VANCOUVER, Jan. 19, 2016 /PRNewswire/ - Sandstorm Gold
Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) is
pleased to announce that it has agreed to acquire 56 royalties (the
"Royalty Package") from Teck Resources Limited and its affiliates
(collectively, "Teck") for total consideration of US$22 million (C$32
million), payable in US$1.4
million (C$2 million) in cash
and US$20.6 million (C$30 million) in common shares of the Company
(the "Common Shares") (the "Transaction"). Certain royalties in the
Royalty Package are subject to rights of first offer and first
refusal as well as the requirement for various transfer consents
and as a result, the Transaction will have a number of closing
dates, with today being the first such closing date.
As consideration for the royalties, Sandstorm has issued a total
of 8,365,863 Common Shares priced at C$3.57 per share, the price of the Common Shares
being based on the ten (10) day volume weighted average price of
the Company's Common Shares traded on the Toronto Stock Exchange. A
portion of the Common Shares will be held in escrow to be released
on subsequent closing dates.
— TRANSACTION HIGHLIGHTS
- Asset Diversification: Royalty Package consists of
assets in North America
(33), Asia (11), South
America (9) and Europe
(3) and includes producing assets (4), development- stage
projects (9), advanced exploration-stage projects (8) and
exploration-stage properties (35);
- Immediate Cash Flow and Significant Cash Flow Growth
Potential: Estimated cash flow in 2016 of US$1.5 million to US$2.0 million, growing to
US$10 million to US$15 million in
cash flow per year;
- Strong Counterparties: Royalty counterparties include Barrick
Gold Corporation, Glencore plc ("Glencore"), KGHM Polska Miedz SA,
Newmont Mining Corporation ("Newmont"), Kinross Gold Corporation
("Kinross"), Centerra Gold Inc. ("Centerra"), New Gold Inc. and
Imperial Metals Corporation;
- Long-Term Optionality: Over two dozen royalties on
exploration-stage properties, several of which are undergoing
active exploration programs.
— ROYALTY PORTFOLIO: KEY ASSETS
The Royalty Portfolio includes the following key assets:
- a 2.0% net smelter returns ("NSR") royalty on the high-grade,
advanced exploration-stage Hot Maden project located in
Turkey, owned by Mariana Resources
Ltd. ("Mariana"). Lidya Madencilik Sanayi ve Ticaret A.S. has an
option to earn-in up to 70% in Hot Maden from Mariana;
- a 2.0% NSR royalty on the development-stage Hackett River
project in Nunavut, Canada owned
by Glencore plc;
- a 1.75% NSR royalty, on 60% of production subject to a
US$40 million cap, on the
development-stage Lobo-Marte project in Chile owned by Kinross Gold Corporation;
- a 2.0% NSR royalty on the development-stage Burhaniye project
in Turkey owned by Tumad
Madencilik Sanayi ve Ticaret A.S. The Burhaniye royalty begins
paying after 300,000 ounces have been produced;
- a 5.0% NSR royalty on copper, and a 2.5% NSR royalty on all
other metals produced, on a portion of the producing Copper
Mountain project in British Columbia,
Canada owned by Copper Mountain Mining Corporation;
- a US$10/ounce production royalty,
subject to a maximum ounce cap, on the development-stage Ağı
Dağı/Kirazli projects in Turkey
owned by Alamos Gold Inc. and payable by Newmont; and
- a 0.5%-1.5% NSR royalty, based on cumulative production, on the
development stage Öksüt project in Turkey owned by Centerra Gold Inc.
("Centerra"). Centerra holds a right of first offer on the sale of
the Öksüt royalty.
"The acquisition of this royalty package from Teck materially
enhances Sandstorm's existing portfolio while allowing the Company
to maintain a strong balance sheet," said Sandstorm's President
& CEO Nolan Watson. "We believe
this deal enhances, on a per share basis, the Company's production
growth, cash flow growth, NAV, diversification and precious metal
optionality. With over 130 streams and royalties now in our
portfolio, we believe Sandstorm is well positioned for an exciting
future."
Hot Maden – 2.0% NSR
The Hot Maden gold-copper project is located approximately 20
kilometres ("km") southeast of Artvin and 130 km northeast of
Erzurum in north-eastern Turkey. A
highly successful 2015 drill campaign led to the release, by Mr.
