Sandstorm Gold Royalties Provides Asset Update

(Sandstorm Gold Ltd., 14.Mar.2022) — Sandstorm Gold Ltd. (NYSE: SAND) (TSX: SSL) provided an update of recent developments from the company’s royalty portfolio.

LUNDIN MINING ANNOUNCES NEW DISCOVERY AT CHAPADA

Lundin Mining Corporation recently announced the discovery of a new copper-gold mineralized system called Saúva at the Chapada project in Brazil. The new discovery is located approximately 15 kilometres north of the Chapada mine. Diamond drilling was initiated at Saúva in the third quarter of 2021, as part of Lundin Mining’s ongoing exploration program aimed at increasing the Mineral Resource estimation at Chapada. The first two drill holes at Saúva confirmed the presence of shallow high-grade copper-gold mineralization. As of early February 2022, further drilling was completed to evaluate this potential, with a total of 47 holes defining a mineralized area measuring approximately 750 metres by 650 metres.  

Highlights from the first 29 drill holes include:

  • FOR-113: 55.5 metres of 0.88% copper and 1.2 grams per tonne (“g/t”) gold from 6.5 metres including: 27.3 metres of 1.3% copper and 1.9 g/t gold from 33.7 metres;
  • FOR-115: 65.5 metres of 0.61% copper and 0.7 g/t gold from 23.6 metres; and
  • FOR-148: 74.1 metres of 0.81% copper and 1.3 g/t gold from 116.0 metres including: 19.4 metres of 1.8% copper and 3.6 g/t gold from 149.6 metres.

A $10mn exploration program is planned at Chapada for 2022, including exploration of the Saúva sector. There are currently three rigs drilling in the Saúva sector testing areas to the northeast and west of the discovery area.

Reported intercepts are not true thicknesses as there is currently insufficient data to calculate true orientation. For more information and full drill results, visit the Lundin Mining website at www.lundinmining.com and see the press release dated 10 February 2022.

Sandstorm has a copper stream agreement to purchase 4.2% of the copper produced at Chapada up to a maximum of 3.9 million pounds annually. When 39 million pounds of copper has been delivered to Sandstorm, the copper stream will reduce to 3.0%. Once 50 million pounds of copper have been delivered to Sandstorm on a cumulative basis, the stream will reduce to 1.5% of the copper produced for the life of the mine. Sandstorm will make ongoing payments for each pound of copper purchased equal to 30% of the spot price of copper.

YAMANA PROVIDES UPDATE ON CERRO MORO OPPORTUNITIES AND MARA MILESTONES IN 2022

CERRO MORO

Yamana Gold Inc. provided an update on future opportunities at the Cerro Moro mine. The Cerro Moro project has an inventory of lower-grade veins that are not fully reflected in the current Mineral Reserves and Mineral Resource statements, many of which are wider than the veins currently being mined. These areas were previously not followed up on with infill drilling because the mineralization is below the current cut-off grade. Yamana is now considering alternative processing options to allow for economic extraction of lower grade mineralization including i) a scalable plant, and ii) heap leaching near-surface, lower grade material, to supplement other production.

Sandstorm has a silver stream agreement to purchase an amount of silver from Cerro Moro equal to 20% of the silver produced, up to a maximum of 1.2 million ounces of silver annually. When 7.0 million ounces of silver have been delivered to Sandstorm the silver stream will reduce to 9.0% of the silver produced for the life of the mine. Sandstorm will make ongoing payments for each ounce of silver received, equal to 30% of the spot price per ounce of silver.

MARA

Yamana continues to advance MARA (formerly the Agua Rica project) through the development and permitting process while considering strategic alternatives that could unlock value along the way. In 2021, work on the MARA project focused on advancing the Feasibility Study engineering, mine design and planning, metallurgical and geotechnical drilling campaigns, and fieldwork at site. Approximately 6,000 metres of drilling was completed in 2021 from the ongoing drilling campaign, with the remaining 50% of the program expected to be completed by mid-2022. Yamana plans to perform deep drill holes in 2022 to check the extension of high-grade chalcopyrite mineralization that could potentially unlock a pit expansion, as well as to test for deep extensions of mineralization in the hypogene area of the porphyry.

The results from the Feasibility Study and the completion of the Environmental and Social Impact Assessment are expected in late 2022. During the last year, Yamana was presented with several proposals for its interest in MARA. Yamana’s board determined that any strategic initiatives will be considered close to the completion of the Feasibility Study and application for permitting later this year.

