Spanish Mountain Gold Commences 2025 Winter Exploration Drill Program

Rhea-AI Summary

Spanish Mountain Gold (SPAZF) has launched its 2025 winter exploration diamond drill program at the Spanish Mountain Gold Project in British Columbia's Cariboo Gold Corridor. The program encompasses approximately 10,000 metres of drilling with 25 NQ and HQ sized diamond drill holes, ranging from 350m to 700m in length.

The drilling campaign targets multiple zones including: the Slipper and K Zones for near-surface extensions, a Deep New Cataclastic Argillite Horizon following up on high-grade intercepts, an Outcropping Tuff Target located 1,350m northwest of the 2021 pit constrained resource, and the Phoenix Target area which showed significant gold intercepts in historical drilling.

The company has partnered with Hardrock Diamond Drilling and SkyWest Environmental, collaborating with local First Nations, employing 25 local workers. MSALABS will utilize PhotonAssayTM technology for result analysis.

Positive

• Program targets potential high-grade mineralization expansion
• Multiple promising drilling zones identified
• Local employment creation with 25 workers
• Partnership with First Nations communities

Negative

• Results pending and success not guaranteed
• Significant capital expenditure required for 10,000m drilling program

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Spanish Mountain Gold Ltd. (the "Company" or "Spanish Mountain Gold") (TSX-V: SPA) (FSE: S3Y) (OTCQB: SPAZF) is pleased to announce the commencement of its 2025 winter exploration diamond drill program (the “2025 Winter Drill Program”), at its Spanish Mountain Gold Project (“SMG Project”), located in the Cariboo Gold Corridor, British Columbia, Canada.

Peter Mah, Spanish Mountain Gold’s President & CEO commented, “We are looking for game changers, both in terms of potential high-grade and growth of the mineral endowment that could significantly impact the project’s future value. Drilling conducted will also facilitate locating the project infrastructure away from potential mineralized gold endowment as the company advances towards a fast-tracked build decision by 2027.”

The 2025 Winter Drill Program will focus on extending mineralization outcropping at and near surface along strike, as well as testing deeper high-grade intercepts discovered in the 2024 exploration drill program. Approximately 10,000 metres (“m”) of drilling with 25 NQ and HQ sized diamond drill holes, ranging from 350 m to 700 m long, are planned on the following targets (refer to Figure 1 in press release dated January 21, 2025, “Spanish Mountain Gold Provides Project Update and Announces 2025 Exploration Drill Program”):

• Slipper and K Zones
  • Near-surface extensions of these zones with potential for low waste strip ratio open pit mining.
• Deep New Cataclastic Argillite Horizon
  • Drilling on this target will follow up on the high-grade intercepts encountered in drill hole 24-DH-1268 (refer to press release dated December 18, 2024, “Spanish Mountain Gold Intercepts Continuous Mineralization”) with potential to extend near pit mineralization deeper and to the northwest.
  • This program will also test the depth extents of this high-grade mineralization near drill hole 24-DH-1268 relative to its potential for underground mining.
  • Drilling on this target has started.
• Outcropping Tuff Target
  There are three main reasons to drill this target:
  • First, the area is located approximately 1,350 m northwest of the 2021 pit constrained resource (refer to the Spanish Mountain Gold Project - Prefeasibility Study (PFS) and Mineral Resource Estimate, and associated NI 43-101 Technical Report, effective date May 10, 2023, available on the Company’s website or under the Company’s profile on Sedarplus.ca), and it has the potential to extend near surface, low strip ratio, high-grade open pit mining for the project;
  • Second, historical drilling in the target area intercepted high-grade quartz structures from 60 m to 188 m of vertical depth. No historical drilling below this depth exists in this area; and
  • Third, there are indications that the stratigraphic sequence was uplifted in this area, potentially bringing the high-grade gold hosted Cataclastic Argillite Horizon (mentioned above) closer to surface.
  • Drilling on this target has started.
• Phoenix Target
  • The Phoenix Target area was previously identified by historical drilling that encountered significant gold intercepts associated with quartz veining (refer to press release dated December 7, 2011, “Spanish Mountain Gold Announces Discovery of New Gold Zone”).
  • In 2024, as part of the core relogging campaign, a new geological model containing the Phoenix Target was developed. It modelled potential gold mineralization over approximately 1700 m wide by 350 m long by 100 m thick. Due to the high-grade intersections and a sizeable potential near-surface mineralized gold endowment volume, follow-up drilling is warranted to determine the extents of potential gold mineralization for open pit mining and its potential impact to the overall project footprint.
  • A winter road has been cleared to the drill site areas and drilling is expected to commence within the first quarter of 2025.

The Company has engaged Hardrock Diamond Drilling, in partnership with the Williams Lake First Nation and SkyWest Environmental, in partnership with the Xatsull First Nation to execute the 2025 Winter Drill Program. The Program will employ 25 local and regional workers benefiting British Columbia (BC) based families and economy.

To reduce assay result turnaround times and the carbon footprint, the Company has engaged MSALABS to utilize PhotonAssay^TM, an innovative technology, for the drill program results.

Qualified Person

Julian Manco, M.Sc., P.Geo., Director of Exploration with Spanish Mountain Gold, is the Qualified Person as defined under National Instrument 43-101 who has reviewed and approved the contents of this news release.

About Spanish Mountain Gold Ltd.

Spanish Mountain Gold Ltd. is focused on advancing its 100%-owned Spanish Mountain Gold Project towards construction of the next gold mine in the Cariboo Gold Corridor, British Columbia. We are conducting an integrated Whittle Enterprise Optimization to identify the highest potential value-add improvements while increasing the understanding of the high-grade geologic controls and associated drill targets that could upgrade and expand the gold resource. We are striving to be a leader in community and Indigenous relations by leveraging technology and innovation to build the 'greenest' gold mine in Canada. The Relentless Pursuit for Better Gold means seeking new ways to achieve optimal financial outcomes that are safer, minimize environmental impact and create meaningful sustainability for communities. Details on the Company are available on www.sedarplus.ca and on the Company's website: www.spanishmountaingold.com.

On Behalf of the Board,

“Peter Mah”
President, Chief Executive Officer and Director
Spanish Mountain Gold Ltd.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING INFORMATION:

Certain of the statements and information in this press release constitute "forward-looking information". Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "believes", "plans", "estimates", "intends", "targets", "goals", "forecasts", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be considered forward-looking information. The Company's forward-looking information is based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release and include but are not limited to information with respect to, the timing, size, scope and results of the 2025 Winter Drill Program and the timing on release of those results; the potential near-surface mineralized gold endowment potential of the Phoenix Target; and the Company’s ability to make a build decision by 2027, which is reliant on a number of factors. Other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210339885/en/

For more information, contact:

Suzette N Ramcharan

(604) 601-3651

info@spanishmountaingold.com

Source: Spanish Mountain Gold Ltd.

FAQ

What are the main targets of SPAZF's 2025 Winter Drill Program?

The program targets four main areas: Slipper and K Zones for near-surface extensions, Deep New Cataclastic Argillite Horizon, Outcropping Tuff Target, and the Phoenix Target area.

How many meters of drilling is planned in SPAZF's 2025 winter program?

The program plans approximately 10,000 metres of drilling with 25 NQ and HQ sized diamond drill holes, ranging from 350m to 700m in length.

What technology is SPAZF using for assay analysis in the 2025 drill program?

The company is using PhotonAssayTM technology through MSALABS to reduce assay result turnaround times and carbon footprint.

How many local workers will be employed in SPAZF's 2025 winter drilling program?

The program will employ 25 local and regional workers, benefiting British Columbia based families and economy.