Spanish Mountain Gold Drills 0.82 g/t Gold Over 139.82 Metres and a Second, Deeper High-Grade Intercept in the Same Drill Hole of 33.54 Metres Grading 2.19 g/t Gold
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The most recent news, dated December 1, 2025, reports additional assay results from the company's 2025 fall drill program at its flagship Spanish Mountain Gold Project. The highlight is from drill hole 25-DH-1299 at the Orca Fault target, which intersected two significant zones of gold mineralization: - A broad, bulk-tonnage style interval of 139.82 metres grading 0.82 g/t gold. - A deeper, higher-grade interval within a larger zone, returning 33.54 metres grading 2.19 g/t gold.
These results are part of a 9,500-metre drill program, of which 6,947 metres have been completed. Assays are pending for an additional 20 drill holes. The company states that the higher-grade mineralization has been traced over a 300-metre strike length at the Orca Fault target.
The news is Materially Positive. The drill results successfully confirm and extend the near-surface, higher-grade mineralization that the company has been targeting to enhance the economics of the recently published Preliminary Economic Assessment (PEA).
- Confirmation of Thesis: The results from the Orca Fault target validate the company's geological model. The goal of the current drill program, as outlined in the September 12, 2025 release, is to extend near-surface, higher-grade zones to improve the project's economics. The long intercept of 0.82 g/t Au is nearly double the average head grade of 0.46 g/t Au in the PEA, and the deeper intercept of 2.19 g/t Au demonstrates significant high-grade potential.
- Economic Implications: Successfully delineating a higher-grade starter pit could materially improve the project's financial metrics, such as shortening the payback period (3.4 years in the PEA base case) and increasing the Internal Rate of Return (IRR) of 18.2%.
- De-risking: Consistent, positive drill results increase confidence in the resource estimate and the geological model, which is a critical step in advancing the project toward a feasibility study.
- Progression: The news follows a series of positive drill results announced on November 3 and November 17, 2025, from the same program, showing a consistent pattern of success. This demonstrates that the company is systematically and successfully expanding the known mineralization.
While not a "game-changer" on the scale of the July 2025 PEA release, these results are significantly better than routine exploration updates. They provide tangible evidence that the company is achieving its stated goal of optimizing and improving an already robust project. The market should react positively to the continued de-risking and value-add from the drill bit.
Spanish Mountain Gold Ltd. is a Canadian-based exploration and development company focused on its 100%-owned Spanish Mountain Gold Project located in the Cariboo Gold Corridor of British Columbia. The project is envisioned as a large-scale, long-life open-pit gold mine.
The company's key achievement in 2025 was the release of an updated Preliminary Economic Assessment (PEA) on July 3, which outlined a 24.5-year mine life with a throughput of 26,000 tonnes per day. The PEA demonstrated robust economics, with a base-case after-tax NPV5% of C$1.0 billion and an 18.2% IRR at US$2,450/oz gold. The company's current strategy is to de-risk and optimize the project through targeted drilling and technical studies, with the goal of reaching a construction decision by 2027.
The property has claims subject to a 2.5% Net Smelter Return (NSR) royalty, which can be bought down to 1.0%-1.5% for an aggregate payment of $1 million.