The Mt. Hamilton property is located in the historic Mt. Hamilton mining district of central Nevada, near the southern end of the Battle Mountain gold trend. Two main zones of mineralization have been identified at the project, the Centennial and Seligman zones, which are epithermal gold and silver deposits.
A Feasibility Study was completed on the property in 2014 proposing a 10,000 tpd truck and shovel operation with ore being hauled from the pits to a primary crusher and gold and silver recovered by heap leaching and conventional ADR carbon-in-column processing. Gold recoveries are estimated to be 76% and silver recoveries 39%.
Once in operation, the mine will produce approximately 68,000 ounces of gold and 280,000 ounces of silver per year over a seven year mine life. Mt. Hamilton has an Aug. 2014 Proven and Probable Reserve of 22.5 Mt at 0.8 g/t gold and 6.8 g/t silver for 545,400 ounces of contained gold and 4,459,600 contained ounces of silver (0.2 g/t gold cut-off).
Under the royalty agreement, Sandstorm is guaranteed $10 million in cash flow by Dec. 31, 2022.