VANCOUVER, March 23, 2017 /CNW/ - Sandstorm Gold Ltd.
("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) has
acquired 22 net smelter return ("NSR") royalties during the first
quarter of 2017 for consideration of US$1.9
million. The assets include royalties on development-stage,
advance exploration-stage and exploration-stage projects located in
Canada, Mexico and Peru. A complete list of the projects is
below:
Project
|
Owner/
Partner
|
Country
|
Stage
|
NSR
Royalty
|
Angilak
|
Kivalliq Energy
Corporation
|
Canada
|
Adv.
Exploration
|
1.0%
|
Ball Creek
|
Evrim Resources
Corp.
|
Canada
|
Exploration
|
2.0%
|
More Creek
|
Tower Resources
Ltd.
|
Canada
|
Exploration
|
2.0%
|
Nechako
|
Tower Resources
Ltd.
|
Canada
|
Exploration
|
2.0%
|
Rabbit
North
|
Tower Resources
Ltd.
|
Canada
|
Exploration
|
2.0%
|
Schaft Creek
North
|
Teck Resources
Limited/Copper Fox Metals Inc.
|
Canada
|
Exploration
|
2.0%
|
La Union
|
Millrock Resources
Inc.
|
Mexico
|
Exploration
|
1.5% (Au, Ag)
1.0% (other metals)
|
Llano del
Nogal
|
Millrock Resources
Inc.
|
Mexico
|
Exploration
|
Los Chivos
|
Millrock Resources
Inc.
|
Mexico
|
Exploration
|
Los
Cuarentas
|
Millrock Resources
Inc./ Centerra Gold Inc.
|
Mexico
|
Exploration
|
Ramard
|
Millrock Resources
Inc.
|
Mexico
|
Exploration
|
San Javier
|
Millrock Resources
Inc.
|
Mexico
|
Exploration
|
Violeta
|
Millrock Resources
Inc.
|
Mexico
|
Exploration
|
Chavin
|
Condor Resources/
Compañia Minera Casapalca S.A.
|
Peru
|
Exploration
|
1.5% NSR
|
Huiñac
Punta
|
Condor Resources
Inc.
|
Peru
|
Exploration
|
0.5% NSR
|
Huiniccasa
|
Volcan Compañía
Minera SAA
|
Peru
|
Exploration
|
1.25% NSR
|
Humaya
|
Condor Resources
Inc.
|
Peru
|
Exploration
|
0.5% NSR
|
Lucero
|
Condor Resources
Inc./ Compañia Minera Casapalca S.A.
|
Peru
|
Development
|
1.5% NSR
|
Pucamayo
|
Condor Resources
Inc.
|
Peru
|
Exploration
|
0.5% NSR
|
Quilisane
|
Condor Resources
Inc.
|
Peru
|
Exploration
|
0.5% NSR
|
Quirurqu
|
Condor Resources
Inc.
|
Peru
|
Exploration
|
0.5% NSR
|
San Martin
|
Condor Resources
Inc.
|
Peru
|
Exploration
|
0.5% NSR
|
"The collection of royalties that we have acquired so far in
2017 have added exploration potential in stable jurisdictions,
increasing the optionality in our portfolio which is now up to 155
streams and royalties," said Sandstorm President and CEO.
Watson added, "We have over
$30 million in cash and $110 million available on our revolving line of
credit and we are working diligently to continue deploying our
capital into accretive acquisitions that will add value to
shareholders."
— THE NEW ROYALTIES
A selection of the 22 royalties that were acquired during the
first quarter are discussed below:
Angilak
The Angilak property is located in Nunavut, Canada ("Angilak") and is owned by
Kivalliq Energy Corporation ("Kivalliq"). Angilak is over 898
square kilometres in size and hosts numerous high priority zones
including the high-grade Lac 50 Trend uranium deposit and the
Dipole-RIB trend discovery. Since acquiring the Angilak Property in
2008, Kivalliq has invested more than $55
million conducting systematic exploration including ground
and airborne geophysics, geological mapping, prospecting, and over
90,500 metres of diamond and reverse circulation drilling.