Stewart Coasts from
RungePincockMinarco, of a maiden mineral resource estimate for the
high-grade mineralisation at Hot Maden as follows:
- Indicated Resource – 2.0 million gold equivalent ounces; 4.7
million tonnes ("Mt") at 10.0 grams per tonne ("g/t") gold and 2.2%
copper, for a gold equivalent grade of 13.4 g/t;
- Inferred Resource – 1.0 million gold equivalent ounces; 3.7 Mt
at 5.5 g/t gold and 1.8% copper, for a gold equivalent grade of 8.2
g/t.
High grade gold-copper mineralisation was first intersected at
Hot Maden in the Phase I diamond drill program, which was completed
in January 2015 and included the
following key intercepts (not true widths):
- DH HTD-04: 103.0 metres @ 9.0 g/t gold and 2.2% copper from
25.0 metres, including a significantly higher grade massive
sulphide zone containing 33.4m @ 18.3 g/t gold and 3.3% copper from
79.8m downhole (February 2, 2015 NR,
Mariana Resources Ltd., Eric Roth QP);
- DH HTD-05: 82.0 metres @ 20.4 g/t gold and 1.9% copper from
147.0 metres downhole, including a bonanza 13.0 meters @ 88.0 g/t
gold and 2.5% copper from 150.0 metres (February 12, 2015 NR, Mariana Resources Ltd.,
Eric Roth QP).
The immediate focus for exploration at Hot Maden is to continue
with resource delineation drilling within, and around, the main
mineralised zone. Future work will include geophysics and new
target generation activities along an extended portion of the Hot
Maden Fault Zone.
Hackett River – 2.0% NSR
The Hackett River property is located in Nunavut, Canada, approximately 480 km
northeast of Yellowknife. Hackett
River is a silver-rich volcanogenic massive sulphide project and is
one of the largest undeveloped projects of its kind. The property
is made up of four massive sulphide deposits that occur over a 6.6
km strike distance.
A preliminary economic assessment updated in 2010 evaluated a
possible large-scale open pit and underground operation, processing
up to 17,000 tonnes per day. The most recent Technical Report,
completed in 2013, contained a mineral resource estimate prepared
by Sabina Gold and Silver
Corporation, with technical support from Xstrata Canada
Corporation, now Glencore plc. The updated resource reported 25.0
million tonnes of indicated resources containing 4.2% zinc and
130.0 g/t silver plus 57.0 million tonnes of inferred resources
with 3.0% zinc and 100.0 g/t silver.
Sandstorm's 2.0% NSR royalty covers 7,141 hectares of the
Hackett River property including the licenses where the mineral
resources have been
defined.
Lobo-Marte – 1.75% NSR (on 60% of production)
The Lobo-Marte project contains two potential open-pit gold
resources located in the Maricunga Gold District of Chile.
The resources are seven kilometers apart, and are located 60 km
south of Kinross's La Coipa mine,
and 60 km north of Kinross's
Refugio mine, 100 kilometres east of Copiapó.
Kinross completed a
prefeasibility study at Lobo-Marte that contemplated a heap-leach
operation and submitted an environmental and social impact study to
Chilean authorities. Kinross has
since withdrawn its permit application due to changes in the plan
of operations, project economics, and other factors. As a result of
the permit withdrawal, much of the historic 7.0 million ounces of
measured and indicated gold resources, contained in 185.4 Mt @ 1.2
g/t gold, were reclassified from historic mineral reserves. Future
development and operations at Lobo-Marte will require the
re-initiation of the permitting process.
Sandstorm holds a 1.75% net smelter return royalty on 60% of
future production at Lobo-Marte, up to a maximum of US$40 million.
Copper Mountain – 5.0% NSR on copper, 2.5% NSR on other
metals
The Copper Mountain mine is a large-scale, open pit
copper-gold-silver mine, operated by Copper Mountain Mining
Corporation. The mine is located 300 km east from the port of
Vancouver, in southern
British Columbia. Mining began in
2011 and with the recent addition of a secondary crusher to the
project, the mine has been able to achieve production rates up to
40,000 tonnes per day from multiple open pits. During the full year
2014, Copper Mountain produced 81 million pounds of copper, 22,600
ounces of gold and 443,800 ounces of silver at an operating cost of
$1.49/pound, net of by-products.
