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I am in the 2014 warrants. SSL-WT.V.
Sandstorm Gold Announces a 250% Increase in Measured and Indicated Resources at Luna Gold's Aurizona Mine
08:55 EST Thursday, December 08, 2011
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2011) - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX VENTURE:SSL) is pleased to announce that Luna Gold Corp. ("Luna") (TSX VENTURE:LGC) has released a significant mineral resource update at the Aurizona Mine. Measured and Indicated gold resources now total 78 million tonnes at 1.26 g/t Au or 3.2 million ounces, an increase of 250% from the previous mineral resource estimate published in January 2009. Inferred gold resources now total 15.2 million tonnes at 1.47 g/t Au or 0.7 million ounces, an increase of 79% from the previous resource estimate.
In accordance with Sandstorm's gold purchase agreement with Luna, Sandstorm is entitled to purchase 17% of the life of mine gold produced from the Aurizona Mine at a per ounce price equal to the lesser of US$400 and the then prevailing market price.
"The announced resource update by Luna represents an 80% increase in Sandstorm Gold's company- wide measured and indicated resources" said Sandstorm President & CEO Nolan Watson. "Luna's management team has done an excellent job at identifying and realizing the expansion potential of this project."
Consolidated Statement December 8, 2011, Inclusive of Reserves Deposit Classification kt Au g/t Au oz Measured 10,782 1.13 391,000 Indicated 62,939 1.28 2,596,000 Piaba Pit Constrained 1
Measured and
Indicated 73,721 1.26 2,987,000 Inferred 2,469 1.47 117,000 Measured 0 0.00 0 Indicated 2,738 1.29 113,000 Piaba Underground 2
Measured and
Indicated 2,738 1.29 113,000 Inferred 10,901 1.56 547,000 Measured 0 0.00 0 Indicated 1,554 1.31 66,000 Tatajuba 3
Measured and
Indicated 1,554 1.31 66,000 Inferred 1,859 0.94 56,000 Measured 10,782 1.13 391,000 Indicated 67,231 1.28 2,775,000 Total Measured and
Indicated 78,013 1.26
3,166,000 Inferred 15,229 1.47 720,000 Notes: 25g/t Au capping at Piaba and 10 g/t Au capping at Tatajuba. Block dimensions are 10m x 10m in the xy plane and 3m on the z axis. Piaba database consists of 69,578 meters consisting of 335 diamond drill holes and 142 reverse circulation holes and 374 auger drill holes. (1) Piaba pit constrained resources are reported at a cutoff grade of 0.30 g/t Au inside a pit optimization shell based on a gold price of US$1500 per ounce. (2) Piaba underground resources are reported at a cutoff grade of 0.75 g/t Au outside the pit optimization shell. The cutoff grade has been calculated at a gold price of US$1500 per ounce. (3) Tatajuba database consists of 4,740 meters in 45 diamond drill holes (2008). The Tatajuba resources are not constrained by a pit optimization shell. Mineral resources that are not mineral reserves do not have a demonstrated economic viability The independent QP responsible for the preparation of the mineral resource estimate and who has reviewed this press release is Leah Mach, CPG, of the Denver office of SRK Consulting (U.S.), Inc. (4) The Company has not yet up-dated its mineral reserves estimate for the Aurizona Gold Operation based on the new mineral resource discussed in this press release. For greater clarity, the Company's mineral reserves estimate effective as of July 13, 2010 previously disclosed by the Company is based on an earlier mineral resource estimate which did not include the additional drilling data. (5) There may be political, environmental, legal and other risks that may materially affect the mineral resource estimate disclosed in this press release (6) Sandstorm has the option to purchase 17% of payable gold with an ongoing purchase price of $500 per payable ounce by paying a one time payment equal to 17% of the estimated capital expenditures of a feasibility study for an underground mine. The resource has been updated by SRK Consulting (U.S.) Inc. according to Canadian National Instrument 43-101 guidelines and is based on 43,968 metres of new diamond, reverse circulation and auger drilling by Luna. Luna has also retained the services of a consulting firm to assist with the completion of a scoping study to identify the potential for expanded gold production opportunities at Aurizona.
Luna operates a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Drill core is checked, logged, marked for sampling and sawn in half. One half of the HTW (71 mm diameter) core is maintained for future reference and one half of the core is sent for analysis. Samples are collected at approximately 2 metre intervals, which are reduced to a 1 metre interval or less when a mineralized zone is encountered. All core and samples are stored in secure locked areas. Up to the end of Q3 2011 samples were transported from the Aurizona project to the ALS Chemex sample preparation facility in Belo Horizonte, Minas Gerais accompanied by Luna personnel. After Q3 2011 samples were transported from the Aurizona project to the ACME Labs sample preparation facility in Cuiaba, Mato Grosso and Goiania, Goias accompanied by Luna personnel. Samples are assayed at ACME Labs in Santiago, Chile using a 50 gram fire assay with AAS finish. Samples are assayed at ALS Chemex Labs in Lima, Peru and Perth, Australia using a 50 gram fire assay with AAS finish. Each sample batch contains 10% of randomly inserted internal control samples consisting of certified analytical standards, blanks (barren rock) and duplicates. These QA/QC procedures provide several measures of data quality and assure Luna that the assay data is representative of the original sample. Additional technical information about the Aurizona Project is available in Luna's technical report dated September 1, 2010, filed on SEDAR. |
