Spanish Mountain Gold Ltd.
TSX VENTURE : SPA

Spanish Mountain Gold Ltd.

May 29, 2012 08:30 ET

Spanish Mountain Gold Reports Interim Results of In-fill Drilling Program; 64m Grading 3.25 g/t Gold Including 8.5m Grading 22.47 g/t Gold in Hole DH-1060

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2012) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) is pleased to announce further results from the in-fill drilling program recently completed 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 20% of the total number of drill holes designed to reclassify gold mineralization from the Inferred to Measured and Indicated (M&I) categories. Results from the remaining drill holes are expected to be available within 4 weeks.

The results presented herein include one intersection of gold mineralization that yielded some of the highest assay results for the project to date.

Highlights of Drilling Results:

  • 64.00 metres (m) grading 3.25 grams per tonne (g/t) gold including 41.50m grading 4.85g/t gold, 18.00m grading 10.73g/t gold and 8.50m grading 22.47g/t gold in hole DH-1060
  • 31.50m grading 1.14g/t gold (at shallow depth) and 63.00m grading 0.79g/t gold in hole DH-1056
  • 89.00m grading 0.52g/t gold in hole DH-1054
  • 62.50m grading 0.51g/t gold including 23.10m grading 0.98g/t gold in DH-1057
  • 52.60m grading 0.75g/t gold in hole DH-1059
  • 21.50m grading 1.88g/t gold in hole DH-1070
  • 53.90m grading 0.70g/t gold in hole DH-1073
  • 43.50m grading 1.05g/t gold in hole DH-1086

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=527402

Discussion of Results

The objective of the drilling program within the Main Zone is to support a further reclassification of Inferred gold ounces, as previously reported in a resource statement on November 15, 2011, to Measured and Indicated ounces.

The assays from the highly mineralized intersections within Hole DH-1060 exceed any previous drill results and are interpreted as an indication of the gold concentrations present within one of the rock units hosting gold in the Main Zone. This hole is located in an area between two mineralized regions within the Main Zone that previously had been assumed to have little potential to host gold mineralization. The Company now believes that a recently completed re-interpretation of controls on gold mineralization combined with these drilling results supports the view that the potential of this area has been under-estimated.

