By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, January 31, 2017

The outlook for the price of gold this year is quite optimistic. Many market analysts have predicted a steady rise in the price, which may reach close to $1,400 per ounce, according to some analysts. This forecast is especially favorable for gold mining companies such as Spanish Mountain Gold Ltd. (TSX-Venture:SPA). The company had been in the process of prospecting its Spanish Mountain Gold Project in central British Columbia, in collaboration with Met Solve Laboratories. Now, the company announced this morning the positive outcome from the metallurgical study.

The study had the main aim of redesigning the workflow in order to make it more efficient and cost-effective. The study has proved that Spanish Mountain Gold can successfully eliminate two unit operations from their flowsheet used in the 2012 Preliminary Economic Assessment without any detrimental effect on either gold recovery or concentrate quality. The most recent tests achieved a gold recovery to the concentrate in open circuit batch tests as high as 86.8% with an organic carbon content of 0.17 to 0.31%, well below the target value of 0.5% for optimal gold recovery.

This new development will be highly beneficial for the company as it will help reduce operating costs as well as lowering capital requirements.

Spanish Mountain Gold has conducted a number of studies at its project sites. Late last year, it was able to identify two main zones for gold mining. The first zone is located near the south-central area of the deposit at the Spanish Mountain Gold Project, while the second zone surrounds the first zone.

Spanish Mountain Gold is currently adopting a multi-pronged strategy. Apart from carrying out studies to determine the feasibility of its project, the company is also looking at organizational restructuring and financial arrangements. The Company recently appointed Larry Yau as its new CEO. He has been working as interim CEO since June 2015. With his nearly six years of experience as a CFO with Spanish Mountain Gold, Yau is expected to boost up the financial resources as well.

Yau was instrumental in arranging the funding of $3.9 million without any stock dilution or debt. The funding was obtained through mining exploration tax credit attributable to qualified mining exploration expenses incurred for the Spanish Mountain gold project. The funding will help the company in furthering its operations.

These actions hopefully with have a positive impact on the company’s share price which has so far shown tremendous growth in the past 12 months. Shares of SPA have gained over 420% during this time period while its year-to-date growth stands at nearly 8%. With the positive results from its study, and ongoing bullishness in the gold sector, SPA looks to be a Company worth exploring further.

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