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Spanish Mountain Gold Ltd (SPA:CA)
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Web site:
http://www.spanishmountaingold.com/s/home.asp
Spanish Mountain Gold is an advanced gold exploration company based in British Columbia Canada. Our flagship property the "Spanish Mountain Project" is entering the pre-production phase of its development. It is one of the first recognized occurrences of a sediment "hosted" gold system in British Columbia.
- Multi-million ounce gold resource
- Project Economics: Open pit with low operating cost
- Very experienced management and board
- Excellent community and First Nations relationships
Spanish Mountain Project
Location
The Spanish Mountain gold project is located about 6 kilometers from the village of Likely, in the Cariboo region of central British Columbia, approximately 70 kilometers north-east of the city of Williams Lake.
Resource
The PEA had established an economic cut-off of 0.2 g/t gold based on assumptions of operating costs for a potential open pit operation. The following table presents the updated resource at a cut-off grade of 0.2 g/t gold.
Spanish Mountain updated resources (at a 0.20 g/t gold cut-off) from July 2012 Resource Update**
| Classification | Tonnes | Gold grade (g/t) |
Silver grade (g/t) |
Gold (ounces) |
Silver (ounces) |
| Measured | 29,360,000 | 0.60 | 0.67 | 560,000 | 630,000 |
| Indicated | 186,870,000 | 0.44 | 0.69 | 2,620,000 | 4,150,000 |
| Measured plus Indicated | 216,220,000 | 0.46 | 0.68 | 3,180,000 | 4,780,000 |
| Inferred | 316,740,000 | 0.36 | 0.65 | 3,650,000 | 6,620,000 |
Project Description
Spanish Mountain's Project Description has been accepted by both the British Columbia Environmental Assessment Office and the Canadian Environmental Assessment Agency. The Project Description describes the technical, economic, social, environmental, heritage and health components of the construction and operation of the proposed gold mine located in central British Columbia, Canada.
The acceptance of the Project Description means that the Project has now entered the 'Pre-Application' phase of the Environmental Assessment and Permitting process. It is expected that public meetings will be scheduled shortly in connection therewith. The Company has already held initial public meetings in the communities of Likely, Big Lake and Williams Lake and has held several meetings with both the Williams Lake Indian Band and Soda Creek Indian Band. The Company signed a Protocol Agreement with the former in March, 2011, as further described in the new release dated March 17, 2011.
Project Economics Based on 2010 Preliminary Economic Assessment
Average Annual Gold Production (Years 1 to 5) (ounces) |
213,800 |
| Average annual Gold Production Life of Mine (ounces) | 172,400 |
| Total Cash Cost, Years 1 to 5 (US $ per ounce) | $570 |
| Total Cash Cost , LOM (US$ per ounce) | $625 |
| Operating Cost ($ per tonne plantfeed) | $10.14 |
| Mine Life | 10 Years |
| Overall Gold Recovery | 90% |
| Average Gold Grade of Ore Processed | 0.51 g/t |
| Initial Capital Cost ($ millions) | $447 M |
Project Leveraged to Gold Price |
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| Gold Price | $1,100 | $1,200 | $1,300 | $1,500 |
| NPV | $411 million | $600 million | $788 million | $1,166 million |
| NPV(5%) | $209 million | $346 million | $483 million | $758 million |
| IRR | 14.70% | 20.20% | 25.20% | 34.20% |
| Payback | 5 years | 4 years | 3 years | 2.2 years |
SPA:CA
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