Author: Atrium Research October 19, 2026
Ben Pirie | Equity Research Analyst | [email protected] | 647-688-9661
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
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What you need to know:
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SPA reported assays from 28 diamond drill holes from its 60,000m FS Drill Program, highlighted by 0.54 g/t Au over 295.5m, including 0.93 g/t Au over 107.0m.
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Director Lembit Janes, SPA’s largest insider, bought ~1.96M shares (~$537K) in the open market and CEO Peter Mah also added shares.
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Xatśūll First Nation ended its legacy engagement agreements with SPA. Nearby precedents give us comfort; see page 2.
On October 8ᵗʰ, Spanish Mountain Gold (SPA:TSXV, SPAUF:OTCQB) announced assay results from 28 diamond drill holes completed as part of its 2026 Feasibility Drill Program at the Spanish Mountain Gold Project in BC’s Cariboo Gold Corridor. The results were highlighted by hole 26-DH-1414, which intersected 0.54 g/t Au over 295.5m, including a higher-grade core of 0.93 g/t Au over 107.0m. SPA has now completed ~33,353m of the planned 60,000m program (~56%), with assays pending for 25 additional holes. As a reminder, completing the 60,000m program triggers the second US$12.5M Wheaton payment.
Alongside the drill results, SEDI filings show meaningful open-market buying from insiders. The purchases came on the same days that Xatśūll First Nation (XFN) announced it had terminated its legacy agreements with the Company. SPA continues to engage with all three First Nations on whose territories the Project sits. We address this in detail on page 2. We are maintaining our BUY rating and target price of $1.20/share on Spanish Mountain Gold.
Highlights from the release include:
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26-DH-1414: 0.54 g/t Au over 295.5m from 41.0m, including 0.93 g/t Au over 107.0m from 170.0m.
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26-DH-1408: 0.52 g/t Au over 152.7m from 8.9m, including 1.03 g/t Au over 47.9m.
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26-DH-1399: 0.55 g/t Au over 118.0m from 18.0m, including 1.35 g/t Au over 25.0m.
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26-DH-1391: 0.36 g/t Au over 340.0m from 14.0m, including 0.64 g/t Au over 48.0m and 0.54 g/t Au over 146.0m.
Insiders Buying Director Lembit Janes acquired ~1.96M shares in the open market on October 1ˢᵗ and 2ⁿᵈ at prices between $0.23 and $0.28 per share. The purchases total ~$537K at an average of ~$0.274/share and lift his holdings to ~95.2M shares (~17% of FD ITM shares). CEO Peter Mah also bought ~15.8K shares at $0.285. Buying of this size from the Company’s largest insider, during a week of negative headlines, signals strong conviction from those closest to the Project. We also note that some of the recent selling pressure may be coming from holders exercising and selling in-the-money warrants priced at $0.18 and $0.23 that are set to expire in mid-November. Based on the Company’s latest filings, ~26.5M of these warrants remained outstanding (~17.7M at $0.18 and ~8.8M at $0.23), representing ~$5.2M in proceeds if fully exercised.
Catalysts
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Continued Exploration Results – Ongoing
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Feasibility Study – H1/28E
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Mine Construction Decision – 2028E
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