VANCOUVER, June 8, 2016 /PRNewswire/ - Sandstorm Gold
Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) is
pleased to provide a corporate update, including results from the
Company's Annual General Meeting as well as progress at various
projects underlying the Company's streams and royalties.
SANDSTORM ANNOUNCES VOTING RESULTS FROM ANNUAL GENERAL
MEETING
The Annual General and Special Meeting of Shareholders of
Sandstorm (the "Meeting") was held today, June 8 in Vancouver,
British Columbia at which 68.84% of the issued common
shares, as of the record date for the Meeting, were represented.
Shareholders voted in favour of all resolutions presented,
including the re-election of all director nominees, namely
Nolan Watson, David Awram, David E. De
Witt, Andrew T. Swarthout,
John P.A. Budreski and Mary L. Little. Detailed results of the vote for
directors are set out below:
Election of
Directors
|
VOTING
RESULTS
|
For
|
Withheld
|
Nolan
Watson
|
62,741,504
(99.07%)
|
587,767
(0.93%)
|
David
Awram
|
54,797,239
(86.53%)
|
8,532,032
(13.47%)
|
David E. De
Witt
|
62,595,106
(98.84%)
|
734,165
(1.16%)
|
Andrew T.
Swarthout
|
51,185,185
(80.82%)
|
12,144,086
(19.18%)
|
John P.A.
Budreski
|
50,291,496
(79.41%)
|
13,037,775
(20.59%)
|
Mary L.
Little
|
62,581,277
(98.82%)
|
747,997
(1.18%)
|
Detailed voting results for all matters considered at the
Meeting will be available on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov/edgar.shtml.
SANDSTORM ANNOUNCES AMENDMENT TO CREDIT FACILITY
Sandstorm has amended its revolving credit agreement (the
"Revolving Loan"), extending the term to four years (maturing in
July 2020). The Revolving Loan allows
the Company to borrow up to US$110
million for acquisition purposes, from a syndicate of banks
including The Bank of Nova Scotia,
Bank of Montreal, National Bank of
Canada and Canadian Imperial Bank
of Commerce. As part of the amendment, the Company improved its
leverage ratio covenant such that it is now required to maintain a
leverage ratio (defined as net debt divided by EBITDA) of less than
or equal to 4.00:1, 3.50:1, and 2.75:1 for calendar 2016 through to
calendar 2017, calendar 2018 and the remainder of the life of the
Revolving Loan, respectively.
LUNA GOLD ANNOUNCES GREENFIELDS EXPLORATION AGREEMENT WITH
ANGLOGOLD ASHANTI
Luna Gold Corp. ("Luna") announced that it has entered into an
exploration agreement with AngloGold Ashanti Limited ("AngloGold")
concerning the greenfields mineral claims that surround the
past-producing Aurizona gold mine in northern Brazil. The terms of the agreement provide
AngloGold the ability to invest US$14
million in exploration expenditures over a four year period,
including a minimum of US$2 million
during the first year, to earn a 70% interest in the mineral
claims. The agreement covers an area of 1,702 square kilometres and
may be increased to 2,387 square kilometres subject to governmental
approvals on certain greenfields claims.
For more information on the joint venture agreement, visit the
Luna Gold website at http://www.lunagold.com/news1 and see
the press release dated May 27,
2016.
Sandstorm holds a 2.0% NSR royalty on the greenfields mineral
claims.
MARIANA RESOURCES ANNOUNCES ADDITIONAL HIGH GRADE INTERCEPTS
FROM the HOT MADEN PROJECT
Mariana Resources Ltd. ("Mariana") continues to report high
grade, near-surface gold-copper mineralization from drilling at the
Hot Maden project in Turkey ("Hot
Maden"). The recently announced drilling results identified three
important advancements. Drilling has confirmed the extension
of high grade mineralization outside of the current mineral
resource model and is therefore expected to increase the next
mineral resource estimate. Selected holes include:
- HTD-52 – 31.5 metres @ 4.4 g/t gold and 0.77% copper from 262.0
metres downhole, and 18.5 metres @ 2.24 % copper and 0.4 g/t gold
from 295.0 metres downhole.
- HTD-44 – 36.5 metres @ 7.1% zinc, 1.8 g/t gold and 0.51% copper
from 25.5 metres.