Sandstorm holds a 5.0% NSR on copper, and a 2.5% NSR on all
other metals produced from the Alabama and Virginia pits, located to the north of the
Copper Mountain Superpit. The copper royalty is a sliding scale
royalty and is a 5.0% NSR at copper prices above US$1.20 per pound. Mining operations are active
at the Virginia pit and Sandstorm
expects to receive cash flow from this royalty in 2016.
Ağı Dağı/Kirazli – US$10/ounce
The Ağı Dağı and Kirazlı gold development projects are located in
the Çanakkale Province of northwestern Turkey. A positive pre-feasibility study (PFS)
was completed by Dr. Dennis
Ferrigno, CAF & Associates, LLC et al. on Ağı Dağı and
Kirazli in 2012 with both projects evaluated for a potential
stand-alone open-pit, heap-leach operation. The PFS evaluated
production for an average 99,000 ounces of gold per year over a 5
year mine life at Kirazli. The PFS at Ağı Dağı evaluated
production for an average of 143,000 ounces of gold per year over a
7 year mine life. Initial production from Ağı Dağı is
projected to commence approximately 18 months after first
production at Kirazli.
Sandstorm holds a US$10/ounce production royalty payable by
Newmont, subject to a maximum of 600,000 ounces from Ağı Dağı and a
maximum of 250,000 from Kirazli.
Öksüt – 0.5%-1.5% NSR
The Öksüt property contains an epithermal precious metals
resource, located on the Anatolian Plateau in south-central
Turkey, near the city of Develi.
The property is owned and operated by Centerra. In July 2015, Centerra completed a feasibility study
which evaluated a conventional truck and shovel, open pit, heap
leach mining operation. The property contains probable reserves of
26.1 Mt @ 1.4 g/t gold, containing 1.16 million ounces of gold. The
Öksüt feasibility study evaluates a mine plan that incorporates two
open pits that are operated over an eight year mine life. Centerra
has received environmental permits and pending final permits
proposes to begin construction in mid-2016 with heap leach
processing to begin in the first quarter of 2017.
Sandstorm holds a 0.5% to 1.5% NSR royalty based on cumulative
production at the mine. The 0.5% NSR royalty begins after 250,000
ounces have been produced at Öksüt. Centerra has a right of first
offer on the sale of the Öksüt royalty.
— OTHER ROYALTIES
Below is a list of the other assets that make up the Royalty
Package.
PROJECT
|
OPERATOR
|
LOCATION
|
STATUS
|
TERMS
|
Sheerness
|
Westmoreland Coal
Company
|
Canada
|
Producing
|
5% GRR
|
Magmont
|
The Doe Run Resources
Corporation
|
USA
|
Producing
|
1.25% NSR
|
Altintepe
|
Bahar Madencilik
Sanayi ve Ticaret A.S.
|
Turkey
|
Producing
|
1.5% NSR
|
Ajax
|
KGHM Polska
Miedz
|
Canada
|
Development
|
1.5% NSR
|
Keno Hill
|
Alexco Resources
Corp.
|
Canada
|
Development
|
25% NPI
|
Ruddock
Creek
|
Imperial Metals
Corporation
|
Canada
|
Development
|
1% NSR
|
Los Verdes
|
Minera Alamos Sonora
S.A. de C.V.
|
Mexico
|
Development
|
2% NSR
|
Box
|
Fortune Bay
Corp
|
Canada
|
Advanced
Exploration
|
1.5% NSR
|
Homestake
Ridge
|
Homestake Resource
Corporation
|
Canada
|
Advanced
Exploration
|
2% NSR
|
Railroad
|
Gold Standard
Ventures Corporation
|
USA
|
Advanced
Exploration
|
3% NSR
|
Whistler
|
Brazil Resources
Inc.
|
USA
|
Advanced
Exploration
|
2% NPI
|
Karaagac
|
Anadolu Export Maden
Sanayi ve Ticaret A.S.
