Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) has provided an update on its Spanish Mountain Gold Project in British Columbia and announced plans for its 2025 exploration drill program.
The company said it remains focused on optimizing and advancing the project toward a potential build decision by 2027.
Key milestones for 2025 include completing a new Mineral Resource Estimate (MRE) and Preliminary Economic Analysis (PEA) in the first half of the year, with plans to begin a Pre-Feasibility or Feasibility Study based on the results.
The reinterpretation of historical geological data has identified new exploration drill targets that could expand the project's mineral endowment, refine the project footprint, and reduce risks.
A 5,590-meter drilling program completed in 2024 has contributed to the development of a new geological model, now under third-party review, and will inform the upcoming PEA.
The 2025 drill program, targeting 10,000 meters, will commence in the first quarter of the year, focusing on near-surface and high-grade extensions of mineralization, particularly in areas like the Slipper Zone, the K Zone, and the Phoenix Target.
The company has secured funding to support its 2025 exploration plan via a private placement that closed in November.
Ongoing project optimizations include the potential for increased mining scale, improved processing methods such as coarse ore flotation, and sustainability enhancements like mine electrification and innovative waste and tailings management strategies.
Recommendations from collaborations with partners, including BC Hydro and ANDRITZ, are being incorporated to assess optimal power scenarios and operational configurations.
In a separate update, Spanish Mountain Gold highlighted the commencement of Stage 2 of the System Impact Study (SIS) with BC Hydro for a proposed power line to the project.
The study is part of BC Hydro's interconnection process to provide 60 megawatts of renewable hydroelectric power to the project.
BC Hydro's responsibilities include the construction of a new power substation to connect the planned 75-kilometer, 230-kilovolt transmission line to the provincial grid, supporting the energy needs of the project in the Cariboo Gold Corridor.
Peter Mah, Spanish Mountain Gold CEO, said the company had made “excellent progress” in completing Stage 1 of the SIS, with Stage 2 bringing the project another step closer to a build decision.
“Renewable hydro electricity supplied from BC Hydro is the cleanest energy source currently available for the project that supports our objectives of securing a low-cost, clean power supply that could support a larger scale operation compared to the 2021 Pre-feasibility Study, lower the project's carbon intensity and reduce greenhouse gas emissions,” Mah said.