Author: Atrium Research November 09, 2026
Ben Pirie | Equity Research Analyst | [email protected] | 647-688-9661
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
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SPA reported assays from 21 diamond drill holes from its 60,000m FS Drill Program, highlighted by 1.26 g/t Au over 40.7m from 16.0m.
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The Company has completed ~47,011m (~78%) of the program, with 49 holes pending, and is targeting a potential MRE update before year-end.
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The 2026 PEA technical report outlines an alternate, larger-scale pit containing ~4.4Moz, which SPA will assess in its Feasibility Study.
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Other updates include a BC Hydro power agreement, a new VP Exploration, a claims acquisition, and an NSR buyback.
This morning, Spanish Mountain Gold (SPA:TSXV, SPAUF:OTCQB) announced assay results from 21 diamond drill holes completed as part of its 2026 Feasibility Drill Program at its Spanish Mountain Gold Project in BC’s Cariboo Gold Corridor. SPA has now completed ~47,011m of the planned 60,000m program (~78%), up from ~33,353m at the time of our last note (click here to read), with assays pending for 49 drilled holes. The Company is now focused on completing the program and a potential MRE update by the end of the year. 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-1421: 0.50 g/t Au over 138.6m from 14.9m, including 1.26 g/t Au over 40.7m from 16.0m
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26-DH-1429: 0.29 g/t Au over 174.0m from 51.0m, including 0.93 g/t Au over 43.0m from 51.0m
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26-DH-1432: 0.29 g/t Au over 219.2m from 44.0m, including 0.96 g/t Au over 28.0m from 44.0m
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26-DH-1434: 0.30 g/t Au over 241.0m from 44.0m, including 0.52 g/t Au over 68.0m from 44.0m
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26-DH-1435: 0.29 g/t Au over 258.2m from 51.3m, including 0.41 g/t Au over 147.5m from 162.0m
SPA also announced the filing of its 2026 PEA technical report, with the base case outlining a 31ktpd open-pit operation producing ~3.33Moz of gold over a 25.8-year mine life (~129.5Koz per year), with an after-tax NPV₅% of C$2.91B and an IRR of 35.2% at US$3,600/oz Au (read our PEA note here). The report also includes an alternate development case with a larger pit containing ~348Mt of mill feed at 0.39 g/t Au (~4.4Moz).
Since our last note, the Company has also signed a Facilities Study Agreement with BC Hydro for grid power, appointed a VP Exploration, acquired 28 contiguous mineral claims and agreed to buy back a portion of an existing NSR, which we expand on further below.
Our Take We view this as another solid batch that adds higher-grade material in the upper portion of the deposit. Three holes (26-DH-1421, -1429 and -1432) returned intervals between 0.93 and 1.26 g/t Au starting within ~50m of surface. That is well above the 0.41 g/t Au head grade in the 2026 PEA, and it could support a lower strip ratio and stronger early-year grades as SPA builds out the Feasibility Study mine plan. With ~78% of the 60,000m program complete and 49 holes still pending, there is a steady pipeline of results heading into a potential MRE update at year-end. Management also continues to show confidence in the story, with CFO Mark Ruus adding 100K shares in the open market on November 3ʳᵈ at $0.195/share (~$19.5K), following the ~$537K bought by Director Lembit Janes in early October.
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