VANCOUVER, March 18, 2024 - 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.
IVANHOE OPTIMIZES PLATREEF DEVELOPMENT AND ACCELERATES PHASED EXPANSION
Ivanhoe Mines Ltd. ("Ivanhoe") announced an optimized development plan for the Platreef project in South Africa which de-risks initial production and accelerates the asset's Phase 2 expansion by up to three years. Under the revised development plan, Ivanhoe will re-purpose ventilation Shaft 3 for hoisting at a rate of 3 million tonnes per annum ("Mtpa") and increase the size of the initial Phase 2 concentrator to 3.3 Mtpa (previously 2.2 Mtpa), bringing site-wide processing capacity to 4.0 Mtpa. Shaft 3 is expected to be ready for hoisting in the fourth quarter of 2025. An updated feasibility study (the "Updated FS"), accelerating and optimizing the development of Phase 2, is expected to be completed and published in the second half of 2024.
In addition, Ivanhoe continues to advance construction of the 10 metre-diameter Shaft 2 at Platreef, which will contribute additional hoisting capacity of 8.0 Mtpa. In conjunction with the advancement of Shaft 2 and the Updated FS, Ivanhoe is undertaking a preliminary economic assessment ("PEA") for Phase 3 expansion, increasing total processing capacity at Platreef to approximately 10.0 Mtpa. Phase 3 is anticipated to rank Platreef as one of the world's largest and lowest-cost platinum-group metals, nickel, copper, and gold operations. The processing capacity of the Phase 3 expansion will be 12.5 times greater than that of Phase 1 and 2.5 times greater than the optimized Phase 2 expansion.
Construction of Platreef's Phase 1 concentrator is advancing on schedule and is over 80% complete and is on track for cold commissioning in the third quarter of 2024. Hot commissioning and ramp-up of production is planned for early 2025.
For more information, visit the Ivanhoe Mines website at www.ivanhoemines.com and see the press release dated February 26, 2024.
Sandstorm holds a gold stream on the Platreef project whereby Sandstorm is entitled to purchase 37.5% of payable gold produced from Platreef until 131,250 gold ounces have been delivered, then 30% of payable gold produced until an aggregate of 256,980 ounces are delivered, then 1.875% thereafter if certain conditions are met. Sandstorm will make ongoing cash payments of US$100 per ounce of gold until 256,980 ounces have been delivered, and then 80% of the spot price of gold for each ounce delivered thereafter.
HOD MADEN DEVELOPMENT UPDATE FROM SSR MINING
SSR Mining Inc ("SSR Mining") has updated its growth outlook following a February 13, 2024 incident at one of the company's producing Turkish assets, in which Sandstorm has no interest or royalty. On February 27 as a result of this incident, SSR Mining retracted all previously issued guidance for its Turkish assets, including the Hod Maden gold-copper development project where Sandstorm holds a gold stream and net smelter returns ("NSR") royalty.
Sandstorm currently estimates a delay of one year and awaits further updates from SSR Mining. SSR Mining holds a 10% interest in Hod Maden with the right to acquire an additional 30% interest via structured earn-in payments linked to construction and commercial production milestones.
Hod Maden is a high-grade gold-copper project located in northeastern Türkiye. A feasibility study released in 2021 contemplates an underground mine with an expected average annual production of 156,000 ounces of gold and 19.6 million pounds of copper per annum over an initial 13-year mine life. The feasibility study outlines a conventional plant design that will incorporate crushing, grinding, and flotation techniques to maximize the recovery of copper and gold from the ore. The plant design has been envisioned to be environmentally friendly without the use of cyanide. Hod Maden was granted approval of its Environmental Impact Assessment in 2021 and had received all major permits as of October 2022.
For more information, visit www.ssrmining.com and refer to SSR Mining's press releases dated February 13, 2024 and February 27, 2023.
ANTAMINA EXTENDS MINE LIFE TO 2036 WITH APPROVAL OF MEIA
Teck Resources Ltd. ("Teck Resources") reported in February 2024 that the Antamina copper mine in Peru received approval of the Modification of Environmental Impact Assessment (the "MEIA"). The MEIA allows for an investment of approximately $2 billion over the next eight years, which will extend operations at Antamina through to 2036. The MEIA extends the permitted pit depth by 150 metres and will allow Antamina to optimize existing mining components within its current operation while also expanding the footprint of the open pit and expansion and optimization of tailings facilities. The MEIA also considers processing capacity of up to 208 thousand tonnes per day ("ktpd") which would be an approximate 40% increase from current levels of 145 ktpd.
Antamina contains Reserves and Resources that support a multi-decade mine life producing high-grade copper. Effective December 31, 2023, Mineral Reserves totaled 226 million tonnes at 0.94% copper, 0.56% zinc, 10.7 g/t silver, and 0.024% molybdenum. Measured and Indicated Resources, exclusive of Reserves, totaled 673 million tonnes at 0.83% copper, 0.51% zinc, 11.4 g/t silver, and 0.016% molybdenum.
