Spanish Mountain Gold Ltd.
TSX VENTURE : SPA

Spanish Mountain Gold Ltd.

July 28, 2011 08:30 ET

Spanish Mountain Gold Reports Interim Drilling Results

Drilling Now Underway on Cedar Creek Targets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2011) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) is pleased to announce further results of the in-fill drilling program within the Main and North Zones 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 that are designed to upgrade mineralization from the Inferred to Measured and Indicated categories, test for extensions to gold mineralization laterally and at depth and to optimize the design of pit walls. The final 40% of results are expected to be available within eight weeks. The results of the drilling conducted to date continue to confirm the continuity of potentially economic mineralization in areas presently classified as inferred resources.

The Company is also pleased to announce that drill rigs have now moved onto the Cedar Creek area to begin testing gold targets defined in a soil geochemical survey.

Highlights of Drilling Results include:

MAIN ZONE HIGHLIGHTS:

  • 321.5 metres (m) grading 0.65 gram/ tonne (g/t) gold including 50.00m grading 1.03g/t gold and including 14.27m grading 2.12g/t gold in hole 11-DDH-961.
  • 284.50m grading 0.50g/t gold including 66.50m grading 1.35g/t gold in hole 11-DDH-951.
  • 276.50m grading 0.37g/t gold including 28.00m grading 1.00g/t gold in hole 11-DDH-953.
  • 293.50m grading 0.30g/t gold including 22.50m grading 1.03g/t gold in hole 11-DDH-954
  • 249.00m grading 0.39g/t gold including 17.00m grading 1.07g/t gold in hole 11-DDH-955
  • 240.43m grading 0.37g/t gold including 94.00m grading 0.52g/t gold and including 28.50m grading 1.00g/t gold in hole 11-DDH-948.

NORTH ZONE HIGHLIGHTS:

  • 123.00m grading 0.91g/t gold in hole 11-DDH-950.
  • 84.85m grading 0.52g/t gold including 6.00m grading 2.13g/t gold in hole 11-DDH-945
  • 147.50m grading 0.32g/t including 63.00m grading 0.51g/t gold and including 9.75m grading 1.22g/t gold in hole 11-DDH-941.

Significant assay results are contained in Table 1 appended to this news release.

Discussion of Results

The 2011 drilling program on the Main and North Zones of the Spanish Mountain gold deposit has now been completed. The program was designed primarily to provide in-fill data for an updated resource calculation as a precursor to the commencement of a pre-feasibility study for the Project. The results from new zones of mineralization that have been encountered during this program will be included in the updated model. The program is also expected to provide further information on mineralization encountered at depth. A total of 4 deep holes have been drilled with an average depth of 524 m. Results from this phase of the program are expected to be received by September and will be incorporated in an updated resource model.

The drills have now been moved into the area of anomalous gold soil geochemistry in the Cedar Creek area. Preliminary reconnaissance in this area has confirmed the presence of argillite-bearing sedimentary and mafic volcanic rocks. The current drilling program is focused on testing areas defined by previous soil sampling that are anomalous in a number of elements including gold and copper. Initially, a total of 16 holes are planned for the gold target area.

Brian Groves, President and CEO commented, "We are very encouraged by these drilling results from the Main and North Zones. They represent some of the longest, if not the longest intercepts of continuous gold mineralization encountered on the property. Holes such as DDH-951 clearly indicate the presence of higher grade shallow mineralization which presents a real opportunity for starter pit optimization."

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 are assayed at ALS Chemex Laboratory in Vancouver, BC.

