Spanish Mountain Gold's New Power Line: A Step Towards Sustainability and Economic Growth

Spanish Mountain Gold Ltd. (TSX-V: SPA, OTC: SPAZF) has taken a significant step towards advancing its Spanish Mountain Gold Project with the commencement of Stage 2 of the System Impact Study (SIS) with BC Hydro. This move is expected to bring the project closer to a build decision by 2027 and secure a low-cost, clean power supply that could support a larger-scale operation compared to the 2021 Pre-feasibility Study. The SIS is part of BC Hydro's power supply interconnection process to provide 60 mega-watts (MW) of renewable hydroelectric power to the project, which could enable project improvements such as the electrification of the mining fleet, increased mineral processing throughput, and other potential opportunities like waste and tailings storage, water management, and mine closure benefits.

The SIS is an important step in securing a renewable power supply for the SMG Project, which could support a larger scale operation compared to the 2021 Pre-feasibility Study, lower the project's carbon intensity, and reduce greenhouse gas emissions. The Company has made excellent progress in 2024, completing Stage 1 of the SIS, and is now advancing to Stage 2 - Conceptual Design of the SIS. This will bring them another step closer to a build decision by 2027, aligning with the company's objective of building the 'greenest' gold mine in Canada.

Securing a renewable power supply from BC Hydro is expected to bring several benefits that align with Spanish Mountain Gold's sustainability objectives. These benefits include lower carbon intensity and reduced greenhouse gas emissions, support for a larger scale operation, mine closure benefits, and alignment with the Whittle Enterprise Optimization process. The renewable power supply could enable project improvements such as the electrification of the mining fleet and increased mineral processing throughput, which could support a larger scale operation compared to the 2021 Pre-feasibility Study. This, in turn, could enhance project economics and potentially lead to an earlier start of operations.

The SIS is expected to contribute to the overall project economics by securing a renewable power supply, enabling project improvements, and potentially supporting a larger-scale operation. The results of the SIS and other project improvements will be considered in the Preliminary Economic Assessment (PEA), which is expected to be completed by Q1 2025. The PEA will provide an updated assessment of the project's economics, taking into account the potential benefits of the SIS and other project improvements.

In conclusion, Spanish Mountain Gold's new power line to the site is advancing, bringing the project closer to a build decision and securing a low-cost, clean power supply. This move aligns with the company's sustainability objectives and is expected to contribute to the overall project economics. The SIS with BC Hydro is an important step in securing a renewable power supply for the SMG Project, which could support a larger scale operation, lower the project's carbon intensity, and reduce greenhouse gas emissions. The PEA, expected to be completed by Q1 2025, will provide an updated assessment of the project's economics, taking into account the potential benefits of the SIS and other project improvements.