Spanish Mountain Gold releases drilling results
| News |
Spanish Mountain Gold Ltd is pleased to announce further results from the in-fill drilling program recently completed within the Main Zone of its Spanish Mountain Gold Project located near Likely, BC. The results presented in this news release represent approximately an additional 20% of the total number of drill holes designed to reclassify gold mineralization from the Inferred to Measured and Indicated (M&I) categories. Results from the remaining drill holes are expected to be available within four weeks.
The results presented herein include one intersection of gold mineralization that yielded some of the highest assay results for the project to date.
The objective of the drilling program within the Main Zone is to support a further reclassification of Inferred gold ounces, as previously reported in a resource statement on November 15, 2011, to Measured and Indicated ounces.
The assays from the highly mineralized intersections within Hole DH-1060 exceed any previous drill results and are interpreted as an indication of the gold concentrations present within one of the rock units hosting gold in the Main Zone. This hole is located in an area between two mineralized regions within the Main Zone that previously had been assumed to have little potential to host gold mineralization. The Company now believes that a recently completed re-interpretation of controls on gold mineralization combined with these drilling results supports the view that the potential of this area has been under-estimated.
Upon receipt of all assay results for this program, an updated resource estimate for the Main Zone will be prepared. It is anticipated that this NI 43-101 compliant resource estimate will be finalized during the summer and will be incorporated in a technical report for the Project to be published in the fall of 2012. The Feasibility Study for the Project is currently on schedule for completion in the third quarter of 2013.
Brian Groves, President and CEO commented: "The results from Hole DH-1060 are very encouraging in returning the best assays to date for the Project. The results from this hole and others presented in this release support our belief that we will be successful in increasing the measured and Indicated gold resource for the Project."
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