Sandstorm Gold Ltd. ("Sandstorm") (TSX:SSL)(NYSE MKT:SAND) is
pleased to announce that Luna Gold Corp. ("Luna") (TSX:LGC) has
completed an update to its Proven and Probable Mineral Reserve
estimate at its Aurizona Gold Mine in Brazil ("Aurizona").
Highlights
-- Piaba deposit Proven and Probable Mineral Reserve of 2.36 million ounces
of gold ("April 2013 Reserve") including 56 million tonnes of ore with
life of mine average 1.32 grams of gold per tonne ("g/t")
-- New reserve represents 222% increase in Proven and Probable Mineral
Reserves when compared to the Piaba July 2010 Reserve statement
-- Piaba deposit reserves are contained within Aurizona property which also
contains Measured and Indicated Mineral Resources of 3.63 million ounces
of gold with an Inferred Mineral Resource of 1 million ounces of gold
(as announced on March 14, 2013)
-- The Piaba deposit remains open along strike and at depth. In addition,
the brownfields exploration potential at Aurizona is significant as
demonstrated by the emerging Boa Esperanca, Ferradura, Conceicao and
Tatajuba deposits
-- Based on the April 2013 Reserve and the anticipated completion of Phase
I Expansion nameplate processing capacity of 10,000 tonnes per day,
Piaba's expected mine life has been extended to 2027 (approximately 15
years). Completion of the Phase I expansion is expected in the fourth
quarter of 2013
-- As a result of an increase of Piaba's Proven and Probable Mineral
Reserves average gold grade combined with the Phase I expansion, the
Aurizona average life of mine gold production is now estimated between
125,000 and 140,000 ounces per annum
Sandstorm President and CEO Nolan Watson remarked, "The
management team at Luna has done a great job of continuing to
expand Aurizona. Today's impressive reserve increase and the
continued exploration success point to potential future
growth."
Table 1. Piaba deposit, Aurizona project Mineral Reserve table,
as at January 29, 2013.
----------------------------------------------------------------------------
Deposit Classification Tonnes Au g/t Au Ounces
----------------------------------------------------------------------------
Piaba Proven 19,810,270 1.26 807,389
Probable 35,643,165 1.35 1,547,887
------------------------------------------------------------------
Proven & Probable 55,453,435 1.32 2,355,276
----------------------------------------------------------------------------
Notes:
1. Luna Gold Mineral Resource upgrade effective as at January 29, 2013
2. April 2013 Reserve is based on a gold price of US$1,350 per ounce
3. The model was depleted to the end of month topography December 2012
4. Includes 98% mining recovery
5. Includes 10% mine dilution
6. Includes foreign exchange conversion rate of 1.9 Brazilian Real to 1 US
Dollar
7. Break even cut off grades of 0.44 g/t, 0.49 g/t and 0.51 g/t were used
for saprolite and laterite, transition and fresh rock ore types,
respectively
8. Metallurgical recoveries are included in the cut-off grade calculations
and calculated to be 92% for saprolite and laterite, 91% for transition
and 91% for fresh rock, respectively
9. Au ounces exclude metallurgical recoveries
10. April 2013 Reserve is presented in accordance with the classification
standards established by the Canadian Institute of Mining, Metallurgy
and Petroleum
11. The estimates of mineral reserves may be materially affected by
geotechnical, environmental, permitting, legal, title, taxation,
sociopolitical, marketing, or other relevant issues
12. The mineral reserve estimate has been prepared and overseen by Qualified
Persons Alberto Reyes, Chartered Professional with the Australian
Institute of Mining and Metallurgy (AusIMM) and G. Peter Mah, P Eng
Ontario, and independently reviewed by Sam Shoemaker, Registered SME
Member, Micon International Limited
The updated Piaba resource announced on March 14, 2013 serves as
the basis for the April 2013 Reserve which has been estimated
assuming a spot gold price of $1,350 per ounce, mining recovery of
98%, and dilution of 10%. These assumptions result in a life of
mine strip ratio (waste:ore) of 6.6:1.
