5) Spanish Mountain Gold - Update (October 5)
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Highlights in this update:
- 2026 new PEA and new MRE has been released
- Atrium Research raised SPA.V share price target to CAN$1.20
- Red Clouds raised SPA.V share price target to CAN$1.30
- Update on Artemis Gold's Blackwater Mine 2026 Q2 gold production and revenue (scroll down to Blackwater Mine section).
Blackwater Mine is Spanish Mountain Gold's vision for the future. CEO Peter Mah: "We have learned a lot from Artemis Gold which owns the Blackwater Mine".
- Unfinalized agreement between SMG and Xatśūll First Nation (XFN) has been terminated, a new 2026 agreement is being drafted. It appears that financial benefit to Xatśūll First Nation is the key criteria and motive of XFN in the collaboration agreement but safeguarding the interest of SMG's shareholders and Canada's economic growth through job creation are the priorities of SMG's management. (scroll down to the end)
- CEO Peter Mah and Director Lembit Janes bought a combined 1,972,789 shares in the open market on October 2. (scroll down to "Warrants, Options, Insider share ownership"
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Spanish Mountain Gold's gold resources far emulates its peers while its share price and market capitalization is only at a fraction of its peers.
https://investorshangout.com/images/MYImages/...speers.jpg
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Corporate Presentation
https://spanishmountaingold.com/investors/presentations/
News Release
https://spanishmountaingold.com/news/2026/
Financial Reports
https://spanishmountaingold.com/investors/fin...y-filings/
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Latest News Release and Corporate Operation Strategy
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September 21, 2026 - Spanish Mountain Gold Announces Uplift In Scale And Value At Its B.C. Gold Project And Receives Confirmation From Provincial Regulators To Resume The Previously Paused Environmental Assessment And Permitting Process Advancing Towards Development
https://spanishmountaingold.com/news/2026/spa...rovincial/
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Note: The new 2026 Mineral Resource Estimate (MRE) published on September 21 does not include the gold resources from this year’s drilling program in the K-zone.
The company did not mobilize additional drill rigs to focus on the high-grade K-zone target until July 2026. The updated 4.66 million ounce MRE has an effective date of May 19, 2026. The 2026 MRE incorporates all historical data up to May 19, 2026, which encompasses the amalgamation of the Main, North, Slipper, and historical K-zone data (including the breakthrough high-grade intercept from April 2025). However, the ongoing 60,000-metre 2026 Feasibility Drill Program which has completed over 31,500 meters so far is running through the end of 2026. All assays generated from this year's K-zone and Orca corridor are preserved to calculate final gold resources for the Feasibility Study.
When the Feasibility Study (FS) is finalized and released, it will be accompanied by an updated technical report. Rather than just another standalone Mineral Resource Estimate (MRE), the completion of the FS brings two critical resource updates:
Inclusion of 2026 Drill Data: The entire 60,000-metre 2026 exploration and infill campaign including the high-grade targets from the K-zone and expansions along the Orca Fault Corridor will be completely modeled.
Conversion to Mineral Reserves: This is the most crucial milestone for the project. While an MRE only lists "Resources," the Feasibility Study will introduce the project's maiden Proven & Probable Mineral Reserves which are the highest-confidence category in mining, proving that the ounces are legally, technically, and economically mineable.
Because the K-zone has previously delivered some of the highest-grade intercepts in the project's history, the team's objective for the upcoming FS model is to potentially uplift both the average grade and the total resource size before they make their final 2028 build decision.
When the Feasibility Study is completed at the end of 2027 or early 2028 and included the high grade gold resources in the K-zone, the final Proven & Probable gold resources could exceed 8 million ounces contributed by the high grade, high tonnage gold resources in the K-zone, emulating that of Blackwater Mine.
The initial Capital Expenditure will be significantly reduced through optimization by XRT ore sorting technology resulting in reduction in mill size, reduction in floatation facility, reduction in tailing facility and other circuits. Hopefully the Capex will be reduced to the same level as Blackwater Mine at CAN$750 million.
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The Company’s current strategy remains focused on optimizing, de-risking and advancing its Spanish Mountain Gold project towards a development decision in H1 2028. The Company is advancing directly to a FS and awarded the lead QP role to BBA Engineering Ltd. In H2 2026 the Company, along with BBA, will be producing a PEA Update taking into account the 2025 Fall and the 2025 and 2026 Winter Drill Program results, the Phoenix Deposit MRE, the benefits of ore concentration, and a higher gold price.
The Company expects drilling to total over 60,000 m for the full 2026 calendar year leading up to the completion of the FS in H1 2028 or sooner. This drilling will include geotechnical and hydrological drilling and test work necessary for designing the proposed infrastructure such as the mill and tailing storage facilities. The Company has completed over 43.9 percent of the 60,000 m program as of August 28.
Titanium in the form of rutile, a critical mineral, has been identified in potentially significant amounts. The FS includes scope for metallurgical testing to assess potential saleable gold and rutile concentrates. Rutile (titanium) was not included in the 2025 PEA. The Company is targeting a titanium MRE by the end of 2026 dependent on positive metallurgical testing and an internal scoping study
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Technical Analysis and future scenario
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US DOLLAR weekly
https://stockcharts.com/sc3/ui/?s=%24USD&...4982523747
Gold weekly
https://stockcharts.com/sc3/ui/?s=%24GOLD&...8609492691
XAU weekly
https://stockcharts.com/sc3/ui/?s=%24XAU&...4158123608
SPA.V weekly
https://stockcharts.com/sc3/ui/?s=SPA.V&p...8609492691
SPAUF weekly
https://stockcharts.com/sc3/ui/?s=SPAUF&p...8609492691
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Analysts' 12-month share price forecast for SPA.V
https://money.tmx.com/en/quote/SPA
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Atrium Research raised SPA.V share price target to CAN$1.20
https://mcusercontent.com/4bc421505c66d079778...PEA_1_.pdf
Atrium Research is a Toronto-based independent financial research firm that specializes in company-sponsored equity research for underfollowed small- and mid-cap public companies in North America. The firm aims to increase visibility for these overlooked equities by providing in-depth valuation analysis and management interviews. The firm is privately owned and operated by co-founders Ben Pirie and Nicholas Cortellucci.
Atrium Research updates on Spanish Mountain Gold with share price target
https://www.atriumresearch.ca/spa
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Red Clouds raised SPA.V share price target to CAN$1.30
https://docs.google.com/viewerng/viewer?url=h...date-1.pdf
Red Cloud Securities is a Toronto-based, IIROC-regulated investment dealer and boutique global investment bank. Founded in 2011, it focuses primarily on the junior resource and mining sectors, helping exploration, development, and junior production companies raise capital and connect with retail and institutional investors.
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In the coming 2030 Cariboo gold rush Spanish Mountain Gold Mine will be the third biggest mining project in the Cariboo region after Artemis Gold's Blackwater Mine and Osisko Development's Golden Cariboo Project.
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Barkerville, the legend of a once booming mining town in the Cariboo region, BC, located 50 Km north of Spanish Mountain Gold, started the world famous Cariboo gold rush.
https://www.google.ca/maps/dir/Barkerville,+B...FQAw%3D%3D
Video duration: 5 minutes
https://www.youtube.com/watch?v=XGfM7Ya1ulQ
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Spanish Mountain Gold is inching towards Feasibility and Mine Building Decision
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Feb 27, 2026 - Spanish Mountain Gold Signs Memorandum of Understanding with Metso Canada Inc.
https://spanishmountaingold.com/news/2026/spa...anada-inc/
Metso Canada services (video)
https://www.youtube.com/watch?v=wgiF9uZqDsE
Metso Canada website
https://www.metso.com/corporate/sustainabilit...-offering/
Metso Canada (formerly Metso Outotec) is a technology provider that supplies mining equipment such as crushers and grinding mills to various companies, including recent project like Blackwater Mine in the Cariboo region of British Columbia. It is a leading global industrial company and a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries. They focus on improving their customers’ energy and water efficiency, increase their productivity and reduce environmental risks with their product. Crushing, screening and grinding is their core business. Metso is headquartered in Espoo, Finland. At the end of 2025 Metso had close to 18,000 employees in around 50 countries, and sales in 2025 were about EUR 5.3 billion.
Key Aspects of Metso’s Business:
Aggregates: Provides crushing and screening equipment (mobile and fixed) for quarrying and construction industries.
Minerals Processing: Offers technology for mining, including grinding mills, separation, filtration, and tailings management.
Metals Refining: Provides solutions for metal processing.
Services & Wears: Delivers a broad portfolio of aftermarket services, spare parts, and wear parts to optimize equipment performance.
Sustainability: Focuses on "Planet Positive" solutions aimed at reducing energy and water consumption in customer operations.
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Spanish Mountain Gold - Vision For The Future ( following the successful footsteps of Blackwater Mine )
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Blackwater Mine - Owned by Artemis Gold, located 250 kilometers northwest of Spanish Mountain Gold and 160 km southwest of Prince George
Google Blackwater Mine map
https://www.google.ca/maps/place/Blackwater+M...FQAw%3D%3D
Artemis Gold share price ( ARTG.V )
https://stockcharts.com/sc3/ui/?s=ARTG.V&...8838982129
Blackwater Mine is an open pit gold and silver mine with mine life of 22 year and with scheduled mill throughput of 16,000 tpd, expandable to 33,000 tpd in year 6 and 55,000 tpd in year 11. The mine has Proven Reserves of 8 million ounces of gold, 62.2 million ounces of silver and Probable Resources of 11.7 million ounce of gold, 122.4 million ounces of silver.
In June, 2022 during the Phase 1 construction Metso delivered a Superior MK-III 4265 18MW primary gyratory crusher, HP900 cone crushers (secondary and tertiary), and a 14-MW Premier ball mill to Blackwater Mine. The delivery also included apron feeders, slurry pumps, hydrocyclones, and a RockSense particle size analyzer.
https://investorshangout.com/images/MYImages/...erMine.jpg
Phase 1 acquisition cost from Metso and construction cost is CAN$312 million, it included Engineering, Procurement, and Construction cost awarded to Sedgman.
Sedgman is a global leader in minerals processing and infrastructure solutions, offering end-to-end services from design and engineering to construction and operations. They specialize in coal, base/precious metals, and critical minerals, focusing on maximizing recovery, optimizing efficiency, and managing tailings for mining clients worldwide.
https://www.sedgman.com/
Artemis Gold also ordered C$134 million in primary mining equipment from Finning Canada for the Phase 1 development of the Blackwater Mine, representing a key component of the initial capital spending. This haul and load fleet includes Caterpillar trucks and excavators. Total Phase 1 project capital expenditure is estimated at C$730-C$750 million.
https://www.finning.com/en_CA.html
Mine construction began in 2023 and completed after 22-month with gold/silver pouring starting in early 2025. As one of Canada's largest gold development projects, it is a 100% electrified facility designed to be a low-emission, open-pit mine. The mine officially opened on May 30, 2025.
