Spanish Mountain Gold: Expanding Mineral Endowment and Optimizing Project Economics

Spanish Mountain Gold Ltd. (TSXV: SPA) (FSE: S3Y) (OTC Pink: SPAZF) has provided an update on its Spanish Mountain Gold project ("SMG Project"), located in the Cariboo Gold Corridor, British Columbia, Canada. The company's strategy remains focused on optimizing, derisking, and advancing the SMG Project towards a build decision by 2027. The company anticipates completing a new Mineral Resource Estimate ("New MRE") and Preliminary Economic Analysis ("New PEA") before the end of the first half of 2025 ("H1 2025"). Based on positive conclusions and recommendations of the New PEA, the Company anticipates beginning a Pre-feasibility Study ("PFS") or Feasibility Study ("FS") in 2025 and is well positioned to fast-track to a build decision by 2027.

The company has completed a new three-dimensional geological model, incorporating new data from the 2024 exploration drill program, the relogging of 174,228 m of historical diamond drill core, a structural geology assessment, and a geochemical analysis of historical data. The New MRE is currently under third-party review by Apex Geoscience Ltd., for inclusion in the New PEA. The New PEA remains on track to complete during H1 2025 and will incorporate 5,590 m of diamond drilling from the 2024 exploration program (the "2024 Drill Program"). The Whittle Optimization is progressing and will be completed in H1 2025 to assist in determining the optimal operation, scale, and minimized carbon footprint over the proposed mine life. The company has partnered with International Technology Group ANDRITZ ("ANDRITZ") and BCH to assess optimal power scenarios for various comminution equipment options and circuits ranging from 10,000-50,000 tonnes per day ("tpd"). A draft report with recommendations has been received and is under review by the project team.



The 2025 Exploration Drill Program is expected to commence in Q1 2025, targeting 10,000 m of diamond drilling utilizing oriented core. The targets identified in the 2025 Drill Program will focus on extending mineralization near surface along strike, deeper high-grade intercepts discovered in the 2024 Drill Program, and expanding geological knowledge for specific mineralized areas such as the Slipper Zone, the K Zone, a new third argillite horizon, and the Phoenix Target. The Phoenix Target is an area where quartz vein mineralization was previously identified through drilling. The geological model of Phoenix was further refined following the core relogging campaigns conducted in 2024, which warranted follow-up. Mineralization at Phoenix is predominantly associated with quartz veins of varying orientations, including both high and low angles. Additionally, coarse gold associated with quartz veins has been observed, guiding the focus of future drilling. Drilling efforts will concentrate around the historic drill hole 11-CCR-023, which returned an interval of 203.9 meters at 0.4 g/t Au and ended in anomalous Au values.

The New PEA is expected to result in several improvements over the 2021 PFS, including a potential scale increase from 20,000 to 50,000 tpd, electrification of mining operations, and implementation of coarse ore flotation with gravity processing. These expected outcomes of the New PEA could influence the project's economics and potential scale by increasing the project's throughput and production, leading to higher revenue and potentially lower unit costs. Additionally, the project's sustainability and environmental performance may be enhanced, attracting investors and stakeholders seeking responsible mining practices. Improved gold recovery through the implementation of advanced metallurgical processes could further boost the project's economics.

In conclusion, Spanish Mountain Gold Ltd. is well-positioned to optimize and derisk the SMG Project, with a focus on expanding the mineral endowment, reducing existing pit constrained resource risks, and affecting the project footprint. The 2025 Exploration Drill Program and the New PEA are expected to contribute significantly to the project's success, with potential improvements in project economics and scale. Investors should closely monitor the company's progress as it works towards a build decision by 2027.

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