Producing

Mercedes

Ag
Au
Bear Creek Mining Corp.
Sonora

,

Mexico

Acquisition:

2021 / 12 / 16
2022 / 08 / 15

Agreement:

Stream

Gold Stream Terms:

14.3 koz Au from Jan 2024 to Apr 2028 @ 25% of spot; then

4.4% Au @ 25% of spot thereafter

Silver Stream Terms:

Nil deliveries from Jan 2024 to Apr 2028; then

100% Ag @ 25% of spot thereafter

The underground Mercedes gold-silver mine is located in the state of Sonora in northern Mexico, approximately 250 kilometres northeast of Hermosillo, Mexico and 300 kilometres south of Tucson, Arizona. The Mercedes district has been the focus of mining activities since at least the late 1880s.

The Mercedes property consists of approximately 693 sq km of mineral concessions under lease from the government of Mexico. Commercial production commenced at the Mercedes mine in 2011, and the mine has produced over 800,000 ounces of gold. The Mercedes mill has capacity for approximately 2,000 tonnes per day.

More recently, exploration activities on the property have focused on multiple mineral targets that have the potential to extend the mine life beyond 2026. In 2021, Bear Creek Mining purchased a 100% interest in the Mercedes mine from Equinox Gold. Since 2017, average exploration expenses have been approximately US$1 million per annum, with Bear Creek budgeting $4 million for 2022.

As of December 31, 2021, the Proven & Probable Reserves totaled 2.2 Mt grading 3.75 g/t gold and 29.0 g/t silver, containing 267,000 ounces of gold and 2.1 Moz of silver (2.1 g/t gold cut-off, except Diluvio at 2.0 g/t gold cut-off). The Measured & Indicated Resources contain approximately 3.8 Mt grading 4.7 g/t gold and 42.4 g/t silver, containing approximately 575,000 oz of gold and 5.15 Moz of silver. The Inferred Mineral Resources total 0.9 Mt grading 4.5 g/t gold and 41.0 g/t silver, containing approximately 128,000 oz of gold and 1.2 Moz of silver (2.1 g/t gold cut-off, except Diluvio at 2.0 g/t gold cut-off). The Mineral Resources are inclusive of Mineral Reserves.

Recent Activity

    August 2023

    Bear Creek announced drill results from their 2023 drilling program at Mercedes, which has been focused on improving operations and production in the current workings. The focus of drilling was on the Marianas, Rey de Oro, Diluvio and Lupita deposits, all of which are associated with near-term production. However, the results also hold significant implications for exploration upside in that the source of mineralization in the district may occur in the unexplored northern extensions.

    July 2023

    Greenfield exploration drilling has outlined highly prospective structures related to the Mercedes mine gold mineralization. Drill highlights include:
    – L22-649D: 1.0 m grading 4.3 g/t gold from 239.0 m (Margarita Zone);
    – L22-652D: 2.3 m grading 6.7 g/t gold from 252.0 m (Margarita Zone).
    In addition, an updated NI 43-101 technical report was filed for the Mercedes mine that provides an independent audit of the Mineral Reserves and Resources identified with an effective date of December 31, 2021.

Use the link below to browse a list of available technical reports for the projects within Sandstorm’s portfolio. For the most up-to-date information on each project, please refer to the project operator or developer.

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Annual Report

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