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Metso Superior MK-III 4265 primary gyratory crusher (breaks big ores into small ores)
https://www.youtube.com/watch?v=AVLicyiBLo8
The Metso Superior MKIII primary gyratory crusher is considered a significant innovation in mining, delivering up to 30% higher capacity and up to 70% less maintenance downtime than traditional crushers. It is marketed as the first high-speed primary gyratory crusher, featuring innovative digital automation, rotable shells for improved liner life, and superior capital efficiency. The gyratory crusher is a paradigm shift from the traditional ore crushing method.
How does a gyratory crusher work
https://www.youtube.com/watch?v=IYeOW7UCZAg&t=15s
Video - Metso Superior MK-III 4265 primary gyratory crusher at work in mine site
https://www.youtube.com/watch?v=JIDMthAHtUc
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Metso Nordberg HP900 cone crusher (breaks small ores into pebbles)
https://www.youtube.com/watch?v=PRLCfhPudG8
How does a cone crusher work
https://www.foremanequipment.com/cone-crushers/
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Metso 14MW ball mill (pulverizes pebbles to extract gold and silver particles)
https://youtu.be/4VmJ0vBRAG4
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Subsequent wet plant (milling and CIL circuit) transitioned the operation from construction to production.
The site features a fully electrified processing facility, a 225kV transmission line, and a significant tailings storage facility.
The project employs over 400 people, with a high percentage of local and Indigenous representation.
Designed with a low carbon footprint, replacing traditional fuels with electric equipment for mining and processing.
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Blackwater Mine - Capital Expenditure
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The initial capital expenditure (CAPEX) for Phase 1 of the Blackwater Mine was estimated to be between C$730 million and C$750 million. As of December 31, 2023, approximately $389 million of this initial capital had been spent, with 84% of the lower end of the guided range ($615 million) contractually committed.
Remaining Capex: As of March 31, 2024, remaining Phase 1 capital expenditures were estimated at $207 to $227 million.
Scope: Phase 1 focused on building an open-pit mine and a processing facility with a capacity of 6 million tonnes per annum (Mtpa).
Subsequent Phase 1 Upgrades ("Phase 1A"
In September 2025, Artemis Gold announced plans to upgrade the Phase 1 processing plant (dubbed Phase 1A), aiming to increase capacity from 6 Mtpa to 8 Mtpa by Q4 2026.
Phase 1A Capital Cost: Estimated at $100 – $110 million, to be funded by operating cash flows.
Goal: To increase throughput and efficiency while leveraging the existing team that built Phase 1.
In December 2025 Artemis Gold approved a $1.44 billion Phase 2 expansion to increase production capacity from 8 million tonnes annually to 21 million tonnes annually, equivalent to increasing daily throughput from 26,000 tonnes daily to 69,000 tonnes daily.
Artemis Gold is incorporating XRT (X-ray transmission) ore sorting technology as a key component of its Phase 2 expansion for the Blackwater Mine in central British Columbia. The technology is being used to pre-concentrate mineralization and reject waste rock prior to milling.The addition of XRT sorting is designed to upgrade the head grade of the mill feed, improving processing efficiency and scaling production capacity. Artemis Gold's Executive Chair highlighted the inclusion of this technology as an essential part of the mine's future development trajectory.
In March, 2026, Metso supplied a Superior MKIII primary gyratory crusher and Nordberg HP Series cone crushers to Blackwater Mine with a total value of approximately EUR 39 million (CAN$45.25 million, US$42 million). Construction is planned for Q3 2026 and is expected to be completed before the end of 2028. The expansion cost will be funded primarily through operating cash flows. Gold production will increase to over 500,000 ounces annually for the first 10 years.
https://artemisgoldinc.com/news/media-release...water-mine
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Blackwater Mine - Average gold grade and silver grade
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First 5 Years: Averaging 1.29 g/t gold.
Subsequent 17 years: Average 0.75 g/t gold.
Silver Grade: The average silver grade is estimated to be 5.78 g/t Ag over the life of the mine.
Reserve Basis: Total proven and probable reserves are estimated at 334.3 million tonnes at 0.75 g/t gold with gold content of 8 million ounces and 5.8 g/t silver with silver content of 62 million ounces.
First 5 years average annual production: 463,000 ounces of gold and 1.9 million ounces of silver.
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Blackwater Mine 2025 Average Realized Sale Price of gold. AISC profit margin
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Blackwater has capped off its inaugural operating year with record quarterly production of 68,480 ounces of gold during the three months ended December 31, 2025 (“Q4 2025”), bringing full year 2025 production to 192,808 ounces of gold. The quarterly gold production represents a 12% increase from the previous quarter and was primarily driven by higher mill feed grades and higher processing recoveries.
https://www.artemisgoldinc.com/news/artemis-g...6-guidance
https://www.artemisgoldinc.com/news/media-rel...ng-results
Based on financial results released by Artemis Gold, 2025 Average Realized Sale Price of gold is US$3,684 per ounce (C$5,095 per ounce).
2025 Q4 Average Realized Sale Price of gold is higher at US$4,168 per ounce (C$5,764 per ounce).
All-In-Sustaining-Cost (AISC) is US$869 per ounce (C$1,200 per ounce).
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Current gold price
https://stockcharts.com/sc3/ui/?s=%24GOLD&...4222068030
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2025 total gold production is 192,808 ounces
Blackwater Mine's 2025 AISC profit margin is C$5095 - C$1200 = C$3895 per ounce gold produced
2025 AISC profit margin is C$3895 per ounce x 192,808 ounces = C$750 million
April 9, 2026 - Artemis Gold announces Blackwater Mine produced 61,923 ounces of gold in Q1 2026. The plant processed 1.32 million tonnes and feed grades remained strong averaging 1.59 g/t gold during the quarter. The Company is maintaining its full year production guidance of 265,000 to 290,000 ounces of gold and is continuing to advance the Phase 1A expansion and the Expanded Phase 2 projects from operating cash flow. Annual throughput will increase to 21 million tonnes annually before the end of 2028, tripling the current capacity and increasing annual gold production to over 500,000 ounces.
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Blackwater Mine 2026 Q1 gold production, sales and revenue
Gold production: 61,923 ounces.
Gold sales: 60,517 ounces
Average realized gold sale price: US$4,795 per ounce (CAN$6,808)
Q1 revenue: $315.4 million
Artemis Gold CEO Dale Andres commented: “We achieved record gold recoveries in the mill and strong grades from the open pit – which helped mitigate the impact of the unexpected shutdown in early March due to the ball mill gearbox failure. Our team responded quickly and mining and milling operations at Blackwater are currently performing well. We delivered strong financial performance during the quarter with low AISC and strong margins and cash flows, and we remain well positioned to achieve our full-year production and cost guidance.
Source of information:
May 6, 2026 - https://artemisgoldinc.com/news/media-release...ng-results
April 9, 2026 - https://artemisgoldinc.com/news/media-release...on-results
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Artemis Gold announces 2026 Q2 (3 months ending June 30) production results at the Blackwater Mine
https://artemisgoldinc.com/news/media-release...on-results
Blackwater produced 74,063 ounces of gold in Q2 2026, a 20% increase from the previous quarter, driven by higher feed grades, higher gold recoveries, and higher mill throughout in the processing plant. Year to date, Blackwater has produced 135,986 ounces of gold and is on track to achieve its full year production guidance of 265,000 to 290,000 ounces of gold.
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Artemis Gold Reports Record Financial and Operating Results for Q2 2026
https://artemisgoldinc.com/news/media-release...or-q2-2026
Q2 2026 Highlights
Gold production of 74,063 ounces
Gold sales of 78,126 ounces, including 22,828 ounces delivered into the hedge programs; gold sold into the spot market attracted an average realized price1 of US$4,392 per ounce
Revenue of $433.6 million
Cash costs1 of US$813 per ounce of gold sold and all-in sustaining costs (AISC)1 of US$955 per ounce of gold sold
AISC margin1 of US$2,519 per ounce of gold sold, representing 71% of cash revenue
Cash flow from operating activities of $207.5 million
Adjusted net income1 of $199.7 million, or $0.83 per share fully diluted
Adjusted EBITDA[1] of $285.2 million
Purchased 172,500 ounces of gold put options at a strike price of CAD$5,300 per ounce with expiry dates between July 2026 and June 2027, providing downside gold price protection during EP2 construction
At June 30, 2026, cash and equivalents totalled $178.9 million; total available liquidity of $878.9 million
At the end of Q2 2026, 8 million hours had been worked without a lost time incident
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Blackwater Mine construction videos
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1) Feb 2025 - Aerial tour
https://www.youtube.com/watch?v=ndcRuX42b3U
2) Feb 2025 - Mining Technology
https://www.youtube.com/watch?v=8WfAvX_Nzb4
3) Feb 2025 - Health and Safety
https://www.youtube.com/watch?v=ELbEBpNQMAw
4) Feb 2025 - Completion of construction
https://www.youtube.com/watch?v=fpl3Vjd9slM
5) April 2025 - First gold pouring occurred in January 2025
https://www.youtube.com/watch?v=E9nFlVjKIe4
6 May 30, 2025 - Opening ceremony
https://www.youtube.com/watch?v=MOXjjZcGdYw
7) Dec 2025 - Phase 2: Production Expansion
https://www.youtube.com/watch?v=R7xr4kidz4I
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Spanish Mountain Gold - Vision for the future through the life of Gibraltar Mines
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https://www.youtube.com/watch?v=yJmanh1uQMQ
Gibraltar Mines - Owned by Taseko Mines, located 50 kilometers west of Spanish Mountain Gold
https://www.google.ca/maps/place/Gibraltar+Mi...FQAw%3D%3D
The Gibraltar Mine is the second-largest open-pit copper-molybdenum mine in Canada, owned and operated by Taseko Mines. Its primary resource is low-grade porphyry copper-molybdenum deposit containing minerals chalcopyrite, molybdenite, bornite, and cuprite. As of December 31, 2024, the mine has 616 million tons of 0.26% copper and 0.008% molybdenum.
https://stockcharts.com/sc3/ui/?s=TKO.TO&...5512188236
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Update on the progress of XRT ore sorting technology at the Phoenix deposit
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On March 2, 2026 Spanish Mountain Gold released positive X-ray transmission (XRT) particle ore sorting results from its Phoenix deposit, significantly boosting process plant feed grades. The upgrade achieved a two-or-more times increase in gold grade through a high mass rejection of waste. The technology successfully upgrades the mill feed grade by over two times while rejecting 50% to 70% of waste rock, maintaining gold recoveries between 85% and 92%. By removing waste early, the company will reduce both the environmental footprint with fewer tailings and will reduce capital expenditure in mine construction.
