VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 07/28/11 — Spanish Mountain Gold Ltd. („the Company“) (TSX VENTURE: SPA) is pleased to announce further results of the in-fill drilling program within the Main and North Zones of its Spanish Mountain Gold Project (the „Project“) located in central British Columbia, Canada. The results presented in this news release represent approximately an additional 30% of the total planned drill holes that are designed to upgrade mineralization from the Inferred to Measured and Indicated categories, test for extensions to gold mineralization laterally and at depth and to optimize the design of pit walls. The final 40% of results are expected to be available within eight weeks. The results of the drilling conducted to date continue to confirm the continuity of potentially economic mineralization in areas presently classified as inferred resources.
The Company is also pleased to announce that drill rigs have now moved onto the Cedar Creek area to begin testing gold targets defined in a soil geochemical survey.
Highlights of Drilling Results include:
MAIN ZONE HIGHLIGHTS:
NORTH ZONE HIGHLIGHTS:
Significant assay results are contained in Table 1 appended to this news release.
Discussion of Results
The 2011 drilling program on the Main and North Zones of the Spanish Mountain gold deposit has now been completed. The program was designed primarily to provide in-fill data for an updated resource calculation as a precursor to the commencement of a pre-feasibility study for the Project. The results from new zones of mineralization that have been encountered during this program will be included in the updated model. The program is also expected to provide further information on mineralization encountered at depth. A total of 4 deep holes have been drilled with an average depth of 524 m. Results from this phase of the program are expected to be received by September and will be incorporated in an updated resource model.
The drills have now been moved into the area of anomalous gold soil geochemistry in the Cedar Creek area. Preliminary reconnaissance in this area has confirmed the presence of argillite-bearing sedimentary and mafic volcanic rocks. The current drilling program is focused on testing areas defined by previous soil sampling that are anomalous in a number of elements including gold and copper. Initially, a total of 16 holes are planned for the gold target area.
Brian Groves, President and CEO commented, „We are very encouraged by these drilling results from the Main and North Zones. They represent some of the longest, if not the longest intercepts of continuous gold mineralization encountered on the property. Holes such as DDH-951 clearly indicate the presence of higher grade shallow mineralization which presents a real opportunity for starter pit optimization.“
Judy Stoeterau, P.Geo., the Company-s Vice-President of Geology and the qualified person as defined under National Instrument 43-101, has reviewed the contents of this news release. All core samples are assayed at ALS Chemex Laboratory in Vancouver, BC.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd is focused on the responsible development of its flagship Spanish Mountain gold project in southern central British Columbia, Canada. The Company has no debt and owns 100% of four gold properties located in British Columbia. Additional information about the Company is available on its website:
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD
Brian Groves, President and CEO
This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as „may“, „should“, „expects“, „plans“, „anticipates“, believes“, „estimates“, „predicts“, „potential“, or „continue“ or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Management has assumed that these will be our major projects going forward. Risks include that we are unable to satisfy environmental or other regulators, that we determine that our resources are not commercially viable, or that we have difficulties due to unavailability of labour or equipment.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Spanish Mountain Gold Ltd. Colin Clancy (604) 685-6465
B&D Capital Partners (604) 601-3651
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