Spanish Mountain Gold

In September 2009, convinced by the compelling investment case for gold investment and attracted by the prospects for Spanish Mountain Gold Ian Watson joined the company’s board. He has since assisted Spanish Mountain Gold with five private placing financings raising a total of C$34,223,000 to progress the development of its projects and was appointed Chairman of the company in March 2011. Morris Beattie, a former director of Galahad Gold plc, Northern Dynasty Minerals Ltd and Quadra Mining Ltd has also joined the board of directors of the company. Ian and his family trust are the holders of 18,454,497 shares in the company, representing 11.19% of the issued share capital, and 12,903,640 warrants, which will give Ian and his family trust a maximum holding of approximately 17.61%.

Spanish Mountain Gold Ltd (previously Skygold Ventures Ltd) is a Vancouver-based gold exploration company listed on the Toronto Venture Exchange (TSX-V:SPA). The company’s primary asset is the Spanish Mountain property which is located about 6 kilometres from the village of Likely, in the Cariboo region of central British Columbia, approximately 70 kilometres north-east of the city of Williams Lake, and covers an area of about 37 square kilometres (15 square miles). In June 2010 the company acquired the Cedar Creek property which is contiguous to the western boundary of the Spanish Mountain property. The combined area of the properties is over 51 square kilometres (20 square miles).

Spanish Mountain Gold also owns the Prince George, Manson Creek, Spanish Creek (Thunder Ridge) and MT properties located in central British Columbia which have a combined area of more than 373,000 hectares (923,000 acres).

In November 2010, the company provided an update on mineral resource estimates at the Spanish Mountain property, which were reviewed as part of the Preliminary Economic Assessment commissioned by the company and published in December 2010. The NI43-101 compliant report provides the following results:-

Gold contained within the resource model from the PEA
Classification Tonnes Gold (g/t) Gold (ounces)
Measured & Indicated 125,953,800 0.48 1,924,300
Inferred 170,395,600 0.40 2,191,300

Reported at a cut-off grade of 0.20 g/t Au

Recoverable ounces within a US$950 optimized pit
Classification Tonnes Gold (g/t) Gold (ounces)
Measured & Indicated 77,374,700 0.55 1,372,100
Inferred 39,531,300 0.48 611,100
Total ozs used for PEA cashflows 1,983,200

Caution: Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.

Spanish Mountain’s work programme for 2011 includes:-

Spanish Mountain Gold has announced the commencement of a Pre-Feasibility study. The results of the 2011 work programme will be incorporated in an updated model, which will be included in the Pre-Feasibility study.

The Spanish Mountain deposit is owned 100% by Spanish Mountain Gold. The infrastructure is excellent with road access, grid power to the property, producing mines nearby and an experienced workforce available.

The recent review of historical exploration data at the Cedar Creek property has identified two significant anomalous trends the company believe warrant further exploration. At least 4,000m of drilling is scheduled to commence in May 2011 and additional soil geochemistry over an area of 8 square kilometres will be conducted during 2011.