Following positive Phase 1 results, Phase 2 is evaluating 100-kg bulk samples in parallel with the Main deposit, aimed at optimizing sorting algorithms. The initiative aims to significantly reduce the size of the proposed mill and lower initial capital expenditure (CAPEX) for the project, with results likely to be incorporated into an updated economic assessment in 2026. Partners ABH Engineering Inc. and OrePortal Technologies Ltd. are working on particle and bulk sorting analysis. The company aims to make a construction decision in 2027 by enhancing project economics through enhanced feed grades. Ore sorting and recent high-grade drilling results are being incorporated into an ongoing Feasibility Study expected to be completed in late 2027 or early 2028, with a mine build decision targeted for 2028.
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Spanish Mountain Gold has won a legal battle against Canada Revenue Agency (CRA) by leveraging the BC Supreme Court's 2025 ruling that forces the CRA to accept a broader definition of "eligible expenditures."
Referring to the $4.9 million account receivable in the 2026 Q1 financial report:
https://www.stockwatch.com/News/Sedardoc/6229173.pdf
The company secured a major financial victory over CRA and injected $4.9 million accounts receivable into the balance sheet. This includes $2.76 million in immediate, non-dilutive cash consisting $1.97 million BC Mining Exploration Tax Credit (METC) plus $790,000 in accumulated interest. It dramatically improves the balance sheet and guarantees a permanent 30% subsidy on future exploration spending: For every $1,000,000 the company spends on drilling and exploration moving forward, the government will refund the company $300,000. Q1 Financial Report shows that the company has incurred $2,384,633 drilling cost in Q1, so the company has already added $715,000 to its coffers in Q1. The company has unlocked millions in hidden value that independent analysts Kaiser Research completely missed. Because prominent newsletters like Kaiser Research did not include this cash in their models, the market has mispriced the company's net asset value (NAV).
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April 20, 2026 - Spanish Mountain Gold Announces Sale of a 1.5% Royalty to Wheaton Precious Metals for US$55 Million (approximately C$75 million)
https://spanishmountaingold.com/news/2026/spa...5-million/
May 1, 2026 - Spanish Mountain Gold Announces Closing of First Tranche of Royalty Financing and Receipt of US$22.5 Million (approximately C$30 million)
https://spanishmountaingold.com/news/2026/spa...5-million/
Highlights:
- The first installment of US$22.5 million has been closed and received from Wheaton.
- The second installment of US$12.5 million is payable to Spanish Mountain Gold following the completion of 60,000 meters of drilling at the Project.
- The third installment of US$20 million is payable to Spanish Mountain Gold on the receipt of approvals for the construction, development, and operation of a mine under the British Columbia Environmental Assessment Act.
WPM.TO weekly
https://stockcharts.com/sc3/ui/?s=WPM.TO&...8609492691
Wheaton Precious Metals website
https://www.wheatonpm.com/news/default.aspx
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About Wheaton Precious Metals (WPM.TO)
Wheaton Precious Metals Corp. is the world's premier precious metals streaming company. Unlike traditional mining companies, Wheaton does not own or operate mines directly. Instead, it operates a "streaming" model, acting as a specialty financier that provides upfront capital to mining companies to construct or expand mines.
This is Wheaton's business model
https://www.wheatonpm.com/about/Our-Business-...fault.aspx
Streaming Agreements: In exchange for upfront financing, Wheaton acquires the rights to purchase a percentage of the future precious metal production (specifically gold, silver, palladium, and cobalt) from these mines at a low, fixed, or variable cost per ounce.
Asset Portfolio: Wheaton holds a high-quality portfolio of long-life, low-cost assets, with agreements on over 23 operating mines and 25 development projects globally.
Revenue Generation: The company generates revenue by selling the metals purchased through these streams, offering investors exposure to commodity price increases without the operational risks (capital expenditure, environmental, or political risk) associated with traditional mining.
Focus Areas: While they focus on precious metals, their agreements are often with large, multi-metal mines (like copper mines), where the precious metals are by-products.
Wheaton's dealing with Spanish Mountain Gold is 1.5% Royalty of the company's net revenue. The company's primary minerals are gold and silver. 2024 drilling program indicates that Portable XRF analysis identified potential for critical elements, including Titanium (Ti), Manganese (Mn), Magnesium (Mg), and Nickel (Ni). The company is analyzing this data and intends to investigate the potential for these elements as part of future exploration programs. There are also base metals such as galena, sphalerite, chalcopyrite, and pyrite.
Spanish Mountain Gold will likely stream silver and critical minerals to Wheaton for further funding.
Wheaton Precious Metals which is based in Vancouver was founded in 2004, it is a leader in the streaming sector.
Cash as of Dec 31, 2025: US$1.15 billion
Assets: US$1.2 billion
Liabilities: US$0.43 billion
2025 Sales: US$2.3 billion
2025 Cost of Sales: US$0.64 billion
Gross Profit Margin: US$1.67 billion
Net Earnings after Tax: US$1.47 billion
Basic Share Outstanding: 454,097,336
Earnings Per Share: US$3.24
PE Ratio: 60
Share Price: $198
Market Capitalization: $89.9 billion
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Spanish Mountain Gold - Corporate Presentation
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https://spanishmountaingold.com/site/assets/f..._draft.pdf
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Spanish Mountain Gold - Conjectured financial report during production phases
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https://investorshangout.com/images/MYImages/...report.jpg
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What does All In Sustaining Costs (AISC) include
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All-in Sustaining Costs (AISC) in the mining industry, particularly for gold, includes all operating costs, sustaining capital expenditures, and other costs associated with maintaining current production. This includes cash costs, sustaining capital expenditures, general and administrative (G&A) expenses, and environmental and closure costs.
Breakdown on AISC:
Cash Costs:
These are the direct costs of mining and processing, including labor, energy, consumables, and royalties (net of by-product credits).
Sustaining Capital Expenditures:
These are investments required to maintain current production levels, such as equipment replacement, mine development, and other costs to keep the mine operating at its current capacity.
General and Administrative (G&A) Expenses:
These are the costs associated with running the corporate office and other administrative functions that support the mine's operations.
Environmental and Closure Costs:
These include costs related to environmental remediation and mine closure, such as reclamation and decommissioning.
Exploration Expenses (Sustaining):
These are exploration costs that are needed to maintain current production levels and replace depleted resources.
AISC is a comprehensive metric designed to provide a more complete picture of the total cost of mining an ounce of gold, beyond just the direct cash costs.
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Warrants, Options, Insider share ownership
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As of October 5, 2026
https://investorshangout.com/images/MYImages/...t52026.jpg
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Source of information
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Page 15, 16 of 2026 Q2 Financial Report
https://spanishmountaingold.com/site/assets/f...ements.pdf
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Insider trading transaction record
https://www.barchart.com/stocks/quotes/SPA.VN/insider-trades
https://www.canadianinsider.com/company-insid...cker=SPA.V
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Vision for future share price
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https://investorshangout.com/images/MYImages/...future.jpg
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Prospect of future Net Present Value
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For each US$1 increase in gold price, the company's Net Present Value will increase by CAN$1.5 million.
For each US$100 increase in gold price, the company's Net Present Value will increase by CAN$150 million.
At gold price of US$2,450/oz, after tax NPV5% is C$1.0 billion.
At gold price of US$3,300/oz, after tax NPV5% is C$2.3 billion.
At gold price of US$4,400/oz, after tax NPV5% is C$4.2 billion.
At gold price of US$5,000/oz, after tax NPV5% is C$4.8 billion.
At gold price of US$8,000/oz, after tax NPV5% is C$9.3 billion.
NPV5% = (Future Cash Flow / (1+Discount Rate)^25.8 years ) - Capital Expenditure
5% discount rate is typically used in calculating the Net Present Value to account for the future diminishing purchasing power of paper money.
https://www.visualcapitalist.com/purchasing-p...over-time/
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Prospect of future gold price
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Will gold price hit US$8,000?
https://ca.finance.yahoo.com/news/gold-could-...00012.html
https://www.google.com/search?q=will+gold+pri...nt=gws-wiz
US national debts
https://tradingeconomics.com/united-states/government-debt
US federal budget
https://tradingeconomics.com/united-states/government-budget
US annual GDP
https://tradingeconomics.com/united-states/gdp-growth-annual
US national debt now exceeds $40 trillion, this equates to over $3 billion daily, making debt servicing one of the single largest expenses in the federal budget. US 2025 tax revenue was $5.26 trillion while interest payment on national debt was $1.25 trillion which is 23.7% of revenue. In comparison, if one's mortgage payment exceeds 40% of income, banks will place the borrower at high risk category. With perpetual budget deficit, debt level will continue to rise to make ends meet, so with debt at 23.7% of revenue, US government can still incur more debts, but if the US economy sinks into a deep recession or economic depression with continuous rate hike amid already weak economic growth, tax revenue will dwindle and it may risk insolvency. The United States holds 8,133.46 metric tons (approximately 261.5 million troy ounces) of gold reserves, if US government is to pay off its 40 trillion national debts by selling all of its gold reserve, gold price has to be over US$150,000 per ounce (261.5 million ounces x US$150,000 per ounce = US$40 trillion).
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Key Steps Leading to a Build Decision
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Spanish Mountain Gold has indicated that production infrastructure construction decision will be made in 2028, after which a two-year construction phase will begin. Tentative production is scheduled for early 2030. This timeline allows for the completion of the ongoing drill program, a new Mineral Resource Estimate (MRE) and a new Preliminary Economic Assessment (PEA) in the second half of 2026, as well as securing all necessary reports and approvals to advance development of the project. The new PEA and MRE are crucial steps in optimizing the project for construction. Completing all technical reports and regulatory approvals is a necessary part of the process before the build decision can be made.
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Overview
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A mining project can pay loans before achieving revenue by using alternative financing like stream financing, royalty financing, or joint ventures, which are less restrictive than traditional debt and use future production or revenue as collateral instead of pre-existing income. Other methods include securing government grants and incentives, pre-selling a portion of future production through off-take agreements, and raising equity capital through share issues.
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Pre-Revenue Financing Methods
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Streaming Agreements: A company provides upfront capital in exchange for a percentage of the mine's future mineral production, often at a discounted price.
Royalty Financing: A financier funds a project in return for a share of the project's future revenue or profits, which can be seen as an endorsement of the project's potential.
Joint Ventures: Partnering with other mining companies or investors allows costs to be shared, spreading the financial burden, notes www.altfin.net.
Off-take Agreements: Pre-selling a portion of the future mineral output to buyers can secure upfront financing and provide lenders with confidence in the project's potential.
Government Funding: Governments and development banks sometimes offer grants, loans, or tax incentives for projects aligned with economic or environmental goals, according to www.altfin.net.
Equity Financing: Raising capital by issuing shares is often considered the simplest path for early-stage projects, as it avoids the complexities and strict requirements of debt financing.
Benefits of These Approaches
Non-Dilutive (for streams/royalties): These options don't dilute the original shareholders' equity in the company.
