Sandstorm Gold Ltd. (“Sandstorm” or the “Company”) (NYSE American: SAND, TSX: SSL) is pleased to provide recent updates from the Company’s royalty properties.
“The assets in Sandstorm’s portfolio continue to report exploration success; which is resulting in resource growth and mine life extension,” said President & CEO Nolan Watson. “We are working diligently to deploy our capital into royalty acquisitions that will continue to add to our stable cash flow base, improve our industry leading growth profile and increase the exploration upside for our shareholders.”
Yamana Contemplates Plant Expansion at Chapada
Yamana Gold Inc. (“Yamana”) continues to discover additional resources at the producing Chapada mine in Brazil and as a result has begun examining a potential plant expansion that would increase the processing rate from 23 million tonnes per annum (“Mtpa”) to a rate of up to 32 Mtpa. Yamana filed an updated NI 43-101 Technical Report on the Chapada mine during the first quarter of 2018 which outlined a life of mine plan for 29 years of copper and gold production.
Yamana has also made updates to the processing plant at Chapada in order to improve recoveries. Most recently a cleaner circuit expansion was commissioned to provide flexibility in processing various ore types. The upgrade has demonstrated improvements to both gold and copper recovery at higher processing rates, and while processing lower grade ores.
For more information, visit the Yamana website at www.yamana.com and see press releases dated February 15, 2018 and March 29, 2018.
Sandstorm has a copper stream agreement to purchase 4.2% of the copper produced at Chapada up to a maximum of 3.9 million pounds annually. When Yamana has delivered 39 million pounds of copper to Sandstorm, the copper stream will reduce to 3.0%. Once 50 million pounds of copper have been delivered to Sandstorm on a cumulative basis, the stream will reduce to 1.5% of the copper produced for the life of the mine. Sandstorm will make ongoing payments for each pound of copper purchased equal to 30% of the spot price of copper.
Equinox Gold Releases Drill Result of 84.3 g/t Gold over 21.0 Metres at Aurizona
Equinox Gold Corp. (“Equinox Gold”) has released positive drill results from near-mine exploration drilling at the Aurizona gold mine in Brazil. Broad intervals of gold mineralization were intersected near surface at the Genipapo, Micote, and Mestre Chico targets. Equinox Gold tested six near-mine exploration targets with 45 holes totaling 5,500 metres. Highlights from recent drill results include:
•BRAZD552: 6.0 metres of 1.9 grams per tonne (“g/t”) gold from 80.0 metres; and
•BRAZD626: 60.0 metres of 1.2 g/t gold from 1.0 metre.
•BRAZD554: 9.0 metres of 3.3 g/t gold from 48.0 metres and 11.0 metres of 1.9 g/t from 110.0 metres; and
•BRAZD612: 21.0 metres of 84.3 g/t gold from 5.0 metres, including 1.0 metre of 1,005.0 g/t gold.
•BRAZD600: 30.0 metres of 1.1 g/t gold from 21.0 metres; and
•BRAZD615: 16.0 metres of 1.6 g/t gold from 40.0 metres and 5.0 metres of 8.5 g/t gold from 110.0 metres.
Construction activities continue to progress at Aurizona and Equinox remains on track to pour gold by the end of 2018. Overall project construction is more than 35% complete and the engineering, procurement and construction management activities are 45% complete. The plant refurbishment and tailings facility raise are substantially complete and the ball and SAG mills are expected to be delivered in June.
True widths of the mineralized intervals are interpreted to be 60% - 90% of the reported lengths. For more information and complete drill results, visit the Equinox Gold website at www.equinoxgold.com and see the press releases dated March 5, 2018, March 8, 2018 and April 2, 2018.
Sandstorm has a 3% - 5% sliding scale NSR royalty on the Aurizona project. At gold prices less than or equal to US$1,500 per ounce, the royalty is a 3% NSR. In addition, Sandstorm holds a 2% NSR royalty on the Aurizona Greenfields property, a 190,073 hectare package of exploration ground adjacent to the Aurizona project. An exploration agreement with AngloGold Ashanti Limited (“AngloGold”) was announced in 2016, whereby AngloGold may invest US$14 million in exploration to earn a 70% interest in Aurizona Greenfields.
