Mr.Nolan Watson reports
SANDSTORM GOLD PROVIDES ASSET UPDATES
Sandstorm Gold Ltd. has provided recent updates from the company's royalty properties.
"The assets in Sandstorm's portfolio continue to report exploration success, which is resulting in resource growth and mine life extension," said president and chief executive officer Nolan Watson. "We are working diligently to deploy our capital into royalty acquisitions that will continue to add to our stable cash flow base, improve our industry-leading growth profile and increase the exploration upside for our shareholders."
Yamana Gold Inc. contemplates plant expansion at Chapada
Yamana continues to discover additional resources at the producing Chapada mine in Brazil and, as a result, has begun examining a potential plant expansion that would increase the processing rate from 23 million tonnes per year to a rate of up to 32 million tonnes per year. Yamana filed an updated National Instrument 43-101 technical report on the Chapada mine during the first quarter of 2018, which outlined a life-of-mine plan for 29 years of copper and gold production.
Yamana has also made updates to the processing plant at Chapada in order to improve recoveries. Most recently, a cleaner circuit expansion was commissioned to provide flexibility in processing various ore types. The upgrade has demonstrated improvements to both gold and copper recovery at higher processing rates and while processing lower-grade ores.
For more information, visit the Yamana website and see press releases dated Feb. 15, 2018, and March 29, 2018.
Sandstorm has a copper stream agreement to purchase 4.2 per cent of the copper produced at Chapada up to a maximum of 3.9 million pounds annually. When Yamana has delivered 39 million pounds of copper to Sandstorm, the copper stream will reduce to 3 per cent. Once 50 million pounds of copper have been delivered to Sandstorm on a cumulative basis, the stream will reduce to 1.5 per centof the copper produced for the life of the mine. Sandstorm will make continuing payments for each pound of copper purchased equal to 30 per centof the spot price of copper.
Equinox Gold Corp. releases drill result of 84.3 grams per tonne gold over 21.0 metres at Aurizona
Equinox Gold has released positive drill results from near-mine exploration drilling at the Aurizona gold mine in Brazil. Broad intervals of gold mineralization were intersected near surface at the Genipapo, Micote and Mestre Chico targets. Equinox Gold tested six near-mine exploration targets with 45 holes totalling 5,500 metres. Highlights from recent drill results include:
Genipapo: BRAZD552 -- 6.0 metres of 1.9 grams per tonne gold from 80.0 metres; BRAZD626 -- 60.0 metres of 1.2 grams per tonne gold from 1.0 metre;Micote: BRAZD554 -- 9.0 metres of 3.3 grams per tonne gold from 48.0 metres and 11.0 metres of 1.9 grams per tonne from 110.0 metres; BRAZD612 -- 21.0 metres of 84.3 grams per tonne gold from 5.0 metres, including 1.0 metre of 1,005.0 grams per tonne gold;Mestre Chico: BRAZD600 -- 30.0 metres of 1.1 grams per tonne gold from 21.0 metres; BRAZD615 -- 16.0 metres of 1.6 grams per tonne gold from 40.0 metres and 5.0 metres of 8.5 grams per tonne gold from 110.0 metres.
Construction activities continue to progress at Aurizona, and Equinox remains on track to pour gold by the end of 2018. Overall project construction is more than 35 per centcomplete, and the engineering, procurement and construction management activities are 45 per cent complete. The plant refurbishment and tailings facility raise are substantially complete and the ball and SAG (semi-autogenous grinding) mills are expected to be delivered in June.
True widths of the mineralized intervals are interpreted to be 60 per cent to 90 per centof the reported lengths. For more information and complete drill results, visit the Equinox Gold website and see the press releases dated March 5, 2018, March 8, 2018, and April 2, 2018.
Sandstorm has a 3-per-cent-to-5-per-cent sliding-scale NSR (net smelter return) royalty 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 royalty. In addition, Sandstorm holds a 2-per-cent NSR royalty on Aurizona's 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's Greenfields property.
Metanor Resources Inc. intercepts 50.9 grams per tonne gold over 4.8 metres at Bachelor Lake and 18.9 grams per tonne gold over 1.6 metres at Barry
Metanor has announced that the continuing underground development at the Bachelor Lake mine in Quebec has successfully reached the two known Moroy veins at level 11. Exploration drilling is continuing at Moroy and recent results have extended the continuity of the mineralized structures in all directions. Highlighted drill results from the Moroy zone include:
MY18-017 -- 4.4 metres of 5.6 grams per tonne gold from 266.3 metres; MY18-032 -- 2.0 metres of 9.2 grams per tonne gold from 104.6 metres; MY18-034 -- 4.8 metres of 50.9 grams per tonne gold from 264.6 metres.
At the Barry project, located 65 kilometres to the south of the Bachelor Lake mine, drilling has intersected high-grade gold mineralization at the new Bart zone, which is 3.5 kilometres west of the Barry deposit. Metanor began drilling at the Bart zone in late 2017 and has completed 2,985 metres of drilling within 12 holes. The program was designed to test historical gold sampling completed in the 1990s and the exploration team at Metanor has identified gold-bearing shears and veins that are present within the mafic intrusive host rock at Bart. Highlighted drill results from the Bart zone include:
BEO-17-79 -- 0.5 metres of 119.0 grams per tonne gold from 189.7 metres; BEO-17-80 -- 1.6 metres of 18.9 grams per tonne gold from 150.4 metres.
True widths are estimated to range between 70 per cent to 90 per centof core lengths at Moroy and 70 per cent to 95 per centof 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 the press releases dated March 1, 2018, and April 9, 2018.
