Spanish Mountain Gold Ltd.

Spanish Mountain Gold Ltd.

October 21, 2010 09:01 ET

Spanish Mountain Announces Assay Results From Thunder Ridge Project: Gold System Now Extends East Beyond Defined Soil Geochemical Gold Anomaly

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Spanish Mountain Gold Ltd. (TSX VENTURE:SPA) ("the Company") is pleased to announce assay results received from seven NQ diamond drill holes completed on its Thunder Ridge Gold Project in southern central British Columbia. A total of 1,797 meters of drilling was completed with hole depths ranging between 203 and 368 meters. Three of the drill holes defined and further explored the eastward extent of the vein systems on the northern portion of the property. Specifically, Hole 10-SC-025, which intercepted 0.77 g/t gold over 6.6 meters, demonstrates the continuance of the vein system 270 meters to the east of the defined soil geochemical gold anomaly. The remaining four holes tested the continuity of the veins previously drilled on the southern limits of the explored ground. As in other drill holes completed in prior years' programs, anomalous silver was intercepted in these core samples.

Highlights of Drilling Results include:

  • Hole 10-SC-31 intersected 0.77 g/t gold over 54.0 meters with an interval of 19.15 g/t gold and 83.80 g/t silver over 1.0 meter.

  • Hole 10-SC-27 intersected 0.77 g/t gold over 20.0 meters with an interval of 1.97 g/t gold and 100.00 g/t silver over 1.0 meter.

  • Hole 10-SC-25 intersected 0.77 g/t gold over 6.6 meters.

  • New extension to gold system suggests exploration potential in areas lacking geochemical signatures.

Significant assay results are contained in the table (Table 1) appended to this news release. A map (Figure 1) showing the locations of the drill holes completed during the current program, along with previously completed holes, is also presented. To view Figure 1 accompanying this press release, please click on the following link:

The gold mineralization, as defined by a large surface soil geochemical gold anomaly, is associated with quartz veins. The soil anomaly trends southwest to northeast over 1.5 kilometers (km) and is 500 to 600 meters wide. The quartz veins dip to the northeast. The vein system remains open to the north, south and at depth to the east. The current results confirm previous observations that the gold system extends east beyond the defined soil geochemical gold anomaly.

The Thunder Ridge Project is located 50 km northeast of the town of 100 Mile House in central British Columbia and is approximately 100 km south of the Company's flagship Spanish Mountain property. The Company has completed thirty-one holes to date on the project for a total of 8,221 meters. The property is in a sequence of Triassic black phyllite and siltstone, similar to those at the Spanish Mountain gold deposit. Gold mineralization is associated with quartz veins, wall rock silicification, pyrite and sphalerite.

All core samples were fire assayed at ALS Chemex Laboratory in Vancouver, BC. Stuart Morris, P.Geo., the Company's Vice-President, Development Geology is a qualified person as defined under National Instrument 43-101 and has reviewed the contents of this news release.

About Spanish Mountain Gold

Spanish Mountain Gold Ltd. is focused on developing its flagship Spanish Mountain gold project in central southern British Columbia. The National Instrument 43-101 compliant resource estimate released in 2009 documented that 3.9 Million oz Au are contained (at a 0.30 g/t Au cut-off grade) in the measured and indicated resource categories. The Company has no debt and owns 100% of all four gold properties located in British Columbia.

On Behalf of the Board,


Brian Groves, President

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological and metallurgical data, risks associated with the estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses -- 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 on SEDAR (see Forward-looking statements can often be identified by the use of words such as "plans", "expects", "is expected", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Table 1: Significant Assay Results—Thunder Ridge

Drill Hole From To Length (m) Gold (g/t) Silver (g/t)
10-SC-025 183.0 189.6 6.6 0.77 2.74
10-SC-026 42.0 48.5 6.5 0.45 1.84
10-SC-026 58.0 61.5 3.5 0.69 2.56
10SC027 23.2 24.1 0.9 2.06 4.50
10SC027 40.0 43.3 3.3 0.63 2.30
10SC027 221.0 241.0 20.0 0.77 19.76
includes 239.0 240.0 1.0 1.97 100.00
10SC028 no significant intercepts
10SC029 39.8 41.5 1.7 3.74 19.80
10SC029 71.0 76.0 5.0 1.11 1.99
includes 74.6 76.0 1.5 3.45 2.50
10SC030 50.5 58.1 7.6 0.57 1.89
includes 52.0 53.0 1.0 2.05 2.50
10SC031 43.0 97.0 54.0 0.77 4.54
includes 44.0 45.0 1.0 19.15 83.80
includes 47.5 49.7 2.2 2.2 19.48
includes 82.7 86.0 3.3 1.99 3.24

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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