Author: Atrium Research September 21, 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 announced an updated PEA and Mineral Resource Estimate on the Spanish Mountain Gold Project, materially lifting project economics.
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The updated PEA produced an NPV5% of US$2.16B (C$2.91B), with an IRR of 35.2% using a gold price of US$3,600/oz[cite: 20]. At spot gold of US$4,400/oz the NPV5% rises to US$3.14B (C$4.24B) and IRR of 46.3%.
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The updated MRE increased the M&I gold resource by ~500Koz (+12%) to 4.66Moz and the inferred resource by ~227Koz (+146%) to 382Koz. The silver resource also increased.
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This represents an important update as SPA is fully funded to continue to advance the project towards a full Feasibility Study prior to a construction decision planned for H1/28.
This morning, Spanish Mountain Gold (SPA:TSXV, SPAUF:OTCQB) released results from an updated PEA and MRE on its 100%-owned Spanish Mountain Gold Project in British Columbia’s Cariboo Gold Corridor. The study is built on an updated MRE that grew the Main deposit M&I resources +12% to 4.66Moz Au and the inferred resource +146% to 382Koz. Integrating improvements and optimizations vs. the 2025 PEA, combined with a higher modelled gold price (US$3,600/oz) and larger resource, the NPV5% increased to US$2.16B (C$2.91B), with an IRR of 35.2%[cite: 20]. At the spot gold price of US$4,400/oz the NPV5% increases to US$3.14B (C$4.24B) and IRR to 46.3%. We are maintaining our BUY rating and increasing our target price to $1.20/share (previously $1.00/share) on Spanish Mountain Gold.
Key Highlights
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Resource grows materially with the ongoing program ~50% complete. With 31,587m of the 60,000m 2026 exploration program complete, SPA updated the mineral resource to include the YTD drilling in today’s PEA. The updated MRE increased the M&I gold resource by ~500Koz (+12%) at an unchanged cut-off grade of 0.15 g/t Au. The silver portion of the M&I resource grew by ~17% to 7.21Moz.
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98% of the PEA resource is in the M&I category. As was consistent in the 2025 PEA, today’s PEA models just 1.8% of the proposed mill feed from the Main deposit as inferred resources, making the transition to a full Feasibility Study much more seamless.
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Production profile expanded to average 129.5Kozpa over 25.8 years, with the first five years of production at 207Kozpa and total LOM production of 3.33Moz, up +11% from the 3.0Moz in the 2025 PEA. This utilizes an expanded ROM mill throughput of 31Ktpd (26Ktpd previously), a larger open pit with a lower overall strip ratio (1.8:1 vs. 2.0:1 in 2025) and integrates the expanded resource.
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Accelerated Payback Period. As part of the optimization, production has been brought forward, decreasing the payback period of the US$1.05B (C$1.42B) capex to just 1.8 years at the base case and 1.5 years at US$4,400/oz[cite: 20]. Average annual FCF over the first five years is US$406M.
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Robust Economics. The updated study delivers an after tax NPV5% and IRR of US$2,156M (C$2,910M) and 35.2% at US$3,600/oz gold, increasing to US$3,142M (C$4,242M) and 46.3% at the US$4,400 spot case.
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Future Upside. SPA sees further project enhancement opportunities, including another expansion in size with the inclusion of the maiden Phoenix deposit MRE (discussed below), additional exploration upside, and preconcentration technologies such as ore sorting to improve grades. As mentioned above, the 2026 exploration campaign is ongoing with 31,587m of the 60,000m program completed and is expected to be finished in Q4/26.
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