Spanish Mountain Gold Ltd (TSXV: SPA) has successfully mobilised contractors and employees for a field programme for the Spanish Mountain Gold Project located British Columbia, Canada.
The work programmes underway build on the successful completion of the Project’s Pre-feasibility study (PFS filed in June 2021) in which a multi-million ounce Mineral Reserve has been delineated along with robust economics and a 14-year mine plan.
Project Optimisation
The company has initiated a number of targeted optimisation exercises designed to potentially further improve the Project’s economics and the quality of the resource.
Metallurgical and Drilling Programme
Following the completion of the PFS, the company’s technical team has continued to advance the metallurgical test work with Ausenco Engineering to further improve the gold recovery process and to develop detailed parameters for the flowsheet. The exercise thus far has successfully assessed the metallurgical performance of samples using conventional gravity, flotation, and leaching processes.
The field programme underway will extract samples from five drill holes within the defined pit in order to complete variability sample testing and confirm the metallurgical performance with the optimised flowsheet.
The samples will be shipped to BaseMet Laboratories (Kamloops, BC) for analyses which include concentrate generation for downstream testing such as oxygen uptake tests, dynamic settling tests, cyanide detoxification and carbon adsorption tests.
Once the current metallurgical programme is complete, the optimized flowsheet and the detailed processing configuration will form the basis for ore processing and the recovery of gold in the definitive feasibility study.
Geotechnical Programme
The company has conducted a number of geotechnical programmes to gather critical data for designing the pit and tailings facilities and will commence additional drilling programmes in due course.
To achieve efficiency in overall project costs and schedule, the Company has mobilised BCG Engineering to conduct geotechnical work on three of the five holes drilled for the metallurgical programme. The company expects that the data from this exercise will give the technical team additional information to assess rock mechanics and to design a future program more effectively.
Power Line
The company’s technical team has successfully identified a modified route for the power line to the proposed mine that may potentially reduce the overall permitting risks as well as the linear length relative to the proposed route assumed in the PFS. Further progress had been made in a number of areas including power line routing and Right-of-Way for permitting, design and construction planning needs.
The company expects to continue work on this critical piece of infrastructure and to adjust the design as opportunities for cost savings and permitting are identified.
Electrification
Through the collaboration with BC Hydro (the provincial utility), the team has identified a number of opportunities that may potentially reduce capital and operating costs as well as green house gas emissions from the proposed mine. These opportunities include trolley assist trucks and equipment as well as various energy efficiency measures. The company is actively assessing these opportunities with industry experts and in due course will provide more specific plans and the details for these initiatives.
Environmental Assessment
The Company continues to execute its stated strategy of fast-tracking its multi-million ounce Resource through the process for environmental assessment/ permitting.
The early engagement periods of both the BC and federal Environmental Assessment processes for the Project were completed on June 23, 2022, with issuance of the Summary of Engagement by the BC Environmental Assessment Office and the Joint Summary of Issues and Engagement by Impact Assessment Agency of Canada.
Work is progressing on incorporating these findings into the Detailed Project Description and draft Application Information Requirements for submission in late 2022.
First Nations and Communities
Productive negotiations of Life-of-Mine Relationship Agreements are continuing with First Nations, with site visits by community representatives to be conducted into fall 2022. Management will continue to meet with First Nations, surrounding communities, regional governments and regulatory agencies throughout the EA process.
Ongoing Field Work and Analyses
The Company continues to expand its environmental database to support a robust EA process. Environmental field studies in 2022 are focussed on completing the baseline studies in advance of the planned preparation of the site-wide water balance and water quality model in Q1 2023 to support preparation of the Environmental Assessment Application later in 2023.
Wildlife baseline studies and reporting were completed in Q2, 2022. The groundwater monitoring network on site was expanded in Q1, 2022, with quarterly monitoring continuing through the year. Surface water quality, hydrology, and aquatic habitat studies are ongoing with completion of these baseline study reports on target for Q1 2023.
For further information please visit: https://spanishmountaingold.com/