Metanor Intercepts 50.9 g/t Gold over 4.8 Metres at Bachelor Lake and 18.9 g/t Gold over 1.6 Metres at Barry
Metanor Resources Inc. (“Metanor”) has announced that the ongoing underground development at the Bachelor Lake mine in Québec has successfully reached the two known Moroy veins at level 11. Exploration drilling is ongoing at Moroy and recent results have extended the continuity of the mineralized structures in all directions. Highlighted drill results from the Moroy Zone include:
•MY18-017: 4.4 metres of 5.6 g/t gold from 266.3 metres;
•MY18-032: 2.0 metres of 9.2 g/t gold from 104.6 metres; and
•MY18-034: 4.8 metres of 50.9 g/t gold from 264.6 metres.
At the Barry project, located 65 kilometres to the south of the Bachelor Lake mine, drilling has intersected high grade gold mineralization at the new Bart Zone, which is 3.5 kilometres west of the Barry deposit. Metanor began drilling at the Bart zone in late 2017 and has completed 2,985 metres of drilling within 12 holes. The program was designed to test historical gold sampling completed in the 1990’s and the exploration team at Metanor has identified gold-bearing shears and veins that are present within the mafic intrusive host rock at Bart. Highlighted drill results from the Bart zone include:
•BEO-17-79: 0.5 metres of 119.0 g/t gold from 189.7 metres; and
•BEO-17-80: 1.6 metres of 18.9 g/t gold from 150.4 metres.
True widths are estimated to range between 70% - 90% of core lengths at Moroy and 70% - 95% of core lengths at Barry. Grades were uncapped at both Moroy and Barry. For more information and complete drill results, visit the Metanor website at www.metanor.ca and see the press releases dated March 1, 2018 and April 9, 2018.
Sandstorm amended the Bachelor Lake gold stream with Metanor on October 1, 2017. Sandstorm will receive a minimum of 1,500 ounces of gold per quarter until 12,000 ounces of gold have been delivered and then the gold stream will convert to a 3.9% NSR royalty. In addition to this, Sandstorm holds a 1.0% NSR royalty on Bachelor Lake. At Barry, Sandstorm has a NSR royalty of 3.9% - 4.9%.
Sandstorm Acquires Royalties on Exploration Properties in Canada, Mexico and Peru
During the last quarter of 2017 and the first quarter of 2018, Sandstorm acquired 11 royalties and an option to acquire one additional royalty on exploration-stage projects located in Canada, Mexico and Peru. The total consideration paid for the 11 royalties was C$1,700,000 and with these acquisitions, Sandstorm now has 178 royalties in its portfolio. A complete list of the royalties acquired is below:
Project Owner/ Partner Country Stage NSR Royalty
Baffin Kivalliq Energy Corporation Canada Exploration 1.50-1.75%
Yauco Goldplay Exploration Ltd. Mexico Exploration 1.0%
Vila Union Goldplay Exploration Ltd. Mexico Exploration 1.0%
El Placer Goldplay Exploration Ltd. Mexico Exploration 1.0%
Azucena Pucara Resource Corp. Peru Exploration 1.0%
Capricho Pucara Resource Corp. Peru Exploration 1.0%
Lourdes Pucara Resource Corp. Peru Exploration 1.0%
Pacaska Pucara Resource Corp. Peru Exploration 1.0%
Paco Orco Pucara Resource Corp. Peru Exploration 1.0%
Pucapaca Pucara Resource Corp. Peru Exploration 1.0%
Santo Tomás Pucara Resource Corp. Peru Exploration 1.0%
Baffin Gold Project - Kivalliq Energy Corporation
Sandstorm acquired a 1.50% - 1.75% NSR royalty on the Baffin project located in Nunavut, Canada for consideration of C$600,000. The project is owned by Kivalliq Energy Corporation (“Kivalliq”) and is over 4,000 square kilometres in size. More than US$25 million was spent on the property between 2001-2011 by previous operators including BHP-Billiton Ltd., Falconbridge Ltd. and AngloGold Ashanti.
