Nov 11
15
Spanish Mountain Gold has just released its updated 43-101-compliant resource calculation on its flagship property in British Columbia, Canada. The report shows a significant increase in all categories and means SPA’s multi-million ounce resource is getting even bigger.
This new resource calculation represents a significant improvement over last year’s resource update especially in the inferred category with an impressive increase of almost 2 million gold ounces. The completed drill program has clearly identified areas where SPA can further convert the sizable inferred resource to the measured & indicated categories. That’s why the company is committing to another infill drill program in January. The timing of this program sits well with the big picture as any additional M&I resource can be incorporated into the on-going Pre Feasibility study, which has been scheduled for completion next April.
Any M&I resource identified by SPA could be included in the project’s proposed mine plan. This could means extending the project’s mine life and improving the overall project economics.
The Pre Feasibility study is investigating the scenario of mining the high grade zones close to surface during the first few years of production and expanding mill throughput in later years. This strategy makes a great deal of sense as it can reduce the initial construction cost. The higher grade ore could bring more production ounces and lower cash cost per oz in spite of lower mill throughput initially.
Brian Groves, SPA’s CEO, and his team have steadily and continuously de-risked the project on multiple fronts. With close to $20 million in the bank, SPA is well funded to take the Spanish Mountain gold project to production decision.
Incidentally, one should not forget that SPA is currently drilling two exploratory targets within its Cedar Creek area which could prove to be an interesting addition to its multi-million ounce project.