Kivalliq's exploration activities during 2016 included
trenching, soil sampling and a soil geochemistry program at Yat and
Dipole. A trenching program at Yat collected rock samples from both
bedrock and frost heaved boulders with results confirming that high
grade polymetallic uranium, copper, silver and gold mineralization
identified in boulders are derived from localized bedrock sources.
The highlight channel sample assay results included:
- 2.5% U3O8, 16.2% Cu, 417 g/t Ag & 1.3
g/t Au across 0.5 metres in Trench Kiv-16-T03
- 0.32% U3O8, 373 g/t Ag, 2.9 g/t Au &
6.4 g/t Pd across 0.65 metres in Trench Kiv-PO-T05
Results from the soil samples collected in 2016 have further
outlined multiple anomalous uranium in soil trends at Yat and
Dipole. At Yat, a pronounced uranium in soil anomaly has been
defined along a strike length of 1.6 kilometres coincident to the
Yat electromagnetic conductor. A corroborating enzyme leach silver
in soil anomaly occurs along the same trend. At Dipole, a strong
uranium in soil anomaly has been defined along a strike length of
0.6 kilometres over a conductive trend parallel to the Dipole
structure and 1.5 kilometres to 2.1 kilometres northeast of the
high grade uranium values drilled in 2015.
The Lac 50 Trend hosts two deposits with a combined NI 43-101
Inferred Resource of 2,831,000 tonnes grading 0.69%
U3O8, totaling 43.3 million pounds
U3O8 (0.2% U3O8
cut-off). The complete resource table is below:
Inferred Mineral Resources Estimate for the Lac 50 Trend
Deposit (January 2013)
Deposit
|
Tonnes
('000)
|
U3O8
(%)
|
Ag
(g/t)
|
Mo
(%)
|
Cu
(%)
|
U3O8
(Mlbs)
|
Ag
('000)
|
Mo
(Mlbs)
|
Cu
(Mlbs)
|
Lac
Cinquante
|
1,906
|
0.67
|
16.0
|
0.15
|
0.25
|
28.0
|
983
|
6.3
|
10.4
|
J4/Ray
|
925
|
0.75
|
30.1
|
0.20
|
0.26
|
15.3
|
895
|
4.1
|
5.2
|
Total
|
2,831
|
0.69
|
20.6
|
0.17
|
0.25
|
43.3
|
1,878
|
10.4
|
15.6
|
Sandstorm has a 1% NSR royalty on the Angilak property and a
right of first refusal on any future streams or royalties. For more
information, visit the Kivalliq website at
www.kivalliqenergy.com.
Lucero
The Lucero property is located
in the Chila Range of southern Peru, approximately 130 kilometres northwest
of the city of Arequipa and 22 kilometres southeast of Buenaventura's Orcopampa mine. A private
Peruvian company, Compañia Minera Casapalca S.A., leased the
property from Condor Resources Inc. ("Condor") in late 2015 and are
working towards the completion of a long-term exploration and
exploitation agreement with the local community.
The Lucero property covers the
Shila Mining Camp which contains several historic high grade
gold-silver mines that were operated by Buenaventura from the late 1980s to 2005. The
extracted ore was processed at a small plant east of the
concessions and during the last five years the reported production
averaged approximately 20,000 ounces of gold and 470,000 of silver
per year at grades of 15 g/t gold and 450 g/t silver. Historical
mining was focused on low sulphidation vein deposits and there are
also large epithermal alteration zones and gossans that have been
identified on the property.
During the preliminary prospecting work by Condor, a
high-sulphidation, epithermal alteration zone containing
low-sulphidation structures was identified on the property and
returned peak sample values of 33.4 g/t Au and 3,500 g/t Ag. This
alteration zone, measuring approximately 1,300 metres by 1,400
metres in size, exhibits no evidence of prior sampling or drilling
and is believed to host potential for a bulk tonnage disseminated
gold-silver deposit.
