The Hackett River property is located in Nunavut, Canada, approximately 480 km northeast of Yellowknife and 105 km south of the community of Bathurst Inlet, located on the Arctic Ocean. Hackett River is a silver-rich volcanogenic massive sulphide deposit within an Archean greenstone belt and the property contains four massive sulphide deposits (East Cleaver, Boot Lake, Main Zone and Jo Zone) that occur over a 6.6 km strike length.
A Preliminary Economic Assessment was completed in 2010 and evaluated a possible large-scale open pit and underground mining operation, processing up to 17,000 tpd. The proposed process plant was a crushing, grinding, flotation circuit that would produce a saleable concentrate for zinc, lead and copper with an emphasis on optimizing silver recovery. The projected average metal recoveries were 74.5% for copper, 55% for gold, 77% for silver, 85% for lead and 92% for zinc.
A Pre-Feasibility Study is underway and Glencore is re-interpreting the resource model using the data compiled from a 39,000 metre, 114-hole exploration drill program that was completed in 2013.
Sandstorm has a 2.0% NSR royalty that covers 7,141 hectares of the Hackett River property including the licenses where the mineral resources have been defined. Sandstorm acquired the royalty as part of a transaction with Teck Resources Ltd. in January 2016.