Flexible Terms: Stream and royalty structures can be more flexible and less restrictive than traditional bank debt, allowing for customized repayment profiles.
Market Confidence: Agreements like streaming and royalties can be seen as a market endorsement of the project, potentially leading to increased investor confidence.
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Promise for profitability
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Spanish Mountain Gold shows promise for profitability due to a recently updated Preliminary Economic Assessment (PEA) indicating strong economics with a base case NPV5% of C$1.0 billion and an IRR of 18.2%, potentially improving to C$2.3 billion NPV5% and 32.0% IRR with higher gold prices. The project's conventional open-pit, milling operation, access to infrastructure, and new management team with experience in construction and operations contribute to its potential success, although the company is still in the early development stages.
Factors supporting profitability:
Favorable Economics: The PEA projects significant financial returns, with an after-tax Net Present Value (NPV) of C$1.0 billion and an Internal Rate of Return (IRR) of 18.2% at a base gold price of US$2,450/oz, and even better results at a spot price of US$3,300/oz gold.
Strong Resource Confidence: The economic analysis is based on a high degree of resource confidence, incorporating measured and indicated resources, which are key to a successful mining project.
Experienced Management: A new board and management team, brought in since 2022, possess decades of experience in project management, construction, and operations, positioning the company for a production decision.
Developed Infrastructure: The project will benefit from established infrastructure in central British Columbia, including road access and proximity to the city of Williams Lake, reducing operational complexities and costs.
Strategic Project Design: The company plans a conventional open-pit and milling operation, which is a low-risk approach that is less complex than underground mining.
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Economic impact of Spanish Mountain Gold's open pit mining
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Job Creation: The project is expected to create significant direct and indirect employment opportunities, benefiting local communities such as Likely and Williams Lake. According to Spanish Mountain Gold's Q&A, the mine construction phase is expected to create approximately 250 direct construction jobs and approximately 300 full-time positions during the operation phase. It will also significantly create employment indirectly in other supply chains supporting the mining, production and sales development including the financial and banking industries.
Business Development: The project will support local businesses and contractors through various procurement opportunities for goods and services.
Tax Revenue: The economic activity from the mine is expected to generate significant tax revenue for provincial and federal governments.
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Living in harmony with the environment and the community
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New 2026 agreement with First Nations is being drafted
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Xatśūll First Nation signed collaboration agreements with Spanish Mountain Gold in 2012 and 2021 supporting the mining development negotiation but the agreements were never finalized. In April, 2026, Xatll provided formal notice to Spanish Mountain Gold that it was immediately terminating the 2021 engagement protocol. In September, 2026, Xatll provided notice to Spanish Mountain Gold that it was also terminating the 2012 protocol agreement, citing that the mining project has undergone "significant and fundamental changes" over the years and because a final, long-term relationship agreement was never reached, the old protocols no longer accurately reflected the scope of what was being proposed and they no longer provided a viable framework for a mutually beneficial relationship. As a result the engagement protocol is no longer in force.
Xatśūll First Nation chief Rhonda Phillips also published the termination of outdated agreements in the Xatsull community website and in Stockwatch.com.on October 1, just 2 hours before the Annual General Meeting was to begin in Vancouver to expose her concern to wider audience.
https://www.xatsull.com/press-release/
https://www.google.com/search?q=Rhonda+Philli...nt=gws-wiz
The news release triggered panic selling of shares among unsophisticated investors resulted in trading halt initiated by the Stock exchange regulator. Trading resumed the next day.
But In Q3 2026, the Company provided Lhtako Dené Nation (“LDN”), Williams Lake First Nation (“WLFN”) and Xatśūll First Nation (“XFN”) with new draft Phased Project Collaboration Agreements for their review, intended to establish an updated framework for the relationships going forward with all three First Nations. XFN has indicated that its participation in further engagement, including regulatory processes, is conditional upon the parties first agreeing on capacity funding and a negotiation framework. The Company expects to provide reasonable capacity funding to the three First Nations and continues to engage with them on these matters. The Company cannot predict the outcome or timing of revised agreements due to the nature of negotiating mutually acceptable terms, but is actively working with each First Nation to establish updated agreements that provide appropriate support for the permitting and engagement efforts required at this stage of the Project.
On October 2, Spanish Mountain Gold Reported on Environmental Assessment Status and Provided Update on First Nations Engagement
https://spanishmountaingold.com/news/2026/spa...ngagement/
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Excerpt from Page 8 and 9 of 2026 Q2 Management Discussion and Analysis publish on August 31, 2026 https://spanishmountaingold.com/site/assets/f...26_mda.pdf
==================================
ENGAGEMENT WITH FIRST NATIONS
==================================
The Company recognizes and respects the First Nations asserted Indigenous rights in the Project area. For over a decade, it
has engaged First Nations concerning the Company’s plans and Project activities.
The Company is actively engaged with First Nations and other communities regarding the Project, including with respect to the
EA process and the various matters identified by First Nations. Prior to the submission of the IPD in 2021, management
conducted pre-submission review with the Lhtako Dené Nation (“LDN”), Williams Lake First Nation (“WLFN”) and Xatśūll First
Nation (“XFN”) whose traditional territories include the Project. After the completion of the 2025 PEA, the Company has engaged
in further discussions with the Williams Lake First Nation, the Xatśūll First Nation and the Lhtako Dene Nation. The Company
has included First Nations contractors and employees, and local employees from the Likely community to advance the Project.
In 2026, the Company provided draft Phased Project Collaboration Agreements to the aforementioned Nations for their review
and consideration.
The Company signed a Protocol Agreement with “XFN” (formerly the Soda Creek Indian Band) on March 6, 2012, and an
Amended Protocol Agreement with the "WLFN" (formerly the Williams Lake Indian Band) on March 13, 2012, each establishing
a framework for negotiating a comprehensive Participation Agreement covering the permitting, construction, operation, and
closure of the Project. The Company also entered into a Cooperation Agreement with the “LDN” on July 11, 2012, establishing
a framework for ongoing dialogue, information sharing, and the negotiation of a Participation Agreement. Each agreement
acknowledges the respective First Nation’s asserted aboriginal rights within its traditional territory, which includes the Project
area, and reflects the Company’s commitment to mitigating adverse Project impacts and providing economic and social benefits
to the First Nations.
As part of the environmental assessment and permitting process, the Company signed a further Engagement Protocol
Agreement with XFN on September 10, 2021, which contemplated the parties negotiating a comprehensive Relationship
Agreement.
In Q3 2025, the Company resumed engagement with First Nations to discuss the updated Project design as outlined in the 2025
PEA. Discussions were held to provide an update on the Project and identify the requirements to advance the Project to a
construction decision. WLFN requested a protocol agreement, and a draft was provided to WLFN in Q3 2025. XFN advised the
Company in 2026 that it considers the 2021 Engagement Protocol between XFN and the Company to be no longer in force,
citing significant changes to the Project since 2021. The parties hold differing views on the status of the 2021 Engagement
Protocol; however, both parties have expressed a willingness to establish a new agreement framework appropriate to the Project
as it exists today. In Q3 2026, the Company provided XFN, WLFN and LDN with new draft Phased Project Collaboration
Agreements for their review, intended to establish an updated framework for the relationships going forward with all three First
Nations. XFN has indicated that its participation in further engagement, including regulatory processes, is conditional upon the
parties first agreeing on capacity funding and a negotiation framework. The Company expects to provide reasonable capacity
funding to the three First Nations and continues to engage with them on these matters. The Company cannot predict the outcome
or timing of revised agreements due to the nature of negotiating mutually acceptable terms, but is actively working with each
First Nation to establish updated agreements that provide appropriate support for the permitting and engagement efforts required
at this stage of the Project.
ENVIRONMENTAL ASSESSMENT AND PERMITTING PROCESS
In 2022, based on the 2021 PFS, the Company advanced the EA and permitting processes. The Project is subject to the
requirements of both the British Columbia Environmental Assessment Act (2018) and the Federal Impact Assessment Act (2019).
The Company formally entered both processes in March 2022 with the submission of the Initial Project Description (“IPD”) and
Early Engagement Plan (“EEP”) to the BCEAO and IAAC. Both the provincial and federal agencies accepted the documents
within the same month without requesting amendments. The issuance of the Summary of Engagement by BCEAO and the Joint
Summary of Issues and Engagement by IAAC on June 23, 2022 completed the early engagement period. Agency, First Nations,
and public review questions and comments were solicited then used to develop the draft DPD. The draft DPD was submitted to
the provincial and federal agencies in December 2022 to initiate the Readiness Decision stage of the EA process. During this
phase, the draft DPD was reviewed by the Technical Advisory Committee, participating First Nations, and federal authorities,
leading to preparation of the final DPD on which the readiness decision will be based. A readiness decision was previously
expected to be received around the end of April 2023. However, in 2023 the Company chose to suspend submission of the final
DPD and undertake additional geological work and a detailed review of the PFS to further optimize the Project. During 2023 and
2024 this additional review work continued and the Company in Q3 2024 elected to complete a new PEA (2025 PEA) and MRE
(2025 MRE) that was completed in Q3 2025. This review and the new PEA may result in changes to the project plan that will
need to be incorporated into a new draft DPD prior to completion of the review and finalization by the agencies. The Company
is completing a gap analysis in Q3 2026 for the proposed new project description compared to the 2021 PFS which is being
used to modify the DPD in H2 2026 to advance the EA.
Environmental baseline studies resumed in 2020 and have continued to date to build on significant studies conducted from 2007
to 2012. The reviews of the IPD and EEP included extensive engagement with First Nations, regulatory agencies, and the
general public. The Company is continuing environmental baseline field work in 2026 and planning studies targeted for
completion in 2027 to support the next stages of the provincial and federal environmental assessment processes. On March 10,
2026, the BCEAO and IAAC issued joint correspondence regarding the elapsed time since the BCEAO’s section 13(5) notice
and the potential termination of the Spanish Mountain Gold Project under section 39 of the Environmental Assessment Act. The
Company responded on July 21, 2026, outlining activities undertaken since the notice and requesting to continue in the current
EA process.
In a letter dated August 27, 2026, the BCEAO accepted the plan proposed by Spanish Mountain Gold Ltd. to continue the EA
and confirmed it is not pursuing termination under section 39 of the Act at this time. The plan includes continued engagement
with First Nations, the public, and key stakeholders; submission of a draft DPD in Fall 2026; and formal DPD submission in Q1
2027.
The Company has started community engagement with a Town Hall meeting that occurred in Likely in July 2026 and is planning
further engagement in Q3 and Q4 with local communities and First Nations to solicit feedback on the updated 2025 PEA mine
plan and ongoing FS activities. This engagement will inform the final formal submission of the DPD in Q1 2027 to formally
resume the EA process.
