Sandstorm Resources Announces First Gold Sales and Provides Update on Luna Gold's Aurizona Mine
August 30, 2010
Vancouver, British Columbia, August 30, 2010 -- Sandstorm Resources Ltd. ("Sandstorm") (TSX-V: SSL) is pleased to announce the first gold sales from its gold streaming transaction with Luna Gold Corp. ("Luna"). Luna has begun extracting gold from both the gravity circuit and the cyanide leach system of its Aurizona mine in Brazil, of which Sandstorm is entitled to purchase 17% at $400 per ounce. Luna has also approved a US$5 million exploration program to be completed in the balance of 2010 of which the bulk of that amount will be dedicated to exploration in the Aurizona main area ("Aurizona Main") under which the Sandstorm agreement is in place.
Aurizona Mine Commissioning
Highlights of the Commissioning process are as follows:
- Commissioning of the primary circuit and the gravity circuit has been completed.
- Commissioning of the leach circuit is underway.
- July production was approximately 600 ounces of gold.
- August production to date is approximately 1,800 ounces of gold.
- Production is expected to continue to ramp up over the next several months as commissioning is completed.
During the last two weeks of August, the plant achieved a daily average milling rate of 5,000 run-of-mine tonnes of ore per day at an average mining grade of 1.24 grams per tonne. This milling rate was approximately 8% above the feasibility study rate and the operational team continues to ramp up gold production during the commissioning phase.
The Company's exploration team has made solid progress in defining additional targets within the Aurizona Main area. A 20,000 metre drill program commenced at the end of August and will drill extensions of the Piaba deposit in addition to drill programs at the Tatajuba deposit and near mine exploration targets in the Aurizona Main area. Drilling will also be focused on infilling over a 3 kilometre length at the Piaba deposit to further define measured and indicated resources.
"We are delighted to see the ramp up of gold production at Aurizona is beginning to take place. In addition to increasing gold sales, we are looking forward to the results of the significant exploration program that is being deployed on the asset," stated Nolan Watson, President and Chief Executive Officer of Sandstorm.
Mr. Watson added, "We anticipate Sandstorm will realize gold sales from Aurizona in the third quarter and material production from this asset in the fourth quarter. It is exciting to see Sandstorm transform into a cash flowing gold company."
ABOUT SANDSTORM RESOURCES
Sandstorm Gold Ltd. is a growth focused resource based company that seeks to complete gold purchase agreements with companies that have advanced stage development projects or operating mines. A gold purchase agreement involves Sandstorm making an upfront cash payment to its partners and in exchange, Sandstorm receives the right to purchase a percentage of the gold produced for the life of the mine, at a fixed price per ounce. Sandstorm helps other companies in the resource industry grow their business, while acquiring attractive assets in the process.
Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold purchase agreements with Luna Gold Corp., SilverCrest Mines Inc., Santa Fe Gold Corp., Rambler Metals and Mining plc, Brigus Gold Corp., Metanor Resources Inc. and Donner Metals Ltd.
For more information visit: http://www.sandstormgold.com.
Cautionary Note Regarding Forward-Looking Information
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. 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 include but are not limited to, statements with respect to the transactions contemplated by the proposed Consolidation of the Company's Common Shares and a proposed listing of the Company's securities in the United States. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by the forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Sandstorm will purchase gold 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; problems inherent to the marketability of minerals; industry conditions, including fluctuations in the price of metals, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm's annual report for the financial year ended December 31, 2011. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Silver Wheaton Corp., Royal Gold, Inc., and Franco-Nevada Corporation.
Sandstorm Gold Ltd.
Nolan Watson, President & Chief Executive Officer
Denver Harris, Investor Relations Contact
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.