|
Turkey
|
Advanced
Exploration
|
1.5% NSR
|
Tac/Corak
|
Cengiz
Kaya
|
Turkey
|
Advanced
Exploration
|
1.5%-2%
NSR
|
Tavsan (Red
Rabbit)
|
Ariana Resources
plc
|
Turkey
|
Advanced
Exploration
|
2% NSR
|
Abitibi/Sarah
Lake
|
Commander Resources
Ltd.
|
Canada
|
Exploration
|
1% NSR
|
Big Bulk
|
LCT Holdings
Inc.
|
Canada
|
Exploration
|
1.5% NSR
|
Butterfly
Lake
|
North Arrow Minerals
Inc.
|
Canada
|
Exploration
|
0.71% GOR
|
Caramelia
|
Huakan International
Mining Inc.
|
Canada
|
Exploration
|
2% NSR
|
CT
|
Kreft Resources
Ltd.
|
Canada
|
Exploration
|
0.75% NSR
|
Lorrain
|
Canadian Silver
Hunter Inc.
|
Canada
|
Exploration
|
2% NSR
|
Mainstreet
|
Beaufield Resources
Inc.
|
Canada
|
Exploration
|
1.2% NSR
|
New Afton
|
New Gold
Inc.
|
Canada
|
Exploration
|
2% NSR
|
Rossland
|
Rossland Resources
Inc.
|
Canada
|
Exploration
|
1%-2% NSR
|
Snip 2
|
Colorado Resources
Ltd.
|
Canada
|
Exploration
|
2% NSR
|
Summit
Lake
|
Rainy Mountain
Royalty Corp.
|
Canada
|
Exploration
|
1.9% NSR
|
Ten Mile
Creek
|
Bernie
Kreft
|
Canada
|
Exploration
|
1.5% NSR
|
Tsacha
|
Independence Gold
Corp.
|
Canada
|
Exploration
|
2% NSR
|
Wrigley
|
Devonian Metals
Inc.
|
Canada
|
Exploration
|
2% NSR
|
Aurora
|
Carlin Resources
LLC
|
USA
|
Exploration
|
2% NSR
|
Big W
|
Barrick Gold U.S.
Inc.
|
USA
|
Exploration
|
3% NSR
|
Cabin
Creek
|
McEwen Mining
Inc.
|
USA
|
Exploration
|
10% NPI
|
Cherry
Creek
|
McEwen Mining
Inc.
|
USA
|
Exploration
|
1.5% GOR
|
Lichen
|
Silver Phoenix
Resources Inc.
|
USA
|
Exploration
|
2% NSR
|
Shotgun
|
TNR
Gold Corp.
|
USA
|
Exploration
|
5% NPI
|
Van Stone
|
Equinox Resources
(WASH) Inc.
|
USA
|
Exploration
|
1.5% NSR
|
Amapari
|
Mineracao Amapari
S.A.
|
Brazil
|
Exploration
|
3% NPI
|
Rio Novo
South
|
Rio Minas Mineracao
S.A.
|
Brazil
|
Exploration
|
0.75% NSR
|
Gatita
|
Compania Minera
Potosi S.A.
|
Peru
|
Exploration
|
1% NSR
|
Huajoto
|
Alturas Minerals
Corp.
|
Peru
|
Exploration
|
0.5%-1%
NSR
|
Mario
|
Fortuna Silver Mines
Inc.
|
Peru
|
Exploration
|
2% NSR
|
Arcas
|
Altius Minerals
Corporation
|
Chile
|
Exploration
|
1% NSR
|
Celeste
|
Coro Mining
Corp.
|
Chile
|
Exploration
|
2% NSR
|
Pampa Lina
|
Sierra Gorda Sociedad
Contractual Minera
|
Chile
|
Exploration
|
0.3% NSR
|
Kiskama
|
Talga Resources
Ltd.
|
Sweden
|
Exploration
|
1% NSR
|
Masugnsbyn
|
Talga Resources
Ltd.
|
Sweden
|
Exploration
|
1% NSR
|
Vittangi
|
Talga Resources
Ltd.