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Highlights in this update:
- 2026 new PEA and new MRE has been released
- Atrium Research raised SPA.V share price target to CAN$1.20
- Red Clouds raised SPA.V share price target to CAN$1.30
- Update on Artemis Gold's Blackwater Mine 2026 Q2 gold production and revenue (scroll down to Blackwater Mine section).
Blackwater Mine is Spanish Mountain Gold's vision for the future. CEO Peter Mah: "We have learned a lot from Artemis Gold which owns the Blackwater Mine".
- Unfinalized agreement between SMG and Xatśūll First Nation (XFN) has been terminated, a new 2026 agreement is being drafted. It appears that financial benefit to Xatśūll First Nation is the key criteria and motive of XFN in the collaboration agreement but safeguarding the interest of SMG's shareholders and Canada's economic growth through job creation are the priorities of SMG's management. (scroll down to the end)
- CEO Peter Mah and Director Lembit Janes bought a combined 1,972,789 shares in the open market on October 2. (scroll down to "Warrants, Options, Insider share ownership"
. (Number of outstanding Warrants and Options have been updated as per June 30 Financial Report) .
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Spanish Mountain Gold's gold resources far emulates its peers while its share price and market capitalization is only at a fraction of its peers.
https://investorshangout.com/images/MYImages/...speers.jpg
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Corporate Presentation
https://spanishmountaingold.com/investors/presentations/
News Release
https://spanishmountaingold.com/news/2026/
Financial Reports
https://spanishmountaingold.com/investors/fin...y-filings/
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Latest News Release and Corporate Operation Strategy
================================================
September 21, 2026 - Spanish Mountain Gold Announces Uplift In Scale And Value At Its B.C. Gold Project And Receives Confirmation From Provincial Regulators To Resume The Previously Paused Environmental Assessment And Permitting Process Advancing Towards Development
https://spanishmountaingold.com/news/2026/spa...rovincial/
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Note: The new 2026 Mineral Resource Estimate (MRE) published on September 21 does not include the gold resources from this year’s drilling program in the K-zone.
The company did not mobilize additional drill rigs to focus on the high-grade K-zone target until July 2026. The updated 4.66 million ounce MRE has an effective date of May 19, 2026. The 2026 MRE incorporates all historical data up to May 19, 2026, which encompasses the amalgamation of the Main, North, Slipper, and historical K-zone data (including the breakthrough high-grade intercept from April 2025). However, the ongoing 60,000-metre 2026 Feasibility Drill Program which has completed over 31,500 meters so far is running through the end of 2026. All assays generated from this year's K-zone and Orca corridor are preserved to calculate final gold resources for the Feasibility Study.
When the Feasibility Study (FS) is finalized and released, it will be accompanied by an updated technical report. Rather than just another standalone Mineral Resource Estimate (MRE), the completion of the FS brings two critical resource updates:
Inclusion of 2026 Drill Data: The entire 60,000-metre 2026 exploration and infill campaign including the high-grade targets from the K-zone and expansions along the Orca Fault Corridor will be completely modeled.
Conversion to Mineral Reserves: This is the most crucial milestone for the project. While an MRE only lists "Resources," the Feasibility Study will introduce the project's maiden Proven & Probable Mineral Reserves which are the highest-confidence category in mining, proving that the ounces are legally, technically, and economically mineable.
Because the K-zone has previously delivered some of the highest-grade intercepts in the project's history, the team's objective for the upcoming FS model is to potentially uplift both the average grade and the total resource size before they make their final 2028 build decision.
When the Feasibility Study is completed at the end of 2027 or early 2028 and included the high grade gold resources in the K-zone, the final Proven & Probable gold resources could exceed 8 million ounces contributed by the high grade, high tonnage gold resources in the K-zone, emulating that of Blackwater Mine.
The initial Capital Expenditure will be significantly reduced through optimization by XRT ore sorting technology resulting in reduction in mill size, reduction in floatation facility, reduction in tailing facility and other circuits. Hopefully the Capex will be reduced to the same level as Blackwater Mine at CAN$750 million.
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The Company’s current strategy remains focused on optimizing, de-risking and advancing its Spanish Mountain Gold project towards a development decision in H1 2028. The Company is advancing directly to a FS and awarded the lead QP role to BBA Engineering Ltd. In H2 2026 the Company, along with BBA, will be producing a PEA Update taking into account the 2025 Fall and the 2025 and 2026 Winter Drill Program results, the Phoenix Deposit MRE, the benefits of ore concentration, and a higher gold price.
The Company expects drilling to total over 60,000 m for the full 2026 calendar year leading up to the completion of the FS in H1 2028 or sooner. This drilling will include geotechnical and hydrological drilling and test work necessary for designing the proposed infrastructure such as the mill and tailing storage facilities. The Company has completed over 43.9 percent of the 60,000 m program as of August 28.
Titanium in the form of rutile, a critical mineral, has been identified in potentially significant amounts. The FS includes scope for metallurgical testing to assess potential saleable gold and rutile concentrates. Rutile (titanium) was not included in the 2025 PEA. The Company is targeting a titanium MRE by the end of 2026 dependent on positive metallurgical testing and an internal scoping study
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===================================
Technical Analysis and future scenario
===================================
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US DOLLAR weekly
https://stockcharts.com/sc3/ui/?s=%24USD&...4982523747
Gold weekly
https://stockcharts.com/sc3/ui/?s=%24GOLD&...8609492691
XAU weekly
https://stockcharts.com/sc3/ui/?s=%24XAU&...4158123608
SPA.V weekly
https://stockcharts.com/sc3/ui/?s=SPA.V&p...8609492691
SPAUF weekly
https://stockcharts.com/sc3/ui/?s=SPAUF&p...8609492691
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Analysts' 12-month share price forecast for SPA.V
https://money.tmx.com/en/quote/SPA
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Atrium Research raised SPA.V share price target to CAN$1.20
https://mcusercontent.com/4bc421505c66d079778...PEA_1_.pdf
Atrium Research is a Toronto-based independent financial research firm that specializes in company-sponsored equity research for underfollowed small- and mid-cap public companies in North America. The firm aims to increase visibility for these overlooked equities by providing in-depth valuation analysis and management interviews. The firm is privately owned and operated by co-founders Ben Pirie and Nicholas Cortellucci.
Atrium Research updates on Spanish Mountain Gold with share price target
https://www.atriumresearch.ca/spa
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Red Clouds raised SPA.V share price target to CAN$1.30
https://docs.google.com/viewerng/viewer?url=h...date-1.pdf
Red Cloud Securities is a Toronto-based, IIROC-regulated investment dealer and boutique global investment bank. Founded in 2011, it focuses primarily on the junior resource and mining sectors, helping exploration, development, and junior production companies raise capital and connect with retail and institutional investors.
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In the coming 2030 Cariboo gold rush Spanish Mountain Gold Mine will be the third biggest mining project in the Cariboo region after Artemis Gold's Blackwater Mine and Osisko Development's Golden Cariboo Project.
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Barkerville, the legend of a once booming mining town in the Cariboo region, BC, located 50 Km north of Spanish Mountain Gold, started the world famous Cariboo gold rush.
https://www.google.ca/maps/dir/Barkerville,+B...FQAw%3D%3D
Video duration: 5 minutes
https://www.youtube.com/watch?v=XGfM7Ya1ulQ
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Spanish Mountain Gold is inching towards Feasibility and Mine Building Decision
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Feb 27, 2026 - Spanish Mountain Gold Signs Memorandum of Understanding with Metso Canada Inc.
https://spanishmountaingold.com/news/2026/spa...anada-inc/
Metso Canada services (video)
https://www.youtube.com/watch?v=wgiF9uZqDsE
Metso Canada website
https://www.metso.com/corporate/sustainabilit...-offering/
Metso Canada (formerly Metso Outotec) is a technology provider that supplies mining equipment such as crushers and grinding mills to various companies, including recent project like Blackwater Mine in the Cariboo region of British Columbia. It is a leading global industrial company and a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries. They focus on improving their customers’ energy and water efficiency, increase their productivity and reduce environmental risks with their product. Crushing, screening and grinding is their core business. Metso is headquartered in Espoo, Finland. At the end of 2025 Metso had close to 18,000 employees in around 50 countries, and sales in 2025 were about EUR 5.3 billion.
Key Aspects of Metso’s Business:
Aggregates: Provides crushing and screening equipment (mobile and fixed) for quarrying and construction industries.
Minerals Processing: Offers technology for mining, including grinding mills, separation, filtration, and tailings management.
Metals Refining: Provides solutions for metal processing.
Services & Wears: Delivers a broad portfolio of aftermarket services, spare parts, and wear parts to optimize equipment performance.
Sustainability: Focuses on "Planet Positive" solutions aimed at reducing energy and water consumption in customer operations.
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Spanish Mountain Gold - Vision For The Future ( following the successful footsteps of Blackwater Mine )
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Blackwater Mine - Owned by Artemis Gold, located 250 kilometers northwest of Spanish Mountain Gold and 160 km southwest of Prince George
Google Blackwater Mine map
https://www.google.ca/maps/place/Blackwater+M...FQAw%3D%3D
Artemis Gold share price ( ARTG.V )
https://stockcharts.com/sc3/ui/?s=ARTG.V&...8838982129
Blackwater Mine is an open pit gold and silver mine with mine life of 22 year and with scheduled mill throughput of 16,000 tpd, expandable to 33,000 tpd in year 6 and 55,000 tpd in year 11. The mine has Proven Reserves of 8 million ounces of gold, 62.2 million ounces of silver and Probable Resources of 11.7 million ounce of gold, 122.4 million ounces of silver.
In June, 2022 during the Phase 1 construction Metso delivered a Superior MK-III 4265 18MW primary gyratory crusher, HP900 cone crushers (secondary and tertiary), and a 14-MW Premier ball mill to Blackwater Mine. The delivery also included apron feeders, slurry pumps, hydrocyclones, and a RockSense particle size analyzer.
https://investorshangout.com/images/MYImages/...erMine.jpg
Phase 1 acquisition cost from Metso and construction cost is CAN$312 million, it included Engineering, Procurement, and Construction cost awarded to Sedgman.
Sedgman is a global leader in minerals processing and infrastructure solutions, offering end-to-end services from design and engineering to construction and operations. They specialize in coal, base/precious metals, and critical minerals, focusing on maximizing recovery, optimizing efficiency, and managing tailings for mining clients worldwide.
https://www.sedgman.com/
Artemis Gold also ordered C$134 million in primary mining equipment from Finning Canada for the Phase 1 development of the Blackwater Mine, representing a key component of the initial capital spending. This haul and load fleet includes Caterpillar trucks and excavators. Total Phase 1 project capital expenditure is estimated at C$730-C$750 million.
https://www.finning.com/en_CA.html
Mine construction began in 2023 and completed after 22-month with gold/silver pouring starting in early 2025. As one of Canada's largest gold development projects, it is a 100% electrified facility designed to be a low-emission, open-pit mine. The mine officially opened on May 30, 2025.
