VANCOUVER, April 10, 2013 /CNW/ - Spanish Mountain Gold
Ltd. (the "Company") (TSX-V: SPA) announces that as a
result of a review by the British Columbia Securities Commission,
the Company is issuing the following news release to clarify
disclosure contained within the news release issued by the Company
on March 7, 2013 pertaining to the
Spanish Mountain Project (the "Project").
Potential Grade Increase
The Company announced the potential for a grade
increase for results from Reverse Circulation ("RC") drilling
compared to assay results from diamond drilling. A supporting
report was prepared by Dr. M.J.V.
Beattie and filed on SEDAR on March
26, 2013.
The Company wishes to clarify that the
information disclosed therein is conceptual in nature, there are
not sufficient reverse circulation drilling data to support a
change to the resource estimate and it is uncertain if further
drilling will result in a grade increase being achieved.
Furthermore, the Company cautions investors against placing undue
reliance on those statements contained within the News Release
dated March 7, 2013.
Disclosure of Mineral Resources
The Company referenced the existing NI 43-101
mineral resource for the Spanish Mountain Project within the news
release issued on March 7, 2013 in a
non-compliant manner. Total contained ounces of gold were presented
for each of the Measured and Indicated and Inferred categories
without disclosing grade and tonnages for each category as required
by NI 43-101.
The Company wishes to state that the mineral
resource compliant with NI 43-101 is as presented in the following
tables (and originally disclosed by the Company in a News Release
dated July 24, 2012 ) using cut-off
grades of 0.3g/t gold and 0.2 g/t gold.
Spanish Mountain updated resources (at a 0.30
g/t gold cut-off) effective July, 2012
| Classification |
Tonnes |
Gold grade
(g/t) |
Silver grade
(g/t) |
Gold
(ounces) |
Silver
(ounces) |
| Measured |
21,240,000 |
0.73 |
0.64 |
500,000 |
440,000 |
| Indicated |
113,230,000 |
0.56 |
0.69 |
2,040,000 |
2,510,000 |
| Measured plus Indicated |
134,470,000 |
0.59 |
0.68 |
2,540,000 |
2,950,000 |
| Inferred |
147,830,000 |
0.49 |
0.67 |
2,320,000 |
3,180,000 |
Spanish Mountain updated resources (at a 0.20
g/t gold cut-off) effective July, 2012
| Classification |
Tonnes |
Gold grade
(g/t) |
Silver grade
(g/t) |
Gold
(ounces) |
Silver
(ounces) |
| Measured |
29,360,000 |
0.60 |
0.67 |
560,000 |
630,000 |
| Indicated |
186,870,000 |
0.44 |
0.69 |
2,620,000 |
4,150,000 |
| Measured plus Indicated |
216,220,000 |
0.46 |
0.68 |
3,180,000 |
4,780,000 |
| Inferred |
316,740,000 |
0.36 |
0.65 |
3,650,000 |
6,620,000 |
Tonnages and contained ounces presented above
may not total as shown due to rounding. Readers are cautioned
that mineral resources, which are not mineral reserves, do not have
demonstrated economic viability.
The Company cautions investors to not rely on
the statements pertaining to mineral resources as presented in the
news release dated March 7, 2013 but
to refer to the mineral resources presented above. Furthermore, the
Company will ensure that all future references to mineral resources
pertaining to the Project will be presented in a manner compliant
with NI 43-101.
On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD
Brian Groves,
President & CEO
This News Release contains forward-looking statements.
Forward looking statements are statements which relate to future
events. In some cases, you can identify forward-looking statements
by terminology such as "may", "should", "expects", "plans",
"anticipates", believes", "estimates", "predicts", "potential", or
"continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors that may
cause our actual results, level of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance, or achievements expressed or
implied by these forward-looking-statements. Management has assumed
that these will be our major projects going forward. Risks include
that we are unable to satisfy environmental or other regulators,
that we determine that our resources are not commercially viable,
or that we have difficulties due to unavailability of labour or
equipment.
While these forward-looking statements, and
any assumptions upon which they are based, are made in good faith
and reflect our current judgment regarding the direction of our
business, actual results will almost always vary, sometimes
materially, from any estimates, predictions, projections,
assumptions or other future performance suggests herein. Except as
required by applicable law the Company does not intend to update
any forward-looking statements to conform these statements to
actual results.
The "Preliminary Economic Assessment for the
Spanish Mountain Project" (the "PEA") referred to herein is
preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have the economic
consideration applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that the PEA
will be realized. Mineral resources are not mineral reserves and do
not have demonstrated economic viability. The PEA effective
November 15, 2012 was prepared was
completed by TetraTech, an internationally recognized engineering
firm.
Cautionary Note Regarding Mineral
Resources and Mineral Reserves
Readers are advised that National Instrument
43-101 of the Canadian Securities Administrators requires that each
category of mineral reserves and mineral resources be reported
separately. Readers should refer to the Company's current technical
reports and other continuous disclosure documents filed by the
Company, available on SEDAR at www.sedar.com for further
information regarding the mineral resource estimates of the
Company's projects, which are subject to the qualifications and
notes set forth therein, as well as for additional information
relating to the Company more generally.
Mineral resources, which are not mineral
reserves, have a great amount of uncertainty as to their existence
and do not have demonstrated economic or legal viability. Inferred
mineral resources have insufficient confidence to allow the
meaningful application of technical and economic parameters or to
enable an evaluation of economic viability suitable for public
disclosure. Neither the Company, nor readers, should assume that
all or any part of an inferred mineral resource will be upgraded to
indicated or measured mineral resources. Most projects at the
inferred mineral resource stage do not ever form the basis of
feasibility or other economic studies, or achieve successful
commercial production. Each stage of a project is contingent on the
positive results of the previous stage and that there is a
significant risk that the results may not support or justify moving
to the next stage.
Neither TSX Venture Exchange nor its
Regulations Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Spanish Mountain Gold Ltd.