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 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 (m ) Au g/t Area
11-DDH-940 3.66 24.50 20.84 0.34 NZ
11-DDH-940 91.00 95.50 3.50 0.29 NZ
11-DDH-940 137.50 139.00 1.50 8.55 NZ
11-DDH-940 242.35 260.50 18.15 0.27 NZ
11-DDH-941 78.86 80.70 1.84 1.65 NZ
11-DDH-941 181.50 329.00 147.50 0.32 NZ
including 202.00 203.50 1.50 1.27 NZ
and 266.00 329.00 63.00 0.51 NZ
and 270.50 273.50 3.00 1.02 NZ
and 285.50 287.00 1.50 1.20 NZ
and 292.00 293.50 1.50 4.15 NZ
and 319.25 320.00 0.75 3.37 NZ
and 319.25 329.00 9.75 1.22 NZ
and 324.50 329.00 4.50 2.04 NZ
11-DDH-942 3.66 18.85 15.19 0.74 NZ
including 12.00 17.50 5.50 1.30 NZ
11-DDH-943 117.50 119.00 1.50 3.14 NZ
11-DDH-943 158.00 159.04 1.04 26.50 NZ
11-DDH-943 200.00 200.75 0.75 17.90 NZ
11-DDH-943 256.50 258.00 1.50 1.06 NZ
11-DDH-944 51.50 54.00 2.50 0.30 NZ
11-DDH-944 73.00 109.00 36.00 0.21 NZ
11-DDH-944 180.00 255.00 75.00 0.32 NZ
11-DDH-944 221.00 255.00 34.00 0.50 NZ
including 228.00 229.50 1.50 2.28 NZ
11-DDH-945 160.90 245.75 84.85 0.52 NZ
including 161.00 164.00 3.00 1.13 NZ
and 229.50 235.50 6.00 2.13 NZ
and 245.00 245.75 0.75 22.20 NZ
11-DDH-946 101.28 217.40 116.12 0.31 NZ
including 118.50 161.50 43.00 0.53 NZ
and 132.50 134.00 1.50 1.82 NZ
and 154.00 158.50 4.50 1.77 NZ
and 216.50 217.40 0.90 2.72 NZ
11-DDH-947 4.27 13.00 8.73 1.05 NZ
11-DDH-947 89.50 91.00 1.50 1.21 NZ
11-DDH-947 129.50 130.25 0.75 1.94 NZ
11-DDH-947 192.50 250.00 57.50 0.31 NZ
including 227.50 229.00 1.50 1.05 NZ
and 277.50 279.00 1.50 1.40 NZ
11-DDH-948 4.57 245.00 240.43 0.37 MZ
including 22.00 23.50 1.50 1.44 MZ
and 48.50 91.50 43.00 0.50 MZ
and 53.00 54.50 1.50 1.08 MZ
and 80.00 88.00 8.00 1.54 MZ
and 105.00 106.50 1.50 1.05 MZ
and 151.00 245.00 94.00 0.52 MZ
and 157.50 159.00 1.50 2.11 MZ
and 193.50 195.00 1.50 1.36 MZ
and 204.00 211.50 7.50 2.19 MZ
and 204.00 232.50 28.50 1.00 MZ
and 228.00 232.50 4.50 1.75 MZ
11-DDH-949 6.71 23.00 16.29 0.58 NZ
including 14.00 14.75 0.75 3.79 NZ
11-DDH-950 3.66 18.00 14.34 0.54 NZ
including 6.00 8.50 2.50 1.53 NZ
11-DDH-950 161.50 284.50 123.00 0.91 NZ
including 203.00 206.00 3.00 1.83 NZ
and 244.50 245.25 0.75 106.00 NZ
and 252.50 254.00 1.50 3.04 NZ
11-DDH-951 8.50 293.00 284.50 0.50 MZ
including 8.50 75.00 66.50 1.35 MZ
and 15.00 30.00 15.00 1.80 MZ
and 49.00 51.25 2.25 9.23 MZ
and 64.50 69.00 4.50 2.29 MZ
and 73.50 75.00 1.50 9.05 MZ
and 201.13 205.50 4.37 2.01 MZ
11-DDH-951 320.50 322.00 1.50 3.12 MZ
11-DDH-952 3.66 218.00 214.34 0.55 MZ
including 11.00 12.50 1.50 16.90 MZ
and 70.50 73.50 3.00 2.45 MZ
and 101.00 105.00 4.00 4.30 MZ
and 102.24 103.50 1.26 10.80 MZ
and 172.50 177.00 4.50 1.28 MZ
and 211.50 216.50 5.00 1.98 MZ
11-DDH-953 10.00 286.50 276.50 0.37 MZ
including 10.00 81.50 71.50 0.59 MZ
and 10.00 13.00 3.00 1.13 MZ
and 46.00 47.50 1.50 1.92 MZ
and 72.00 74.00 2.00 14.18 MZ
and 124.50 126.00 1.50 1.02 MZ
and 218.00 271.50 53.50 0.82 MZ
and 224.00 252.00 28.00 1.00 MZ
11-DDH-954 21.50 315.00 293.50 0.30 MZ
including 48.00 135.00 87.00 0.51 MZ
and 48.00 70.50 22.50 1.03 MZ
and 48.00 83.00 35.00 0.82 MZ
and 111.50 112.50 1.00 3.81 MZ
and 129.00 130.50 1.50 2.13 MZ
and 133.50 135.00 1.50 1.47 MZ
and 178.50 180.00 1.50 3.47 MZ
and 189.50 191.00 1.50 4.37 MZ
and 200.00 201.50 1.50 1.43 MZ
and 301.50 303.00 1.50 1.62 MZ
