Sandstorm Gold Ltd.: Sandstorm Gold Royalties Acquires 0.9% NSR Royalty on Lundin Gold's Fruta Del Norte Mine
VANCOUVER, BC / ACCESSWIRE / January 18, 2019 / Sandstorm Gold Ltd. (''Sandstorm Gold Royalties'', ''Sandstorm'' or the ''Company'') (NYSE American: SAND; TSX: SSL) is pleased to announce that the Company has acquired a 0.9% net smelter returns royalty (''NSR Royalty'') on precious metals produced from the Fruta del Norte gold project in Ecuador (''Fruta del Norte''), currently under construction by Lundin Gold Corporation (''Lundin Gold'').
The NSR Royalty was acquired from a private third party for US$32.75 million in cash and covers more than 644 square kilometres, including all 30 mining concessions held by Lundin Gold. The Fruta del Norte Mineral Reserve contains 5.0 million ounces of gold in 17.8 million tonnes (''Mt'') of ore with an average grade of 8.7 grams per tonne (''g/t'') as of September 2018, ranking it amongst the highest-grade gold projects in the world.
Acquisition Highlights
- Near-Term Cash Flow: Lundin expects to pour first gold at Fruta del Norte in the fourth quarter of 2019, with commercial production expected in the first half of 2020. Fruta del Norte's average annual production is expected to exceed 330,000 ounces of gold per year over the first 13 years of the operation at an all-in-sustaining cost of US$583 per ounce. Current reserves support a 15 year initial mine life.
- Exploration Upside: The royalty covers precious metals production from all 644 square kilometres of concessions held by Lundin Gold, plus an additional one kilometre area of interest around the property. Exploration potential at Fruta del Norte remains excellent, with multiple early and advanced exploration targets already identified. Exploration is currently focused on the Suarez pull-apart basin, the structure that hosts the Fruta del Norte gold deposit.
- Strong Partner: Lundin Gold is backed by Lukas Lundin, an established mining entrepreneur, and its management team has significant mine development and operating experience.
Click the link below to view the presentation that summarizes the Fruta del Norte royalty acquisition: www.sandstormgold.com/frutadelnorte |
