Spanish Mountain logs high-grade gold results at BC project

New drilling by Spanish Mountain Gold (TSXV: SPA) at its namesake project in British Columbia paves the way for an expansion of the property’s gold system. The stock jumped.

Standout hole 26-DH-1390 cut about 94 metres of 1.32 grams gold per tonne from about 76 metres downhole and a higher-grade interval of 5 metres grading 3.23 grams gold from about 195 metres, Spanish Mountain said Monday in a statement. Both results are part of a standout 252-metre intercept of 0.82 grams gold from about 76 metres depth.

Vancouver-based Spanish Mountain is about 31% of the way through a 60,000-metre drill program planned for this year. Work on a feasibility study began in the second quarter, which will position the company to make a construction decision in 2028.

Main deposit

Monday’s results include 10 diamond drill holes completed within the project’s main deposit, where the company is testing both the broad gold system and higher-grade structures associated with the nearby Orca fault corridor. They come two weeks after Spanish Mountain released another set of high-grade assays, which included 27 metres of 1.92 grams gold from about 243 metres depth. Results are pending for 16 additional drill holes.

“Today’s results build directly on the company’s July 14th results, which cut wide and high-grade Orca-style mineralization across the western, southern, and eastern parts of the main deposit,” Atrium Research mining analyst Ben Pirie said Monday in a note.

“Together, the two batches continued to infill and extend the Orca fault corridor that hosts most of the deposit’s higher-grade material.”

Other highlights include hole 26-DH-1386, which cut 18 metres of 0.96 gram gold from 236 metres downhole and 10 metres of 2.19 grams gold from 296 metres depth. Hole 26-DH-1388, meanwhile, cut 22 metres of 0.97 gram gold from 153 metres and 69 metres of 0.75 gram gold from 217 metres downhole.

Shares of Spanish Mountain climbed 6.9% to 31¢ Monday morning in Toronto, valuing the company at about C$163 million ($115 million). The stock has traded between 12¢ and 42¢ in the past year.

Road access

Located about 500 km northeast of Vancouver, the project hosts one of British Columbia’s largest undeveloped gold deposits. It benefits from year-round road access, nearby hydroelectric power and an experienced regional mining workforce.

Spanish Mountain has spent much of 2026 completing infill and expansion drilling to refine the geological model while incorporating the newly recognized Orca fault corridor into future mine planning.

In April, the company signed a $55 million royalty agreement with Wheaton Precious Metals (TSX: WPM) tied to the project. Wheaton will acquire a 1.5% net smelter returns royalty on gold and silver production from the Spanish Mountain project, according to a statement dated April 21.

A preliminary economic assessment released last year envisioned an open‑pit mine processing 26,000 tonnes per day over a 24.5-year operating life. At a 5% discount rate and a gold price of $2,450 an ounce, the mine would have a net present value of about $1 billion with an internal rate of return of 18%. Initial capital was pegged at $1.25 billion and the payback period at 3.4 years.

Canadian mining investor Eric Sprott is one of the company’s biggest backers. He holds a 9% equity stake in Spanish Mountain.