Mr. Nolan Watson reports
SANDSTORM GOLD ROYALTIES PROVIDES CORPORATE AND ASSET UPDATES
Sandstorm Gold Ltd. is providing an update related to share repurchases under the company's normal course issuer bid (NCIB), recent developments from the company's royalty portfolio as well as the acquisition of eight royalties on exploration-stage properties.
Normal course issuer bid update
Since the renewal of the NCIB on April 5, 2018, Sandstorm has acted on its stated intention to repurchase shares of the company. Approximately 1.4 million shares have been repurchased since April. Sandstorm may purchase up to a maximum of 9.2 million shares under the current NCIB program.
Yamana Gold Inc. declares commercial production at Cerro Moro and increases exploration budget
Yamana announced the declaration of commercial production at the Cerro Moro project in Argentina in late June, 2018. Yamana is now focusing on optimizing the operation to ensure that gold and silver production and operating costs reach guidance levels.
The exploration budget at Cerro Moro for 2018 has increased from $9.0-million to $11.2-million. Yamana has set an exploration objective of adding one million gold equivalent ounces to the mineral inventory at Cerro Moro.
The objectives for the 2018 exploration program are:
Convert 110,000 gold equivalent ounces of inferred resources to measured and indicated mineral resources;Discover 250,000 gold equivalent ounces of new inferred mineral resources; Define future drill targets through scout drilling, soil and rock sampling, and mapping.
For more information, visit the Yamana website and see Yamana's press releases dated May 16, 2018, and June 26, 2018.
Beginning in 2019, Sandstorm has a silver stream agreement to purchase an amount of silver from Cerro Moro equal to 20 per cent of the silver produced, up to a maximum of 1.2 million ounces of silver annually, until Yamana has delivered to Sandstorm 7.0 million ounces of silver, then 9.0 per cent of the silver produced thereafter for the life of the mine. Sandstorm will make continuing payments for each ounce of silver received, equal to 30 per cent of the spot price per ounce of silver.
Endeavour Mining Corp. announces high-grade discoveries at Hounde
Endeavour announced that the continuing exploration program at its Hounde mine in Burkina Faso has successfully extended the Kari Pump high-grade mineralization and has discovered two new large mineralized zones named Kari Centre and Kari West. Following the discovery of Kari Pump zone in late 2017, Endeavour prioritized efforts on the wider Kari area, which hosts a large gold-in-soil geochemical anomaly. Kari is located seven kilometres west of the Hounde processing plant and in proximity to an existing haul road.
Since late December, more than 1,000 holes totalling 76,000 metres have been drilled in the Kari area, extending the mineralized zone to an area measuring 4.0 kilometres long and 3.0 kilometres wide. Approximately 25 per cent of the gold-in-soil anomaly is remaining to be drilled. The Kari Center discovery extends 1.2 kilometres along strike and across a width of over 200 metres, with mineralization open at depth. The Kari West discovery extends at least 1.0 kilometre along strike and across a width of 500 metres, with mineralization open at depth and toward Kari Pump.
An additional 65,000-metre drilling program is under way to delineate and extend the three discoveries made, with infill drilling planned on the Kari Pump target. A maiden resource on the Kari Pump area is expected to be completed by the end of 2018.
For more information, visit the Endeavour website and see Endeavour's press release dated May 24, 2018.
Sandstorm holds a 2-per-cent net smelter return (NSR) royalty that covers approximately 480 square kilometres of the Hounde property.
Hod Maden drill results
Recent exploration and infill drill results have been reported by Lidya Madencilik San. ve Tic. A.S., Sandstorm's 70-per-cent partner at Hod Maden. Drilling is continuing, and a total of 7,069 metres in 19 drill holes have been completed in 2018 at the project. Highlights include:
HTD-182: 72.5 metres of 20.4 grams per tonne (g/t) gold and 4.9 per cent copper from 66.5 metres, including 9.0 metres of 69.9 g/t gold and 7.0 per cent copper from 109.0 metres; HTD-185:18.5 metres of 17.6 g/t gold from 486.5 metres, including 3.2 metres of 59.7 g/t gold from 487.8 metres.
Infill drill hole HTD-182 is a high-grade intersection that is an updip extension of the main mineralized body that has the potential to extend to below the surface alluvials. Extension drill hole HTD-185 is a new intersection on the drill section 2075N that is open at depth in the southwest area of the Main zone.
