Sandstorm Resources Ltd.

Sandstorm Resources Ltd.

March 01, 2010 08:30 ET

Sandstorm Provides Update on Aurizona Gold Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2010) - Sandstorm Resources Ltd. ("Sandstorm" or the "Corporation") (TSX VENTURE:SSL) is pleased to announce that Luna Gold Corp. ("Luna") has begun commissioning of the gravity gold circuit on its wholly owned Aurizona mine in Brazil. Luna plans to produce gold from the gravity circuit and will save the tails to be further processed when the carbon-in-leach plant comes online in the second quarter of 2010. Further progress highlights include:

  • Completion of the tailings dam civil construction while the finishing works are in progress;
  • Construction of the carbon-in-leach plant is underway and expected to be completed in the second quarter of 2010;
  • Mining has commenced in the Piaba pit and currently there are in excess of 100,000 tonnes of ore stockpiled.
  • Construction of the 69 kilovolt power line is in progress with planned completion in the second quarter of 2010.

"Luna has done an excellent job developing and starting up this mine ahead of schedule," stated Nolan Watson, President and Chief Executive Officer of Sandstorm Resources. "We are very pleased to be involved in such a high quality property."

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.

Sandstorm Resources Ltd. is a growth focused resource based company that seeks to complete transactions with companies that have advanced stage development projects or operating mines. By making upfront payments to its partners, Sandstorm receives volumetric production payments (i.e. metal stream deals) on precious metals. Sandstorm helps other companies in the resource industry grow their businesses, while acquiring attractive assets in the process.

Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed volumetric production payments with Luna Gold Corp, SilverCrest Mines Inc. and Santa Fe Gold Corporation. For more information visit:

Cautionary Note Regarding Forward-Looking Information

Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is based on reasonable assumptions that have been made by the Corporation as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; SilverCrest Mines Inc. not obtaining sufficient financing to build and operate the Santa Elena project; delays in the construction of the Summit mine; the absence of control over mining operations from which Sandstorm will purchase gold and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; problems inherent to the marketability of minerals; industry conditions, including fluctuations in the price of metals, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; as well as those factors discussed in the section entitled "Risk Factors" in Sandstorm's short form prospectus dated October 6, 2009. Forward-looking information in this press release includes statements with respect to the Corporation's future outlook, corporate development and strategy. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the mining operations from which Sandstorm will purchase gold, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, International Royalty Corp., Gold Wheaton Gold Corp., Silver Wheaton Corp., Royal Gold Inc., and Franco-Nevada.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sandstorm Resources Ltd.
    Nolan Watson
    President and CEO
    (604) 689-0234
    Sandstorm Resources Ltd.
    David Awram
    Investor Relations Contact
    (604) 689-0234