Spanish Mountain talks Phoenix ore sorting gains

Executive Summary

• Spanish Mountain Gold Ltd. announced positive Phase 1 results for sensor-based particle ore sorting (XRT) on the Phoenix deposit, highlighting significant potential to upgrade ore grades and improve project economics.
• The testing demonstrated the ability to reject 50% to 70% of feed mass as waste while achieving an 85% to 92% gold recovery rate, effectively doubling the grade of the processed material.
• The company has initiated Phase 2 testing with larger bulk samples from the Phoenix deposit to further optimize sorting algorithms, with results expected to inform a Preliminary Economic Assessment (PEA) update targeted for H1 2026.

Key Details

• Sorting Technology: X-ray transmission (XRT) sorting using Tomra’s commercial-scale machine coupled with enhanced AI programs, conducted at the Saskatchewan Research Council (SRC).
• Sample Composition: Phase 1 utilized 96 individual 7.5-centimeter pieces of half-core samples from the Phoenix deposit, averaging 0.48 grams per tonne Au.
• Grade Upgrade Potential: The process showed the potential to upgrade the Run-of-Mine (ROM) feed grade by two or more times through high mass rejection of waste and lower-grade material.
• Recovery Rates: Particle ore sorting resulted in 85% to 92% recovery of gold from the tested samples.
• Waste Rejection: The process rejected 50% to 70% of the sorter feed mass.
• Phase 2 Testing: Initiated with two 100-kilogram bulk sample sets from the Phoenix deposit (representing material below the 0.20 g/t cut-off and averaging 0.44 g/t) running in parallel with five 100 kg bulk sample sets from the Main deposit.
• Strategic Impact: The results support the potential to increase milled grades, expand gold production during the first decade of production, derisk lower-grade feed, and reduce capital expenditures related to materials handling, process plant infrastructure, and tailings.
• Future Timeline: Follow-up testwork will target overall flow sheet recovery, with results intended for inclusion in a PEA update during H1 2026.
• Qualified Persons: Brent Hilscher, PEng (ABH Engineering) and Jason Dunning, MSc, PGeo (Spanish Mountain Gold) reviewed and approved the technical information.

Notable Quotes

• "The amenability of the Phoenix gold mineralization to XRT ore sorting is an exciting new opportunity for the project to potentially increase milled grades and expand gold production during the first decade of production for the proposed mine. Ore sorting phase 1 test results show the potential to improve the project scale and economics while derisking portions of the resource, especially lower-grade feed. Preconcentrating mineralization essentially moves more gold through the process plant, which could significantly uplift processed grades, gold production and overall project economics." — Peter Mah, President and CEO