Aug 04, 2011
Spanish Mountain Gold Ltd. (the "Company") (SPA-TSXV) is pleased to announce that the Project Description for the Spanish Mountain gold project (the "Project") 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.
The Company also expects the formal commissioning of a pre-feasibility study ("PFS") for the Project to begin in September, 2011. The PFS will refine the estimates of capital and operating costs that form the basis for the Preliminary Economic Assessment ("PEA") completed by the Company in 2010. The Company currently has ongoing geotechnical, metallurgical and power supply studies underway, the results of which will be incorporated in the PFS.
The Company anticipates that the PFS will also examine the optimal mill throughput at the beginning of potential commercial production from the Project. One alternative the Company is now considering entails a smaller milling capacity at project commencement of 25,000 tonnes per day (tpd) for the first 3 years of production, with an expansion to 40,000 tpd for the remaining mine life. The PEA was based on a 40,000 tpd capacity for the entire mine life. The Company believes that an initial, smaller mill throughput of near surface higher gold head grade material from starter pits may have minimal impact on ounces of gold produced per year, reduce initial capital expenditures and improve project economics. A more detailed review of gold grade distribution within the Project's Main and North Zones of mineralization will be undertaken as part of the analysis of this alternative.
For further details on the Environmental Assessment and Permitting processes, please refer to the Government websites listed below.
British Columbia Environmental Assessment Office: http://www.eao.gov.bc.ca/
Canadian Environmental Assessment Agency: http://www.ceaa.gc.ca
Government of Canada Major Projects Management Office: http://www.mpmo-bggp.gc.ca
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: www.spanishmountaingold.com
On behalf of the Board,
SPANISH MOUNTAIN GOLD LTD
President and CEO
B&D Capital Partners
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.
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