Baffin hosts high-grade gold occurrences in multiple geological settings, with anomalous gold found in till and rock samples along a 140 kilometre strike length. Most areas have not yet been tested by drilling. Kivalliq has obtained a database of historic exploration and geoscience data from the property and in 2017 conducted a $775,000 exploration program that focused on corroborating the historical results through geological mapping, prospecting, and geochemical rock and till sampling. Infrastructure at the Baffin project includes an existing camp, tidewater access and two 1,200 metre airstrips.
For more information, visit the Kivalliq website at www.kivalliqenergy.com and see the press releases dated October 25, 2017 and March 27, 2018.
Goldplay Exploration Ltd.
Sandstorm acquired 1.0% NSR royalties from Goldplay Exploration Ltd. (“Goldplay”) on the Yauco, Villa Union, and El Placer projects located in the State of Sinaloa in Mexico. As part of the transaction, Sandstorm also acquired the option to purchase a 1.0% NSR royalty on Goldplay’s El Habal project in Mexico. Consideration paid for the three royalties and option agreement totaled C$100,000. The El Habal, Yauco and Villa Union projects are located in the Rosario Mining District and the El Placer project is located in the Concordia Mining District. Goldplay recently completed ground geophysical surveys at the El Habal project that identified 15 new drilling targets and ongoing exploration is focused on defining new mineralized zones through surface trenching, underground mapping, channel sampling, ground geophysics and drilling. Goldplay has planned a 4,000 metre drilling program at El Habel for the second quarter of 2018.
For more information, visit the Goldplay website at www.goldplayexploration.com and see the press releases dated March 6, 2018, March 8, 2018 and April 5, 2018.
Pucara Resources Corp.
Sandstorm acquired 1.0% NSR royalties on seven projects owned by Pucara Resources Corp. (“Pucara”) in southern Peru for consideration of C$1,000,000. Pucara is a Peruvian focused precious metals explorer and project generator.
In February 2018, Pucara announced that they had entered into a joint venture agreement with IAMGOLD Corporation (“IAMGOLD”), to explore the Los Tambos project. IAMGOLD may earn a 60% interest in the property by spending US$4.0 million on the project and making US$500,000 in payments to Pucara over the next four years. IAMGOLD is assessing the Los Tambos property and finalizing a drill program that is expected to commence once the permits are granted.
Pucara raised C$4.2 million in late 2017 through a private placement and their shareholder base includes Sandstorm, Resource Capital Funds and Exploration Capital Partners. Pucara will use part of the proceeds from the private placement to fund drill programs at the Pacaska and Lourdes projects. Pucara is working towards a public listing in 2018.
For more information, visit the Pucara website at www.pucara.ca and see the press release dated February 28, 2018.
Rambler Releases an Updated Technical Report Demonstrating a Profitable 20-Year Operating Life at the Ming Mine
Rambler Metals and Mining plc (“Rambler”) reported that it has completed a new mineral resource and reserve estimate for the Ming copper-gold mine resulting in a life of mine plan of more than 20 years. Production is expected from both the high-grade Massive Sulphide Zone and the Lower Footwall Zone (“LFZ”) at an average throughput of 1,250 tonnes of ore per day. The mineral resource gold grade has improved by 14% as a result of an extensive diamond drilling program in the LFZ.
Rambler is planning to accelerate their exploration efforts at the LFZ as the drill intersections outside of the resource model have confirmed that the mineralization in the LFZ improves in grade and continuity at depth.
For more information, visit the Rambler website at www.ramblermines.com and see the press release dated March 5, 2018.
Sandstorm has a gold stream agreement with Rambler to receive 25% of the first 175,000 ounces of gold produced, and 12% of the gold produced thereafter from the Ming mine.
Keith Laskowski (MSc), Sandstorm’s Vice President, Technical Services is a Qualified Professional (#01221QP) of the Mining and Metallurgical Society of America and a Qualified Person as defined by Canadian National Instrument 43-101. He has reviewed and approved the technical information in this press release.