Spanish Mountain Gold Reports on Environmental Assessment Status and Provides Update on First Nations Engagement
Spanish Mountain confirms EA resumption and a 2028 feasibility study build decision despite XFN friction.
The British Columbia Environmental Assessment Office confirmed that Spanish Mountain Gold Ltd.’s plan to resume its environmental assessment is acceptable and will not terminate the process. The company remains on track to submit a Detailed Project Description in the first quarter of 2027.
Active engagement continues with the Lhtako Dene Nation, Williams Lake First Nation, and Xatśūll First Nation. The company’s recent release addressed the October 1, 2026, termination of 2012 and 2021 agreements by the Xatśūll First Nation, noting that Spanish Mountain Gold provided context on the status of these agreements in its second quarter 2026 Management’s Discussion and Analysis.
A feasibility study was initiated in the second quarter of 2026, is fully funded, and positions the company for a construction decision in the first half of 2028. Spanish Mountain Gold is preparing a new NI 43-101 Technical Report with an updated Preliminary Economic Assessment and Mineral Resource Estimate to supersede prior reports. This follows the May 1, 2026, receipt of US$22.5 million from the sale of a 1.5% net smelter return to Wheaton Precious Metals.
Spanish Mountain Gold Ltd. (SPA) released a regulatory and project update following its October 1, 2026, announcement regarding the termination of prior engagement agreements with XFN. The Environmental Assessment Office (EAO) confirmed that the Environmental Assessment (EA) will not be terminated, a procedural step that mitigates permitting risk but does not constitute a new catalyst.
The company’s Feasibility Study (FS) timeline, funding status, and construction decision target remain unchanged from prior announcements. This update serves as a clarification and progress report, introducing no unexpected market-moving information and not materially altering the project's development path or financial outlook. The market has likely absorbed the shock of the XFN termination, with the confirmation of the EA resumption maintaining the status quo and keeping the 2028 build decision on track.
Spanish Mountain Gold Ltd. is a junior mining company focused on the Spanish Mountain Gold Project in the Cariboo District, British Columbia. Its flagship project is a conventional open-pit mining and milling operation targeting a 25.8-year life of mine with 3.33 million ounces of payable gold.
An updated Preliminary Economic Assessment (PEA) released in September 2026 outlines strong economics at a base case of $3,600/oz Au. The assessment projects an after-tax NPV5% of US$2,156 million, an after-tax IRR of 35.2%, and an average AISC of US$1,098/oz in years 1-5.
To support the project, a 60,000-meter feasibility drill program is underway to infill and expand the Main Deposit and Orca Fault Corridor. Additionally, Phase 1 XRT sorting tests on the Phoenix deposit showed potential to double feed grades and reject 50-70% of waste mass, potentially reducing capex and uplifting project economics.