|
Sweden
|
Exploration
|
1% NSR
|
Hasandagi
|
Newmont Mining
Corporation
|
Turkey
|
Exploration
|
2% NSR
|
Muratdagi
|
Kenz Enerji ve
Madencilik San. Ve Tic A.S.
|
Turkey
|
Exploration
|
2% NSR
|
Tombul
|
Elazig Baskil
Madencilik A.S.
|
Turkey
|
Exploration
|
2% NSR
|
— RESERVES AND RESOURCES
Hot Maden
The following table contains the most recent historic mineral
resource estimate for Hot Maden. The historic mineral
resource is included in Technical Report titled "Hot Maden Gold
Copper Project, Artvin Province, Turkey" with an effective date of September 30, 2015.
|
|
|
|
|
|
Grade
|
Contained
Metal
|
Indicated
Resources
|
Tonnes
(t)
|
Au
(g/t)
|
Cu
(%)
|
AuEq
(g/t)
|
Au
(Oz)
|
Cu
(t)
|
AuEq
(Oz)
|
Main Zone - Ultra
High Grade
|
1,031,000
|
29.2
|
4.0
|
35.4
|
967,000
|
41,000
|
1,174,000
|
Main Zone - High
Grade
|
3,199,000
|
5.2
|
1.8
|
8.0
|
537,000
|
56,000
|
822,000
|
Main Zone - Low
Grade
|
481,000
|
0.9
|
1.0
|
2.4
|
14,000
|
5,000
|
37,000
|
Total
|
4,710,000
|
10.0
|
2.2
|
13.4
|
1,518,000
|
102,000
|
2,033,000
|
|
|
|
|
|
|
Grade
|
Contained
Metal
|
Inferred
Resources
|
Tonnes
(t)
|
Au
(g/t)
|
Cu
(%)
|
AuEq
(g/t)
|
Au
(Oz)
|
Cu
(t)
|
AuEq
(Oz)
|
Main Zone - Ultra
High Grade
|
326,000
|
36.2
|
3.3
|
41.4
|
379,000
|
11,000
|
434,000
|
Main Zone - High
Grade
|
2,291,000
|
3.1
|
2.0
|
6.2
|
228,000
|
45,000
|
455,000
|
Main Zone - Low
Grade
|
819,000
|
0.8
|
1.0
|
2.4
|
21,000
|
8,000
|
62,000
|
Peripheral
Lodes
|
218,000
|
1.8
|
0.4
|
2.4
|
13,000
|
1,000
|
17,000
|
Total
|
3,654,000
|
5.5
|
1.8
|
8.2
|
640,000
|
65,000
|
968,000
|
- The historic Technical Report dated September 30, 2015 was compiled under the
supervision of Mr. Stewart Coates
who is a full-time employee of RungePincockMinarco and a member of
the Association of Professional Engineers and Geoscientists of the
Province of British Columbia. Mr.
Coates has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that he has undertaken to qualify as a Competent Person as
defined under the JORC Code which is accepted as a Foreign Code by
CIM and NI 43-101.There are no material differences between the
definitions of Measured, Indicated and Inferred Mineral Resources
under the CIM Definition Standards and the equivalent definitions
in the JORC Code. The Resource would report the same quantities to
the same classifications under both the CIM Definition Standards
and the JORC Code.
- All Mineral Resources figures reported in the table above
represent estimates based on drilling completed up to June 25, 2015. Mineral Resource estimates are not
precise calculations, being dependent on the interpretation of
limited information on the location, shape and continuity of the
occurrence and on the available sampling results. The totals
contained in the above table have been rounded to reflect the
relative uncertainty of the estimate. Rounding may cause some
computational discrepancies.
- Gold Equivalence (AuEq) calculated using a 100 day moving
average of US$1,178/ounce for Au and
US$2.70/pound for Cu as of
July 29, 2015. No adjustment has been
made for metallurgical recovery or net smelter return as these
remain uncertain at this time. Based on grades and contained metal
for Au and Cu, it is assumed that both commodities have reasonable
potential to be economically extractable.
- The formula used for gold equivalent grade is: AuEq g/t = Au +
[(Cu% x 22.0462 x 2.7)/(1178/31.1035)] and assumes 100%
metallurgical recovery.