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Metso Superior MK-III 4265 primary gyratory crusher (breaks big ores into small ores)
https://www.youtube.com/watch?v=AVLicyiBLo8
The Metso Superior MKIII primary gyratory crusher is considered a significant innovation in mining, delivering up to 30% higher capacity and up to 70% less maintenance downtime than traditional crushers. It is marketed as the first high-speed primary gyratory crusher, featuring innovative digital automation, rotable shells for improved liner life, and superior capital efficiency. The gyratory crusher is a paradigm shift from the traditional ore crushing method.
How does a gyratory crusher work
https://www.youtube.com/watch?v=IYeOW7UCZAg&t=15s
Video - Metso Superior MK-III 4265 primary gyratory crusher at work in mine site
https://www.youtube.com/watch?v=JIDMthAHtUc
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Metso Nordberg HP900 cone crusher (breaks small ores into pebbles)
https://www.youtube.com/watch?v=PRLCfhPudG8
How does a cone crusher work
https://www.foremanequipment.com/cone-crushers/
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Metso 14MW ball mill (pulverizes pebbles to extract gold and silver particles)
https://youtu.be/4VmJ0vBRAG4
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Subsequent wet plant (milling and CIL circuit) transitioned the operation from construction to production.
The site features a fully electrified processing facility, a 225kV transmission line, and a significant tailings storage facility.
The project employs over 400 people, with a high percentage of local and Indigenous representation.
Designed with a low carbon footprint, replacing traditional fuels with electric equipment for mining and processing.
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Blackwater Mine - Capital Expenditure
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The initial capital expenditure (CAPEX) for Phase 1 of the Blackwater Mine was estimated to be between C$730 million and C$750 million. As of December 31, 2023, approximately $389 million of this initial capital had been spent, with 84% of the lower end of the guided range ($615 million) contractually committed.
Remaining Capex: As of March 31, 2024, remaining Phase 1 capital expenditures were estimated at $207 to $227 million.
Scope: Phase 1 focused on building an open-pit mine and a processing facility with a capacity of 6 million tonnes per annum (Mtpa).
Subsequent Phase 1 Upgrades ("Phase 1A"
In September 2025, Artemis Gold announced plans to upgrade the Phase 1 processing plant (dubbed Phase 1A), aiming to increase capacity from 6 Mtpa to 8 Mtpa by Q4 2026.
Phase 1A Capital Cost: Estimated at $100 – $110 million, to be funded by operating cash flows.
Goal: To increase throughput and efficiency while leveraging the existing team that built Phase 1.
In December 2025 Artemis Gold approved a $1.44 billion Phase 2 expansion to increase production capacity from 8 million tonnes annually to 21 million tonnes annually, equivalent to increasing daily throughput from 26,000 tonnes daily to 69,000 tonnes daily.
Artemis Gold is incorporating XRT (X-ray transmission) ore sorting technology as a key component of its Phase 2 expansion for the Blackwater Mine in central British Columbia. The technology is being used to pre-concentrate mineralization and reject waste rock prior to milling.The addition of XRT sorting is designed to upgrade the head grade of the mill feed, improving processing efficiency and scaling production capacity. Artemis Gold's Executive Chair highlighted the inclusion of this technology as an essential part of the mine's future development trajectory.
In March, 2026, Metso supplied a Superior MKIII primary gyratory crusher and Nordberg HP Series cone crushers to Blackwater Mine with a total value of approximately EUR 39 million (CAN$45.25 million, US$42 million). Construction is planned for Q3 2026 and is expected to be completed before the end of 2028. The expansion cost will be funded primarily through operating cash flows. Gold production will increase to over 500,000 ounces annually for the first 10 years.
https://artemisgoldinc.com/news/media-release...water-mine
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Blackwater Mine - Average gold grade and silver grade
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First 5 Years: Averaging 1.29 g/t gold.
Subsequent 17 years: Average 0.75 g/t gold.
Silver Grade: The average silver grade is estimated to be 5.78 g/t Ag over the life of the mine.
Reserve Basis: Total proven and probable reserves are estimated at 334.3 million tonnes at 0.75 g/t gold with gold content of 8 million ounces and 5.8 g/t silver with silver content of 62 million ounces.
First 5 years average annual production: 463,000 ounces of gold and 1.9 million ounces of silver.
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Blackwater Mine 2025 Average Realized Sale Price of gold. AISC profit margin
==================================================================
Blackwater has capped off its inaugural operating year with record quarterly production of 68,480 ounces of gold during the three months ended December 31, 2025 (“Q4 2025”), bringing full year 2025 production to 192,808 ounces of gold. The quarterly gold production represents a 12% increase from the previous quarter and was primarily driven by higher mill feed grades and higher processing recoveries.
https://www.artemisgoldinc.com/news/artemis-g...6-guidance
https://www.artemisgoldinc.com/news/media-rel...ng-results
Based on financial results released by Artemis Gold, 2025 Average Realized Sale Price of gold is US$3,684 per ounce (C$5,095 per ounce).
2025 Q4 Average Realized Sale Price of gold is higher at US$4,168 per ounce (C$5,764 per ounce).
All-In-Sustaining-Cost (AISC) is US$869 per ounce (C$1,200 per ounce).
.
Current gold price
https://stockcharts.com/sc3/ui/?s=%24GOLD&...4222068030
.
2025 total gold production is 192,808 ounces
Blackwater Mine's 2025 AISC profit margin is C$5095 - C$1200 = C$3895 per ounce gold produced
2025 AISC profit margin is C$3895 per ounce x 192,808 ounces = C$750 million
April 9, 2026 - Artemis Gold announces Blackwater Mine produced 61,923 ounces of gold in Q1 2026. The plant processed 1.32 million tonnes and feed grades remained strong averaging 1.59 g/t gold during the quarter. The Company is maintaining its full year production guidance of 265,000 to 290,000 ounces of gold and is continuing to advance the Phase 1A expansion and the Expanded Phase 2 projects from operating cash flow. Annual throughput will increase to 21 million tonnes annually before the end of 2028, tripling the current capacity and increasing annual gold production to over 500,000 ounces.
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Blackwater Mine 2026 Q1 gold production, sales and revenue
Gold production: 61,923 ounces.
Gold sales: 60,517 ounces
Average realized gold sale price: US$4,795 per ounce (CAN$6,808)
Q1 revenue: $315.4 million
Artemis Gold CEO Dale Andres commented: “We achieved record gold recoveries in the mill and strong grades from the open pit – which helped mitigate the impact of the unexpected shutdown in early March due to the ball mill gearbox failure. Our team responded quickly and mining and milling operations at Blackwater are currently performing well. We delivered strong financial performance during the quarter with low AISC and strong margins and cash flows, and we remain well positioned to achieve our full-year production and cost guidance.
Source of information:
May 6, 2026 - https://artemisgoldinc.com/news/media-release...ng-results
April 9, 2026 - https://artemisgoldinc.com/news/media-release...on-results
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Artemis Gold announces 2026 Q2 (3 months ending June 30) production results at the Blackwater Mine
https://artemisgoldinc.com/news/media-release...on-results
Blackwater produced 74,063 ounces of gold in Q2 2026, a 20% increase from the previous quarter, driven by higher feed grades, higher gold recoveries, and higher mill throughout in the processing plant. Year to date, Blackwater has produced 135,986 ounces of gold and is on track to achieve its full year production guidance of 265,000 to 290,000 ounces of gold.
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Artemis Gold Reports Record Financial and Operating Results for Q2 2026
https://artemisgoldinc.com/news/media-release...or-q2-2026
Q2 2026 Highlights
Gold production of 74,063 ounces
Gold sales of 78,126 ounces, including 22,828 ounces delivered into the hedge programs; gold sold into the spot market attracted an average realized price1 of US$4,392 per ounce
Revenue of $433.6 million
Cash costs1 of US$813 per ounce of gold sold and all-in sustaining costs (AISC)1 of US$955 per ounce of gold sold
AISC margin1 of US$2,519 per ounce of gold sold, representing 71% of cash revenue
Cash flow from operating activities of $207.5 million
Adjusted net income1 of $199.7 million, or $0.83 per share fully diluted
Adjusted EBITDA[1] of $285.2 million
Purchased 172,500 ounces of gold put options at a strike price of CAD$5,300 per ounce with expiry dates between July 2026 and June 2027, providing downside gold price protection during EP2 construction
At June 30, 2026, cash and equivalents totalled $178.9 million; total available liquidity of $878.9 million
At the end of Q2 2026, 8 million hours had been worked without a lost time incident
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==============================
Blackwater Mine construction videos
==============================
1) Feb 2025 - Aerial tour
https://www.youtube.com/watch?v=ndcRuX42b3U
2) Feb 2025 - Mining Technology
https://www.youtube.com/watch?v=8WfAvX_Nzb4
3) Feb 2025 - Health and Safety
https://www.youtube.com/watch?v=ELbEBpNQMAw
4) Feb 2025 - Completion of construction
https://www.youtube.com/watch?v=fpl3Vjd9slM
5) April 2025 - First gold pouring occurred in January 2025
https://www.youtube.com/watch?v=E9nFlVjKIe4
6 May 30, 2025 - Opening ceremony
https://www.youtube.com/watch?v=MOXjjZcGdYw
7) Dec 2025 - Phase 2: Production Expansion
https://www.youtube.com/watch?v=R7xr4kidz4I
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==============================================================
Spanish Mountain Gold - Vision for the future through the life of Gibraltar Mines
==============================================================
https://www.youtube.com/watch?v=yJmanh1uQMQ
Gibraltar Mines - Owned by Taseko Mines, located 50 kilometers west of Spanish Mountain Gold
https://www.google.ca/maps/place/Gibraltar+Mi...FQAw%3D%3D
The Gibraltar Mine is the second-largest open-pit copper-molybdenum mine in Canada, owned and operated by Taseko Mines. Its primary resource is low-grade porphyry copper-molybdenum deposit containing minerals chalcopyrite, molybdenite, bornite, and cuprite. As of December 31, 2024, the mine has 616 million tons of 0.26% copper and 0.008% molybdenum.
https://stockcharts.com/sc3/ui/?s=TKO.TO&...5512188236
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Update on the progress of XRT ore sorting technology at the Phoenix deposit
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On March 2, 2026 Spanish Mountain Gold released positive X-ray transmission (XRT) particle ore sorting results from its Phoenix deposit, significantly boosting process plant feed grades. The upgrade achieved a two-or-more times increase in gold grade through a high mass rejection of waste. The technology successfully upgrades the mill feed grade by over two times while rejecting 50% to 70% of waste rock, maintaining gold recoveries between 85% and 92%. By removing waste early, the company will reduce both the environmental footprint with fewer tailings and will reduce capital expenditure in mine construction.
