The Gold Bar property is located at the southeastern end of the Battle Mountain-Eureka-Cortez gold trend in Eureka County, Nevada. Within the property there are three defined gold deposits; Gold Pick, Gold Ridge, and Cabin Creek. The mineralization is similar for all three deposits and lies within 150 metres of surface, hosted in carbonate-rich sedimentary rocks of the Devonian McColley Canyon Formation. Gold Ridge and Cabin Creek are ancillary deposits and together comprise approximately 22% of the mineral resource. Sandstorm´s royalty covers the bulk of the mineral resource at Cabin Creek.
An updated Feasibility Study released in 2018 supports four open-pits mined in phases with first planned ore production coming from Cabin Creek. Gold Bar is designed as a 7,300 tpd operation with mined ore passing through a single stage of crushing and onto a heap-leach pad followed by an ADR recovery process. Gold recovery is estimated at 82% and average annual gold production is approximately 60,000 ounces over a 7.4-year mine life.
Current Proven and Probable Mineral Reserves at Gold Bar total 16.5 Mt at 1.0 g/t gold containing 524,000 ounces (0.20 - 0.23 g/t cut-off grade).
Construction at Gold Bar is complete and first gold was poured in Q1 2019. Commercial production is on track to begin in Q2 2019.
The heap leach pad has received approximately 150,000 tons of ore. Gold production in 2019 is forecasted to be 55,000 ounces at an all-in sustaining cost of US$975 per ounce. Cabin Creek will represent an estimated 28% of the ounces produced in 2019.