Sandstorm Gold has officially announced various developments within its diversified stream and royalty portfolio.
According to certain reports, these updates begin from the company’s Robertson mine, which has successfully received a key environmental green light. You see, on November 15th, the U.S. Bureau of Land Management filed a positive Record of Decision for the mine after publication of the project’s Final Environmental Impact Statement (EIS) and public review period.
Talk about the project a little bit, it is less than 10 kilometres east of the Pipeline and Cortez Mine Complex, a well-known mining district that hosts NGM gold production from the operating Pipeline, Cortez, and Goldrush mines. More on the same would reveal how it is planned as an open-pit, heap leach operation that will utilize certain infrastructure and facilities. Owned by Nevada Gold Mines, the project gives Sandstorm a 1.0%–2.25% sliding scale net smelter returns royalty (NSR).
As for the project’s production operation, it is set to begin in the year 2027.
Next up, Sandstorm revealed that engineering studies and site preparation activities continue at its Hod Maden project. In fact, during the third quarter of 2024, the company spent an estimated $10.9 million on this particular site.
Markedly enough, Sandstorm presently holds 2.0% NSR royalty and a 20% gold stream on the Hod Maden project. The agreed terms also have the company purchasing 20% of all gold produced here (on a 100% basis) for ongoing per ounce cash payments equal to 50% of the spot gold PRICE until 405,000 ounces of gold are delivered. Once it does that, Sandstorm will then receive 12% of the gold produced for the mine’s life, and that is going to be for ongoing per ounce cash payments equal to 60% of the spot gold price.
Moving on, the company informed, in its latest update, about the commencement of underground development work at Oyu Tolgoi Lift 1 Panel 1 on the Entrée/Oyu Tolgoi joint venture property in November. This initial phase is likely to involve up to 212 meters in lateral development across the southwest corner of Hugo North Extension (HNE), as outlined in the 2024 Oyu Tolgoi Mine Plan, intended to support mine infrastructures development.
Besides that, other results from the 2023 drilling program at HNE were also published, results that included both infill and extension holes from surface and underground. Going by the provided details, they not only confirm long, high-grade intervals within the existing Hugo North Lift 2 block cave footprint, but they also reveal how drill hole EGD 174 was terminated in mineralization at a depth of 1,800 meters.
Hold on, we still haven’t touched on how one of Sandstorm’s portfolio companies in Equinox Gold Corp. is planning to resume mining at its Aurizona Piaba pit in the fourth quarter of 2024. This comes after a geotechnical disruption which was caused by persistent heavy rains earlier in the year, halted the operations. With work at Piaba on pause since March, ore feed at Aurizona has relied on existing stockpiles and mining from the Tatajuba open pit.
Having said so, despite all the weather challenges, exploration activities in 2024 have included over 6,500 meters of regional drilling at Aurizona, focused on high potential targets. All in all, during the first nine months of 2024, nearly 3,500 meters of drilling has focused on resource delineation across western extension of the Tatajuba deposit.
Among other things, we must mention that there are plans in place to extend the mine life beyond 10 years and increase annual gold production through the development of an underground mine that would operate concurrently with the open pits. Engineering studies for the underground mine are already up and running and their efforts are understood to be focused on refining ventilation systems, access layouts, and ore extraction plans.
Sandstorm also issued an update on its Chapada mine, where it saw improved haulage cycle times, fleet availability blasting fragmentation, and the stockpile feed levels. Here, a redesigned mining plan was also implemented with a lower annual stripping requirement to reduce annual mining rates by 30 million tonnes.
