Spanish Mountain Gold Ltd.

Spanish Mountain Gold Ltd.

January 19, 2010 08:01 ET

Spanish Mountain Gold Reports Drill Results from Spanish Mountain Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2010) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) is pleased to announce diamond drilling results from its Spanish Mountain gold project which have delivered the highest gold grade near surface interval yet seen in the main zone. Step out drilling has discovered and confirmed the continuation of gold mineralization northward towards the flanks of Black Bear Mountain. The Company has previously disclosed (March, 2009) a NI 43-101 compliant resource estimate for the Main Zone of gold mineralization at Spanish Mountain.

Main Zone Highlights

  • Hole 09-DDH-889 has confirmed the presence of a shallow zone of higher grade gold mineralization within the Main Zone and returned the widest intercept in excess of 2 g/t gold yet reported on the property - 85.0 m of 2.12 g/t gold including 41.0 m of 3.54 g/t gold and including 1.50 m of 46.80 g/t gold.
  • Hole 09-DDH-865 returned three distinct mineralized intercepts with the top 106 m comprised of 11.5 m of 1.42 g/t gold then 22.25 m of 1.16 g/t gold and then 12.5 m of 3.78 g/t gold
  • Hole 09-DDH-866 returned 47.5 m of 1.24 g/t gold including 13.5 m of 2.38 g/t gold

Step Out Drilling Highlights

  • Holes 09-DDH-860 and 862 were drilled in an area from 100 metres to 300 metres to the north and west of the current boundary of the resource estimate and across the valley to the flanks of Black Bear Mountain.
  • The two holes conclusively demonstrate that gold mineralization extends into this new area and presents an opportunity for expansion of the existing resource.
  • 09-DDH-862 intersected 57.0 m of 0.83 g/t gold including 28.5 m of 1.06 g/t gold
  • 09-DDH-860 returned 26.5 m of 1.07 g/t gold

Program Review and Discussion

This release covers data received from sixteen diamond drill holes, comprised of twelve NQ diameter and four larger diameter HQ holes completed in 2009. The holes were drilled both within and to the north of the Main Zone.

Seven holes are reported from within the Main Zone. Three NQ holes were designed to test for gold mineralization below the Main Zone. The remaining four holes were HQ diameter, drilled as part of a 50 metre grid pattern in an area where higher grade gold mineralization has previously been defined at shallow depths.

Examples of these previously reported intercepts can be found in all phases of drilling in this area and include:

  • RC Hole 235 reporting 94.50 m of 1.81 g/t gold including 65.5 m of 2.35g/t gold which includes 22.90 m of 5.04 g/t gold,
  • DDH Hole 265 reporting 135.5 m of 1.00 g/t gold including 19.0 m of 1.92 g/t gold and,
  • DDH Hole 268 reporting 72.0 m of 1.22 g/t gold including 31.0 m of 2.13 g/t gold

The remaining nine holes were all NQ diameter and were drilled outside the Main Zone resource area. Two holes DDH 884 and DDH 890 were drilled to evaluate the limits of gold mineralization to the east and west of the North Zone resource area and Hole 864 was lost in overburden.

Of the remaining 6 step out holes, Holes 09-DDH-860, 861, and 862 were drilled in an area across the valley and from 100 metres to 300 metres north and west of the known resource. The objective of these holes was to evaluate possible extensions of the Main Zone resource. The confirmation of gold mineralization intersected in these holes indicates that gold mineralization does extend northward across the valley towards Black Bear Mountain. A detailed review of all geological data will be initiated by the Company.

A complete table of results is included below:

    Core     Width Gold
  Zone  size  From  To   (m)  g/t
09-DDH-858 Step out NQ   weakly anomalous
09-DDH-859 Step out NQ 119 120.5 1.5 3.99
    and 217 223 6 1.07
09-DDH-860 Step out NQ 149.5 176 26.5 1.07
09-DDH-861 Step out NQ 232.5 241.5 9 1.06
09-DDH-862 Step out NQ 127 184 57 0.83
    including 127 155.5 28.5 1.06
09-DDH-863 Step out NQ   no significant values 
09-DDH-865 MZ HQ 34.5 46 11.5 1.42
    and 64 86.25 22.25 1.16
    and 94 106.5 12.5 3.78
09-DDH-866 MZ HQ 66 72 6 1.32
    and 81 128.5 47.5 1.24
    including 84 97.5 13.5 2.38
09-DDH-867 MZ HQ 51 61.5 10.5 2.62
    and 84 97.5 13.5 1.6
    and 126 129 3 3.02
09-DDH-868 MZ HQ 21.5 26.5 5 1.07
    and 46 49 3 1.19
09-DDH-877 MZ NQ 223.5 243.5 20 1.65
09-DDH-884 NZ - east NQ 65.5 73 7.5 1.33
09-DDH-885 MZ NQ 264.5 266 1.5 6.95
    and 288 289.5 1.5 2.48
09-DDH-889 MZ NQ 36.5 121.5 85 2.12
    including 72.5 113.5 41 3.54
    including 89 93.5 4.5 17.23
    including 90.5 92 1.5 46.8
    and 133.5 139 5.5 10.28
    and 205.5 214 8.5 1.18
09-DDH-890 NZ - west NQ 208 214.5 6.5 1.92
    and 284 288.5 4.5 1.11
MZ = Main Zone, NZ = Main Zone north
09-DDH-864 - lost in overburden
09-DDH-869-876, 879-883, 886,887, 891-891-198 are held for analysis

An additional twenty four HQ holes were drilled within the main zone in an area where higher grade gold mineralization has previously been defined at shallow depths. The core from these new twenty four HQ holes is awaiting analysis including assaying and additional metallurgical and geotechnical test work.

About Spanish Mountain Gold

Spanish Mountain Gold Ltd. is focused on advancing its flagship Spanish Mountain gold project in central southern British Columbia. The Company is well funded with a current cash position of $2.6 million and has applied for Mineral Exploration Tax Credit refund from the Province of British Columbia totaling $1.9 million. These funds are expected to be received in the first quarter of 2010.

Assay analyses were conducted by ALS Chemex, an ISO accredited laboratory in North Vancouver, B.C. All samples were analyzed using standard 1kg metallic screen fire assay for gold and near total digestion ICP for other elements. The Company routinely inserts controls samples (blanks, duplicates and certified standards) into the sample stream to maintain quality control.

Robert Darney, P.Geo. and R. Bob Singh P.Geo are the qualified persons (as defined in NI 43-101) who have reviewed this news release.

On Behalf of the Board,


Brian Groves, President

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. Actual results and future events could differ materially from those anticipated in such statements. Important factors 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 with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Spanish Mountain Gold Ltd.
    Tim Mikula
    (604) 484-6317
    (604) 684-0279 (FAX)
    B&D Capital Partners
    (604) 685-6465