- Au equivalent ounces are calculated by multiplying Mineral
Resource tonnage by Au equivalent grade and converting for ounces.
The formula used for Au equivalent ounces is: AuEq Oz = [Tonnage x
AuEq grade (g/t)]/31.1035.
- Mineral Resource grades are estimated in accordance with the
JORC Code, using a 2.0 g/t AuEq low grade cut-off.
- Mineral Resources referred to above, have not been subject to
detailed economic analysis and therefore, have not been
demonstrated to have economic viability
- The content and procedures incorporated in the preparation of
the historic Technical Report are appropriate for a project at this
stage. Additional drilling is warranted to expand the resource and
advance the resources from inferred and indicated to higher levels
of confidence.
Hackett River
The following table contains the most recent historic mineral
resource estimate for the Hackett River project, as described in
the Technical Report dated July 31,
2013.
|
|
|
|
|
|
|
Grade
|
Category
|
|
Million
Tonnes
|
Zn
(%)
|
Pb
(%)
|
Cu
(%)
|
Ag
(g/t)
|
Au
(g/t)
|
Indicated
Resources
|
|
25
|
4.2
|
0.6
|
0.5
|
130
|
0.3
|
Inferred
Resources
|
|
57
|
3.0
|
0.5
|
0.4
|
100
|
0.2
|
- The resource estimate is included in the historic Technical
Report titled Hackett River NI 43-101 Technical Report,
prepared for Sabina Gold and Silver
Corp. by AMC Mining Consultants. The Q.P. for the
report was S.G. Clemmer. The
report references Xstrata R&R Report (as of December 31, 2012). The effective date of the
historic Technical Report is July 31,
2013.
- Mineral resources are not mineral reserves and do not
demonstrate economic potential viability.
- All work by Xstrata has been verified by AMC in the historic
Technical Report dated July 31,
2013
- The mineral resource is not constrained by pit or underground
designs. The cutoff grade is set at a $25/tonne NSR value, based on An equivalent zinc
grade formula (ZnEq) was used to define the outline of the
mineralized zones and the ZnEq field was calculated on individual
assays in the assay database using the formula:
Zn+2.88*Cu%+0.96*Pb%+0.03*Ag g/t+1.34*Au g/t.. Metal prices
used in this calculation are USD Zinc $1.01/lb, Copper $2.89, Lead $0.92/lb, silver $23.00/oz and gold $1,300/oz.
- Preliminary metallurgical test work has identified elevated
mercury and cadmium in zinc concentrates. Additional
metallurgical studies are needed. The property requires improved
metal prices, corporate development decision, including development
of significant access infrastructure and power to facilitate mine
development.
- The content and procedures incorporated in the preparation of
the historic Technical Report are appropriate for a project at this
stage. Additional drilling is warranted to expand the resource and
advance the resources from inferred and indicated to higher levels
of confidence.
Lobo-Marte
The following table contains the most recent historic mineral
resource estimate that was prepared by Kinross Gold Corp. with an
effective date of December 31, 2014.
This resource estimate is not compliant with NI 43-101
requirements.
Category
|
|
Tonnes
(kt)
|
Grade
Au
(g/t)
|
Contained
Au
(Oz)
|
Measured
Resources
|
|
96,646
|
1.13
|
3,525,000
|
Indicated
Resources
|
|
88,720
|
1.22
|
3,489,000
|
Measured &
Indicated Resources
|
|
185,366
|
1.18
|
7,014,000
|
Inferred
Resources
|
|
2,003
|
1.07
|
69,000
|
- The mineral resources are estimated using appropriate cut-off
grades based on a gold price of $1,200 per ounce, a silver price of $20.00 per ounce, a copper price of $3.00 per pound and a foreign exchange rate of
Chilean Peso to $US – 575:1
- The mineral resource estimates are classified by Kinross Gold
Corp. in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") "CIM Definition Standards - For
Mineral Resources and Mineral Reserves" adopted by the CIM Council
(as amended, the "CIM Definition Standards") in accordance with the
requirements of National Instrument 43-101 "Standards of Disclosure
for Mineral Projects" ("NI 43-101"). Mineral resource estimates
reflect Kinross' reasonable
expectation that all necessary permits and approvals will be
obtained and maintained.
