Spanish Mountain Gold Drilling Extends the Orca Fault Target Trend to a Strike Length Over 500 Metres Intersecting Numerous High-Grade Results Including 40.00 Metres Grading 0.98 g/t Gold
Orca Fault Expansion Solidifies PEA Growth While Cash Burn Nears Next Financing Inflection Point
The most recent news release (December 22, 2025) provides assay results from the ongoing 2025 Fall Diamond Drill program at the Spanish Mountain Gold (SMG) project. The company has extended the Orca Fault target trend to a strike length exceeding 500 metres. Significant intercepts include 40.00 metres grading 0.98 g/t Au and 74.35 metres grading 0.66 g/t Au. To date, 8,220 metres of the planned 10,000-metre program have been completed across 11 holes, with 12 holes still pending assays. Additionally, "condemnation" drilling at the A12 target (proposed mill site) intersected low-grade mineralization (42m @ 0.4 g/t Au), suggesting the footprint of the planned infrastructure may need to be adjusted to avoid sterilizing potential ore.
The impact of this news is Routine - Positive. - Continuity of High Grade: The results confirm that the "higher-grade" (relative to the global resource grade of 0.44 g/t) mineralization in the Orca Fault is continuous over at least 500 metres. This supports the "front-weighted" production profile touted in the July 2025 PEA. - Resource Growth Potential: Extending the strike length of the Orca Fault target within the "heart" of the Main Deposit suggests that future Resource Estimates could see an increase in both confidence (moving Inferred to Indicated) and total ounces. - Infrastructure Risk: The intersection of mineralization at the A12 target is a double-edged sword. While it shows the deposit is larger, it creates a "hidden risk" regarding the siting of the process plant and tailings facility, potentially leading to engineering delays or increased costs if infrastructure must be relocated. - Consistency: The grades (0.5 to 0.98 g/t) are significantly above the PEA's average head grade of 0.46 g/t, validating the strategy to target near-surface, higher-grade zones to improve early-year cash flow.
Spanish Mountain Gold Ltd. is developing the Spanish Mountain Gold Project in the Cariboo Gold Corridor of British Columbia. - Flagship Project: 100% owned open-pit gold project. - July 2025 PEA Highlights: 24.5-year mine life, 3.0M oz Au produced, C$1.0B NPV (5%) after-tax at $2,450 Au. At "spot" ($3,300 Au), the NPV jumps to C$2.3B with a 32% IRR. - Stage: Development/Advanced Exploration.