Spanish Mountain Gold (SPA.TSXV) announced the start of a Pre-Feasibility Study (PFS) for its Spanish Mountain Gold Project in Canada. The PFS will refine the estimates of capital and operating costs that were the basis for the Preliminary Economic Assessment (PEA) completed by the Company in December 2010. Spanish Mountain currently has ongoing resource definition, geotechnical, metallurgical and power supply studies underway, the results of which will form part of the PFS. The PFS will also examine the optimal mill throughput at the beginning of potential commercial production from the Project.
The PFS is expected to be completed over a period of approximately six months. The Company may elect to initiate a feasibility study (FS) during this six month period without prior completion of the PFS. The FS is expected to take approximately one year from the date on which the FS begins.