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Spanish Mountain Gold (TSXV:SPA) steps up project work in British Columbia

Mining
TSX:SPAZF
28 July 2020 08:32 (EDT)

Spanish Mountain Gold (SPA) is accelerating work at its Spanish Mountain gold project in southern central British Columbia.

In a recent announcement dated July 14, 2020, the Vancouver-based company revealed its plans for a summer field program and the undertaking of an inaugural Preliminary Feasibility Study (PFS).

This was originally expected to result in a reserve statement for an initial phase of operations within the next 12 months.

However, Spanish Mountain Gold is accelerating this work, and is now anticipating completion of the work in approximately nine months’ time.

The proposed initial phase of operations would solely target the near-surface, higher-grade portion of the Spanish Mountain project’s mineral deposit, which makes up less than 30 per cent of the property’s multi-million-ounce measured and indicated resource.

Following the completion of the PFS, the company intends to focus on the delivery of other major milestones, including the completion of a full feasibility study, an environmental assessment and construction permitting.

The bolstered efforts come off the back of several substantial rounds of financing in which, most recently, Spanish Mountain Gold raised C$5 million on July 27 through a private placement with Canadian precious metals investor Eric Sprott.

In the short-term, the company’s technical team is expected to immediately carry out a detailed review of the project timeline with the aim of completing several significant milestones in the shortest possible time.

Spanish Mountain Gold said today that this may necessitate tackling several components simultaneously to maximise efficiency.

Larry Yau, CEO of Spanish Mountain Gold, believes the success of the company’s latest financing is a strong endorsement for the Spanish Mountain project strategy.

“We are now fully funded to fast track our project all the way to become ‘shovel ready’, arguably the optimal valuation point in a project’s development path.

“Fortunately, our hard work in the past few years allows us to advance the project from the Preliminary Economic Assessment completed in December, 2019, to a construction decision with an unusually compressed timeline and a modest budget,” he added.

Spanish Mountain Gold (SPA) is down 8.65 per cent and is trading at 48 cents per share at 3:13pm EDT.

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