Sep 10
7
In the belief of anticipated news flow over the next several weeks, Spanish Mountain Gold appears strategically placed for growth in a strengthening gold market. CEO, Brian Groves’ prescient decision to reshape and refocus the company at the start of 2010 could pay significant dividends in the not-too-distant future.
With over 4 million ounces of gold in the ground, a land package that has been virtually unexplored, a Preliminary Economic Assessment due out in the fourth quarter and current market conditions favouring gold , Spanish Mountain appears to be at the right place at the right time.
In stark rebuttal to the long held misconception about BC mining projects, the recent renaissance of mining in British Columbia has placed it in the forefront as Canada’s leader in issued mining permit approvals. The provincial government has been strongly supportive of mining investment for job creation in a province where the traditionally strong forest industry has been devastated by the pine beetle kill.
Three major new mines have recently received permits and the BC government has implemented landmark royalty sharing agreements with First Nations Groups in a win for them, the government and industry. With over 1000 mineral exploration companies headquartered in Vancouver, the world’s foremost engineering firms , environmental consulting and supporting financial and legal firms, BC ‘s mining industry is set to become stronger than ever. As BC is Canada’s gateway to the Pacific and is closely aligned with Asian markets that are now powering the global economy, the ‘discount’ formerly applied by eastern experts to projects west of the Rockies should no longer hold sway in the market .
With a lack of new discoveries of any magnitude and fewer coming into production plus M and A activities heating up, the stars seem to be lining up for SPA. As I said before, the last six months have been nothing short of transformational for SPA. The next three months should see hard evidence that can take it to the next level.
