Spanish Mountain Gold Ltd.
TSX VENTURE : SPA

Spanish Mountain Gold Ltd.

May 01, 2012 08:30 ET

Spanish Mountain Gold Reports Additional Results of Current In-Fill Drilling Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2012) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) is pleased to announce further results from the current in-fill drilling program within the Main Zone of its Spanish Mountain Gold Project (the "Project") located in central British Columbia, Canada. The results presented in this news release represent approximately an additional 30% of the total planned drill holes to reclassify gold mineralization from the Inferred to Measured and Indicated (M&I) categories. The final 60% of results are expected to be available within six weeks. There are currently six drill rigs working at the site to complete the in-fill drilling program on the Main Zone prior to commencing the drilling of the Phoenix Zone in May.

Highlights of Drilling Results include:

  • 64.69m grading 0.8g/t gold including 18.47m grading 0.93g/t gold in hole DH-1044
  • 38.00m grading 0.92g/t gold including 26.00m grading 1.21g/t gold in hole DH-1045
  • 21.50m grading 0.63g/t gold including 9.50m grading 1.01g/t gold in DH-1047
  • 56.78m grading 0.64g/t gold including 41.00m grading 0.79g/t gold in DH-1048
  • 3.00m grading 7.58g/t gold in DH-1042

Significant assay results are contained in Table 1 appended to this news release. A map showing the location of drill holes reported in this release may be found on the Company website (http://www.spanishmountaingold.com/s/SpanishMountain.asp?ReportID=522270).

Discussion of Results

The objective of the current drilling program within the Main Zone is to support a further reclassification of Inferred gold ounces, as previously reported in a resource statement dated December 2011, to Measured and Indicated ounces. It is noted that several of the holes included with this release ended in higher grade material (near 1g/t Au). These holes were drilled to the depth of the possible open pit as defined by the Project's Preliminary Economic Assessment completed by the Company in November 2010. The Company's future program may consider deeper drilling to further investigate this area given the higher grade materialization encountered.

Upon completion of this program, an updated resource estimate for the Main Zone will be prepared. It is anticipated that this NI 43-101 compliant resource estimate will be finalized during the summer and will be incorporated in a technical report for the Project to be published in the fall of 2012. The Feasibility Study for the Project is currently on schedule for completion in the third quarter of 2013.

Brian Groves, President and CEO, commented, "These drilling results continue to support our belief that the in-fill program will significantly increase the gold ounces contained in the Measured and Indicated categories within an updated resource estimate for the Main Zone."

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. All core samples were assayed at ALS Chemex Laboratory in Vancouver, BC. The Company has retained Discovery Consultants of Vernon, BC, to monitor independently the quality control and quality assurance (QC/QA) data on the Spanish Mountain Gold Project. Analytical precision and accuracy are being measured and monitored by the use of duplicate core, prep and pulp samples and by standards (reference material). Possible contamination during the sampling and processing procedures is being monitored by the insertion of blank samples.

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

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.

