VANCOUVER, BC, March 14, 2022 /PRNewswire/ - Sandstorm Gold Ltd.
("Sandstorm Gold Royalties", "Sandstorm" or the "Company") (NYSE:
SAND) (TSX: SSL) is pleased to provide an update of recent
developments from the Company's royalty portfolio.
LUNDIN MINING ANNOUNCES NEW DISCOVERY AT CHAPADA
Lundin Mining Corporation ("Lundin Mining") recently announced
the discovery of a new copper-gold mineralized system called Saúva
at the Chapada project in Brazil.
The new discovery is located approximately 15 kilometres north of
the Chapada mine. Diamond drilling was initiated at Saúva in the
third quarter of 2021, as part of Lundin Mining's ongoing
exploration program aimed at increasing the Mineral Resource
estimation at Chapada. The first two drill holes at Saúva confirmed
the presence of shallow high-grade copper-gold mineralization. As
of early February 2022, further
drilling was completed to evaluate this potential, with a total of
47 holes defining a mineralized area measuring approximately 750
metres by 650 metres.
Highlights from the first 29 drill holes include:
- FOR-113: 55.5 metres of 0.88% copper and 1.2 grams per
tonne ("g/t") gold from 6.5 metres including: 27.3 metres of 1.3%
copper and 1.9 g/t gold from 33.7 metres;
- FOR-115: 65.5 metres of 0.61% copper and 0.7 g/t gold
from 23.6 metres; and
- FOR-148: 74.1 metres of 0.81% copper and 1.3 g/t gold
from 116.0 metres including: 19.4 metres of 1.8% copper and 3.6 g/t
gold from 149.6 metres.
A $10 million exploration program
is planned at Chapada for 2022, including exploration of the Saúva
sector. There are currently three rigs drilling in the Saúva sector
testing areas to the northeast and west of the discovery area.
Reported intercepts are not true thicknesses as there is
currently insufficient data to calculate true orientation. For more
information and full drill results, visit the Lundin Mining website
at www.lundinmining.com and see the press release dated
February 10, 2022.
Sandstorm has a copper stream agreement to purchase 4.2% of the
copper produced at Chapada up to a maximum of 3.9 million pounds
annually. When 39 million pounds of copper has been delivered to
Sandstorm, the copper stream will reduce to 3.0%. Once 50 million
pounds of copper have been delivered to Sandstorm on a cumulative
basis, the stream will reduce to 1.5% of the copper produced for
the life of the mine. Sandstorm will make ongoing payments for each
pound of copper purchased equal to 30% of the spot price of
copper.
YAMANA PROVIDES UPDATE ON CERRO MORO OPPORTUNITIES AND MARA
MILESTONES IN 2022
CERRO MORO
Yamana Gold Inc. ("Yamana") provided an update on future
opportunities at the Cerro Moro mine. The Cerro Moro project has an
inventory of lower-grade veins that are not fully reflected in the
current Mineral Reserves and Mineral Resource statements, many of
which are wider than the veins currently being mined. These areas
were previously not followed up on with infill drilling because the
mineralization is below the current cut-off grade. Yamana is now
considering alternative processing options to allow for economic
extraction of lower grade mineralization including i) a scalable
plant, and ii) heap leaching near-surface, lower grade material, to
supplement other production.
Sandstorm has a silver stream agreement to purchase an amount of
silver from Cerro Moro equal to 20% of the silver produced, up to a
maximum of 1.2 million ounces of silver annually. When 7.0 million
ounces of silver have been delivered to Sandstorm the silver stream
will reduce to 9.0% of the silver produced for the life of the
mine. Sandstorm will make ongoing payments for each ounce of silver
received, equal to 30% of the spot price per ounce of silver.
MARA
Yamana continues to advance MARA (formerly the Agua Rica
project) through the development and permitting process while
considering strategic alternatives that could unlock value along
the way. In 2021, work on the MARA project focused on advancing the
Feasibility Study engineering, mine design and planning,
metallurgical and geotechnical drilling campaigns, and fieldwork at
site. Approximately 6,000 metres of drilling was completed in 2021
from the ongoing drilling campaign, with the remaining 50% of the
program expected to be completed by mid-2022. Yamana plans to
perform deep drill holes in 2022 to check the extension of
high-grade chalcopyrite mineralization that could potentially
unlock a pit expansion, as well as to test for deep extensions of
mineralization in the hypogene area of the porphyry.
The results from the Feasibility Study and the completion of the
Environmental and Social Impact Assessment are expected in late
2022. During the last year, Yamana was presented with several
proposals for its interest in MARA. Yamana's board determined that
any strategic initiatives will be considered close to the
completion of the Feasibility Study and application for permitting
later this year.
