VANCOUVER, BC, May 24, 2024
/PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm Gold Royalties",
"Sandstorm" or the "Company") (NYSE: SAND) (TSX: SSL) is pleased to
provide updates on various developments from the Company's
diversified royalty portfolio.
Equinox Gold Pours First Gold at Consolidated Greenstone
Mine
Equinox Gold Corp. ("Equinox Gold") has announced first gold
pour at its 100% owned Greenstone gold mine in Ontario, Canada. The inaugural gold pour was
achieved on schedule, producing 1,800 ounces of gold from the full
recovery circuit, with all equipment operating as expected. In
April, Equinox Gold announced that ore had been introduced into the
grinding circuit and more than 1.5 million tonnes ("Mt") of ore had
been stockpiled for commissioning. Progressively higher-grade ore
will be fed into the mill as production ramps up toward planned
throughput of 27,000 tonnes per day, with commercial production
targeted for the third quarter of 2024.
In May, Equinox Gold closed the previously announced acquisition
of the remaining 40% of Greenstone Gold Mine GP Inc. from certain
funds managed by Orion Mine Finance Management LP ("Orion"), giving
Equinox Gold 100% ownership of the Greenstone mine. Equinox Gold
paid Orion US$705 million in cash and
42.0 million Equinox Gold shares valued at US$250 million on closing. An additional
US$40 million in cash is payable by
December 31, 2024, for total
consideration of US$995 million for
Orion's 40% interest. The consolidated Greenstone is Equinox Gold's
largest mine, producing an expected average of 400,000 ounces of
gold per year over the first five years and on average 360,000
ounces of gold per year over the initial 14-year mine life.
Greenstone is expected to be one of the world's lowest-cost
open-pit gold mines. Equinox Gold notes that the transaction also
consolidates the Greenstone underground deposit, which is a key
expansion opportunity at the mine, as well as multiple gold
deposits in a highly prospective land package over a 100-kilometre
trend to the west of Greenstone.
For more information, visit Equinox Gold's website at
www.equinoxgold.com and refer to the press releases dated
April 9, April
23, May 13, and May 23, 2024.
Sandstorm holds a gold stream on the Greenstone mine whereby the
Company is entitled to purchase 2.375% of gold produced at the mine
until 120,333 ounces are delivered, and then 1.583% of gold
produced. Sandstorm will make ongoing payments equal to 20% of the
spot price of gold per ounce plus an additional payment of up to
US$30 per ounce in ESG
contributions.
Woodlawn Production Restart Study Outlines Pre-Tax NPV of
A$658 Million
Develop Global Limited ("Develop") has announced the results of
a Production Restart Study (the "PRS") on its Woodlawn copper-zinc mine in New South Wales, Australia. The PRS outlines a
pre-tax net present value ("NPV") of A$658
million, representing a 37% increase from the previous
estimate. Proven and Probable Reserves have increased by 80% to 6.0
Mt at 1.5% copper, 1.3% lead, 3.6% zinc, 29.0 grams per tonne
("g/t") silver and 0.4 g/t gold containing 5.6 million ounces
("Moz") of silver. Inclusive Mineral Resources have increased by
55% to 11.3 Mt at 1.8% copper, 2.1% lead, 5.8% zinc, 46.0 g/t
silver, and 0.5 g/t gold (based on a NSR cut-off grade of
$A100 per tonne). In light of
financial and operational metrics outlined in the PRS, Develop has
decided to start exploring funding options which may result in it
selling a minority interest in Woodlawn. The mine plan indicates Woodlawn will produce an average 12,000 tonnes
of copper and 36,000 tonnes of zinc in payable metal per annum.
Woodlawn is expected to produce
80,000 tonnes copper and 218,000 tonnes zinc in payable metal over
the life of mine.
For more information, visit Develop's website at
www.develop.com.au and see the press release dated April 3, 2024.
Sandstorm has a silver stream on the Woodlawn project whereby the Company has the
right to purchase an amount of silver equal to 80% of payable
silver produced, to a maximum value of A$27
million. In addition, the Company holds a second stream at
Woodlawn under which the operator
has agreed to pay Sandstorm A$1.0
million for each 1 Mt of tailings ore processed at
Woodlawn, subject to a cumulative
cap of A$10 million.