For more information, visit Teck Resources' website at www.teck.com and see press release dated February 21, 2024 and Annual Information Form dated February 22, 2024, and visit Compañia Minera Antamina SA's website at www.antamina.com and see the company's press release dated February 15, 2024.
Sandstorm holds a 1.66% silver stream referenced to silver production at the Antamina mine as well as an effective 0.55% net profits interest ("NPI") royalty on the mine.
GLENCORE EARMARKS INVESTMENT AT MARA AND ARGENTINIAN ASSETS
Glencore plc ("Glencore") reported that the company has earmarked an aggregate of $400 million over the next three years for two growth projects located in Argentina, including their wholly-owned MARA project. The investment will continue the development, feasibility studies, and early works of their Argentinian assets. During the company's 2023 year-end earnings call, Glencore CEO, Gary Nagle, discussed MARA as one of the major areas of growth for Glencore's copper base. Mr. Nagle underscored the low-cost, long-life qualities of MARA and that advancing the project is significantly de-risked given the brownfield nature of the project.
In September 2023, Glencore completed the acquisition of the remaining 56.25% interest that it did not previously own in the MARA project. MARA is a brownfield copper-gold project that ranks as one of the lowest capital-intensive copper projects in the world, owing to the existing Alumbrera processing plant and associated infrastructure located nearby. MARA is expected to be in the top 25 global copper producers when operational, with an expected average copper production over the first 10 full years exceeding 200,000 tonnes per annum (with further material by-product credits). The consolidation of the MARA project has added over 1 billion tonnes of Resources to Glencore's copper Resource base.
In 2015, Sandstorm entered into an early deposit gold stream on the MARA project that allows for an additional advance payment to convert the Company's existing 0.25% NSR royalty into a gold stream (the "Stream Conversion"). The maximum amount of the advance payment is $225 million (the "Advance Payment"). If the Advance Payment is made, Sandstorm will have the right to purchase 20% of the gold produced at MARA for the life of the mine, with ongoing payments equal to 30% of the spot price of gold. Sandstorm is only required to elect the Stream Conversion once Glencore has made a board-approved construction decision at MARA. The Advance Payment is payable in quarterly tranches throughout the construction period in proportion to total project spending.
Visit www.glencore.com and refer to the Full Year 2023 Earnings Call transcript and Glencore's press release dated July 31, 2023, for further details.
MINERAL RESOURCES INCREASE 25% AT CHAPADA'S SAUVA DEPOSIT
Lundin Mining Corporation ("Lundin Mining") released their updated Mineral Reserve and Mineral Resource estimates effective December 31, 2023. The Sauva deposit, located approximately 15 kilometres from the Chapada plant, had a 25% increase in Mineral Resources when compared to the estimate effective December 31, 2022. Additional drilling during 2023 tested step-out anomalies along the broader Sauva-Formiga trend, which contributed to the increase in Mineral Resources. The deposit remains open in all directions.
The open pit Indicated Resource at the Sauva deposit increased to an estimated 721 thousand tonnes of copper contained in 244.7 million tonnes grading 0.29% copper and 0.17 g/t gold (December 31, 2023, effective date, NSR cut-off value of $7.80 per tonne). The Sauva deposit, which is located within Sandstorm's stream area of interest, contains higher grades than existing Measured and Indicated Resources at Chapada which total 1.06 billion tonnes grading 0.23% copper and 0.12 g/t gold (NSR cut-off grade of $5.80 per tonne).
For more information visit the Lundin Mining website at www.lundinmining.com and see the press release dated February 8, 2024.
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. Sandstorm also holds a 2.0% NSR royalty on the Suruca Deposit at Chapada, which was purchased as part of the Nomad Royalty Company Ltd. acquisition in 2022.
FRUTA DEL NORTE ANNOUNCES LARGEST EXPLORATION PROGRAM AND THROUGHPUT EXPANSION
Lundin Gold Inc. ("Lundin Gold") recently announced the largest exploration program to date at the Fruta del Norte project in Ecuador since the mine was discovered in 2006. The drilling program consists of 56,000 metres (46,000 metres near-mine exploration, 10,000 metres regional exploration), following on from the 35,305 metres of drilling completed in 2023. Lundin Gold expects to release updated Mineral Reserves and Resources for Fruta del Norte in the first quarter of 2024, reflecting the results of this 2023 drill program.
The 2024 near-mine exploration program will focus on underground drilling below the current resource envelope, while surface drilling will be primarily focused on the FDNS and Bonza Sur targets, as well as other targets to the north and east of Fruta del Norte. The regional program will focus on several exploration targets located in the 16 kilometre long Suarez Basin, with the objective of identifying new epithermal systems.
In addition, Lundin Gold reaffirmed its plans to further expand gold production at Fruta del Norte via its Process Plant Expansion Project which will increase mill throughput by approximately 10% to 5,000 tonnes per day ("tpd") and increase metallurgical recoveries by 3%. As a result, gold production for 2024 is estimated to be between 450,000-500,000 ounces based on average throughput of 4,500 tpd. Production outlook for 2025 and 2026 is estimated to increase to 475,000-525,000 ounces of gold with throughput sustained at 5,000 tpd.