and 313.50 315.00 1.50 1.21 MZ
11-DDH-955 24.00 273.00 249.00 0.39 MZ
including 25.50 66.50 41.00 0.53 MZ
and 25.50 42.50 17.00 1.07 MZ
and 89.00 90.50 1.50 1.88 MZ
and 100.00 101.50 1.50 1.97 MZ
and 128.50 160.50 32.00 0.66 MZ
and 139.00 140.50 1.50 1.81 MZ
and 148.00 149.50 1.50 1.65 MZ
and 155.50 157.66 2.16 1.98 MZ
and 212.06 214.00 1.94 1.38 MZ
and 212.06 273.00 60.94 0.51 MZ
and 217.00 220.00 3.00 1.23 MZ
and 227.50 229.00 1.50 1.16 MZ
and 252.50 254.00 1.50 2.12 MZ
and 259.50 261.00 1.50 3.33 MZ
and 267.31 268.50 1.19 2.48 MZ
11-DDH-956 3.05 142.74 139.69 0.33 MZ
including 58.50 104.50 46.00 0.58 MZ
and 65.00 67.00 2.00 2.60 MZ
and 74.50 76.79 2.29 1.19 MZ
and 92.50 95.50 3.00 2.95 MZ
and 132.50 134.00 1.50 2.94 MZ
11-DDH-956 173.50 174.25 0.75 1.02 MZ
11-DDH-956 196.50 198.00 1.50 1.08 MZ
11-DDH-956 216.00 217.14 1.14 1.81 MZ
11-DDH-956 225.50 227.00 1.50 1.88 MZ
11-DDH-956 237.50 239.00 1.50 1.57 MZ
11-DDH-956 279.31 299.00 19.69 0.56 MZ
including 293.00 294.50 1.50 2.25 MZ
11-DDH-957 6.70 300.50 293.80 0.37 MZ
including 6.70 146.50 139.80 0.52 MZ
and 6.70 14.00 7.30 1.81 MZ
and 32.00 33.50 1.50 1.22 MZ
and 51.50 53.00 1.50 2.26 MZ
and 72.50 73.25 0.75 21.40 MZ
and 73.25 74.00 0.75 1.22 MZ
and 80.00 81.50 1.50 2.15 MZ
and 91.00 92.50 1.50 1.05 MZ
and 109.50 111.00 1.50 1.14 MZ
and 123.00 123.75 0.75 1.41 MZ
and 242.50 244.00 1.50 2.72 MZ
and 265.50 267.00 1.50 1.33 MZ
and 297.50 300.50 3.00 2.59 MZ
11-DDH-958 10.25 207.00 196.75 0.30 MZ
including 63.00 63.75 0.75 10.40 MZ
and 163.50 207.00 43.50 0.60 MZ
and 166.50 168.00 1.50 2.12 MZ
and 172.50 174.00 1.50 1.89 MZ
and 186.00 187.50 1.50 2.50 MZ
and 191.50 193.00 1.50 1.29 MZ
and 197.50 199.00 1.50 1.73 MZ
11-DDH-958 282.50 303.00 20.50 0.64 MZ
including 293.25 294.00 0.75 6.19 MZ
11-DDH-959 14.50 41.76 27.26 1.01 MZ
including 20.50 23.50 3.00 1.78 MZ
and 20.50 36.50 16.00 1.40 MZ
and 25.50 29.00 3.50 1.66 MZ
and 32.00 36.50 4.50 2.07 MZ
11-DDH-959a 12.50 291.50 279.00 0.33 MZ
including 12.50 55.50 43.00 0.52 MZ
and 32.50 37.00 4.50 1.43 MZ
and 104.25 105.00 0.75 1.95 MZ
and 109.50 111.00 1.50 1.40 MZ
and 115.50 116.50 1.00 1.19 MZ
and 137.00 138.50 1.50 1.30 MZ
and 215.00 291.50 76.50 0.52 MZ
and 218.00 221.00 3.00 2.70 MZ
and 225.50 228.50 3.00 1.33 MZ
and 239.50 244.00 4.50 1.54 MZ
and 250.00 253.02 3.02 1.54 MZ
and 272.50 274.00 1.50 1.03 MZ
and 281.50 283.00 1.50 1.52 MZ
11-DDH-960 62.50 336.00 273.50 0.31 MZ
including 62.50 130.50 68.00 0.53 MZ
and 62.50 65.50 3.00 1.45 MZ
and 79.05 79.80 0.75 4.14 MZ
and 94.50 95.88 1.38 1.29 MZ
and 115.50 120.00 4.50 1.70 MZ
and 174.00 186.00 12.00 1.34 MZ
and 204.00 205.50 1.50 2.28 MZ
11-DDH-961 6.71 328.27 321.56 0.65 MZ
including 72.50 122.50 50.00 1.03 MZ
and 72.50 73.25 0.75 8.90 MZ
and 75.50 81.50 6.00 1.83 MZ
and 83.00 87.50 4.50 1.63 MZ
and 92.00 93.50 1.50 2.94 MZ
and 105.50 107.50 2.00 1.55 MZ
and 113.50 115.00 1.50 1.44 MZ
and 158.00 159.50 1.50 1.06 MZ
and 175.56 179.66 4.10 4.28 MZ
and 187.82 189.00 1.18 1.33 MZ
and 192.00 193.18 1.18 1.83 MZ
and 202.50 205.50 3.00 1.43 MZ
and 214.50 222.00 7.50 1.67 MZ
and 226.50 231.00 4.50 1.17 MZ
and 240.00 244.71 4.71 1.26 MZ
and 258.00 258.75 0.75 2.26 MZ
and 263.00 264.50 1.50 8.66 MZ
and 314.00 328.27 14.27 2.12 MZ

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

Contact Information