Sandstorm's royalty on Lucero
is a sliding scale royalty based on the price of gold as
follows:
|
|
Gold
Price
|
Sandstorm
NSR
|
<US$1,000/oz
|
0.75%
|
US$1,000 to
US$2,000/oz
|
1.5%
|
>US$2,000/oz
|
2.25%
|
For more information visit the Condor website at
www.condorresources.com.
Millrock/Centerra Strategic Alliance
Millrock Resources Inc. ("Millrock") is an active explorer in
Sonora, Mexico and has recently
entered a strategic alliance with Centerra Gold Inc. ("Centerra").
Centerra is currently funding exploration work on the Los Cuarentas
property, which is located 160 kilometers northeast of Hermosillo and is situated on claims
immediately adjacent to the northeast of the Mercedes Mine, a gold
mine owned and operated by Premier Gold Mines Ltd. Prior work by
Millrock has indicated gold-bearing epithermal quartz veining and
the main focus of current exploration is an area showing alteration
typical of an epithermal gold - silver mineralized system. Under
the option agreement, Centerra can earn a 70% interest by
completing US$2.0 million in
exploration expenditures over a five-year period.
Sandstorm has a 1.5% NSR on gold and silver and a 1% NSR on all
other metals produced from Los Cuarantas. For more information
visit the Millrock website at www.millrockresources.com.
QUALIFIED PERSON
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. Mr. Laskowski has not independently verified the
resource estimates contained in this disclosure. He has reviewed
and approved the technical information in this press release.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming and royalty company.
Sandstorm provides upfront financing to gold mining companies that
are looking for capital and in return, receives the right to a
percentage of the gold produced from a mine, for the life of the
mine. Sandstorm has acquired a portfolio of 155 streams and
royalties, of which 21 of the underlying mines are producing.
Sandstorm plans to grow and diversify its low cost production
profile through the acquisition of additional gold streams and
royalties.
For more information visit: www.sandstormgold.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements", within
the meaning of the U.S. Securities Act of 1933, the U.S. Securities
Exchange Act of 1934, the Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation, concerning
the business, operations and financial performance and condition of
Sandstorm. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold, the
estimation of mineral reserves and resources, realization of
mineral reserve estimates, and the timing and amount of estimated
future production. Forward-looking statements can generally be
identified by the use of forward-looking terminology such as "may",
"will", "expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans", or similar terminology.
Forward-looking statements are made based upon certain
assumptions and other important factors that, if untrue, could
cause the actual results, performances or achievements of Sandstorm
to be materially different from future results, performances or
achievements expressed or implied by such statements. Such
statements and information are based on numerous assumptions
regarding present and future business strategies and the
environment in which Sandstorm will operate in the future,
including the price of gold and anticipated costs. Certain
important factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, amongst others, gold price volatility,
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries, mining
operational and development risks relating to the parties which
produce the gold Sandstorm will purchase, regulatory restrictions,
activities by governmental authorities (including changes in
taxation), currency fluctuations, the global economic climate,
dilution, share price volatility and competition.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of
Sandstorm to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to: the impact of general business and economic conditions,
the absence of control over mining operations from which Sandstorm
will purchase gold and risks related to those mining operations,
including risks related to international operations, government and
environmental regulation, actual results of current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined, risks in the
marketability of minerals, fluctuations in the price of gold,
fluctuation in foreign exchange rates and interest rates, stock
market volatility, as well as those factors discussed in the
section entitled "Risks to Sandstorm" in Sandstorm's annual report
for the financial year ended December 31,
2016 available at www.sedar.com. Although Sandstorm has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. Sandstorm does
not undertake to update any forward looking statements that are
contained or incorporated by reference, except in accordance with
applicable securities laws.
SOURCE Sandstorm Gold Ltd.