Development

Platreef

Au
Cu
Ni
Pd
Pt
Rh
Ivanhoe Mines Ltd.
Limpopo

,

South Africa

Acquisition:

2022 / 08 / 15

Agreement:

Stream

Terms:

37.5% Au @ $100/oz until 131,250 oz are delivered; then

30% Au @ $100/oz until 256,980 cumulative oz are delivered; then

1.875% Au @ 80% of spot thereafter if certain conditions are met

Ongoing Payment:

$100/oz

The Platreef Project is located in northeast South Africa, within the Bushveld Igneous Complex’s northern limb, the world’s largest source of platinum group metals (PGM). Platreef is a development-stage project which contains a large new discovery of PGM, nickel, copper and gold. The project is owned by Ivanhoe Mines (64%), a Japanese consortium of Itochu, JOGMEC and Japan Gas Corporation (10%), and a group of local communities organized through the Broad-Based Black Economic Empowerment Initiative (26%). The project contains thick zones of high-grade mineralization located at depths of 800 – 1,200 metres below surface which will be developed as an underground mine initially with two vertical production shafts. The deposit currently ranks as one of the largest precious metals deposits being developed in the world.

The Platreef deposit contains current reserves of 125.2 Mt with an average 4.37 3PE+Au (Pt + Pd + Rh + Au), 0.16% Cu, and 0.34% Ni (as of January 26, 2022, based on a variable NSR cut-off grade of $155 – $80/t). Indicated exclusive resources contain an additional 346 Mt with an average grade of 3.77 g/t 3PE+Au, 0.16% Cu and 0.32% Ni (based on a cut-off grade of 2.0 g/t 3PE + Au). The deposit remains entirely open for expansion to the south and west, indicating there is excellent potential for additional resource expansion.

A Feasibility Study released in 2022 by majority owner Ivanhoe Mines, outlined a multi-phase production approach. Phase 1 production, currently expected to start in the second half of 2024, is planning for 0.7 Mt per annum (Mtpa) targeting high-grade mineralization adjacent to the project’s recently completed Shaft 1. Phase 2 will expand the production rate to 5.2 Mtpa, driven by the addition of the second, larger Shaft 2. The Phase 2 expansion will position Platreef as the world’s fifth-largest PGM mine on a palladium equivalent basis. Previous studies completed on Platreef have demonstrated the potential for expansions up to 12 Mtpa.

Recent Activity

    March 2023

    Construction for Platreef’s Phase 1 concentrator has commenced, with the first production on schedule for Q3 2024. Ivanhoe has initiated optimization work to identify value-accretive options for installing hoisting capacity in Shaft 3, which is currently under construction and was originally planned as a ventilation-only shaft. It is now planned to be equipped for hoisting providing an alternative option to remove ore and waste from the underground mine.

    August 2023

    The Platreef underground mine development at the first ventilation shaft position is advancing well, with more than 200 m of lateral development completed during the quarter. The construction of Platreef’s first solar-power plant is scheduled to commence in Q3 2022, and commissioning is expected in 2023. The electricity generated from the power plant will be used for mine development, construction activities, and charging Platreef’s battery-powered underground mining fleet.

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.

Investor Presentation

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Asset Handbook

With 250 royalties acquired since 2009, we offer an exciting investment opportunity in a diverse portfolio of royalty assets. Discover all of Sandstorm’s royalties around the globe.

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Annual Report

Our 2023 Annual Report includes our annual Financial Statements and Management Discussion & Analysis and a letter from Sandstorm’s President & CEO.

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Sustainability Report

Learn more about Sandstorm’s approach to sustainability including our due diligence process, mining partnerships, and employee engagement.

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