Spanish Mountain Gold (TSXV: SPA) has reported new drill results from its namesake project in British Columbia, saying the latest assays support the potential expansion of the property’s gold system. The company’s shares rose Monday morning in Toronto.

The strongest result came from hole 26-DH-1390, which intersected about 94 metres grading 1.32 grams gold per tonne from roughly 76 metres downhole, including a higher-grade interval of 5 metres grading 3.23 grams gold from about 195 metres, Spanish Mountain said Monday in a statement. Both intervals were contained within a broader standout intercept of 252 metres grading 0.82 grams gold from about 76 metres depth.

Vancouver-based Spanish Mountain said it has completed about 31% of a 60,000-metre drill program planned for this year. Work on a feasibility study began in the second quarter, a process the company says will position it to make a construction decision in 2028. For developers, a feasibility study is a more detailed engineering and economic assessment than an earlier-stage preliminary economic assessment, and is commonly used to support mine financing, permitting and construction planning.

Main deposit drilling

Monday’s results cover 10 diamond drill holes completed within the project’s main deposit. The drilling is designed to test both the broader gold system and higher-grade structures linked to the nearby Orca fault corridor.

The results follow another set of high-grade assays released two weeks earlier, including 27 metres grading 1.92 grams gold from about 243 metres depth, according to a previous company release. Assays remain pending for 16 additional drill holes, leaving further drill data to be incorporated as the company advances the program.

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

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

Other highlighted results included hole 26-DH-1386, which returned 18 metres grading 0.96 gram gold from 236 metres downhole and 10 metres grading 2.19 grams gold from 296 metres depth. Hole 26-DH-1388 intersected 22 metres grading 0.97 gram gold from 153 metres, as well as 69 metres grading 0.75 gram gold from 217 metres downhole.

Spanish Mountain shares climbed 6.9% to 31¢ on Monday morning in Toronto, giving the company a market value of about C$163 million ($115 million). The stock has traded between 12¢ and 42¢ over the past year.

Road access and project plans

The Spanish Mountain project is located about 500 km northeast of Vancouver and hosts one of British Columbia’s largest undeveloped gold deposits. The site has year-round road access, nearby hydroelectric power and access to an experienced regional mining workforce, infrastructure factors that can be relevant as a project moves from resource definition toward engineering and development studies.

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

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

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

Canadian mining investor Eric Sprott is among Spanish Mountain’s largest backers and holds a 9% equity stake in the company.