Upon receipt of all assay results for 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: "The results from Hole DH-1060 are very encouraging in returning the best assays to date for the Project. The results from this hole and others presented in this release support our belief that we will be successful in increasing the Measured and Indicated gold resource for the 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. 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-1051 16.00 19.00 3.00 3.50 0.3
12-DH-1051 57.50 78.05 20.55 0.34 0.5
including 72.50 78.05 5.55 0.63 0.6
12-DH-1051 146.00 168.50 22.50 0.75 0.9
including 146.00 156.77 10.77 1.37 1.4
12-DH-1052 111.00 155.00 44.00 0.25 1.5
12-DH-1053 6.10 67.50 61.40 0.35 1.1
including 23.26 47.00 23.74 0.56 1.2
and 35.00 43.00 8.00 1.03 1.1
12-DH-1053 93.00 126.13 33.13 0.65 0.5
including 93.00 94.50 1.50 1.54 0.7
including 120.50 126.13 5.63 2.27 0.4
12-DH-1054 63.09 107.50 44.41 0.22 2.0
12-DH-1054 125.00 214.00 89.00 0.52 0.4
including 125.00 151.50 26.50 0.74 0.4
and 128.00 137.00 9.00 1.11 0.6
including 195.50 198.50 3.00 2.62 1.3
including 207.50 214.00 6.50 0.80 0.5
12-DH-1055 80.50 239.00 158.50 0.36 1.6
including 85.50 88.50 3.00 1.00 1.2
including 180.00 200.50 20.50 1.06 0.5
including 215.00 226.00 11.00 0.60 0.8
12-DH-1056 7.50 39.00 31.50 1.14 0.7
including 7.50 31.50 24.00 1.46 0.7
and 18.08 22.00 3.92 4.32 2.1
and 28.50 31.50 3.00 3.89 0.4
and 25.50 31.50 6.00 2.06 0.3
12-DH-1056 60.00 123.00 63.00 0.79 1.4
including 72.00 123.00 51.00 0.93 1.1
and 102.00 121.50 19.50 1.49 0.8
and 102.00 108.50 6.50 3.58 1.4
12-DH-1056 200.00 226.50 26.50 0.21 2.4
including 212.00 214.32 2.32 0.67 5.4
12-DH-1057 67.50 130.00 62.50 0.51 0.6
including 88.90 112.00 23.10 0.98 0.6
and 93.50 102.50 9.00 1.54 0.9
12-DH-1057 142.50 203.61 61.11 0.34 1.2
including 149.00 174.50 25.50 0.54 1.9
and 162.50 166.50 4.00 1.51 1.0
12-DH-1058 86.55 148.00 61.45 0.35 2.2
including 134.50 140.00 5.50 1.05 0.4
12-DH-1058 194.50 210.50 16.00 0.94 0.7
including 199.50 210.50 11.00 1.33 0.8
12-DH-1058 228.00 234.00 6.00 0.62 0.3
including 228.00 229.50 1.50 1.57 0.3
12-DH-1059 38.40 125.00 86.60 0.30 1.0
including 69.00 70.50 1.50 1.08 1.4
including 79.50 94.50 15.00 0.56 1.6
12-DH-1059 161.50 198.00 36.50 0.28 0.5
including 161.50 167.85 6.35 0.69 0.5
12-DH-1059 234.40 287.00 52.60 0.75 0.5
including 234.40 265.56 31.16 1.13 0.6
and 234.40 240.40 6.00 4.08 0.8
12-DH-1060 55.50 119.50 64.00 3.25 0.9
including 55.50 97.00 41.50 4.85 1.3
and 79.00 97.00 18.00 10.73 1.2
and 83.50 92.00 8.50 22.47 2.1
12-DH-1060 140.50 166.00 25.50 0.89 1.2
including 140.50 160.00 19.50 1.10 1.0
12-DH-1060 181.50 188.37 6.87 1.72 1.3
12-DH-1061 51.00 66.00 15.00 0.61 2.7
including 51.00 57.00 6.00 1.15 1.6
12-DH-1061 80.50 89.00 8.50 0.68 0.5
12-DH-1061 153.00 175.50 22.50 0.28 1.7
including 153.00 165.50 12.50 0.34 2.6
12-DH-1062 9.00 126.00 113.95 0.40 0.5
including 9.00 24.20 12.15 0.70 1.4
including 39.00 46.50 7.50 0.93 0.7
including 121.50 126.00 4.50 1.44 0.7
12-DH-1062 156.00 166.50 10.50 0.50 0.6
12-DH-1062 198.00 201.00 3.00 4.13 0.3
12-DH-1063 96.50 107.00 10.50 1.19 0.9
including 96.50 102.50 6.00 1.96 1.2
12-DH-1063 124.50 133.00 8.50 0.84 1.9
12-DH-1063 195.50 198.75 3.25 0.70 0.8
12-DH-1063 240.00 241.00 1.00 1.04 0.3
12-DH-1064 16.00 47.00 31.00 0.70 0.6
including 23.50 31.00 7.50 1.00 0.8
including 42.50 47.00 4.50 1.48 0.6
12-DH-1065 40.00 64.50 24.50 0.53 0.5
including 40.00 54.00 14.00 0.78 0.6
and 43.00 49.00 6.00 1.22 0.8
