Spanish Mountain Gold Reports US$2.16B NPV for B.C. Project

Spanish Mountain Gold Ltd. has released a preliminary economic assessment for its British Columbia gold project, reporting a base-case after-tax net present value of US$2.156 billion. The company simultaneously confirmed that provincial regulators have authorized the resumption of the previously paused environmental assessment and permitting processes, clearing a key path toward development.

The updated study projects a 25.8-year mine life with total payable gold production of 3.33 million ounces. According to the report, which will be filed as an independent technical report within 45 days, the operation is designed as a conventional open-pit mine with a front-weighted production profile and an internal rate of return of 35.2%.

Economics improved by lower strip ratios

The financial upside stems from updated drilling data that increased the volume of ore in the mine plan. By targeting a larger open pit with a lower overall strip ratio, the company extended the mine life and raised mill throughput. The initial capital expenditure of US$1.05 billion is projected to be recovered in 1.8 years under base-case assumptions, a period that shortens to 1.5 years if gold prices reach the current spot level of US$4,400 per ounce.

Sustaining costs remain competitive, with an all-in sustaining cost of US$1,098 per ounce for the first five years of production. This figure includes net by-product credits and applies to an average annual output of 207,000 ounces during that initial phase. Over the full life of the mine, the average annual production is estimated at 129,518 ounces, with a higher sustaining cost of US$1,450 per ounce.

Process changes boost feed grade

Technical improvements were integrated into the flowsheet to enhance operational flexibility and metallurgical performance. The company implemented coarse particle flotation and clean gangue rejection technologies, which allow for early waste removal. This optimization increases the grade of material entering the rougher flotation stage, enabling higher throughput while maintaining strong gold recovery rates. The design also supports improved dry-stack tailings characteristics, reducing environmental footprint and operating costs.

Regulatory restart unlocks permitting timeline

The resumption of the environmental assessment is a critical procedural step for the project's advancement. As reported by Yahoo! Finance Canada, this regulatory confirmation allows the company to proceed with the permitting process that had been on hold. The updated mineral resource estimate also includes a maiden deposit, expanding the overall resource base and providing additional options for future production rate enhancements during the feasibility study phase.