Apr 10
29
The transformation undertaken by the management of Spanish Mountain Gold continues to be documented in the work programs that they’ve just disclosed.
In the News Release dated April 29, 2010, they have a clear focus on the engineering aspects to help prove the viability of a potential open pit mine. The company already has a compliant resource of approximately 4 million ounces of gold at Spanish Mountain. The next step should be the commissioning of a Preliminary Economic Assessment which can be expected shortly.
It is good to see though that there is also an upside built into the program by doing both exploration drilling at Spanish Mountain (with a view of seeing if the resource area can be expanded), as well as a further round of drilling at Thunder Ridge to potentially increase the size of that quite exciting project.
The Spanish Mountain project does appear to have an area of near surface higher grade gold mineralization which could quite easily serve as a starter pit. The company has disclosed that some of the large diameter holes which were drilled late in the season in 2009 and were sampled for additional metallurgical work have now been submitted for assaying. As these holes are drilled in the area of the potential starter pit, it will be interesting to see what these results look like at the end of May when they are disclosed.
The company may wish to quantify the number of ounces in that starter pit by calculating a resource estimate with the view that this could be a positive driver for the overall economics of any potential mining operation on the property.
With my biased noted, SPA appears to be among the most undervalued multi-million ounce gold deposits in the world today.
