Spanish Mountain Gold (TSXV: SPA) has begun a new metallurgical testing program to assess a coarser grind on samples from its Spanish Mountain project near Williams Lake, B.C. Samples will include the 2022 metallurgical diamond drill hole samples, and the results will provide inputs for the Whittle optimization.
"We are excited about this new program which may show that a coarser grind decreases power consumption, improves downstream processes such as tailings and water management, and favourably impacts costs and production," said president and CEO Peter Mah.
The Spanish Mountain prefeasibility study was completed in 2021. It demonstrated annual production of 180,000 oz. of gold over the first six years and 150,000 oz. over the life-of-mine. Costs were estimated at US$707/oz. over the first six years and US $801 over the mine life. Capex requirements were set at US$461 million ($607 million) for an open pit mine and 20,000 t/d mill.
The measured and indicated resource at the project is 294 million tonnes grading 0.50 g/t gold (4.7 million oz.) and 0.72 g/t silver (6.8 million oz.) using a cut-off of 0.15 g/t gold. The inferred resource is 18 million tonnes at 0.63 g/t gold and 0.76 g/t silver.
Within the resources are proven and probable reserves of 95.9 million tonnes grading 0.76 g/t gold (2.3 million oz.) and 0.71 g/t silver (2.2 million oz.) For reserves, a cut-off of 0.3% g/t gold was used.
Visit www.SpanishMountainGold.com to read the prefeasibility report.
April 25, 2024
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