Drilling has also confirmed mineralization along trend to the
south (possible offset) from the high grade Cu-Au resource at the
Ridge Area:
- HTD-45 – 5.0 metres @ 5.0 g/t gold from 11.0 metres, 15.0
metres @ 3.2 g/t gold and 1.22% copper from 24.0 metres, and 5.0
metres @ 9.1 g/t gold and 1.4% copper from 46.0 metres
Drilling at the new Southern Zone discovery has confirmed the
presence of significant mineralization in an area 400 meters south
of the current resource. Results include:
- HTD-53 – 40.5 metres @ 8.8 grams per tonne (g/t) gold and 0.77%
copper from 158.0 metres downhole, including 12.0 metres @ 22.2 g/t
gold and 0.66% copper from 183.0 metres downhole.
Exploration activities focus on the generation of new high-grade
gold-copper targets and extensions of known high grade gold-copper
mineral resource. A geophysical program to explore for porphyry
gold-copper mineralization underlying the high grade mineral
resource will be undertaken during the second half of 2016. An
updated mineral resource estimate for Hot Maden will incorporate
assay results from drill holes HTD-18 to HTD-53, and is expected in
June 2016. Two drill rigs continue to
operate on the project and additional results are pending.
For more information and complete drill results visit the
Mariana Resources website at
www.marianaresources.com/news/news-2016 and see the press
releases dated May 23, 2016 and
May 26, 2016.
Sandstorm holds a 2.0% net smelter returns ("NSR") royalty on
the Hot Maden project.
Columbus Gold Advances Feasibility study and ESIA on MONTAGNE
D'OR PROJECT
Columbus Gold Corp. provided an update on the advancement of the
ongoing Bankable Feasibility Study ("BFS") and Environmental and
Social Impact Assessment ("ESIA") at its Montagne d'Or gold
deposit, French Guiana ("Montagne
D'Or"). The studies are being funded by Nord Gold N.V. pursuant to which they can earn a
50.01% interest (for a total of 55.01%) in Montagne d'Or.
The BFS is anticipated to be completed in the fourth quarter of
2016 and entails the development of an engineered construction and
operating plan with considerations for social, environmental and
water management, permitting, geotechnical engineering,
hydrogeology, metallurgical testing, process design and mine
planning. The BFS considers the development of the project as an
open pit mine. The ESIA is being completed as part of the process
to obtain the various authorizations required for mine construction
and eventual mining operations. Complementary studies that will
accompany the ESIA include a Hazard Study / Risk Assessment,
Internal Operation Plan, and Security and Health document.
The Montagne d'Or deposit consists of east-west-striking and
steeply south-dipping gold-sulfide mineralized horizons. The
deposit is drill-defined over a strike extent of 2,300 meters and
to an average depth of 250 meters from surface. The mineralized
zones remain open on strike to the west and at depth. Utilizing a
cut-off grade of 0.4 g/t gold, the deposit contains Indicated
mineral resources of 83.2 million tonnes grading 1.45 g/t gold (3.9
million ounces) and Inferred mineral resources of 22.4 million
tonnes grading 1.55 g/t gold (1.1 million ounces). A Preliminary
Economic Assessment ("PEA") for the Montagne d'Or deposit was
completed in July 2015 and estimates
annual production of approximately 273,000 ounces of gold in the
first 10 years at an All-In Sustaining Capital Cost per ounce
of US$711, and a mined head-grade of
2.0 g/t gold.
For more information regarding the BFS, ESIA and PEA, visit the
Columbus website at
http://www.columbusgoldcorp.com/s/NewsReleases.asp and see
the press release dated May 26,
2016
Sandstorm holds a 1% NSR royalty on the Paul Isnard gold project
which hosts the Montagne d'Or gold deposit.
ERDENE INTERSECTS SIGNIFICANT GOLD MINERALIZATION AT BAYAN
KHUNDII
In April of this year, Sandstorm acquired two NSR royalties as
part of a $2.5 million financing
package completed with Erdene Resource Development Corp.
("Erdene"). One of the royalties covers Erdene's high-grade Bayan
Khundii gold project in southwest Mongolia ("Bayan Khundii") where results from
an ongoing drill program have been recently announced. The drill
results are part of a 30-hole diamond drill program that will total
3,825 metres. The focus of the current drilling is on the Striker
Zone, one of several targets being explored along a 1.7 kilometre
strike length. Highlights from the results reported for drill holes
BKD-16 to BKD-31 include:
- BKD-17 – 63.0 metres @ 5.3 g/t gold beginning at 50.0 metres
down hole:
- Includes a 3.0 metre section grading 49.4 g/t gold and a 5.0
metre section grading 26.8 g/t gold;
- Includes four 1.0 metre samples with grades ranging from 37.5
g/t gold to 81.7 g/t gold;
- Hole is located approximately 35.0 metres down dip from drill
hole BHD-09 which returned 26.0
metres of 5.9 g/t gold.