Sandstorm amended the Bachelor Lake gold stream with Metanor on Oct. 1, 2017.Sandstorm will receive a minimum of 1,500 ounces of gold per quarter until 12,000 ounces of gold have been delivered and then the gold stream will convert to a 3.9-per-cent NSR royalty. In addition to this, Sandstorm holds a 1-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 royalties on exploration properties in Canada, Mexico and Peru
During the last quarter of 2017 and the first quarter of 2018, Sandstorm acquired 11 royalties and an option to acquire one additional royalty on exploration-stage projects located in Canada, Mexico and Peru. The total consideration paid for the 11 royalties was $1.7-million and with these acquisitions, Sandstorm now has 178 royalties in its portfolio. A complete list of the royalties acquired is shown in the attached table.
Project Owner/partnerCountry StageNSR royaltyBaffin Kivalliq Energy Corp.Canada Exploration 1.50% to 1.75% YaucoGoldplay Exploration Ltd.Mexico Exploration 1.0% Vila Union Goldplay Exploration Ltd.Mexico Exploration 1.0% El PlacerGoldplay Exploration Ltd.Mexico Exploration 1.0% AzucenaPucara Resource Corp.Peru Exploration 1.0% Capricho Pucara Resource Corp.Peru Exploration 1.0% LourdesPucara Resource Corp.Peru Exploration 1.0% PacaskaPucara Resource Corp.Peru Exploration 1.0% Paco OrcoPucara Resource Corp.Peru Exploration 1.0% Pucapaca Pucara Resource Corp.Peru Exploration 1.0% Santo TomasPucara Resource Corp.Peru Exploration 1.0%
Baffin gold project -- Kivalliq Energy Corp.
Sandstorm acquired a 1.5-per-cent-to-1.75-per-cent NSR royalty on the Baffin project located in Nunavut, Canada, for consideration of $600,000. The project is owned by Kivalliq Energy and is over 4,000 square kilometres in size. More than $25-million (U.S.) was spent on the property between 2001 and 2011 by previous operators, including BHP-Billiton Ltd., Falconbridge Ltd. and AngloGold Ashanti.
Baffin hosts high-grade gold occurrences in multiple geological settings, with anomalous gold found in till and rock samples along a 140-kilometre strike length. Most areas have not yet been tested by drilling. Kivalliq has obtained a database of historical exploration and geoscience data from the property and in 2017 conducted a $775,000 exploration program that focused on corroborating the historical results through geological mapping, prospecting, and geochemical rock and till sampling. Infrastructure at the Baffin project includes an existing camp, tidewater access and two 1,200-metre airstrips.
For more information, visit the Kivalliq website and see the press releases dated Oct. 25, 2017, and March 27, 2018.
Goldplay Exploration Ltd.
Sandstorm acquired 1-per-cent NSR royalties from Goldplay Exploration on the Yauco, Villa Union and El Placer projects located in the state of Sinaloa in Mexico. As part of the transaction, Sandstorm also acquired the option to purchase a 1-per-cent NSR royalty on Goldplay's El Habal project in Mexico. Consideration paid for the three royalties and option agreement totalled $100,000. The El Habal, Yauco and Villa Union projects are located in the Rosario mining district and the El Placer project is located in the Concordia mining district. Goldplay recently completed ground geophysical surveys at the El Habal project that identified 15 new drilling targets, and continuing exploration is focused on defining new mineralized zones through surface trenching, underground mapping, channel sampling, ground geophysics and drilling. Goldplay has planned a 4,000-metre drilling program at El Habel for the second quarter of 2018.
For more information, visit the Goldplay website and see the press releases dated March 6, 2018, March 8, 2018, and April 5, 2018.
Pucara Resources Corp.
Sandstorm acquired 1-per-cent NSR royalties on seven projects owned by Pucara Resources in southern Peru for consideration of $1-million. Pucara is a Peruvian-focused precious metal explorer and project generator.
In February, 2018, Pucara announced that it had entered into a joint venture agreement with Iamgold Corp. to explore the Los Tambos project. Iamgold may earn a 60-per-cent interest in the property by spending $4-million (U.S.) on the project and making $500,000 (U.S.) in payments to Pucara over the next four years. Iamgold is assessing the Los Tambos property and finalizing a drill program that is expected to commence once the permits are granted.
Pucara raised $4.2-million in late 2017 through a private placement and its shareholder base includes Sandstorm, Resource Capital Funds and Exploration Capital Partners. Pucara will use part of the proceeds from the private placement to finance drill programs at the Pacaska and Lourdes projects. Pucara is working toward a public listing in 2018.
For more information, visit the Pucara website and see the press release dated Feb.28, 2018.
Rambler Metals and Mining PLC releases an updated technical report demonstrating a profitable 20-year operating life at the Ming mine
Rambler reported that it has completed a new mineral resource and reserve estimate for the Ming copper-gold mine resulting in a life-of-mine plan of more than 20 years. Production is expected from both the high-grade massive sulphide zone and the Lower Footwall zone (LFZ) at an average throughput of 1,250 tonnes of ore per day. The mineral resource gold grade has improved by 14 per centas a result of an extensive diamond drilling program in the LFZ.
Rambler is planning to accelerate its exploration efforts at the LFZ as the drill intersections outside of the resource model have confirmed that the mineralization in the LFZ improves in grade and continuity at depth.
For more information, visit the Rambler website and see the press release dated March 5, 2018.
Sandstorm has a gold stream agreement with Rambler to receive 25 per centof the first 175,000 ounces of gold produced and 12 per centof the gold produced thereafter from the Ming mine.
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 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. 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 178 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 royalties.
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