Table 1: Significant Assay Results

Hole From To Length Au g/t Ag g/t
12-DH-1030 9.50 12.00 2.50 0.26 1.00
12-DH-1030 100.50 102.00 1.50 0.20 0.60
12-DH-1031 21.00 21.75 0.75 6.12 0.25
12-DH-1031 167.00 189.50 22.50 0.39 2.73
12-DH-1032 11.50 33.00 21.50 0.43 1.37
12-DH-1032 118.00 122.00 4.00 0.53 0.25
12-DH-1033 6.10 127.41 121.31 0.33 1.58
including 37.00 83.50 46.50 0.56 2.28
and 120.00 127.41 7.41 0.54 0.51
12-DH-1034 49.50 51.00 1.50 2.99 0.25
12-DH-1034 97.00 98.50 1.50 1.14 1.80
12-DH-1034 110.50 259.00 148.50 0.30 1.27
including 195.50 259.00 63.50 0.41 0.61
and 224.00 252.50 28.50 0.57 0.49
12-DH-1034 279.50 283.50 4.00 0.77 0.34
12-DH-1035 8.50 21.50 13.00 0.24 1.22
12-DH-1036 7.92 52.50 44.58 0.32 0.97
including 24.50 52.50 28.00 0.41 0.67
and 24.50 36.00 11.50 0.78 0.93
12-DH-1036 86.00 114.00 28.00 0.38 0.58
including 97.50 114.00 16.50 0.54 0.79
12-DH-1037 7.62 16.50 8.88 0.79 1.10
12-DH-1037 50.50 58.00 7.50 0.83 0.49
12-DH-1037 107.50 114.50 7.00 0.48 1.01
12-DH-1038 109.00 126.50 17.50 0.21 1.50
12-DH-1038 153.50 188.00 34.50 0.28 2.98
12-DH-1038 201.50 209.50 8.00 0.38 0.30
12-DH-1038 229.00 241.50 12.50 0.43 0.33
12-DH-1039 81.50 158.50 77.00 0.22 0.71
including 125.50 134.50 9.00 0.65 0.29
and 143.50 149.50 6.00 0.48 0.25
12-DH-1040 99.50 128.00 28.50 0.20 1.52
including 114.50 128.00 13.50 0.28 2.14
12-DH-1040 137.50 226.00 88.50 0.33 2.05
including 145.50 153.00 7.50 0.67 2.74
and 206.00 226.00 20.00 0.51 0.42
and 206.00 217.00 11.00 0.79 0.47
12-DH-1041 84.00 101.50 17.50 0.48 0.56
12-DH-1041 127.00 201.75 74.75 0.30 0.42
including 138.50 161.50 23.00 0.47 0.57
and 138.50 152.00 13.50 0.65 0.72
including 175.50 201.75 26.25 0.37 0.39
and 201.00 201.75 0.75 1.00 0.25
12-DH-1042 73.00 76.00 3.00 7.58 0.70
12-DH-1042 124.50 207.00 82.50 0.36 1.99
including 188.50 207.00 18.50 0.82 0.49
12-DH-1042 231.00 237.00 6.00 1.07 0.58
12-DH-1043 65.74 148.00 82.26 0.43 0.66
including 105.00 106.50 1.50 3.55 0.25
and 111.00 121.25 10.25 0.82 0.34
and 128.50 134.50 6.00 1.06 0.59
12-DH-1044 112.00 113.50 1.50 1.14 0.25
12-DH-1044 127.00 134.50 7.50 0.35 0.25
12-DH-1044 133.00 134.50 1.50 1.41 0.25
12-DH-1044 163.00 227.69 64.69 0.80 0.48
including 209.22 227.69 18.47 0.93 0.38
12-DH-1045 90.50 193.00 102.50 0.43 1.08
including 118.50 135.00 16.50 0.54 1.63
and 180.50 193.00 12.50 0.87 0.74
12-DH-1045 221.50 259.50 38.00 0.92 0.86
including 233.50 259.50 26.00 1.21 0.91
12-DH-1046 116.50 204.50 88.00 0.34 2.16
including 116.50 132.50 16.00 0.82 0.92
12-DH-1047 67.50 199.00 131.50 0.38 1.20
including 131.00 172.15 41.15 0.69 0.51
and 131.00 155.50 24.50 1.04 0.60
12-DH-1047 208.50 230.00 21.50 0.63 0.69
including 208.50 218.00 9.50 1.01 0.88
and 221.00 222.50 1.50 1.12 1.20
12-DH-1048 17.00 32.00 15.00 0.37 1.93
12-DH-1048 63.50 70.50 7.00 0.46 1.58
including 63.50 64.25 0.75 3.09 1.00
12-DH-1048 81.00 137.78 56.78 0.64 0.69
including 81.00 122.00 41.00 0.79 0.80
12-DH-1049 53.50 85.50 32.00 0.39 0.33
including 69.00 77.00 8.00 0.69 0.41
and 84.00 85.50 1.50 1.06 0.70
12-DH-1049 134.00 154.00 20.00 0.26 0.34
including 145.00 149.50 4.50 0.56 0.25
12-DH-1050 74.95 81.95 7.00 1.01 0.91
12-DH-1050 109.50 162.50 53.00 0.27 1.82
including 156.00 162.50 6.50 0.69 0.39

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

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