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News Releases

 
Jul 28, 2010


Spanish Mountain Gold Ltd. ("the Company") (SPA-TSXV) announces details of assay results received from twenty four large-diameter (HQ) drill holes completed on the Spanish Mountain Gold Project in southern central British Columbia. Most of the holes were drilled to a depth of 150 metres (m) with the deepest to 160 m. The drilling was completed in late 2009 in a known area of near-surface higher grade gold mineralization. The samples from these holes are also being used for ongoing metallurgical test work being carried out at G&T Metallurgical Laboratory in Kamloops, British Columbia. Work to date has continued to confirm that gold recoveries of 90% can be achieved by a conventional process utilizing flotation and Carbon-in-Leach processing of the concentrate. All core samples were fire assayed at ALS Chemex Laboratory in Vancouver, British Columbia.

The Company also announces that drilling of seven holes at Thunder Ridge is underway and should be completed within one week.

Spanish Mountain Project Highlights

Highlights of assay results include:
  • 40.0 metres (m) grading 1.19 g/t gold including 8.0 m grading 2.25 g/t gold in Hole 09-DDH-892.
  • 27.5 m (starting at 38.0 m down the hole) grading 1.56 g/t gold including 17.0 m grading 2.29 g/t gold in Hole 09-DDH-891.
  • 55.5 m grading 0.93 g/t gold including 12.0 m grading 1.71 g/t gold in Hole 09-DDH-871.
  • 39.5 m (starting at 14.5 m down the hole) grading 1.18 g/t gold including 8.0 m grading 2.35 g/t gold and a second interval of 27.0m grading 0.87 g/t gold including 10.5 m grading 1.35 g/t gold in Hole 09-DDH-886.
  • 20.0 m grading 1.30 g/t gold including 3.0 m grading 5.39 g/t gold in Hole 09-DDH- 888 and,
  • 56.5 m (starting at 39.0 m down the hole) grading 0.81 g/t gold including 12.5 m grading 1.66 g/t gold in Hole 09-DDH-896.
Significant assay results are contained in the table (Table 1) appended to this news release.

These results confirm the presence of a near-surface higher grade area of gold mineralization within the Main Zone, which is being assessed as the economically advantageous location for a potential starter pit. The Company will incorporate these results and the results from other holes drilled in 2009 into an updated geological model as part of the current Preliminary Economic Assessment ("PEA") (See Company News Release dated June 23, 2010). The PEA is progressing as planned and the Company expects delivery of the final report in the fourth quarter of this year.

The core from five additional HQ drill holes completed this spring has been shipped to SGS Lakefield in Ontario for test work designed to provide detailed information for crushing and grinding circuit design.

The Company anticipates that the current drilling programme at Spanish Mountain will be completed in August and assay results should be available in September.

Thunder Ridge Project Highlights

The Thunder Ridge property is located approximately 100 km south of Spanish Mountain and the Company has completed 23 holes to date. The current programme comprises seven holes for a total of approximately 1,700 m. All assay results from this drilling are expected in September.

Stuart Morris, P. Geo, the Company's VP, Development Geology is a qualified person (as defined in NI 43-101) and has reviewed the contents of this news release.

About Spanish Mountain Gold

Spanish Mountain Gold Ltd is focused on advancing its flagship Spanish Mountain gold project in central southern British Columbia. The Company has a current cash position of approximately $5.0 million and has applied for Mineral Exploration Tax Credit refund from the Province of British Columbia totaling $1.9 million. These funds are expected to be received in the third quarter of 2010.

On Behalf of the Board,
SPANISH MOUNTAIN GOLD LTD

Brian Groves

Brian Groves.
President and CEO

Contact:

Brian Groves
(604) 601-3651

or

B&D Capital Partners
(604) 685-6465

info@spanishmountaingold.com
www.spanishmountaingold.com

Table 1: Significant Assay Results

Drill Hole
Core size
From
To
Width(m)
Gold g/t

09-DDH-869

HQ

79.5
84.5
5
0.63
 
and
89
102.5
13.5
0.38
 
and
107
141
34
0.95
 
Including
108.5
110
1.5
3.59
 
Including
118
121
3
3.51
 
Including
124
129
5
1.39
   
 
 
 
 

09-DDH-870

HQ

8.5
11.5
3
0.73
 
and
34
41.5
7.5
0.34
 
and
47.5
64.5
17
0.37
 
and
76.5
85
8.5
1.19
 
Including
76.5
81.5
5
1.68
 
and
107.5
138
30.5
0.97
 
Including
112
113.5
1.5
6.70
 
Including
127
128.5
1.5
6.29
   
 
 
 
 

