GOLD-SILVER: Spanish Mountain announces new PEA for the First zone

BRITISH COLUMBIA – Vancouver-based Spanish Mountain Gold has prepared a new preliminary economic assessment for its Spanish Mountain gold project near Likely. [caption id="attachment_1003718001" align="alignleft" width="300"] Core storage at the Spanish Mountain gold project.[/caption] Using a 0.15 g/t gold cut-off, the deposit contains 306.5 million tonnes grading 0.39 g/t gold and 0.64 g/t silver with a contained total of 3.88 million oz. of gold and 6.28 million oz. of silver. There are also 450.6 million inferred tonnes at 0.28 g/t gold and 0.61 g/t silver with a contained total of 4.11 million oz. of gold and 8.9 million oz. of silver. The PEA proposes an open pit and 20,000-t/d mill, giving the First zone a life of 24 years during which time 2.2 million oz. of gold and 1.5 million oz. of silver will be produced. The initial capital expense will be $507 million including a contingency of $15 million. Assuming that the gold price will be US$1,250 per oz. over the life of the mine, the First zone will generate a pre-tax net present value (5% discount) of $597 million and a post-tax NPV of $482 million. Pre-tax and post-tax internal rates of return will be 21% and 19%, respectively. The economics of the new PEA are considerably better than the one prepared in 2012 for the entire resource. The all-in sustaining  cost is now estimated to be US$659 per oz. of gold rather than US$834 per oz. The NPV is up 64%, IRR has increased, initial capital is less, and the project life is almost twice as long. Complete details are available in the new release of April 10, 2017, posted at www.SpanishMountainGold.com.