For more information, visit the Lundin Gold website at www.lundingold.com and see the press release dated December 4, 2023. Sandstorm has a 0.9% NSR royalty on the precious metals produced from the Fruta del Norte project.
FALCO RESOURCES AND GLENCORE ENTER INTO OPERATION AGREEMENT FOR HORNE 5
Falco Resources Ltd. ("Falco Resources") announced that the company has entered into an operating license and indemnity agreement with Glencore Canada Corporation ("Glencore Canada"). This agreement grants Falco Resources a license to utilize a portion of Glencore Canada's land to develop and operate Falco Resources' Horne 5 project located in Québec, Canada. The agreement is a key catalyst for the Horne 5 project to move into the next stages of development, including permitting and financing. Falco has completed its environmental impact assessment ("EIA") for the Horne 5 project and is currently awaiting the notice of admissibility for the EIA and trigger next steps in the project's permitting, including the BAPE consultation process.
For more information, visit the Falco Resources website at www.falcores.com and see the press release dated January 24, 2024. Sandstorm has a 2.0% NSR royalty on the Horne 5 project.
ERDENE COMMENCES CONSTRUCTION AT THE BAYAN KHUNDII PROJECT
Erdene Resource Development Corp. ("Erdene Resources") announced the commencement of full construction at the Bayan Khundii project in Mongolia. The construction decision follows the completion of an early works program during the second half of 2023, which represents approximately 12% of the total construction effort. The construction is expected to be substantially complete by the end of 2024, while commissioning and first gold are expected in the second quarter of 2025. Based on an updated feasibility study released in 2023, average annual gold production of approximately 70,000 ounces is expected over a seven year mine life.
For more information, visit Erdene Resources' website and www.erdene.com and see the press release dated January 29, 2024. Sandstorm has a 1.0% NSR royalty on the Bayan Khundii project.
BLYVOOR OPERATOR ANNOUNCES GO-PUBLIC EVENT, FUNDING PRODUCTION GROWTH
The group of mining companies that operate the Blyvoor gold mine in South Africa along with Rigel Resource Acquisition Corp ("Rigel") (NYSE: RRAC) have entered into a definitive business combination agreement and financing agreement and that is expected to result in a publicly traded company expected to be named "Aurous Resources" ("Aurous") and listed on the NASDAQ (the "Aurous Transaction"). Net proceeds from the Aurous Transaction will enable the company to continue to invest in improvements designed to accelerate production growth and lower operating costs at the Blyvoor mine.
The Blyvoor mine is a producing long-life underground gold mine located on the Witwatersrand gold belt in South Africa, which commenced production in 1942. Sandstorm has a gold stream on the Blyvoor mine, whereby, until 300,000 ounces have been delivered (the "Initial Blyvoor Delivery Threshold"), Sandstorm will receive 10% of gold production until 16,000 ounces have been delivered in the calendar year, then 5% of the remaining production for that calendar year. Following the Initial Blyvoor Delivery Threshold, Sandstorm will receive 0.5% of gold production on the first 100,000 ounces in a calendar year until a cumulative 10.32 million ounces of gold have been produced. Under the agreement, Sandstorm will make ongoing cash payments of $572 per ounce of gold delivered.
For more information visit www.blyvoorgold.com and see the press release dated March 11, 2024 and refer to the filings on Rigel's Edgar profile at www.sec.gov/edgar/search-and-access.
HUGO NORTH EXTENSION DRILL RESULTS AND UNDERGROUND DEVELOPMENT UPDATE
Entrée Resources Ltd. ("Entrée Resources") has released partial drill results from the 2022 drill program at the Hugo North Extension ("HNE"). The drill results, which are the first holes drilled into the HNE since 2011, demonstrate continuity of the significant copper and gold grades at the HNE deposit.
Highlighted results include underground drill holes that intersected proposed Lift 2:
DDH UGD583A: 274 metres grading 2.36% copper and 0.73 g/t gold; and
DDH UGD586: 178 metres grading 2.90% copper and 0.96% Au including 144 metres grading 3.50% copper and 1.07 g/t gold.
In addition to the drill results, Entrée Resources reported updates on Lift 1 Panel 1 underground infrastructure development work on the Entrée/Oyu Tolgoi JV Property. Development work is scheduled to commence in the second half of 2024 and will start in the southwest corner of the HNE deposit on the Shivee Tolgoi mining licence. The work will establish the initial Panel 1 western ore handling truck chute, including extraction level tipple development, the truck chute chamber on the haulage level, and the supporting ventilation loop with the return air level.
Shafts 3 and 4, which are required to provide ventilation to support production from Panels 1 and 2 during ramp-up to full Lift 1 production, are expected to be commissioned in the second half 2024. Panel 1 production on the Oyu Tolgoi mining licence is anticipated to commence in approximately 2027.
Sandstorm holds a gold, silver, and copper stream on the Hugo North Extension whereby Sandstorm is entitled to purchase 5.62% of the gold and silver produced at ongoing payments of US$220 per ounce gold and US$5 per ounce silver. Sandstorm is entitled to purchase 0.42% of the copper produced at an ongoing payment of US$0.50 per pound copper.
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