- BKD-28 – 18.0 metres @ 1.1 g/t gold from surface, including 3.0
metres @ 4.5 g/t gold and 70.0 metres @ 1.1 g/t gold from 50.0
metres to the end of the hole including 7.0 metres @ 4.7 g/t
gold.
The Striker Gold Zone is located in the southern end of the
Bayan Khundii Project. Erdene's 2015 reconnaissance
exploration program was responsible for the discovery of gold
mineralization in this region. Bayan Khundii, is located 20
kilometres southeast of Erdene's flagship Altan Nar gold-polymetallic project. Gold
mineralization at Bayan Khundii has been identified in three
outcropping areas along a 1.7 kilometre trend. The areas
between these three outcropping areas of mineralization are covered
by younger rocks, possibly masking a continuous trend connecting
the areas. Erdene is now completing a detailed exploration
program in this area to evaluate the distribution of high grade
visible gold that occurs in several parallel structures.
For more information and complete drill results visit the Erdene
website at
http://www.erdene.com/news_releases16/News_Releases16.php
and see the press releases dated May 9,
2016 and May 24, 2016.
Sandstorm holds a 2% NSR royalty on Erdene's Bayan Khundii and
Altan Nar projects.
QUALIFIED PERSON, QA/QC
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.
Mariana Resources Ltd.
Mineralised intervals presented for Hot Maden are drill
intersection widths and may not represent true widths of
mineralisation. Drill core obtained from the diamond drill program
is dominantly HQ-sized core with the remainder being PQ-sized core.
All drill core is photographed and quick logged prior to sampling.
Standard sampling protocol involves the halving of all drill core
and sampling over generally 1 metre intervals (in clearly
mineralized sections) or 2 metre intervals (elsewhere), with one
half of the core being placed in a sealed sample bag and dispatched
to the analytical laboratory for analysis and one half remaining
on-site in core trays.
Analyses of all samples are performed at ALS Laboratories'
facility in Izmir, western Turkey.
All samples are analyzed for gold using a 30 gram Fire Assay with
AAS finish, in addition to a 33 element ICP-AES analysis using a
four acid digest (ME-ICP61). Samples in which ICP analyses
returned greater than the maximum detection limit for the elements
Ag (100 ppm), Cu (10,000 ppm), Fe (50%), Pb (10,000 ppm), and Zn
(10,000 ppm) are reanalyzed using the AAS analytical technique.
Standards and blanks are inserted in to the analytical sequence on
the basis of one standard for every 20 samples, 2 blanks in every
batch, and one duplicate every 40 samples.
Columbus Gold Corp.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The PEA is preliminary in nature;
it includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. The PEA estimates economic results using a US$1,200/oz gold price, and an NPV 8%. Initial
Capital Cost are estimated at US$366
million for a 13-year mine life. For the first 11 years, the
annual recovered gold production is approximately 265,000 oz/year.
The NPV 8% changes by approximately US$1.1
million per dollar change in gold price and makes taxation
assumptions on the French tax code.
Erdene Resource Development Corp.
All samples have been assayed at SGS Laboratory in Ulaanbaatar,
Mongolia. In addition to internal
checks by SGS Laboratory, Erdene incorporates a QA/QC sample
protocol utilizing prepared standards and blanks. Erdene's sampling
protocol for drill core consists of the collection of samples over
1 metre or 2 metre intervals (depending on the lithology and style
of mineralization) over the entire length of the drill hole,
excluding minor post-mineral lithologies and un-mineralized
granitoids. Sample intervals are based on meterage, not geological
controls or mineralization. All drill core is cut in half with a
diamond saw, with half of the core placed in sample bags and the
remaining half securely retained in core boxes at Erdene's Bayan
Khundii exploration camp. All samples are organized into batches of
20 samples including two commercially prepared standards and
blanks. Sample batches were periodically shipped directly to SGS in
Ulaanbaatar via Erdene's logistical contractor, Monrud Co. Ltd.
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 131 streams and
royalties, of which 20 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,
2015 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.