Following positive Phase 1 results, Phase 2 is evaluating 100-kg bulk samples in parallel with the Main deposit, aimed at optimizing sorting algorithms. The initiative aims to significantly reduce the size of the proposed mill and lower initial capital expenditure (CAPEX) for the project, with results likely to be incorporated into an updated economic assessment in 2026. Partners ABH Engineering Inc. and OrePortal Technologies Ltd. are working on particle and bulk sorting analysis. The company aims to make a construction decision in 2027 by enhancing project economics through enhanced feed grades. Ore sorting and recent high-grade drilling results are being incorporated into an ongoing Feasibility Study expected to be completed in late 2027 or early 2028, with a mine build decision targeted for 2028.
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Spanish Mountain Gold has won a legal battle against Canada Revenue Agency (CRA) by leveraging the BC Supreme Court's 2025 ruling that forces the CRA to accept a broader definition of "eligible expenditures."
Referring to the $4.9 million account receivable in the 2026 Q1 financial report:
https://www.stockwatch.com/News/Sedardoc/6229173.pdf
The company secured a major financial victory over CRA and injected $4.9 million accounts receivable into the balance sheet. This includes $2.76 million in immediate, non-dilutive cash consisting $1.97 million BC Mining Exploration Tax Credit (METC) plus $790,000 in accumulated interest. It dramatically improves the balance sheet and guarantees a permanent 30% subsidy on future exploration spending: For every $1,000,000 the company spends on drilling and exploration moving forward, the government will refund the company $300,000. Q1 Financial Report shows that the company has incurred $2,384,633 drilling cost in Q1, so the company has already added $715,000 to its coffers in Q1. The company has unlocked millions in hidden value that independent analysts Kaiser Research completely missed. Because prominent newsletters like Kaiser Research did not include this cash in their models, the market has mispriced the company's net asset value (NAV).
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
April 20, 2026 - Spanish Mountain Gold Announces Sale of a 1.5% Royalty to Wheaton Precious Metals for US$55 Million (approximately C$75 million)
https://spanishmountaingold.com/news/2026/spa...5-million/
May 1, 2026 - Spanish Mountain Gold Announces Closing of First Tranche of Royalty Financing and Receipt of US$22.5 Million (approximately C$30 million)
https://spanishmountaingold.com/news/2026/spa...5-million/
Highlights:
- The first installment of US$22.5 million has been closed and received from Wheaton.
- The second installment of US$12.5 million is payable to Spanish Mountain Gold following the completion of 60,000 meters of drilling at the Project.
- The third installment of US$20 million is payable to Spanish Mountain Gold on the receipt of approvals for the construction, development, and operation of a mine under the British Columbia Environmental Assessment Act.
WPM.TO weekly
https://stockcharts.com/sc3/ui/?s=WPM.TO&...8609492691
Wheaton Precious Metals website
https://www.wheatonpm.com/news/default.aspx
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About Wheaton Precious Metals (WPM.TO)
Wheaton Precious Metals Corp. is the world's premier precious metals streaming company. Unlike traditional mining companies, Wheaton does not own or operate mines directly. Instead, it operates a "streaming" model, acting as a specialty financier that provides upfront capital to mining companies to construct or expand mines.
This is Wheaton's business model
https://www.wheatonpm.com/about/Our-Business-...fault.aspx
Streaming Agreements: In exchange for upfront financing, Wheaton acquires the rights to purchase a percentage of the future precious metal production (specifically gold, silver, palladium, and cobalt) from these mines at a low, fixed, or variable cost per ounce.
Asset Portfolio: Wheaton holds a high-quality portfolio of long-life, low-cost assets, with agreements on over 23 operating mines and 25 development projects globally.
Revenue Generation: The company generates revenue by selling the metals purchased through these streams, offering investors exposure to commodity price increases without the operational risks (capital expenditure, environmental, or political risk) associated with traditional mining.
Focus Areas: While they focus on precious metals, their agreements are often with large, multi-metal mines (like copper mines), where the precious metals are by-products.
Wheaton's dealing with Spanish Mountain Gold is 1.5% Royalty of the company's net revenue. The company's primary minerals are gold and silver. 2024 drilling program indicates that Portable XRF analysis identified potential for critical elements, including Titanium (Ti), Manganese (Mn), Magnesium (Mg), and Nickel (Ni). The company is analyzing this data and intends to investigate the potential for these elements as part of future exploration programs. There are also base metals such as galena, sphalerite, chalcopyrite, and pyrite.
Spanish Mountain Gold will likely stream silver and critical minerals to Wheaton for further funding.
Wheaton Precious Metals which is based in Vancouver was founded in 2004, it is a leader in the streaming sector.
Cash as of Dec 31, 2025: US$1.15 billion
Assets: US$1.2 billion
Liabilities: US$0.43 billion
2025 Sales: US$2.3 billion
2025 Cost of Sales: US$0.64 billion
Gross Profit Margin: US$1.67 billion
Net Earnings after Tax: US$1.47 billion
Basic Share Outstanding: 454,097,336
Earnings Per Share: US$3.24
PE Ratio: 60
Share Price: $198
Market Capitalization: $89.9 billion
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Spanish Mountain Gold - Corporate Presentation
=========================================
https://spanishmountaingold.com/site/assets/f..._draft.pdf
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Spanish Mountain Gold - Conjectured financial report during production phases
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https://investorshangout.com/images/MYImages/...report.jpg
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What does All In Sustaining Costs (AISC) include
=========================================
All-in Sustaining Costs (AISC) in the mining industry, particularly for gold, includes all operating costs, sustaining capital expenditures, and other costs associated with maintaining current production. This includes cash costs, sustaining capital expenditures, general and administrative (G&A) expenses, and environmental and closure costs.
Breakdown on AISC:
Cash Costs:
These are the direct costs of mining and processing, including labor, energy, consumables, and royalties (net of by-product credits).
Sustaining Capital Expenditures:
These are investments required to maintain current production levels, such as equipment replacement, mine development, and other costs to keep the mine operating at its current capacity.
General and Administrative (G&A) Expenses:
These are the costs associated with running the corporate office and other administrative functions that support the mine's operations.
Environmental and Closure Costs:
These include costs related to environmental remediation and mine closure, such as reclamation and decommissioning.
Exploration Expenses (Sustaining):
These are exploration costs that are needed to maintain current production levels and replace depleted resources.
AISC is a comprehensive metric designed to provide a more complete picture of the total cost of mining an ounce of gold, beyond just the direct cash costs.
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Warrants, Options, Insider share ownership
==================================
As of October 5, 2026
https://investorshangout.com/images/MYImages/...t52026.jpg
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====================
Source of information
====================
Page 15, 16 of 2026 Q2 Financial Report
https://spanishmountaingold.com/site/assets/f...ements.pdf
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Insider trading transaction record
https://www.barchart.com/stocks/quotes/SPA.VN/insider-trades
https://www.canadianinsider.com/company-insid...cker=SPA.V
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Vision for future share price
=========================
https://investorshangout.com/images/MYImages/...future.jpg
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Prospect of future Net Present Value
=================================
For each US$1 increase in gold price, the company's Net Present Value will increase by CAN$1.5 million.
For each US$100 increase in gold price, the company's Net Present Value will increase by CAN$150 million.
At gold price of US$2,450/oz, after tax NPV5% is C$1.0 billion.
At gold price of US$3,300/oz, after tax NPV5% is C$2.3 billion.
At gold price of US$4,400/oz, after tax NPV5% is C$4.2 billion.
At gold price of US$5,000/oz, after tax NPV5% is C$4.8 billion.
At gold price of US$8,000/oz, after tax NPV5% is C$9.3 billion.
NPV5% = (Future Cash Flow / (1+Discount Rate)^25.8 years ) - Capital Expenditure
5% discount rate is typically used in calculating the Net Present Value to account for the future diminishing purchasing power of paper money.
https://www.visualcapitalist.com/purchasing-p...over-time/
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Prospect of future gold price
=========================
Will gold price hit US$8,000?
https://ca.finance.yahoo.com/news/gold-could-...00012.html
https://www.google.com/search?q=will+gold+pri...nt=gws-wiz
US national debts
https://tradingeconomics.com/united-states/government-debt
US federal budget
https://tradingeconomics.com/united-states/government-budget
US annual GDP
https://tradingeconomics.com/united-states/gdp-growth-annual
US national debt now exceeds $40 trillion, this equates to over $3 billion daily, making debt servicing one of the single largest expenses in the federal budget. US 2025 tax revenue was $5.26 trillion while interest payment on national debt was $1.25 trillion which is 23.7% of revenue. In comparison, if one's mortgage payment exceeds 40% of income, banks will place the borrower at high risk category. With perpetual budget deficit, debt level will continue to rise to make ends meet, so with debt at 23.7% of revenue, US government can still incur more debts, but if the US economy sinks into a deep recession or economic depression with continuous rate hike amid already weak economic growth, tax revenue will dwindle and it may risk insolvency. The United States holds 8,133.46 metric tons (approximately 261.5 million troy ounces) of gold reserves, if US government is to pay off its 40 trillion national debts by selling all of its gold reserve, gold price has to be over US$150,000 per ounce (261.5 million ounces x US$150,000 per ounce = US$40 trillion).
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Key Steps Leading to a Build Decision
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Spanish Mountain Gold has indicated that production infrastructure construction decision will be made in 2028, after which a two-year construction phase will begin. Tentative production is scheduled for early 2030. This timeline allows for the completion of the ongoing drill program, a new Mineral Resource Estimate (MRE) and a new Preliminary Economic Assessment (PEA) in the second half of 2026, as well as securing all necessary reports and approvals to advance development of the project. The new PEA and MRE are crucial steps in optimizing the project for construction. Completing all technical reports and regulatory approvals is a necessary part of the process before the build decision can be made.
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Overview
========
A mining project can pay loans before achieving revenue by using alternative financing like stream financing, royalty financing, or joint ventures, which are less restrictive than traditional debt and use future production or revenue as collateral instead of pre-existing income. Other methods include securing government grants and incentives, pre-selling a portion of future production through off-take agreements, and raising equity capital through share issues.
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===========================
Pre-Revenue Financing Methods
===========================
Streaming Agreements: A company provides upfront capital in exchange for a percentage of the mine's future mineral production, often at a discounted price.
Royalty Financing: A financier funds a project in return for a share of the project's future revenue or profits, which can be seen as an endorsement of the project's potential.
Joint Ventures: Partnering with other mining companies or investors allows costs to be shared, spreading the financial burden, notes www.altfin.net.
Off-take Agreements: Pre-selling a portion of the future mineral output to buyers can secure upfront financing and provide lenders with confidence in the project's potential.
Government Funding: Governments and development banks sometimes offer grants, loans, or tax incentives for projects aligned with economic or environmental goals, according to www.altfin.net.
Equity Financing: Raising capital by issuing shares is often considered the simplest path for early-stage projects, as it avoids the complexities and strict requirements of debt financing.