For QA/QC (quality assurance/quality control) information, see the QA/QC section at the end of this news release. Sandstorm has a 30-per-cent interest and a 2-per-cent NSR royalty on the Hod Maden project.
Equinox Gold Corp. provides construction update at Aurizona
Equinox Gold has provided an update on construction progress at the Aurizona gold mine in Brazil. Construction remains on schedule to pour gold by late 2018. As of the middle of June, the plant construction was 45 per cent complete and progressing on a number of areas, including grinding, crushing and installation of agitators in the CIP circuit. Preproduction mining activities commenced in mid-April, including removing waste from two locations in the Piaba pit and developing access roads. The mining contractor has removed more than 600,000 tonnes of waste and roadwork is under way in preparation for ore mining in the third quarter of 2018.
For more information and complete drill results, visit the Equinox Gold website and see Equinox Gold's press release dated June 14, 2018.
Sandstorm has a sliding-scale NSR royalty of 3 per cent to 5 per cent on the Aurizona project. At gold prices less than or equal to $1,500 (U.S.) per ounce, the royalty is a 3-per-cent NSR. In addition, Sandstorm holds a 2-per-cent NSR royalty on the Aurizona Greenfields property, a 190,073-hectare package of exploration ground adjacent to the Aurizona project. An exploration agreement with AngloGold Ashanti Ltd. was announced in 2016, whereby AngloGold may invest $14-million (U.S.) in exploration to earn a 70-per-cent interest in Aurizona Greenfields.
Kirkland Lake Gold Ltd. reports high-grade intersections from underground exploration drilling
Kirkland Lake has announced high-grade intersections from the continuation of its 2018 infill drilling program at the Macassa mine located in Ontario. The results support further mineral resource expansion, as all but two of the intersections are located outside of the existing mineral resource blocks. In addition, the results have identified a high-potential area within the eastern extension of the south mine complex, which is located approximately 560 metres south-southeast of the new No. 4 shaft, which is currently under construction, with the first phase scheduled for completion in early 2022. Highlighted underground drill results from the HM claim include:
53-3453: 3.7 metres of 34.6 g/t gold from 222.2 metres;53-3455: 3.9 metres of 38.4 g/t from 220.4 metres; 53-3466: 3.6 metres of 65.5 g/t from 218.7 metres.
Reported drill lengths are true widths. For more information, visit the Kirkland Lake website and see Kirkland Lake's press release dated July 5, 2018.
Sandstorm holds a 2-per-cent NSR royalty on the HM claim, which is located within the south mine complex at the Macassa mine.
Metanor Resources Inc. intercepts 10.7 g/t gold over 4.4 metres at Bachelor Lake and 5.0 g/t gold over 12.1 metres at Barry
Metanor has announced results from the Moroy zone continuing underground development at the Bachelor Lake mine in Quebec, Canada. Exploration drilling is continuing at Moroy, with one underground diamond drill rig. Part of the ore sill and haulage drift development is complete, and the ore drift is being pushed eastward along strike. This development into the Moroy zone will provide additional ore for production. Highlighted drill results from the zone include:
MY18-054: 4.4 metres of 10.7 g/t gold from 87.8 metres;MY18-063: 5.5 metres of 8.4 g/t gold from 140.2 metres; MY18-070: 4.0 metres of 11.0 g/t gold from 140.5 metres.
Metanor has also released results from the continuing drill campaign at the Barry project, located 65 kilometres to the south of the Bachelor Lake mine. Recent drilling has demonstrated the continuity and predictability of the shear-hosted gold deposit for over 1.1 kilometres in strike length. Highlighted drill results from Barry include:
MB-18-176: 2.7 metres of 12.2 g/t gold from 387.0 metres;MB-18-187: 1.8 metres of 14.6 g/t gold from 330.6 metres; MB-18-185: 12.1 metres of 5.0 g/t gold from 113.5 metres, including 2.4 metres of 15.7 g/t gold.
True widths are estimated to range between 65 per cent and 80 per cent of core lengths at Moroy and 70 per cent and 95 per cent of core lengths at Barry. Grades were uncapped at both Moroy and Barry. For more information and complete drill results, visit the Metanor website and see Metanor's press releases dated March 1, 2018, and April 9, 2018.