- The mineral resource estimates were prepared under the
supervision of and verified by Mr. John
Sims, an officer of Kinross, who is a Qualified Person as defined
by NI 43-101.
- Kinross' normal data
verification procedures have been used in collecting, compiling,
interpreting and processing the data used to estimate mineral
reserves and mineral resources.
- Mineral resources that are not mineral reserves do not have to
demonstrate economic viability. Mineral resources are subject to
infill drilling, permitting, mine planning, mining dilution and
recovery losses, among other things, to be converted into mineral
reserves. Due to the uncertainty associated with inferred mineral
resources, it cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to indicated or measured
mineral resources, including as a result of continued
exploration.
- The project requires a corporate development decision to
advance to development.
Copper Mountain
The following table contains the most recent historic mineral
resource estimate for the Virginia
and Alabama pits at the Copper
Mountain property:
|
|
|
|
|
|
|
|
Grade
|
Contained
Metal
|
Category
|
Pit
|
Tonnage
(kt)
|
Copper
(%)
|
Gold
(g/t)
|
Silver
(g/t)
|
CuEq
(%)
|
Copper
(Mlb)
|
Gold
(Oz)
|
Silver
(Oz)
|
Measured &
Indicated
Resources
|
Virginia
|
12,197
|
0.34%
|
0.15
|
1.23
|
0.35
|
91,339
|
58,819
|
482,317
|
Alabama
|
19,113
|
0.25%
|
0.10
|
1.47
|
0.25
|
105,312
|
61,477
|
903,276
|
Inferred
Resources
|
Virginia
|
11,888
|
0.27%
|
0.13
|
0.94
|
0.27
|
70,743
|
49,685
|
356,262
|
Alabama
|
12,372
|
0.23%
|
0.09
|
1.23
|
0.21
|
62,716
|
35,798
|
489,237
|
- Mineral resource estimates are included in the most recent
historic "Technical Report titled Resources and Reserves of the
Copper Mountain Mine, Princeton, British
Columbia" with an effective date of March 30, 2015. The QP for the report is
Peter M. Holbek.
- These resources are reported based on a low grade
cut-off Cu equivalent grade of 0.12%. Prices used for
copper equivalent are US$3.30/lb
copper, US$1,400/oz gold and
US$23/oz silver with metallurgical
recoveries of 84% for copper, 70% for gold and 55% for silver.
Standard treatment and refining costs applied.
- The content and procedures incorporated in the preparation of
the historic Technical Report are appropriate for a project at this
stage. Additional drilling is warranted to expand the resource and
advance the resources from inferred, measured and indicated to
higher levels of confidence.
Ağı Dağı/Kirazli
The following table contains the most recent historic mineral
resource estimate that was reported by Alamos Gold Corp. in the
Company's 2014 Mines and Projects-Reserves and Resources statement,
dated December 31, 2014.
|
|
|
|
|
|
Grade
|
Contained
Metal
|
Indicated
Resources
|
Tonnes
(kt)
|
Gold
(g/t)
|
Silver
(g/t)
|
Gold
(Oz)
|
Silver
(Oz)
|
Kirazli
|
32,734
|
0.72
|
8.74
|
757,877
|
9,201,790
|
Agi Dagi
|
90,052
|
0.59
|
4.09
|
1,694,736
|
11,849,336
|
Total
|
122,786
|
0.62
|
5.33
|
2,452,613
|
21,051,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grade
|
Contained
Metal
|
Inferred
Resources
|
Tonnes
(kt)
|
Gold
(g/t)
|
Silver
(g/t)
|
Gold
(Oz)
|
Silver
(Oz)
|
Kirazli
|
5,689
|
0.59
|
8.96
|
107,635
|
1,638,365
|
Agi Dagi
|
16,760
|
0.46
|
2.85
|
245,214
|
1,533,608
|
Total
|
22,449
|
0.49
|
4.40
|
352,849
|
3,171,973
|
- This resource estimate is not compliant with NI-43-101.
This resource estimate post-dates the Company's prior Technical
Report titled "NI 43-101 Technical Report Kirazli & Agi Dagi
Gold Project, Canakkale Province Biga Peninsula of Northwestern Turkey, Effective Date 30 June
2012". The Qualified Person for that report was Dr.