Bonterra and Osisko Mining Announce Initial Exploration
Results Under Urban-Barry Option Agreement
Bonterra Resources Inc. ("Bonterra") has announced initial drill
results from the exploration drilling program on the newly named
Phoenix JV (formerly known as the Urban-Barry Property). The drill
program is part of a definitive earn-in and joint venture agreement
with Osisko Mining Inc. ("Osisko"), whereby Osisko has the right to
acquire up to a 70% interest in the Phoenix JV by spending
C$30 million in work expenditures
over a three-year period. Osisko plans to drill over 35,000 metres
on the project in 2024, and as of April 15,
2024, approximately 20,000 metres have been drilled on the
project. Osisko has identified multiple targets on the project,
including the Moss target, which is located only five kilometres
south-west from the Windfall gold deposit. Initial drill results at
Moss confirm similarities to the multimillion-ounce Windfall Gold
deposit. First drill results include:
- OSK-PHX-24-004:
- 5.18 g/t gold over 3.3 metres from 528.0 metres, including
16.75 g/t gold over 1.0 metres from 528.0 metres, and;
- 3.19 g/t gold over 2.9 metres from 575.0 metres, including
12.70 g/t gold over 0.7 metres from 577.2 metres.
- OSK-PHX-24-013:
- 6.76 g/t gold over 0.8 metres from 11.0 metres, and;
- 9.63 g/t gold over 0.5 metres from 181.4 metres.
- OSK-PHX-24-030:
- 9.52 g/t gold over 0.3 metres from 62.5 metres.
For more information, visit Bonterra's website at
www.btrgold.com and refer to the press releases dated January 18, 2024, and April 15, 2024.
Sandstorm holds a net smelter returns ("NSR") royalty ranging
between 0.5%–3.9% on portions of the Urban-Barry property, which
covers both the Barry and Moss deposits. Sandstorm also holds a
1.0% NSR royalty on the neighbouring Gladiator (West Arena) gold
deposit.
Houndé Gold Mine Exploration Program Update
Endeavour Mining Corporation ("Endeavour") provided an update to
its 2024 exploration program at the Houndé gold mine in
Burkina Faso. In the first quarter
of 2024, Endeavour spent
US$2.3 million of a proposed
US$7.0 million exploration program,
consisting of 5,328 metres of drilling across 25 drill holes. The
program is focused on delineating targets at depth within the Kari
Area and Vindaloo Deeps, as well as adding resources at existing
deposits. Drilling continued to test the continuity of
mineralization at the Vindaloo Deeps target with preliminary
results demonstrating the potential for a large, higher-grade
underground resource. Additional drilling is also expected at the
Koho East and Vindaloo South East deposits to improve resource
definition. Sterilization drilling is expected to continue to
confirm proposed footprints for future site infrastructure.
In 2017, Sandstorm acquired a 2.0% NSR royalty on the Houndé
mine, including the Vindaloo, Kari
West, and Kari Center deposits, as well as the Koho East
target. As of December 31, 2023, the
mine has produced over 1.7 Moz of gold since production began in
2017 while contained gold in Mineral Reserves and Resources at
Houndé has increased by approximately 55% over the same
period1. Houndé hosts a Proven and Probable Reserve
containing 2.6 Moz of gold within 52.1 Mt at 1.57 g/t gold.
Measured and Indicated Resources, inclusive of Reserves, contain
3.8 Moz of gold contained in 73.1 Mt at 1.63 g/t gold (effective
December 31, 2023; cut-off grade 0.5
g/t gold).
For more information, visit Endeavour's website at www.endeavourmining.com
and see the press release dated May 2,
2024.
Fruta del Norte Mineral Reserves Increase to 5.50 Million
Ounces
Lundin Gold Inc. ("Lundin Gold") announced updated estimates of
Mineral Reserves and Mineral Resources for its Fruta del Norte
("FDN") gold mine in Ecuador.
