Acquisition:
2013 / 02 / 14
Agreement:
Stream
Terms:
4.47% Au @ $220/oz; 4.47% Ag @ $5/oz; 0.33% Cu @ $0.50/lb
Reflects bought down rates applicable to Hugo North Ext. assuming Mongolian Government acquires a 34% interest in Entrée’s share of JV
Development Highlights
The Hugo North Extension is a rich copper-gold porphyry deposit in southern Mongolia and forms the northern-most extension of the Oyu Tolgoi mining complex. The property is managed by Oyu Tolgoi LLC (OTLLC), a subsidiary of Rio Tinto Group and the Government of Mongolia. Sandstorm acquired gold, silver and copper streams over the Hugo North Extension from Entrée Resources Ltd. Entrée has a 20% joint venture interest with OTLLC on the Hugo North Extension property.
Four deposits have been identified in the mineral resources at Oyu Tolgoi: Oyut, Hugo North, Hugo South, and Heruga. In the initial years of production, the main source of ore has been from the Oyut open pit and while the pit is being mined, underground infrastructure and block cave mine development is ongoing at Hugo North. Conventional crushing, grinding, and flotation circuits process the ore and the concentrates produced are sent to smelters in China.
In 2021, Entrée announced the completion of an updated Feasibility Study on its interest in the Entrée/Oyu Tolgoi joint venture property. In 2023 Entrée reported that optimization studies on Panel 1, which have the potential to further improve Lift 1 economics for the Entrée/Oyu Tolgoi JV, were completed in the second quarter of 2023. More recently, Entrée reported that first underground development work on the Entrée/Oyu Tolgoi JV property commenced in the fourth quarter of 2024. Additionally, Rio Tinto, the operator of Oyu Tolgoi, has announced that ramp up of the Oyu Tolgoi Lift 1 underground mine continues in line with its long-term plan, including commissioning of ventilation Shafts 3 and 4, along with other important construction and commissioning milestones.
Royalty Ounces
Attributable to Sandstorm
| P&P | M&I1 | Inferred | |
|---|---|---|---|
| HNE Gold/Silver Stream GEOs | 32 koz | 73 koz | 91 koz |
| HNE Copper Stream GEOs | 10 koz | 22 koz | 27 koz |
1. Measured and Indicated Mineral Resources are Exclusive of Mineral Reserves.
For notes to Royalty Ounces see page 109 to page 112 of our Asset Handbook.
Reserves and Resources
On a 100% Basis
| Tonnage | Grade | Contained | ||
|---|---|---|---|---|
| Proven & Probable | ||||
| Gold |  | 40.0 Mt | 0.53 g/t | 676 koz |
| Silver |  | 40.0 Mt | 3.6 g/t | 4,613 koz |
| Copper |  | 40.0 Mt | 1.54% | 1,340 mlbs |
| Measured & Indicated1 | ||||
| Gold | | 120.0 Mt | 0.58 g/t | 2,200 koz |
| Silver | | 120.0 Mt | 4.3 g/t | 16,000 koz |
| Copper | | 120.0 Mt | 1.70% | 4,500 mlbs |
| Inferred | ||||
| Gold | | 167.0 Mt | 0.36 g/t | 1,900 koz |
| Silver | | 167.0 Mt | 2.8 g/t | 15,000 koz |
| Copper | | 167.0 Mt | 1.02% | 3,800 mlbs |
1. Measured and Indicated Mineral Resources are Inclusive of Mineral Reserves.
For notes to Mineral Reserves and Mineral Resources see page 118 of our Asset Handbook.