12-DH-1066 32.00 83.00 51.00 0.58 0.6
including 53.50 57.46 3.96 3.22 1.8
including 60.50 65.00 4.50 1.05 0.8
including 69.50 77.00 7.50 1.09 0.5
12-DH-1066 116.00 158.50 42.50 0.30 0.3
including 120.50 122.00 1.50 1.36 0.3
including 134.00 142.00 8.00 0.42 0.3
12-DH-1066 200.50 212.45 11.95 0.57 0.5
including 207.50 212.45 4.95 0.98 0.7
12-DH-1067 14.00 23.50 9.50 0.63 0.3
including 14.00 15.72 1.72 3.22 0.3
12-DH-1067 47.00 56.00 9.00 0.99 0.4
including 50.00 56.00 6.00 1.33 0.5
12-DH-1067 73.00 107.00 34.00 0.51 0.3
including 85.00 100.50 15.50 0.86 0.3
12-DH-1068 61.05 77.00 15.95 0.81 0.6
including 61.05 72.00 10.95 1.14 0.8
and 68.50 72.00 3.50 2.48 1.3
12-DH-1068 134.50 136.30 1.80 1.77 0.6
12-DH-1068 166.00 167.50 1.50 1.72 1.2
12-DH-1069 18.00 19.50 1.50 1.13 0.8
12-DH-1069 30.00 47.87 17.87 1.01 0.4
12-DH-1069 95.50 97.00 1.50 1.18 0.3
12-DH-1070 44.00 48.50 4.50 1.37 0.8
12-DH-1070 92.50 114.00 21.50 1.88 0.6
including 92.50 105.00 12.50 3.05 0.3
and 97.00 103.50 6.50 5.44 0.4
12-DH-1070 198.50 200.00 1.50 1.72 0.3
12-DH-1070 227.50 241.50 14.00 0.21 0.8
12-DH-1071 20.07 24.50 4.43 0.33 0.3
12-DH-1071 99.00 103.00 4.00 0.83 0.8
12-DH-1072 27.00 41.60 14.60 0.57 0.7
including 36.00 41.60 5.60 0.82 1.2
12-DH-1073 6.10 60.00 53.90 0.70 2.0
including 6.10 24.50 18.40 1.67 1.8
and 6.10 13.50 7.40 3.38 3.1
12-DH-1073 84.00 93.00 9.00 0.55 0.6
12-DH-1073 108.00 117.00 9.00 0.70 0.8
including 111.00 114.00 3.00 1.42 1.0
12-DH-1073 129.50 130.62 1.12 1.93 0.9
12-DH-1074 48.00 59.50 11.50 0.41 0.3
including 56.50 59.50 3.00 1.31 0.4
12-DH-1075 9.14 38.00 28.86 0.73 0.3
including 9.14 24.50 15.36 0.95 0.4
and 12.00 21.50 9.50 1.11 0.4
12-DH-1076 206.50 222.00 15.50 1.34 2.4
12-DH-1077 27.00 55.50 28.50 1.48 0.5
including 27.00 42.00 15.00 2.73 0.7
and 32.57 37.50 4.93 7.22 0.8
12-DH-1077 69.00 82.00 13.00 0.32 0.3
including 69.00 73.50 4.50 0.50 0.3
12-DH-1078 32.00 53.00 21.00 0.50 0.9
including 32.00 33.50 1.50 3.87 0.3
including 51.50 53.00 1.50 1.34 0.7
12-DH-1078 65.00 95.00 30.00 0.73 0.6
including 65.00 77.00 12.00 1.37 1.0
12-DH-1079 60.50 62.00 1.50 0.55 0.3
12-DH-1080 6.10 18.13 12.03 0.70 0.8
including 14.88 18.13 3.25 1.38 1.6
12-DH-1081 36.50 42.00 5.50 0.60 0.3
12-DH-1082 Hole was Abandoned
12-DH-1083 15.00 23.89 8.89 0.91 0.3
including 21.50 23.89 2.39 2.98 0.3
12-DH-1083 64.00 65.50 1.50 1.72 0.8
12-DH-1083 90.50 96.00 5.50 0.46 0.3
including 90.50 92.00 1.50 1.45 0.3
12-DH-1083 148.50 151.00 2.50 2.71 2.0
12-DH-1083 196.50 198.00 1.50 1.62 1.8
12-DH-1084 7.62 17.00 9.38 0.52 0.3
12-DH-1085 8.00 55.50 47.50 0.25 0.4
including 8.00 30.50 22.50 0.37 0.6
including 27.50 30.50 3.00 1.03 0.7
12-DH-1085 76.50 86.00 9.50 0.49 0.3
including 84.00 86.00 2.00 1.87 0.3
12-DH-1086 6.10 12.00 5.90 0.66 0.6
12-DH-1086 149.00 192.50 43.50 1.05 1.8
including 155.93 174.50 18.57 2.16 2.6
and 157.50 165.00 7.50 4.50 2.7
12-DH-1086 221.78 229.75 7.97 0.56 1.9
12-DH-1087 21.00 36.00 15.00 0.22 0.6
12-DH-1088 79.00 81.69 2.69 0.26 0.3
12-DH-1089 6.10 46.50 40.40 0.51 0.7
including 22.00 28.00 6.00 0.80 0.6
including 39.00 45.00 6.00 1.03 1.1
12-DH-1089 81.00 95.00 14.00 1.20 1.0
including 85.50 93.50 8.00 1.73 1.4
12-DH-1089 158.00 176.50 18.50 0.54 1.0
including 158.00 170.25 12.25 0.74 1.4
and 167.00 170.25 3.25 2.50 4.5
12-DH-1089 188.06 195.50 7.44 0.30 0.5
12-DH-1090 14.50 49.00 34.50 0.24 0.3
including 19.50 32.00 12.50 0.45 0.4
12-DH-1090 74.50 80.50 6.00 0.60 0.3

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

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