VANCOUVER,
July 15, 2013 /CNW/ - In connection
with the press release issued by Colossus Minerals Inc.
("Colossus") on July 15, 2013 related
to development at its Serra Pelada mine, Sandstorm Gold Ltd.
("Sandstorm" or the "Company") has provided an update for its
shareholders.
Colossus has encountered challenges with
dewatering wells and pumps in the Central Mineralized Zone at Serra
Pelada which requires additional dewatering capacity and has
delayed gold production. Colossus is continuing its decline
development to have multiple horizons ready for mining in 2014 and
has made progress in the construction of its process plant.
The delay in production does not impact
Sandstorm's 2013 production guidance of 33,000 to 40,000
attributable gold equivalent ounces. In addition, the delay at
Serra Pelada is not currently anticipated to affect the development
timeline for the platinum/palladium flotation circuit, which is
expected to be processing material in late 2014. Sandstorm has a
precious metals stream agreement with Colossus to purchase 1.5% of
the gold and 35% of the platinum produced from Serra Pelada at a
per ounce price of US$400 per ounce
of gold and US$200 per ounce of
platinum.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming company.
Sandstorm provides upfront financing for gold mining companies that
are looking for capital 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.,
Entrée 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, 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, 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.
SOURCE Sandstorm Gold Ltd.