Sandstorm receives a minimum of 1,500 ounces of gold per quarter from Bachelor Lake until 12,000 ounces of gold have been delivered. The gold stream will then convert to a 3.9-per-cent NSR royalty. In addition to this, Sandstorm holds a 1.0-per-cent NSR royalty on Bachelor Lake. At Barry, Sandstorm has an NSR royalty of 3.9 per cent to 4.9 per cent.
Sandstorm acquires eight royalties on exploration properties
During the second quarter of 2018, Sandstorm acquired eight royalties on exploration-stage projects located in Egypt, Burkina Faso and Cote d'Ivoire. Sandstorm now has 188 royalty assets in its portfolio. A complete list of the royalties acquired is shown in the associated table.
ProjectOwner/partner CountryProperty size Stage NSR royaltyAbu Marawat Aton Resources Inc.Egypt738 km2Advanced exploration1.0%BouboulouNexus Gold Corp. Burkina Faso 39 km2 Exploration1.0% NiangouelaNexus GoldBurkina Faso178 km2 Exploration1.0% RakoungaNexus GoldBurkina Faso250 km2 Exploration1.0% BobossoProgress Minerals Inc.Cote d'Ivoire800 km2 Exploration1.0% Bira Progress MineralsBurkina Faso371 km2 Exploration1.0% Bonsiega Progress MineralsBurkina Faso480 km2 Exploration1.0% TambiriProgress MineralsBurkina Faso127 km2 Exploration1.0%
Abu Marawat
Sandstorm acquired a 1.0-per-cent NSR royalty on the Abu Marawat concession, located in Egypt. The project is owned by Aton and covers more than 700 square kilometres. Aton has been actively exploring the property, resulting in the identification of an extensive 40-kilometre-long gold mineralized trend containing numerous gold exploration targets and two mineral resource estimates -- the Hamama West gold-silver resource and the Abu Marawat gold-silver-copper-zinc vein resource.
Recent exploration has included surface sampling programs at the Rodruin and Zeno targets and included more than 100 grab samples. A 4,000-metre RC (reverse circulation) drilling program at the Rodruin target is expected to start in early August.
For more information, visit the Aton website and see Aton's press releases dated May 30, 2018, and July 11, 2018.
Bouboulou, Niangouela and Rakounga
Sandstorm acquired 1.0-per-cent NSR royalties on three projects owned or controlled by Nexus -- the Bouboulou, Niangouela and Rakounga projects located in Burkina Faso. The Bouboulou property has five known mineralized zones and three five-kilometre-long anomalous gold trends. A drilling program completed in 2017 at Bouboulou was designed to test and extend the zones previously identified on the property. Nine of the 10 diamond drill holes successfully intersected gold mineralization.
The 250-square-kilometre Rakounga property is contiguous to the Bouboulou property, bordering it on the west and south sides. Two of the trends at Bouboulou extend southwest on to Rakounga. A 3,000-metre drill program was completed in 2017 that successfully identified a broad zone of gold mineralization extending over 300 metres along strike and to depths of 80 metres below surface.
The Niangouela property covers 178 square kilometres and is located on the Boromo greenstone belt. The property contains numerous quartz veins and outcroppings proximal to artisanal pits and workings. A 2,000-metre drilling program in 2017 was conducted with the objective to test a primary quartz vein and associated shear zone at depth and along strike, while targeting areas of gold anomalies identified from rock samples and RAB drilling. Results from the drilling program delivered gold intercepts in eight of the first nine holes drilled.
For more information, visit the Nexus website and see the Nexus press releases dated May 24, 2018, and June 21, 2018.
Bira, Bonsiega, Tambiri and Bobosso
As part of a financing package, Sandstorm will receive 1.0-per-cent NSR royalties on four project areas owned or controlled by Progress in Burkina Faso and Cote d'Ivoire.
The Bira property includes a 28-kilometre-long composite geochemical anomaly along the southern margin of a large granitic intrusion and possible shear zone. The trend contains several areas with artisanal mining. To date, Progress has completed a power auger sampling program covering the majority of the geochemical anomaly and 5,000 metres of RC drilling, targeting the northern most portion of the anomaly. Progress has identified eight drill-ready targets and plans to complete a minimum of 20,000 metres of RC drilling across these targets commencing in the fall of 2018. Progress conducted preliminary metallurgical testing on composites from its RC drill program and received positive results suggesting that the Bira mineralization may be amendable to cyanide leaching.