In October 2015, Sandstorm entered
into an early deposit gold stream agreement with Yamana on the MARA
project (formally the Agua Rica project) ("Early Deposit Gold
Stream"). At the time of a construction decision for the MARA
project, Sandstorm may elect to make an additional advance payment
in an amount between US$135 million
and US$225 million based on the
following formula: US$150,000
multiplied by the price of gold plus US$7.5
million (the "Additional Advance Payment"). The payment of
the Additional Advance Payment will occur proportionately
throughout the construction period. If Sandstorm elects to pay the
Additional Advance Payment, the Company will have the right to
purchase an amount of gold equal to 20% of the life of mine gold
produced from MARA. Sandstorm would make ongoing payments for each
ounce of gold received, equal to 30% of the spot price per ounce of
gold. If Sandstorm elects not to pay the Additional Advance
Payment, the Company will retain a 0.25% net smelter returns
("NSR") royalty on MARA. In the event that Sandstorm wishes to
syndicate the gold stream to a third party, it has the right to
transfer any and all of its rights and obligations under certain
conditions.
For more information, visit the Yamana website at
www.yamana.com and see the press release dated February 17, 2022.
ENDEAVOUR ANNOUNCES
INCREASED MINERAL RESOURCES AT HOUNDÉ MINE
Endeavour Mining plc ("Endeavour") announced that during 2021,
they completed more than 70,000 metres of drilling at the Houndé
mine in Burkina Faso. Exploration
focused on the Mambo target, the Kari Center-Gap-South area, and
limited work on the Vindaloo South target. All resources added are
within trucking distance to the Houndé plant. Sandstorm's royalty
covers a portion of the area that the exploration focused on in
2021, including the Kari Center-Gap-South area and Vindaloo South
target.
The updated Measured and Indicated Resource estimate at Kari
Centre-Gap-South increased to an estimated 780,000 ounces of gold
contained in 18.9 million tonnes at 1.3 g/t (cut-off grade of 0.5
g/t gold, effective date of December 31,
2021).
For more information, visit the Endeavour website at
www.endeavourmining.com and see the press release dated
January 17, 2022. Sandstorm has a
2.0% NSR royalty on a portion of the Houndé mine.
KINROSS RELEASES LOBO-MARTE
FEASIBILITY STUDY
Kinross Gold Corporation ("Kinross") released results from the
Feasibility Study on the Lobo-Marte project located in Chile. The Feasibility Study outlines 14 years
of mining with two additional years of residual production for
total mine production of 4.7 million gold equivalent ounces. The
project is planned as an open pit, heap leach operation.
Construction is estimated to begin in 2025 at the earliest, with
first production expected in 2027, subject to a positive
development decision. Kinross is
continuing to advance work for its Environmental Impact Assessment
submission, as well as related work for project permitting. The
permitting process is expected to take approximately three
years.
For more information, visit the Kinross website at
www.kinross.com and see the press release dated
November 10, 2021. Sandstorm has a
1.05% NSR royalty on the Lobo-Marte project.
CONTACT GOLD ANNOUNCES PONY CREEK MAIDEN RESOURCE
ESTIMATE
Contact Gold Corp. ("Contact Gold") released a maiden Resource
Estimate at its Pony Creek project in Nevada. The Pony Creek project is located
immediately south of Gold Standard Ventures' South Railroad
project. The Inferred Resource totals 433,000 ounces of pit
constrained gold in 25.7 million tonnes at a grade of 0.5 g/t gold
(cut-off grade of 0.15 g/t gold for oxide material and 0.22 g/t
gold for transitional and non-oxidized material, effective date of
January 11, 2022).
For more information, visit the Contact Gold website at
www.contactgold.com and see the press release dated
January 11, 2022. Sandstorm has a
3.0% NSR royalty on the Pony Creek project.
PICKLE CROW RESOURCE INCREASES BY 500,000 OUNCES OF
GOLD
Auteco Minerals Ltd. ("Auteco") reported an updated Inferred
Mineral Resource on the Pickle Crow project located in Canada. The JORC Inferred Resource estimate
was released with 2,230,000 ounces of gold contained in 8.9 million
tonnes at a grade of 7.8 g/t gold (3.5 and 2.5 g/t cut-off grade,
effective date of December 31,
2021).
Based on the results of the mid-year 2021 Resource update,
Auteco's board of directors had approved an additional 50,000
metres of drilling that commenced in June
2021. As of mid-January, approximately 42,000 metres of the
current program had been drilled, with the final 8,000 metres
forecasted to be completed in March
2022. The initial focus of the program was on near mine
discovery, extension and infill drilling, which was used in the
recent Resource update. The drilling program is now focused on
regional targeting, with three of the five active drill rigs
testing targets outside of the Resource area.
For more information, visit the Auteco website at
www.autecominerals.com and see the press release dated
February 15, 2022. Sandstorm has a
0.5% NSR royalty on the majority of the Pickle Crow project.
TOWER RESOURCES DRILLS 95.0 METRES OF 1.4 G/T GOLD AT RABBIT
NORTH
Tower Resources Ltd. ("Tower") recently reported that they
discovered a new gold zone, named the Golden Zone at the company's
Rabbit North property in the Kamloops district of British Columbia. The initial drill intercept
was 95.0 metres of 1.4 g/t gold from 51 metres, including 19.2
metres of 4.2 g/t gold. Tower stated that the Golden Zone appears
to contain shear-hosted mesothermal mineralization which may extend
to a considerable depth. Tower plans to resume drilling on the
Golden Zone after lab results from the other drill holes are
obtained.
