| Property: | Spanish Mountain Gold Project | |
| Ownership: | 100% Ownership | |
| Symbol: | TSX.V: SPA | FSE: S3Y | OTC: SPAZF | |
| Location: | British Columbia, Canada | |
| Share Structure: | Shares Issued & Outstanding: Fully Diluted: |
391 Million 420 Million |
| Market Capitalization (as at Sept 30, 2023): | ~ $64 Million | |
| Management: |
Peter Mah, President, CEO & Director Mark Russ, CFO Suzette Ramcharan, VP Investor Relations and Corporate Development Julian Manco, Director Exploration |
|
| Board of Directors: |
Brent Bergeron (Chairman) |
|
Spanish Mountain's current focus:
- Enhance project economics and resource with Targeted Studies and Resource Expansion.
Highlights of PFS results
Current strategy prioritizes the development of the near-surface/ higher-grade multi-million ounce reserve as a standalone operation. The PFS demonstrates a potential mining operation characterized by robust production profile, low operating cost and modest capital expenditures. The PFS assumes a gold price of US$ 1,600/oz and a silver price of US$ 24/oz.
The following information are excerpts from the Prefeasibility Study NI 43-101 Technical Report, effective date May 10, 2021. A copy can be found on SEDAR and on the Company’s website HERE
Project Economics
| Gold Price (USD) | |||||||||
| Units | $1,200 | $1,400 | $1,600* | $1,800 | $2,000 | $2,200 | $2,400 | ||
|---|---|---|---|---|---|---|---|---|---|
| Pre-Tax Economics | |||||||||
| NPV(5%) | C$M | $125 | $486 | $848 | $1,209 | $1,570 | $1,931 | $2,293 | |
| IRR | % | 9% | 18% | 25% | 31% | 36% | 42% | 47% | |
| Payback | Yrs | 5.4 | 4.0 | 3.2 | 2.7 | 2.4 | 2.1 | 1.9 | |
| Post-tax Economics | |||||||||
| NPV(5%) | C$M | $129 | $415 | $655 | $888 | $1,119 | $1,350 | $1,580 | |
| IRR | % | 9% | 16% | 22% | 27% | 31% | 36% | 39% | |
| Payback | Yrs | 5.5 | 4.0 | 3.3 | 2.8 | 2.5 | 2.2 | 2.0 | |
* PFS Base Case
Reserve
The Project’s Mineral Reserves, which are a subset of the M&I Mineral Resources, are based on the mine plan developed for the PFS. Mineral Reserves are estimated in accordance with the CIM 2019 Best Practices Guidelines and are classified using the 2014 CIM Definition Standards.
| Tonnage (Mt) | Au Grade (g/t) | Gold (Moz) | Ag Grade (g/t) | Silver (Moz) | |
|---|---|---|---|---|---|
| Proven | 40.8 | 0.79 | 1.03 | 0.67 | 0.88 |
| Probable | 55.1 | 0.74 | 1.31 | 0.74 | 1.31 |
| Total P&P Reserve | 95.9 | 0.76 | 2.34 | 0.71 | 2.19 |
Select Operational and Cost Metrics
| Unit | LOM Avg. |
|
|---|---|---|
| Gold Grade | g/t | 0.76 |
| Annual Gold Production | Koz | 150 |
| Annual Silver Production | Koz | 63 |
| Cash Cost /oz | US$ | $696 |
| All-in-sustainable Cost/oz | US$ | $801 |
Project life-of-mine Operating Costs
| Mining Area | CAD $/t milled |
|---|---|
| Mining | 10.80 |
| Processing and G&A | 7.67 |
| Water treatment | 0.47 |
| Tailings and Water Management | 0.17 |
| Owner’s G&A | 0.27 |
| Total | 19.38 |
Initial Capital Expenditures
| Direct Costs | C$M |
|---|---|
| Overall Site | $26 |
| Open Pit Mining | $73 |
| Ore Handling | $34 |
| Process | $125 |
| Tailings and Water Management | $40 |
| Environmental Monitoring | $2 |
| On-site Infrastructures | $42 |
| Off-site Infrastructures | $64 |
| Water treatment Plant | $10 |
| Total Direct Costs | $416 |
| Project Indirects | $102 |
| Owner's Costs | $14 |
| Contingencies | $75 |
| Total | $607 |