Dennis Ferrigno plus 6 others.
- The historic mineral resources listed above are classified in
accordance with the Canadian Institute of Mining Metallurgy and
Petroleum's "CIM Standards on Mineral Resources and Reserves,
Definition and Guidelines" as per Canadian Securities
Administrator's NI 43-101 requirements. Chris Bostwick, FAusIMM, Alamos Gold's Vice
President, Technical Services, has reviewed and approved the
scientific and technical information contained in this website.
Chris Bostwick is a Qualified Person
within the meaning of Canadian Securities Administrator's National
Instrument 43-101.
- Measured and Indicated and Inferred resources for the Ağı Dağı
project, which includes the Baba, Ayitepe, Deli, and Fire Tower
zones, are pit constrained with cut-off determined as a net of
process value of $0.10 per tonne, for
each model block. The determination was based on a US$1,400 per ounce gold price and a US$22.00 per ounce silver price, a December 31, 2013 resource model, pit slope
angles ranging from 40° to 48°, and estimated costs and recoveries
based on the pre-feasibility study specifications. The resources
were then tabulated by gold cut-off grade.
- Measured and Indicated, and Inferred resources for the Kirazli
project, including Rockpile, are pit constrained with cut-off
determined as a net of process value of $0.10 per tonne, for each model block. The
determination was based on a US$1,400
per ounce gold price and a US$22.00
per ounce silver price, a December 31,
2013 resource model, pit slope angles ranging from 38° to
48°, and estimated costs and recoveries based on the
pre-feasibility study specifications. The resources were then
tabulated by gold cut-off grade.
- Mineral resources are not mineral reserves and do not have
demonstrated economic viability.
- The Ağı Dağı environmental permit was suspended but has been
re-instated by the Turkish High Court.
- The content and procedures incorporated in the preparation of
the historic Technical Report are appropriate for a project at this
stage. Additional drilling is warranted to expand the
resource and advance the resources from inferred, measured, and
indicated to higher levels of confidence.
Öksüt
The following table contains the most recent historic mineral
reserve and resource estimate for the Öksüt property as of
June 30, 2015.
Category
|
|
Tonnes
(kt)
|
Grade
Au
(g/t)
|
Contained
Au
(Oz)
|
Proven
Resources
|
|
-
|
-
|
-
|
Probable
Resources
|
|
26,137
|
1.4
|
1,162,000
|
Proven &
Probable Resources
|
|
26,137
|
1.4
|
1,162,000
|
Measured
Resources
|
|
2,100
|
0.7
|
46,000
|
Indicated
Resources
|
|
4,698
|
0.7
|
111,000
|
Measured &
Indicated Resources
|
|
6,798
|
0.7
|
157,000
|
Inferred
Resources
|
|
2,380
|
0.8
|
64,000
|
- The mineral reserves and resources are reported in a historic
Technical Report titled "Technical Report on the Oksut Gold
Project, Turkey; NI 43-101";
effective date June 30, 2015.
The report was prepared by nine Qualified Persons, with
Gordon D. Reid as the
lead.
- Mineral reserves have been estimated based on a gold price of
US$1,250 per ounce.
- Mineral resources are in addition to Mineral Reserves. Mineral
Resources do not have demonstrated economic viability.
- Mineral resources are constrained within an optimized pit shell
based on a gold price of $1,450 per
ounce.
- Mineral reserves are estimated based on a cut-off grade of 0.3
g/t Au.
- Mineral resources are estimated based on a cut-off grade of 0.2
g/t Au.
- Inferred mineral resources have a great amount of uncertainty
as to their existence and as to whether they can be mined
economically. It cannot be assumed that all or part of the Inferred
mineral resources will ever be upgraded to a higher category.
- A conversion factor of 31.10348 grams per ounce of gold is used
in the reserve and resource estimates.
- Numbers may not add up due to rounding.
- The content and procedures incorporated in the preparation of
the historic Technical Report are appropriate for a project at this
stage. Additional drilling is warranted to expand the resource and
advance the resources from measured and indicated to higher levels
of confidence.
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 132 streams and
royalties, of which 19 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,
2014 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.