Spanish Mountain Gold Ltd.
TSX VENTURE : SPA

Spanish Mountain Gold Ltd.

June 15, 2012 20:02 ET

Spanish Mountain Gold Clarifies Technical Disclosure

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2012) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) announces that, as a result of a review by the British Columbia Securities Commission (the "BCSC"), it is clarifying in this news release its technical disclosure relating to its Spanish Mountain Gold Project (the "Project") located in central British Columbia, and, in connection therewith, will file today an amended technical report under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

Changes to the Company's Website

The Company has removed from its website a corporate presentation dated April 2012 and two hyperlinks to related audio presentations. Recipients of those presentations are advised that those presentations contained statements that disclosed:

  • a conceptual resource estimate for the Phoenix Zone without including the cautionary language required by section 2.3(2) of NI 43-101 to qualify such estimate;

  • the results of the Company's preliminary economic assessment on the Project which incorporate inferred resources without including the cautionary language required by section 2.3(3) of NI 43-101 to qualify such results;

  • forward looking information regarding the parameters for an intended revised preliminary economic study without including proximate forward looking qualifications; and

  • a conceptual net present value impact based on a conceptual resource estimate for the Phoenix Zone, which is prohibited by NI 43-101 and which the Company retracts.

The Company has made changes to various pages on its website to add applicable cautionary language required by NI 43-101 and to specify the name and relationship to the Company of the "qualified person" under NI 43-101 who approved the scientific and technical information contained therein.

Revisions to December 15, 2011 Resource Update

The Company filed on SEDAR on December 15, 2011, the "Technical Report on an Updated Mineral Resource Estimate on the Spanish Mountain Gold Deposit" effective November 30, 2011 prepared by Gary H. Giroux, M.ASc., P.Eng. and A. Koffyberg, M.Sc., P.Geo. (the "2011 Resource Update"). The 2011 Resource Update updated the previous resource estimate contained in the "Preliminary Economic Assessment for the Spanish Mountain Project" effective November 19, 2010, prepared by Mr. Gordon Zurowski, P.Eng and Mr. Michael Waldegger, P.Geo. of AGP Mining Consultants Inc. (the "2010 PEA").

The 2011 Resource Update did not include a summary of the results of the 2010 PEA. At the request of the BCSC, the Company will file today an "Amended Technical Report on an Updated Mineral Resource Estimate on the Spanish Mountain Gold Deposit", which will include a summary of the results of the 2010 PEA. No significant changes have been otherwise made to the technical information in the report.

Clarifications Relating to Project Studies

The Company wishes to clarify the current status of its programs and economic studies and its plans going forward:

  • The Company has completed the infill drilling program within the Main Zone. The assay results from approximately 70% of the infill program have been received; the remaining assay results are expected early this summer. The infill program aims to support a reclassification of the Company's inferred gold ounces in the Main Zone into measured and indicated ounces.

  • The Company is expecting to complete approximately 15,000 metres of exploration drilling on the Phoenix Zone this summer. The objective of the exploration drilling is to obtain sufficient continuity of mineralization to establish an initial inferred resource for the Phoenix Zone. The Company completed four holes on the Phoenix Zone in 2011 (assay results for which were announced in its news release of December 8, 2011). There is no assurance that an inferred resource will be established for the Phoenix Zone from the additional drilling.

  • The Company is planning to prepare an NI 43-101 technical report for the Project in 2012 that will include an updated resource estimate for the Main Zone (the "2012 Resource Update"), and, if warranted and depending on the results of exploration drilling, an initial inferred resource for the Phoenix Zone.

  • The decision to commence a feasibility study on the Project, which is contingent on, among other things, the results of the Company's infill and exploration programs underway, is expected to be made following the completion of the 2012 Resource Update.

Dr. Morris Beattie, P. Eng, the Company's Chief Operating Officer and a "qualified person" under NI 43-101, has approved the scientific and technical information contained in 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 a strong cash position with no debt and owns 100% of four gold properties located in British Columbia. Additional information about the Company is available on its website: www.spanishmountaingold.com.

On Behalf of the Board,

SPANISH MOUNTAIN GOLD LTD.

Brian Groves, President and CEO

FORWARD LOOKING STATEMENTS: Certain of the statements and information in this press release constitute "forward-looking statements" or "forward-looking information" Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "believes", "plans", "estimates", "intends", "targets", "goals", "forecasts", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

Forward-looking statements or information relate to, among other things, the timing and scope of NI 43-101 technical reports in respect of the Spanish Mountain Gold Project, including a new PEA and subsequent feasibility study.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: results from infill and exploration drilling, geotechnical studies, metallurgical studies, planning of tailings facilities, access to power supply, fluctuations in the spot and forward price of gold or certain other commodities; timing of receipt of permits and regulatory approvals; the sufficiency of the Company's capital to finance the Company's operations; geological interpretations and potential mineral recovery processes, changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada or other countries in which the Company may carry on business in the future; the uncertainties involved in interpreting geological data; business opportunities that may be presented to, or pursued by, the Company; operating or technical difficulties in connection with mining activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks).

This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's continuous disclosure documents under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

Cautionary Note Regarding Mineral Resources and Mineral Reserves

Readers are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the Company's current technical reports and other continuous disclosure documents filed by the Company, available on SEDAR at www.sedar.com for further information the mineral resource estimates of the Company's projects, which are subject to the qualifications and notes set forth therein, as well as for additional information relating to the Company more generally.

Mineral resources which are not mineral reserves, have a great amount of uncertainty as to their existence and do not have demonstrated economic or legal viability. Inferred mineral resources have insufficient confidence to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability suitable for public disclosure. Neither the Company, nor readers, should assume that all or any part of an inferred mineral resource will be upgraded to indicated or measured mineral resources. Most projects at the inferred mineral resource stage do not ever form the basis of feasibility or other economic studies, or achieve successful commercial production. Each stage of a project is contingent on the positive results of the previous stage and that there is a significant risk that the results may not support or justify moving to the next stage.

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

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