Spanish Mountain BC gold project: drilling and NSR deal insights for mine planners
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
Spanish Mountain Gold’s latest drilling at its namesake project in central British Columbia returned a 252-metre intercept grading 0.82 g/t gold from about 76 metres depth, including 94 metres at 1.32 g/t and a 5‑metre interval at 3.23 g/t from 195 metres in hole 26‑DH‑1390, extending Orca fault corridor mineralisation within the main deposit. Additional holes such as 26‑DH‑1386 (10 metres at 2.19 g/t from 296 metres) and 26‑DH‑1388 (69 metres at 0.75 g/t from 217 metres) support ongoing infill and expansion within a 60,000‑metre 2026 drill campaign. The project, backed by a US$55 million Wheaton Precious Metals 1.5% NSR and a PEA for a 26,000 t/d open‑pit over 24.5 years, is targeting a construction decision in 2028.
Technical Brief
- Feasibility study work commenced in Q2 2026 to underpin a 2028 construction decision.
- The 60,000 m 2026 diamond drill programme is ~31% complete, with 16 holes pending assays.
- Recent 10-hole set targets both broad disseminated mineralisation and higher-grade Orca fault structures in the main deposit.
- July 14 assays included 27 m at 1.92 g/t Au from ~243 m, confirming continuity of Orca-style zones.
- Orca fault corridor now recognised as hosting most of the deposit’s higher-grade material, driving updated mine planning.
- Project lies ~500 km northeast of Vancouver with all-season road access and nearby hydroelectric power infrastructure.
- PEA outlines a 26,000 t/d open-pit operation over 24.5 years, with US$1.25 billion initial capex.
- At US$2,450/oz Au and 5% discount rate, PEA economics show ~US$1 billion NPV and 18% IRR, with 3.4-year payback.
- Eric Sprott holds ~9% equity, while Spanish Mountain’s market capitalisation sits around C$163 million at C$0.31/share.
Our Take
The 1.5% NSR royalty on gold and silver at the Spanish Mountain project ties directly to the US$55 million Wheaton Precious Metals financing noted in our related coverage, meaning any upgrade to the 24.5-year mine plan or resource could disproportionately benefit Wheaton’s long-life cash flow profile.
With an initial capital cost of about C$1.25 billion against an NPV of roughly C$1 billion at a 5% discount rate, the project’s economics sit in the middle of the BC gold project cost curve in our database, so the emerging higher-grade intercepts are likely being watched closely by potential strategic partners looking to de-risk capex.
Eric Sprott’s 9% equity stake in Spanish Mountain Gold, combined with the Wheaton royalty already in place, suggests the register is increasingly dominated by specialist precious metals capital, which can make it easier to raise follow-on funding but may also push management to prioritise gold output over any copper or silver by-product optimisation.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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