The Tambiri property hosts artisanal mining activities in several areas of the property. Progress is planning 5,000 metres of RC drilling on the Tamibiri property to target a 1.0-kilometre strike extension of one of the active artisanal mining areas, to follow up on historic drilling. Additional programs on Tamibiri will include mapping, soil sampling and power auger sampling to define additional drill targets.
The Bonsiega property is along the western extension of the Bira trend. An IP (induced polarization) survey and power auger sampling program is planned across several target areas in the fourth quarter of 2018.
The Bobosso property, located in Cote d'Ivoire, hosts a seven-square-kilometre gold-in-soil anomaly. Progress completed two drilling programs in 2017 (4,244 metres of RC and 1,657 metres of diamond drilling), which were successful in identifying gold mineralization in seven target areas, including multiple zones with continuity over 300 metres of strike length. Progress also conducted initial bulk-leak extractable gold tests on several composites from the drilling. This preliminary metallurgical testwork indicated that mineralization may be amenable to cyanide leaching. An IP survey is planned for July, 2018, and will be followed up on in the fall of 2018, with an RC drilling program of 10,000 metres.
For more information, visit the Progress website and see the Progress press release dated June 12, 2018.
Erdene Resource Development Corp. intercepts 2.6 g/t gold over 81.4 metres at Bayan Khundii
Erdene has announced the results from its second quarter drill program at the Bayan Khundii project in southwest Mongolia. The drill program was designed to test priority structural targets, to complete closer-spaced drilling within specific zones and to test areas within the larger 1.4-kilometre trend that demonstrate good potential for establishing additional extensions to the gold mineralizes zones. Highlighted drill results from Bayan Khundii include:
BKD-251: 51.8 metres of 2.8 g/t gold from 93.0 metres; BKD-254: 81.4 metres of 2.6 g/t gold from 102.6 metres, including 17.0 metres of 9.2 g/t gold.
Erdene is currently working on a maiden resource estimate at Bayan Khundii that is expected to be announced in 2018.
For more information, visit the Erdene website and see Erdene's press releases dated May 10, 2018, and July 5, 2018.
Sandstorm has a 2-per-cent NSR royalty on Erdene's Bayan Khundii and Altan Nar properties.
HOD MADEN DRILL RESULTSHoleZoneSectionFromToIntercept AuCu (m) (m) (m) (g/t) (%)HTD 182 Main L2225N 66.50139.0072.5020.39 4.87Includes 109.00118.00 9.0069.94 7.02HTD 185 Main L2075N411.00419.00 8.00 2.97 0.77 486.50505.0018.5017.55- Includes 487.80491.00 3.2059.71-
QA/QC
All assay data were provided to Sandstorm by Lidya. Mineralized intervals presented in the drill results table are drill intersection widths and may not represent true widths of mineralization. Drill core obtained from the diamond drill program was dominantly HQ-sized core, with the remainder being PQ-sized core. Intercepts are calculated using a cut-off of 0.5 g/t, allowing one interval of internal and adjacent dilution. All drill core was photographed and quick logged prior to sampling. Standard sampling protocol involved the halving of all drill core and sampling over generally one-metre intervals (in clearly mineralized sections) or two-metre intervals (elsewhere), with one-half of the core being placed in a sealed sample bag and dispatched to the analytical laboratory for analysis. Samples have been analyzed at ALS Laboratories' facility in Izmir, western Turkey. All samples have been analyzed for gold using a 30-gram fire assay with AAS (atomic absorption spectroscopy) finish (or screen fire assay for higher-grade samples), in addition to a 32-element ICP-AES (inductively coupled plasma-atomic emission spectroscopy) analysis of an aqua regia digest. Samples in which ICP analyses returned greater than the maximum detection limit for the elements Ag (silver) (10 parts per million), Cu (copper) (10,000 parts per million), Fe (iron) (15 per cent), Pb (lead) (10,000 parts per million) and Zn (zinc) (10,000 parts per million) were reanalyzed using the AAS analytical technique. Standards and blanks were inserted in to the analytical sequence on the basis of one standard for every 20 samples, two blanks in every batch and one duplicate every 40 samples.
Qualified person
Keith Laskowski (MSc), Sandstorm's vice-president, technical services, is a qualified professional (No. 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.
About Sandstorm Gold Ltd.
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 188 royalties, of which 21 of the underlying mines are producing. Sandstorm plans to grow and diversify its low-cost production profile through the acquisition of additional gold royalties.
We seek Safe Harbor.
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