Measured and Indicated inclusive Resources are reported at
23.53 Mt with an average grade of 9.24 g/t containing 6.99 Moz
of gold based on a 3.4 g/t gold cut-off grade. Proven and Probable
Reserves for FDN are reported at 21.70 Mt with an average
grade of 7.89 g/t containing 5.50 Moz of gold. Lundin Gold reported that the 2023 conversion
drilling campaign was successful at reclassifying Inferred
Resources to Indicated in areas immediately beyond the current
Reserve boundary, including extensions to the north, at depth and
to the south of the FDN deposit. A total of 0.35 Moz of new
Inferred Resources were also added as a result of the conversion
and near-mine drilling completed in 2023. Inferred Resources are
reported at 7.98 Mt with an average grade of 5.77 g/t containing
1.5 Moz. Lundin Gold has grown FDN's
Mineral Reserves since operations began in 2019, adding
approximately 2.6 Moz before mining depletion.
For more information, visit Lundin
Gold's website at www.lundingold.com and see the press
releases dated March 27, 2024.
Sandstorm holds a 0.9% net smelter returns ("NSR") royalty on the
precious metals produced at FDN.
Note 1
Resources inclusive of Reserves on a 100% basis. Houndé
Mineral Reserves and Resources effective December 31, 2023 compared to Houndé Mineral
Reserves and Resources effective December
31, 2017. For more information visit
www.endeavourmining.com.
Qualified Person
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.
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
Sandstorm is a precious metals-focused royalty company that
provides upfront financing to mining companies and receives the
right to a percentage of production from a mine, for the life of
the mine. Sandstorm holds a portfolio of approximately 230
royalties, of which 40 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.
CAUTIONARY STATEMENTS TO U.S. SECURITYHOLDERS
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.
This press release and the documents incorporated by reference
herein, as applicable, have been prepared in accordance with
Canadian standards for the reporting of mineral resource and
mineral reserve estimates, which differ from the previous and
current standards of the United
States securities laws. In particular, and without limiting
the generality of the foregoing, the terms "mineral reserve",
"proven mineral reserve", "probable mineral reserve", "inferred
mineral resources,", "indicated mineral resources," "measured
mineral resources" and "mineral resources" used or referenced
herein and the documents incorporated by reference herein, as
applicable, are Canadian mineral disclosure terms as defined in
accordance with Canadian National Instrument 43-101 — Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM
Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (the "CIM Definition
Standards").
For United States reporting
purposes, the United States Securities and Exchange Commission (the
"SEC") has adopted amendments to its disclosure rules (the "SEC
Modernization Rules") to modernize the mining property disclosure
requirements for issuers whose securities are registered with the
SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules
more closely align the SEC's disclosure requirements and policies
for mining properties with current industry and global regulatory
practices and standards, including NI 43-101, and replace the
historical property disclosure requirements for mining registrants
that were included in SEC Industry Guide 7. Issuers were required
to comply with the SEC Modernization Rules in their first fiscal
year beginning on or after January 1,
2021. As a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Corporation 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. Accordingly, mineral reserve and
mineral resource information contained or incorporated by reference
herein may not be comparable to similar information disclosed by
United States companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources." In
addition, the SEC has amended its definitions of "proven mineral
reserves" and "probable mineral reserves" to be "substantially
similar" to the corresponding CIM Definition Standards that are
required under NI 43-101. While the SEC will now recognize
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", U.S. investors should not assume that
all or any part of the mineralization in these categories will be
converted into a higher category of mineral resources or into
mineral reserves without further work and analysis. 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, U.S. investors are
cautioned not to assume that all or any measured mineral resources,
indicated mineral resources, or inferred mineral resources that the
Company reports are or will be economically or legally mineable
without further work and analysis. Further, "inferred mineral
resources" have a greater amount of uncertainty 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
inferred mineral resources will be upgraded to a higher category
without further work and analysis. Under Canadian securities laws,
estimates of "inferred mineral resources" may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. While
the above terms are "substantially similar" to CIM Definitions,
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 reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules or under the prior standards of SEC Industry Guide 7.
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 "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 the
future price of gold, silver, copper, iron ore and other metals,
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
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.
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, 2023 and the section entitled "Risk
Factors" contained in the Company's annual information form dated
March 27, 2024 available at
www.sedarplus.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.