Spanish Mountain Gold Ltd.
TSX VENTURE : SPA

Spanish Mountain Gold Ltd.

March 10, 2011 08:31 ET

Spanish Mountain Gold Announces Work Programs for 2011: Drilling in Excess of 17,000 Metres Planned

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2011) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) is pleased to announce details of its work programs to be completed on the Company's projects during the coming field season.

Spanish Mountain Gold Project

The drilling for the 2011 work program will commence in mid-March. The planned work will focus on the following:

  • In-fill drilling of at least 13,000 metres within the Main and North Zones with the objective of upgrading mineralization from Inferred to Measured and Indicated categories. Data obtained from this drilling will be used to update the existing geological resource and will provide information to aid the design of an optimized open pit.
  • Step-out drilling to establish the potential to expand the current resource of both the Main Zone (towards the west) and the North Zone (towards the northwest and southeast). Targets for this drilling are based on new mineralized intercepts encountered during the 2010 program.
  • Continued environmental baseline sampling and ongoing design of the potential tailings storage location, mill-site arrangement and waste rock storage facilities.

Cedar Creek

The Cedar Creek property represents the western extension of the Spanish Mountain project. A recent review of historical exploration data has identified two significant geochemically anomalous trends that the Company believes warrant further examination. At least 4,000 metres of drilling is expected to commence in May. Additional soil geochemistry over an area of eight square kilometres will be conducted during the 2011 season.

Early Stage Exploration Projects

Drilling results to date from the Thunder Ridge project to the south of Spanish Mountain will be combined with a re-interpretation of the soil geochemistry of the area to delineate potential drill targets. The Prince George and Manson properties to the north of Spanish Mountain are at a preliminary stage and will require further soil geochemistry work. All three properties were acquired as a result of regional geological reviews by the Company and the study of their potential is ongoing.

The 2011 work programs will be carried out concurrently with the on-going economic assessment of the Company's flagship Spanish Mountain project. 

Judy Stoeterau, P.Geo., the Company's Vice-President of Geology and the qualified person as defined under National Instrument 43-101, has reviewed the contents of this news release.

About Spanish Mountain Gold

Spanish Mountain Gold Ltd. is focused on the responsible development of its flagship Spanish Mountain gold project in southern central British Columbia. Canada. The Company has no debt and owns 100% of all four gold properties located in British Columbia. Additional information about the Company and its project are available on its website: www.spanishmountaingold.com.

On Behalf of the Board,

SPANISH MOUNTAIN GOLD LTD.

Brian Groves, Pesident and CEO

This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Management has assumed that these will be our major projects going forward. Risks include that we are unable to satisfy environmental or other regulators, that we determine that our resources are not commercially viable, or that we have difficulties due to unavailability of labour or equipment.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.

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