Spanish Mountain Gold Ltd.
TSX VENTURE : SPA

Spanish Mountain Gold Ltd.

April 03, 2012 08:30 ET

Spanish Mountain Gold Reports Results of In-Fill Drilling Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 3, 2012) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) is pleased to announce the results of the in-fill drilling program up to the end of February, 2012 within the northern portion of 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 30% of the total planned drilling program being carried out to reclassify gold mineralization from the Inferred to Measured and Indicated (M&I) categories. In a news release dated November 15, 2011, the Company announced a resource estimate (National Instrument 43-101 compliant) for the Project containing multi-million gold ounces in both the M&I and Inferred categories.

Highlights of Drilling Results include:

  • 68.00m grading 0.67g/t gold including 42.50m grading 0.89g/t gold in hole 12-DDH-1016.
  • 63.00m grading 0.60g/t gold including 42.12m grading 0.72g/t gold in hole 12-DDH-1018.
  • 24.00m grading 1.08g/t gold in hole 12-DDH-1006.
  • 24.02m grading 1.01g/t gold in hole 12-DDH-1024.
  • 92.41m grading 0.49g/t gold in hole 12-DDH-1013.
  • 38.50m grading 0.90g/t gold including 27.50m grading 1.19g/t gold in hole 12-DDH-1008.

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

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, to Measured and Indicated ounces. The drilling at the Main Zone is expected to continue until late April, 2012, after which the drilling program at the Phoenix Zone will commence immediately.

