment process. The project's mine production schedule shows increased gold production in the first 10 years, with an average of 173 koz per year, compared to 153 koz per year in the previous PEA.