Spanish Mountain core shack Credit: Spanish Mountain
BRITISH COLUMBIA – Spanish Mountain Gold is aiming to release a prefeasibility study (PFS) for its flagship, wholly-owned Spanish Mountain project in the province’s Cariboo region in the first quarter of 2021.
After closing a $5-million non-brokered private placement with Eric Sprott in late July, the company is now looking to complete a field program this summer as work proceeds on the study. The PFS will target a first-phase development of the deposit, focusing on its near-surface and higher-grade portions.
“I believe the success of our latest financing is a strong endorsement for our project strategy and highlights the potential value of our multi-million-ounce gold resource,” Larry Yau, Spanish Mountain’s CEO, said in a release.
Last December, the company completed a preliminary economic assessment for the first-phase development of Spanish Mountain, which outlined a 10,000 t/d, 11-year operation, producing an average of 104,000 oz. of gold annually at average all-in sustaining costs of US$549 per oz. Based on a total initial capital cost of $363.8 million, the after-tax net present value estimate for this development comes in at $325 million, at a 5% discount rate and a US$1,275 per oz. gold price.
Total resources at Spanish Mountain include 273 million measured and indicated tonnes grading 0.47 g/t gold, containing 4.1 million oz., with a further 53 million inferred tonnes at 0.37 g/t gold, containing 600,000 oz. These resources are based on a 0.15 g/t gold cut-off.
For more information, visit www.SpanishMountainGold.com.