Benefits of These Approaches
Non-Dilutive (for streams/royalties): These options don't dilute the original shareholders' equity in the company.
Flexible Terms: Stream and royalty structures can be more flexible and less restrictive than traditional bank debt, allowing for customized repayment profiles.
Market Confidence: Agreements like streaming and royalties can be seen as a market endorsement of the project, potentially leading to increased investor confidence.
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Promise for profitability
===================
Spanish Mountain Gold shows promise for profitability due to a recently updated Preliminary Economic Assessment (PEA) indicating strong economics with a base case NPV5% of C$1.0 billion and an IRR of 18.2%, potentially improving to C$2.3 billion NPV5% and 32.0% IRR with higher gold prices. The project's conventional open-pit, milling operation, access to infrastructure, and new management team with experience in construction and operations contribute to its potential success, although the company is still in the early development stages.
Factors supporting profitability:
Favorable Economics: The PEA projects significant financial returns, with an after-tax Net Present Value (NPV) of C$1.0 billion and an Internal Rate of Return (IRR) of 18.2% at a base gold price of US$2,450/oz, and even better results at a spot price of US$3,300/oz gold.
Strong Resource Confidence: The economic analysis is based on a high degree of resource confidence, incorporating measured and indicated resources, which are key to a successful mining project.
Experienced Management: A new board and management team, brought in since 2022, possess decades of experience in project management, construction, and operations, positioning the company for a production decision.
Developed Infrastructure: The project will benefit from established infrastructure in central British Columbia, including road access and proximity to the city of Williams Lake, reducing operational complexities and costs.
Strategic Project Design: The company plans a conventional open-pit and milling operation, which is a low-risk approach that is less complex than underground mining.
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Economic impact of Spanish Mountain Gold's open pit mining
=================================================
Job Creation: The project is expected to create significant direct and indirect employment opportunities, benefiting local communities such as Likely and Williams Lake. According to Spanish Mountain Gold's Q&A, the mine construction phase is expected to create approximately 250 direct construction jobs and approximately 300 full-time positions during the operation phase. It will also significantly create employment indirectly in other supply chains supporting the mining, production and sales development including the financial and banking industries.
Business Development: The project will support local businesses and contractors through various procurement opportunities for goods and services.
Tax Revenue: The economic activity from the mine is expected to generate significant tax revenue for provincial and federal governments.
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Living in harmony with the environment and the community
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New 2026 agreement with First Nations is being drafted
==============================================
Xatśūll First Nation signed collaboration agreements with Spanish Mountain Gold in 2012 and 2021 supporting the mining development negotiation but the agreements were never finalized. In April, 2026, Xatll provided formal notice to Spanish Mountain Gold that it was immediately terminating the 2021 engagement protocol. In September, 2026, Xatll provided notice to Spanish Mountain Gold that it was also terminating the 2012 protocol agreement, citing that the mining project has undergone "significant and fundamental changes" over the years and because a final, long-term relationship agreement was never reached, the old protocols no longer accurately reflected the scope of what was being proposed and they no longer provided a viable framework for a mutually beneficial relationship. As a result the engagement protocol is no longer in force.
Xatśūll First Nation chief Rhonda Phillips also published the termination of outdated agreements in the Xatsull community website and in Stockwatch.com.on October 1, just 2 hours before the Annual General Meeting was to begin in Vancouver to expose her concern to wider audience.
https://www.xatsull.com/press-release/
https://www.google.com/search?q=Rhonda+Philli...nt=gws-wiz
The news release triggered panic selling of shares among unsophisticated investors resulted in trading halt initiated by the Stock exchange regulator. Trading resumed the next day.
But In Q3 2026, the Company provided Lhtako Dené Nation (“LDN”), Williams Lake First Nation (“WLFN”) and Xatśūll First Nation (“XFN”) with new draft Phased Project Collaboration Agreements for their review, intended to establish an updated framework for the relationships going forward with all three First Nations. XFN has indicated that its participation in further engagement, including regulatory processes, is conditional upon the parties first agreeing on capacity funding and a negotiation framework. The Company expects to provide reasonable capacity funding to the three First Nations and continues to engage with them on these matters. The Company cannot predict the outcome or timing of revised agreements due to the nature of negotiating mutually acceptable terms, but is actively working with each First Nation to establish updated agreements that provide appropriate support for the permitting and engagement efforts required at this stage of the Project.
On October 2, Spanish Mountain Gold Reported on Environmental Assessment Status and Provided Update on First Nations Engagement
https://spanishmountaingold.com/news/2026/spa...ngagement/
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Excerpt from Page 8 and 9 of 2026 Q2 Management Discussion and Analysis publish on August 31, 2026 https://spanishmountaingold.com/site/assets/f...26_mda.pdf
==================================
ENGAGEMENT WITH FIRST NATIONS
==================================
The Company recognizes and respects the First Nations asserted Indigenous rights in the Project area. For over a decade, it
has engaged First Nations concerning the Company’s plans and Project activities.
The Company is actively engaged with First Nations and other communities regarding the Project, including with respect to the
EA process and the various matters identified by First Nations. Prior to the submission of the IPD in 2021, management
conducted pre-submission review with the Lhtako Dené Nation (“LDN”), Williams Lake First Nation (“WLFN”) and Xatśūll First
Nation (“XFN”) whose traditional territories include the Project. After the completion of the 2025 PEA, the Company has engaged
in further discussions with the Williams Lake First Nation, the Xatśūll First Nation and the Lhtako Dene Nation. The Company
has included First Nations contractors and employees, and local employees from the Likely community to advance the Project.
In 2026, the Company provided draft Phased Project Collaboration Agreements to the aforementioned Nations for their review
and consideration.
The Company signed a Protocol Agreement with “XFN” (formerly the Soda Creek Indian Band) on March 6, 2012, and an
Amended Protocol Agreement with the "WLFN" (formerly the Williams Lake Indian Band) on March 13, 2012, each establishing
a framework for negotiating a comprehensive Participation Agreement covering the permitting, construction, operation, and
closure of the Project. The Company also entered into a Cooperation Agreement with the “LDN” on July 11, 2012, establishing
a framework for ongoing dialogue, information sharing, and the negotiation of a Participation Agreement. Each agreement
acknowledges the respective First Nation’s asserted aboriginal rights within its traditional territory, which includes the Project
area, and reflects the Company’s commitment to mitigating adverse Project impacts and providing economic and social benefits
to the First Nations.
As part of the environmental assessment and permitting process, the Company signed a further Engagement Protocol
Agreement with XFN on September 10, 2021, which contemplated the parties negotiating a comprehensive Relationship
Agreement.
In Q3 2025, the Company resumed engagement with First Nations to discuss the updated Project design as outlined in the 2025
PEA. Discussions were held to provide an update on the Project and identify the requirements to advance the Project to a
construction decision. WLFN requested a protocol agreement, and a draft was provided to WLFN in Q3 2025. XFN advised the
Company in 2026 that it considers the 2021 Engagement Protocol between XFN and the Company to be no longer in force,
citing significant changes to the Project since 2021. The parties hold differing views on the status of the 2021 Engagement
Protocol; however, both parties have expressed a willingness to establish a new agreement framework appropriate to the Project
as it exists today. In Q3 2026, the Company provided XFN, WLFN and LDN with new draft Phased Project Collaboration
Agreements for their review, intended to establish an updated framework for the relationships going forward with all three First
Nations. XFN has indicated that its participation in further engagement, including regulatory processes, is conditional upon the
parties first agreeing on capacity funding and a negotiation framework. The Company expects to provide reasonable capacity
funding to the three First Nations and continues to engage with them on these matters. The Company cannot predict the outcome
or timing of revised agreements due to the nature of negotiating mutually acceptable terms, but is actively working with each
First Nation to establish updated agreements that provide appropriate support for the permitting and engagement efforts required
at this stage of the Project.
ENVIRONMENTAL ASSESSMENT AND PERMITTING PROCESS
In 2022, based on the 2021 PFS, the Company advanced the EA and permitting processes. The Project is subject to the
requirements of both the British Columbia Environmental Assessment Act (2018) and the Federal Impact Assessment Act (2019).
The Company formally entered both processes in March 2022 with the submission of the Initial Project Description (“IPD”) and
Early Engagement Plan (“EEP”) to the BCEAO and IAAC. Both the provincial and federal agencies accepted the documents
within the same month without requesting amendments. The issuance of the Summary of Engagement by BCEAO and the Joint
Summary of Issues and Engagement by IAAC on June 23, 2022 completed the early engagement period. Agency, First Nations,
and public review questions and comments were solicited then used to develop the draft DPD. The draft DPD was submitted to
the provincial and federal agencies in December 2022 to initiate the Readiness Decision stage of the EA process. During this
phase, the draft DPD was reviewed by the Technical Advisory Committee, participating First Nations, and federal authorities,
leading to preparation of the final DPD on which the readiness decision will be based. A readiness decision was previously
expected to be received around the end of April 2023. However, in 2023 the Company chose to suspend submission of the final
DPD and undertake additional geological work and a detailed review of the PFS to further optimize the Project. During 2023 and
2024 this additional review work continued and the Company in Q3 2024 elected to complete a new PEA (2025 PEA) and MRE
(2025 MRE) that was completed in Q3 2025. This review and the new PEA may result in changes to the project plan that will
need to be incorporated into a new draft DPD prior to completion of the review and finalization by the agencies. The Company
is completing a gap analysis in Q3 2026 for the proposed new project description compared to the 2021 PFS which is being
used to modify the DPD in H2 2026 to advance the EA.
Environmental baseline studies resumed in 2020 and have continued to date to build on significant studies conducted from 2007
to 2012. The reviews of the IPD and EEP included extensive engagement with First Nations, regulatory agencies, and the
general public. The Company is continuing environmental baseline field work in 2026 and planning studies targeted for
completion in 2027 to support the next stages of the provincial and federal environmental assessment processes. On March 10,
2026, the BCEAO and IAAC issued joint correspondence regarding the elapsed time since the BCEAO’s section 13(5) notice
and the potential termination of the Spanish Mountain Gold Project under section 39 of the Environmental Assessment Act. The
Company responded on July 21, 2026, outlining activities undertaken since the notice and requesting to continue in the current
EA process.
In a letter dated August 27, 2026, the BCEAO accepted the plan proposed by Spanish Mountain Gold Ltd. to continue the EA
and confirmed it is not pursuing termination under section 39 of the Act at this time. The plan includes continued engagement
with First Nations, the public, and key stakeholders; submission of a draft DPD in Fall 2026; and formal DPD submission in Q1
2027.
The Company has started community engagement with a Town Hall meeting that occurred in Likely in July 2026 and is planning
further engagement in Q3 and Q4 with local communities and First Nations to solicit feedback on the updated 2025 PEA mine
plan and ongoing FS activities. This engagement will inform the final formal submission of the DPD in Q1 2027 to formally
resume the EA process.
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