VANCOUVER, BC, Dec. 2, 2021 /CNW/ - 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.
FIRST MAJESTIC RELEASES UPDATED SANTA ELENA MINE PLAN; SANDSTORM UPDATES
SHORT-TERM PRODUCTION GUIDANCE
In late November, First Majestic Silver Corp. ("First Majestic")
released an updated Technical Report for the Santa Elena Mine in
Mexico, which incorporates
production from the nearby Ermitaño project. Sandstorm's gold
stream on the Santa Elena mine
does not cover the Ermitaño project. The updated mine plan outlines
processing of both Ermitaño and Santa
Elena material starting in 2022, reducing expected annual
production from the Santa Elena
mine. Expected attributable production to Sandstorm from the
Santa Elena gold stream has been
reduced starting in 2022.
Considering the expected reduction in attributable gold
equivalent ounces from the Santa
Elena gold stream, Sandstorm is updating its short-term
guidance (2022-2024) to approximately 63,000 gold equivalent ounces
per year. Long-term guidance remains unchanged at 125,000 gold
equivalent ounces by 2025.
For more information on the Santa
Elena project and updated Technical Report, visit the First
Majestic website at www.firstmajestic.com and see the press release
dated November 24, 2021.
EQUINOX RELEASES PFS FOR AURIZONA EXPANSION
Equinox Gold Corp. ("Equinox Gold") released a Pre-Feasibility
Study in September 2021 for an
expansion to the Aurizona mine through the development of an
underground mine and additional satellite open-pit
deposits, which would be operated concurrently
with the existing open-pit mine. The assessment outlines total
production of 1.5 Moz gold over an 11 year mine life. Average
annual production over the mine life is 137,000 ounces, with peak
production between 2026–2029, expected to average greater than
160,000 ounces per year.
The Aurizona Proven & Probable Mineral Reserves increased
73% to 1.66 Moz gold (contained in 32.3 Mt at 1.6 grams per tonne
("g/t") gold with a cut-off grade of 0.35–0.47 g/t for open-pit and
1.8 g/t gold for underground, effective date of June 30, 2021) compared to previously stated
Mineral Reserves from December 31,
2019. Measured & Indicated Resources (exclusive of
reserves) increased to an estimated 868,000 ounces contained in
18.1 Mt at 1.5 g/t gold (cut-off grade of 0.3 g/t for open pit and
1.0 g/t for underground resources, effective date of June 30, 2021).
For more information, visit the Equinox Gold website at
www.equinoxgold.com and see the press release dated September 20, 2021. Sandstorm has a 3%–5% sliding
scale NSR royalty on the Aurizona project. At gold prices between
$1,500 and $2,000 per ounce, the royalty is a 4% NSR.
ANTIPA INTERSECTS 1.7 G/T GOLD AND 0.21% COPPER OVER 172.0
METRES AT MINYARI DEPOSIT
Antipa Minerals Limited ("Antipa") has released results from
their 2021 drill program on the Minyari deposit at the North Telfer
project in Western Australia. The
drill program has been focused on testing for extensions from
existing resources, infill drilling, and exploring for new zones of
mineralization. Given the success of the program in October 2021, Antipa expanded the drill program
from 21,000 metres to 45,000 metres.
Highlighted drill results include:
- 21MYC0216: 172.0 metres of 1.7 g/t gold and 0.21% copper
from 230.0 metres;
- 21MYC0221: 77.0 metres of 1.3 g/t gold, 0.41% copper,
and 1.1 g/t silver from 85.0 metres;
- 21MYC0233: 134.0 metres of 1.7 g/t gold and 0.30% copper
from 212.0 metres; and
- 21MYC0235: 30.0 metres of 3.0 g/t gold and 0.14% copper
from 149.0 metres.
Intersections are downhole lengths; true widths are not known
with certainty. For more information and complete drill results,
visit the Antipa website at www.antipaminerals.com.au and see the
press releases dated July 20, 2021
and October 5, 2021. Sandstorm has a
1.0% NSR on the North Telfer project.
ERDENE INTERSECTS 33.5 G/T GOLD OVER 8 METRES AT DARK HORSE
MANE DISCOVERY
Erdene Resource Development Corporation ("Erdene") released
results from their follow-up drill program at the Dark Horse
deposit. The Dark Horse deposit was discovered in early 2021 and is
located 2.4 kilometres north of the Bayan Khundii Gold project.
This discovery is the most significant area of gold mineralization
in Erdene's Khundii Gold District since the discovery of the Bayan
Khundii gold deposit.
To date, Erdene has completed 14,681 metres of drilling in 128
holes at the greater Dark Horse prospect, covering an area of
approximately 4.6 kilometres by 2.6 kilometres. The recent drilling
confirmed a high-grade oxide zone starting at surface and is open
at depth and along strike. Further follow-up drilling at Dark Horse
is expected to commence in late Q4-2021.
Highlighted drill results include:
- ADD-146: 17.0 metres of 16.7 g/t gold from 15.0 metres,
including 8.0 metres of 33.5 g/t gold;
- ADD-137: 24.5 metres of 9.4 g/t gold from 1.5
metres;
- ADD-138: 25.0 metres of 6.1 g/t gold from 18.0 metres;
and
- ADD-136: 30.0 metres of 5.6 g/t gold from 6.0
metres.
Reported intervals are downhole apparent widths; true widths are
not known. For more information and complete drill results, visit
the Erdene website at www.erdene.com and see the press release
dated November 17, 2021. Sandstorm
has a 1.0% NSR on the Bayan Khundii project.
QP
Qualified
Person
|
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. He has reviewed and approved the
scientific and 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 Gold Royalties 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. The Company
has acquired a portfolio of 229 royalties, of which 28 of the
underlying mines are producing. Sandstorm Gold Royalties 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.
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.
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, but
are not limited to, the expectation that various closing conditions
of the Vatukoula Stream will be met, the expectation that the
Vatukoula Stream will close, 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,
including changes to production guidance, the offer and sale of
Common Shares under the at-the-market equity program (the "ATM
Program"), including the timing and amounts thereof, the use of any
proceeds from the ATM Program, and statements with respect to the
Company's proposed normal course issuer bid ("NCIB") and the number
of Common Shares that may be purchased under the NCIB.
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, 2020 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.