Luna is currently undertaking further optimization studies to
assess additional improvements to the April 2013 Reserve. These
studies include (i) optimizing the life of mine expected operating
costs related to the Phase I expansion production rate of 10,000
tonnes per day of ore; (ii) evaluating the possible conversion of
the near mine resource deposits Tatajuba, Boa Esperanca, Ferradura
and Conceicao with the view of integrating them under the Aurizona
Mineral Proven and Probable Reserves; and (iii) the Aurizona Phase
II expansion prefeasibility study. The Company is targeting a
subsequent reserves update during 2014.
Table 2. Aurizona project consolidated Mineral Resource table
inclusive of Mineral Reserves as at January 29 2013.
----------------------------------------------------------------------------
Deposit Type Class Tonnes Au g/t Au Ounces
----------------------------------------------------------------------------
Piaba Pit Measured 19,510,000 1.36 850,000
constrained Indicated 59,010,000 1.40 2,652,000
--------------------------------------------
Measured and
Indicated 78,520,000 1.39 3,502,000
--------------------------------------------
Inferred 6,990,000 1.61 362,000
--------------------------------------------------------------
Outside Pit Shell Inferred 9,450,000 1.95 592,000
----------------------------------------------------------------------------
Tatajuba Pit Indicated 1,380,000 1.40 62,000
constrained Inferred 810,000 1.39 36,000
----------------------------------------------------------------------------
Boa Esperanca Pit Indicated 1,430,000 0.79 36,000
constrained Inferred 970,000 1.00 31,000
----------------------------------------------------------------------------
Conceicao Pit Indicated 160,000 0.75 4,000
constrained Inferred 60,000 0.82 2,000
----------------------------------------------------------------------------
Ferradura Pit Indicated 500,000 1.65 27,000
constrained Inferred 260,000 1.65 14,000
----------------------------------------------------------------------------
Total Pit Constrained Measured 19,510,000 1.36 850,000
and Indicated 62,480,000 1.38 2,781,000
Outside Pit --------------------------------------------
Measured and
Indicated 81,990,000 1.38 3,631,000
--------------------------------------------
Inferred 18,540,000 1.74 1,036,000
----------------------------------------------------------------------------
For detailed information on the Aurizona project consolidated
mineral resource, refer to the press release entitled, "Luna Gold
increases measured and indicated resources to 3.63 million ounces
and inferred resources to 1.04 million ounces at Aurizona" dated
March 14, 2013. The technical report for the Resource update and
this Reserve update will be filed under Luna's profile on SEDAR
(www.sedar.com) by the end of April 2013.
G. Peter Mah, Professional Engineer Ontario, Luna's Vice
President Operations, is the Qualified Person as defined under
National Instrument 43-101 who reviewed and approved the technical
information in this press release.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm
provides upfront financing for gold mining companies that are
looking for capita and in return receives a gold streaming
agreement. This agreement gives Sandstorm the right to purchase a
percentage of the life of mine gold produced, at a fixed price.
Sandstorm is a non-operating gold mining company with a portfolio
of ten gold streams, six of which are producing gold, and three NSR
royalties. Sandstorm plans to grow and diversify its low cost
production profile through the acquisition of additional gold
streams.
Sandstorm is focused on low cost operations with excellent
exploration potential and strong management teams. Sandstorm has
completed gold purchase or royalty agreements with Brigus Gold
Corp., Colossus Minerals Inc., Donner Metals Ltd., Entree Gold
Inc., Luna Gold Corp., Magellan Minerals Ltd., Metanor Resources
Inc., Mutiny Gold Ltd., Santa Fe Gold Corp., SilverCrest Mines
Inc., Rambler Metals and Mining plc and Solitario Exploration &
Royalty Corp.
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 Gold Ltd. ("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, 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, 2012 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.
Neither the TSX Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Contacts: Sandstorm Gold Ltd. Nolan Watson President & Chief
Executive Officer (604) 689-0234 Sandstorm Gold Ltd. Denver Harris
Investor Relations Contact (604) 628-1178 www.sandstormgold.com
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