Spanish Mountain Gold Drilling Intersects 102.36 Metres Grading 0.92 g/t Gold With a High-Grade Subset of 17.00 Metres of 2.12 g/t Gold
High-grade intercepts at Orca Fault provide the "sweetener" needed to de-risk high-CAPEX low-grade bulk project.
The most recent news release (January 6, 2026) provides final results from the 2025 Fall Diamond Drill Program. Key highlights include Hole 25-DH-1315, which intersected 171.36 metres grading 0.64 g/t Au, and Hole 25-DH-1316, which returned 75.71 metres grading 0.73 g/t Au. Notably, one interval showed 102.36 metres of 0.92 g/t Au, including a high-grade subset of 17.00 metres at 2.12 g/t Au. The company has completed 8,220 metres of its planned 9,500-metre program, with assays still pending for seven additional holes. The Orca Fault target strike length has now been confirmed over 530 metres.
The results are materially positive as they consistently deliver grades significantly higher than the 2025 Preliminary Economic Assessment (PEA) average head grade of 0.46 g/t Au. - Grade Superiority: The 0.92 g/t and 2.12 g/t intercepts are roughly 2x to 4.5x the current resource average. This "high-grade" core within the Orca Fault is essential for the project’s economics, which are currently burdened by a massive C$1.25 billion initial CAPEX. - Resource Growth: Extending the Orca Fault strike to 530m provides a clear path for a resource update that could improve the early-year feed grade. - Continuity: The wide intercepts (171m) suggest bulk-tonnage consistency, reducing the risk of "nuggety" mineralization that can plague technical models. - Execution: Management is successfully executing the "two-fold strategy" mentioned in December 2025: finding higher grade and utilizing ore sorting to reject waste.
Spanish Mountain Gold's flagship is the 100%-owned Spanish Mountain Gold Project in British Columbia. It is a large, sediment-hosted gold deposit. The July 2025 PEA shifted the project to a larger scale (26,000 tpd) compared to the 2021 Pre-Feasibility Study (20,000 tpd). The project boasts a massive 4.2 million ounce Measured & Indicated resource, but its low grade (0.44 g/t) requires high-throughput and optimized processing to remain economic.