09-DDH-871

HQ

46
101.5
55.5
0.93
 
Including
50.5
59.5
9
1.45
 
Including
67
79
12
1.71
   
 
 
 
 

09-DDH-872

HQ

40
48
8
0.85
 
and
54
70
16
0.55
 
Including
61.5
64
2.5
1.31
 
and
80.5
125
44.5
0.72
 
Including
94
104.5
10.5
1.30
 
and
132.5
139
6.5
1.17
   
 
 
 
 

09-DDH-873

HQ

65.5
86.5
21
0.52
Including
67
68.5
1.5
1.60
and
95.5
115
19.5
0.46
Including
113.5
115
1.5
1.61
and
122.5
131.5
9
0.37
   
 
 
 
 

09-DDH-874

HQ

63.5
69.5
6
0.35
and
93.5
111.5
18
0.46
Including
110
111.5
1.5
1.25
and
119
153
34
0.53
   
 
 
 
 

09-DDH-875

HQ

18
32.5
14.5
0.36
Including
31
32.5
1.5
1.52
   
 
 
 
 

09-DDH-876

HQ

95.5
107.5
12
1.24
 
Including
95.5
97
1.5
6.20


Table 1: Significant Assay Results (cont'd)

Drill Hole
Core size
From
To
Width(m)
Gold g/t
09-DDH-878 HQ
6.1
13
6.9
1.16
 
and
96.5
114.5
18
0.68
 
Including
96.5
98.5
2
2.93
   
123.5
134.5
11
0.48
   
09-DDH-880 HQ
82
119.5
37.5
0.73
 
Including
88
89.5
1.5
10.90
   
09-DDH-881 HQ
43.5
63.5
20
2.06
 
Including
43.5
45
1.5
24.30
 
and
93.5
111.5
18
0.64
   
09-DDH-882 HQ
8.5
17.5
9
1.14
 
and
89
98
9
0.76
 
and
122
134
12
0.71
 
Including
128
129.5
1.5
2.10
   
09-DDH-883 HQ
23
32
9
1.05
 
Included
26
30.5
4.5
1.46
 
and
51.5
56
4.5
0.77
 
and
65
72.5
7.5
1.18
 
Including
71
72.5
1.5
4.21
 
and
101
110
9
0.49
 
and
128.5
151.49
22.99
0.63
   
09-DDH-886 HQ
14.5
54
39.5
1.18
 
Including
19
27
8
2.35
 
Including
34.5
39
4.5
2.53
 
and
64.5
69
4.5
1.04
 
and
88.5
91.5
3
0.68
 
and
103.5
130.5
27
0.87
 
Including
103.5
108
4.5
1.52
 
Including
120
130.5
10.5
1.35
   
09-DDH-887 HQ
79
85
6
0.54
 
and
95.5
103.5
8
1.14
 
and
135
145.5
10.5
0.51
           


Table 1: Significant Assay Results (cont'd)

Drill Hole
Core size
From
To
Width(m)
Gold g/t
09-DDH-888 HQ 41.5 64 22.5
0.37
 
Including
52 55 3
1.11
 
and
79 101.5 22.5
0.50
 
and
130 150 20
1.30
 
Including
147 150 3
5.39
         
09-DDH-891 HQ 26 33.5 7.5
0.61
 
and
38 65.5 27.5
1.56
 
Including
48.5 65.5 17
2.29
 
and
71.5 114 42.5
0.52
 
and
133.5 148.5 15
0.57
         
09-DDH-892 HQ 73 113 40
1.19
 
Including
73 79 6
2.16
 
Including
90 97.5 7.5
1.28
 
Including
102 110 8
2.25
         
09-DDH-893 HQ 48 57.5 9.5
0.95
 
and
78.5 90.5 12
0.73
 
and
102.5 117 14.5
1.21
 
Including
104 107 3
2.71
         
09-DDH-894 HQ 21.5 39.5 18
1.22
 
Including
32 38 6
2.63
 
and
48.5 68.5 20
0.93
 
Including
50.5 55 4.5
1.54
 
and
73 100 27
0.51
         
09-DDH-895 HQ 16.5 66 49.5
0.76
 
Including
36 42 6
1.94
 
and
84 96 12
1.13
         
09-DDH-896 HQ 12 22.5 10.5
0.73
 
and
39 95.5 56.5
0.81
 
Including
57 69.5 12.5
1.66
 
and
133.5 138 4.5
0.63
         
09-DDH-897 HQ 56.5 92.5 36
0.68
 
Including
86.5 89.5 3
1.89
         
09-DDH-898 HQ 71 103 32
0.56
 
Including
93.5 98 4.5
1.26


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. Actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.