For more information and complete drill results, visit the Tower
website at www.towerresources.ca and see the press release
dated January 11, 2022. Sandstorm has
a 2.0% NSR royalty on the Rabbit North project.
QP
Qualified
Person
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Keith Laskowski (MSc),
Sandstorm's Vice President, Geology 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. He has reviewed and approved the
technical information in this press release.
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CONTACT Information
For more information about Sandstorm Gold Royalties, please
visit our website at www.sandstormgold.com or email us at
info@sandstormgold.com.
ABOUT SANDSTORM GOLD
ROYALTIES
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Sandstorm is a gold
royalty company that 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 230
royalties, of which 29 of the underlying mines are producing.
Sandstorm plans to grow and diversify its low cost production
profile through the acquisition of additional gold royalties. For
more information visit: www.sandstormgold.com.
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CAUTIONARY
STATEMENTS TO U.S. SECURITYHOLDERS
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The financial
information included or incorporated by reference in this press
release or the documents referenced herein has been prepared in
accordance with International Financial Reporting Standards as
issued by the International Accounting Standards Board, which
differs from US generally accepted accounting principles ("US
GAAP") in certain material respects, and thus are not directly
comparable to financial statements prepared in accordance with US
GAAP.
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The disclosure and
information contained or referenced herein uses mineral reserve and
mineral resource classification terms that comply with reporting
standards in Canada, and mineral reserve and mineral resource
estimates are made in accordance with Canadian NI 43-101 and the
Canadian Institute of Mining, Metallurgy and Petroleum — CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards"). These standards differ significantly from the mineral
reserve disclosure requirements of the United States Securities
Exchange Commission (the "SEC") set forth in Industry Guide 7.
Consequently, information regarding mineralization contained or
referenced herein is not comparable to similar information that
would generally be disclosed by U.S. companies under Industry Guide
7 in accordance with the rules of the SEC. Further, the SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities Exchange Act of 1934
("Exchange Act"). These amendments became effective February 25,
2019 (the "SEC Modernization Rules") and, commencing for
registrants with their first fiscal year beginning on or after
January 1, 2021, the SEC Modernization Rules replaced the
historical property disclosure requirements included in SEC
Industry Guide 7. As a foreign private issuer that files its
annual report on Form 40-F with the SEC pursuant to the
multi-jurisdictional disclosure system, the Company is not required
to provide disclosure on its mineral properties under the SEC
Modernization Rules and will continue to provide disclosure under
NI 43-101 and the CIM Definition Standards. The SEC Modernization
Rules include the adoption of terms describing mineral reserves and
mineral resources that are "substantially similar" to the
corresponding terms under the CIM Definition, but there are
differences in the definitions under the SEC Modernization Rules
and the CIM Definition Standards. Accordingly, there is no
assurance any mineral reserves or mineral resources that the
Company may report as "proven mineral reserves", "probable mineral
reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the mineral reserve or mineral
resource estimates under the standards adopted under the SEC
Modernization Rules. U.S. investors are also cautioned that while
the SEC recognizes "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under the Modernization
Rules, investors should not assume that any part or all of the
mineralization in these categories will ever be converted into a
higher category of mineral resources or into mineral reserves.
Mineralization described using these terms has a greater amount of
uncertainty as to its existence and feasibility than mineralization
that has been characterized as reserves. Accordingly, investors are
cautioned not to assume that any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable.
Further, "inferred mineral resources" have a greater amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. Therefore, U.S. investors are also
cautioned not to assume that all or any part of the "inferred
mineral resources" exist. Under Canadian securities laws, estimates
of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
For the above reasons, information contained or referenced herein
regarding descriptions of our mineral reserve and mineral resource
estimates is not comparable to similar information made public by
U.S. companies subject to reporting and disclosure requirements of
the SEC under either Industry Guide 7 or SEC Modernization
Rules.
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CAUTIONARY NOTE
REGARDING FORWARD-LOOKING INFORMATION
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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
"forward-looking information" within the meaning of applicable
Canadian securities legislation, concerning the business,
operations and financial performance and condition of Sandstorm
Gold Royalties. Forward-looking statements include, but are not
limited to the future price of gold, silver, copper, iron ore and
other metals, 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.
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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 Gold Royalties 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 Gold Royalties will operate in the
future, including the receipt of all required approvals, the price
of gold and copper 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, failure to receive necessary
approvals, changes in business plans and strategies, market
conditions, share price, best use of available cash, gold and other
commodity 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 or other commodity
the Company will purchase, regulatory restrictions, activities by
governmental authorities (including changes in taxation), currency
fluctuations, the global economic climate, dilution, share price
volatility and competition.
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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 the Company 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 the Company will purchase
gold, other commodities or receive royalties from, 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 and other commodities,
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 the Company's annual
report for the financial year ended December 31, 2021 and the
section entitled "Risk Factors" contained in the Company's annual
information form dated March 30, 2021 available at www.sedar.com.
Although the Company 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. The Company does not undertake to update any
forward-looking statements that are contained or incorporated by
reference, except in accordance with applicable securities
laws.
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SOURCE Sandstorm Gold Ltd.