Spanish Mountain Gold confirms extensive near-surface gold mineralization at Phoenix Target

Spanish Mountain Gold (TSX-V:SPA) announced confirmation of extensive near-surface gold mineralization at its Phoenix Target in British Columbia, with drilling results defining a 1,450-meter long mineralized zone. Highlights from the 10,000-meter drilling program include intercepts of 62 meters grading 1.47 g/t gold and 188.2 meters at 0.31 g/t, increasing the potential for resource expansion. The company has engaged Equity Exploration to complete a maiden resource estimate for Phoenix, expected in Q2 2025, which will be included in an updated preliminary economic assessment for the overall Spanish Mountain Gold project.

Analysis

Spanish Mountain Gold Ltd. (TSX-V:SPA) has confirmed extensive near-surface gold mineralization at its Phoenix Target, a significant development for its flagship Spanish Mountain Gold project in British Columbia. Results from a 10,000-metre winter diamond drilling program, which included 14 holes at Phoenix, have defined a substantial mineralized zone approximately 1,450 metres long, 450 metres wide, and up to 320 metres deep, crucially remaining open in all directions. Highlight drill intercepts, such as 62 metres grading 1.47 g/t gold (including a high-grade interval of 4 metres at 17.28 g/t), 188.2 metres at 0.31 g/t gold, and 153.64 metres at 0.37 g/t gold, support the company's assertion of broad zones consistently grading around 0.4 g/t gold with higher-grade intervals. These findings, viewed with a "strongly positive" sentiment (0.8 score) and an "optimistic" tone, substantially increase the potential for a resource expansion. Reflecting this progress, Spanish Mountain Gold has engaged Equity Exploration to complete a maiden resource estimate for the Phoenix Target, expected in the second quarter of 2025, which will then be incorporated into an updated Preliminary Economic Assessment (PEA) for the overall project. CEO Peter Mah emphasized that this drill success demonstrates the potential to expand the gold resource base and create value, noting Phoenix's intriguing "emerging new geological host setting for gold." The Phoenix Target, located 1.4 kilometers west of the main deposit, builds on an earlier 2011 discovery, with recent drilling also suggesting mineralization extends to nearby areas like the K Zone and Outcropping Tuff targets.

Key Decisions for Investors

• Investors should closely monitor the upcoming maiden resource estimate for the Phoenix Target scheduled for Q2 2025 and the subsequent updated Preliminary Economic Assessment, as these will be key catalysts for quantifying the impact of these positive drilling results on the project's overall value.
• The confirmed extensive, near-surface gold mineralization, including high-grade intercepts at Phoenix, significantly de-risks a portion of the Spanish Mountain Gold project and strongly indicates the potential for a material resource expansion, warranting a positive reassessment of the company's exploration upside.
• Given that the mineralization remains open in all directions and there is potential for further discoveries at adjacent targets such as the K Zone and Outcropping Tuff, continued focus on ongoing exploration results is advisable, while also considering the typical risks associated with exploration-stage companies and fluctuating commodity prices.