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 ID From To Length Au gpt Ag_ppm
12-DH-1000 17.00 42.50 25.50 0.71 1.18
including 17.00 36.27 19.27 0.86 1.43
12-DH-1000 66.50 99.00 32.50 0.42 1.15
including 66.50 94.00 27.50 0.47 1.13
12-DH-1001 128.50 137.00 8.50 0.58 0.25
including 133.00 137.00 4.00 0.99 0.25
12-DH-1002 93.50 105.50 12.00 0.53 0.67
12-DH-1003 23.50 50.50 27.00 0.29 0.92
including 23.50 26.70 3.20 0.55 0.25
including 38.50 50.50 12.00 0.36 1.48
12-DH-1003 68.50 99.00 30.50 0.29 1.46
including 93.50 99.00 5.50 0.46 0.47
12-DH-1003 117.50 130.50 13.00 0.41 1.67
including 117.50 123.50 6.00 0.60 1.40
including 126.50 130.50 4.00 0.34 2.29
12-DH-1003 138.50 151.50 13.00 0.52 1.26
12-DH-1004 31.50 36.00 4.50 0.33 0.62
12-DH-1004 42.50 47.00 4.50 0.23 0.93
12-DH-1005 4.50 15.00 10.50 0.52 1.63
12-DH-1005 34.80 51.00 16.20 0.76 1.16
12-DH-1005 105.00 111.90 6.90 0.85 1.34
12-DH-1005 132.00 146.33 14.33 0.27 0.67
including 140.00 146.33 6.33 0.41 0.37
12-DH-1006 31.00 55.00 24.00 1.08 1.17
12-DH-1006 87.40 114.50 27.10 0.23 2.21
including 87.40 92.00 4.60 0.31 2.49
12-DH-1006 174.60 185.50 10.90 0.40 0.66
including 181.00 185.50 4.50 0.56 0.58
12-DH-1007 31.50 44.50 13.00 0.45 0.47
12-DH-1007 68.50 78.00 9.50 0.38 0.57
including 68.50 70.00 1.50 1.33 0.50
12-DH-1007 103.00 114.50 11.50 0.28 0.96
including 103.00 105.50 2.50 0.47 0.70
including 111.50 114.50 3.00 0.39 0.25
12-DH-1008 27.00 33.50 6.50 0.33 2.23
12-DH-1008 39.00 49.50 10.50 0.28 1.47
12-DH-1008 64.50 90.00 25.50 0.35 1.00
including 69.00 75.23 6.23 0.46 1.42
including 80.50 90.00 9.50 0.49 0.93
12-DH-1008 105.50 144.00 38.50 0.90 0.50
including 105.50 133.00 27.50 1.19 0.60
12-DH-1009 8.00 66.50 58.50 0.40 0.67
including 8.00 39.00 31.00 0.51 0.75
including 15.50 39.00 23.50 0.61 0.81
including 47.85 53.50 5.65 0.49 0.81
including 57.00 66.50 9.50 0.39 0.72
12-DH-1009 116.00 119.00 3.00 0.45 0.65
12-DH-1009 125.00 127.00 2.00 0.43 0.60
12-DH-1010 12.19 15.00 2.81 0.92 0.25
12-DH-1011 7.00 19.50 12.50 0.38 2.00
including 11.50 19.50 8.00 0.52 2.85
12-DH-1011 27.75 28.90 1.15 7.83 103.00
12-DH-1011 50.00 96.50 46.50 0.32 1.88
including 50.00 81.00 31.00 0.42 2.43
including 66.00 81.00 15.00 0.60 4.38
12-DH-1012 12.50 15.00 2.50 1.05 1.28
12-DH-1012 28.00 33.00 5.00 0.47 0.33
12-DH-1012 70.50 84.50 14.00 0.42 0.79
12-DH-1012 120.50 127.10 6.60 0.27 0.37
12-DH-1013 22.50 114.91 92.41 0.49 0.98
including 22.50 31.50 9.00 0.64 0.25
including 34.50 48.00 13.50 0.92 1.56
including 51.00 64.50 13.50 0.56 2.11
including 99.50 110.00 10.50 0.83 1.03
12-DH-1014 6.10 28.00 21.90 0.33 0.50
including 23.50 28.00 4.50 0.68 0.67
12-DH-1014 50.00 59.50 9.50 0.68 0.25
including 55.00 59.50 4.50 1.27 0.25
12-DH-1015 19.81 23.50 3.69 1.50 0.97
12-DH-1015 47.50 88.50 41.00 0.60 0.37
12-DH-1016 4.57 12.00 7.43 0.51 0.41
including 4.57 7.52 2.95 0.87 0.65
including 10.50 12.00 1.50 0.48 0.25
12-DH-1016 47.00 115.00 68.00 0.67 1.08
including 47.00 57.00 10.00 0.38 1.35
including 61.50 104.00 42.50 0.89 1.05
12-DH-1017 23.50 32.50 9.00 0.20 0.71
including 23.50 26.00 2.50 0.35 0.50
12-DH-1017 117.00 120.00 3.00 0.87 0.25
12-DH-1018 46.00 109.00 63.00 0.60 1.21
including 52.38 94.50 42.12 0.72 1.08
including 99.00 109.00 10.00 0.64 1.91
12-DH-1018 139.00 149.50 10.50 0.27 3.37
12-DH-1019 45.33 51.50 6.17 0.42 0.92
12-DH-1019 74.00 86.50 12.50 0.39 1.51
12-DH-1019 107.50 131.00 23.50 0.34 1.57
including 118.50 131.00 12.50 0.45 1.00
12-DH-1020 79.50 92.00 12.50 0.79 0.71
including 79.50 81.00 1.50 4.01 1.00
including 84.00 85.50 1.50 1.20 1.10
12-DH-1021 45.00 51.50 6.50 1.09 0.37
12-DH-1021 65.00 68.00 3.00 0.53 0.25
12-DH-1021 78.50 88.00 9.50 0.56 0.61
including 78.50 80.50 2.00 0.98 0.25
including 85.00 88.00 3.00 1.09 0.75
12-DH-1021 101.24 127.10 25.86 0.21 1.55
including 101.24 107.50 6.26 0.28 0.36
12-DH-1022 74.50 83.00 8.50 0.37 0.34
including 74.50 79.00 4.50 0.58 0.37
including 77.50 79.00 1.50 1.13 0.6
12-DH-1023 116.50 118.00 1.50 0.86 0.90
12-DH-1023 131.00 137.87 6.87 0.22 2.54
12-DH-1023 156.00 159.00 3.00 0.26 2.50
12-DH-1023 177.00 180.50 3.50 0.25 2.07
12-DH-1024 79.00 103.02 24.02 1.01 0.67
including 79.00 80.50 1.50 2.60 0.25
including 93.00 103.02 10.02 1.98 0.96
12-DH-1025 53.50 123.00 69.50 0.37 0.45
including 53.50 104.00 50.50 0.46 0.50
including 53.50 92.50 39.00 0.54 0.57
including 64.00 65.50 1.50 2.88 1.6
including 71.50 73.00 1.50 1.27 0.25
12-DH-1026 97.36 101.00 3.64 0.80 0.36
12-DH-1026 141.50 201.00 59.50 0.21 2.74
12-DH-1026 211.00 229.00 18.00 0.72 0.92
including 218.00 224.00 6.00 1.82 1.18
12-DH-1027 18.00 27.50 9.50 0.55 0.36
including 19.50 21.46 1.96 1.50 0.25
12-DH-1027 98.50 112.17 13.67 0.57 0.52
including 98.50 100.00 1.50 1.07 0.25
12-DH-1028 42.50 56.00 13.50 0.25 1.18
including 50.00 56.00 6.00 0.45 1.68
12-DH-1028 88.00 91.00 3.00 0.48 1.00
12-DH-1029 81.74 85.50 3.76 3.29 1.32
12-DH-1029 102.67 117.50 14.83 0.35 1.27
including 102.67 113.00 10.33 0.41 1.57
12-DH-1029 130.50 172.50 42.00 0.25 3.16
12-DH-1029 181.50 216.00 34.50 0.40 1.58
including 211.00 216.00 5.00 1.45 0.25
including 212.50 214.50 2.00 2.79 0.25

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

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