In October 2015, Sandstorm entered into an early deposit gold stream agreement with Yamana on the MARA project (formally the Agua Rica project) (“Early Deposit Gold Stream”). At the time of a construction decision for the MARA project, Sandstorm may elect to make an additional advance payment in an amount between US$135mn and US$225mn based on the following formula: US$150,000 multiplied by the price of gold plus US$7.5mn (the “Additional Advance Payment”). The payment of the Additional Advance Payment will occur proportionately throughout the construction period. If Sandstorm elects to pay the Additional Advance Payment, the Company will have the right to purchase an amount of gold equal to 20% of the life of mine gold produced from MARA. Sandstorm would make ongoing payments for each ounce of gold received, equal to 30% of the spot price per ounce of gold. If Sandstorm elects not to pay the Additional Advance Payment, the Company will retain a 0.25% net smelter returns (“NSR”) royalty on MARA. In the event that Sandstorm wishes to syndicate the gold stream to a third party, it has the right to transfer any and all of its rights and obligations under certain conditions.

For more information, visit the Yamana website at www.yamana.com and see the press release dated 17 February 2022.

ENDEAVOUR ANNOUNCES INCREASED MINERAL RESOURCES AT HOUNDÉ MINE

Endeavour Mining plc announced that during 2021, they completed more than 70,000 metres of drilling at the Houndé mine in Burkina Faso. Exploration focused on the Mambo target, the Kari Center-Gap-South area, and limited work on the Vindaloo South target. All resources added are within trucking distance to the Houndé plant. Sandstorm’s royalty covers a portion of the area that the exploration focused on in 2021, including the Kari Center-Gap-South area and Vindaloo South target.

The updated Measured and Indicated Resource estimate at Kari Centre-Gap-South increased to an estimated 780,000 ounces of gold contained in 18.9 million tonnes at 1.3 g/t (cut-off grade of 0.5 g/t gold, effective date of 31 December 2021).

For more information, visit the Endeavour website at www.endeavourmining.com and see the press release dated 17 January 2022. Sandstorm has a 2.0% NSR royalty on a portion of the Houndé mine.

KINROSS RELEASES LOBO-MARTE FEASIBILITY STUDY

Kinross Gold Corporation released results from the Feasibility Study on the Lobo-Marte project located in Chile. The Feasibility Study outlines 14 years of mining with two additional years of residual production for total mine production of 4.7 million gold equivalent ounces. The project is planned as an open pit, heap leach operation. Construction is estimated to begin in 2025 at the earliest, with first production expected in 2027, subject to a positive development decision. Kinross is continuing to advance work for its Environmental Impact Assessment submission, as well as related work for project permitting. The permitting process is expected to take approximately three years.

For more information, visit the Kinross website at www.kinross.com and see the press release dated 10 November 2021. Sandstorm has a 1.05% NSR royalty on the Lobo-Marte project.

CONTACT GOLD ANNOUNCES PONY CREEK MAIDEN RESOURCE ESTIMATE

Contact Gold Corp. released a maiden Resource Estimate at its Pony Creek project in Nevada. The Pony Creek project is located immediately south of Gold Standard Ventures’ South Railroad project. The Inferred Resource totals 433,000 ounces of pit constrained gold in 25.7 million tonnes at a grade of 0.5 g/t gold (cut-off grade of 0.15 g/t gold for oxide material and 0.22 g/t gold for transitional and non-oxidized material, effective date of 11 January 2022).

For more information, visit the Contact Gold website at www.contactgold.com and see the press release dated 11 January 2022. Sandstorm has a 3.0% NSR royalty on the Pony Creek project.

PICKLE CROW RESOURCE INCREASES BY 500,000 OUNCES OF GOLD

Auteco Minerals Ltd. reported an updated Inferred Mineral Resource on the Pickle Crow project located in Canada. The JORC Inferred Resource estimate was released with 2,230,000 ounces of gold contained in 8.9 million tonnes at a grade of 7.8 g/t gold (3.5 and 2.5 g/t cut-off grade, effective date of 31 December 2021).

Based on the results of the mid-year 2021 Resource update, Auteco’s board of directors had approved an additional 50,000 metres of drilling that commenced in June 2021. As of mid-January, approximately 42,000 metres of the current program had been drilled, with the final 8,000 metres forecasted to be completed in March 2022. The initial focus of the program was on near mine discovery, extension and infill drilling, which was used in the recent Resource update. The drilling program is now focused on regional targeting, with three of the five active drill rigs testing targets outside of the Resource area.

For more information, visit the Auteco website at www.autecominerals.com and see the press release dated 15 February 2022. Sandstorm has a 0.5% NSR royalty on the majority of the Pickle Crow project.

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