ASSET HANDBOOK 2018 / 2019 GLOSSARY
ADR – adsorption, desorption, and refining
Ag – silver
AISC – all in sustaining cost
AgEq – silver equivalent
Au – gold
AuEq – gold equivalent cpt – carats per tonne
Cu – copper
CuEq – copper equivalent
GOR – gross overriding royalty
GPR – gross proceeds royalty
GSR – gross smelter returns
GRR – gross revenue royalty g/t – grams per tonne k – thousand (000) km – kilometer km2 – square kilometer lbs - pounds
Kt – thousand tonnes
M – million
Mt – million tonnes
NPI – net profit interest
NSR – net smelter return oz – troy ounce royalty – contract to receive a portion of the revenue generated by a mine stream – royalty contract to purchase a portion of the metal produced from a mine tpd – tonnes per day
VMS – volcanogenic massive sulfide
To the best of Sandstorm’s knowledge, the information pertaining to the assets in this handbook is believed to be accurate as of December 16, 2019. For the most up to date asset information, please visit sandstormgold. com or email [email protected]. SANDSTORM GOLD ROYALTIES ASSET HANDBOOK
Introduction PG 05
Producing PG 10 – 35
Development PG 36 – 59
Advanced Exploration PG 60 – 83
Exploration PG 84 – 101
Additional Information PG 102 Royalty Purchase Rights and ROFRs 103 References 105 Cautionary Notes 108
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 3 ASSET HANDBOOK INTRODUCTION
4 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook SANDSTORM GOLD ROYALTIES ASSET HANDBOOK INTRODUCTION
INTRODUCTION
We began searching for our first gold streams during the depths of the global financial crisis in 2008. We had little in the way of cash, but we made up for our lack of resources with a big vision; to reshape the finance landscape in the mining sector with innovative financing solutions. Stream and royalty finance has since become a mainstream funding source for resource companies of all sizes, and Sandstorm has been a significant part of that evolution. In fact, during the last five years close to $14 billion in stream and royalty transactions were completed in the mining industry.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 5 ASSET HANDBOOK INTRODUCTION
At the end of 2009, Sandstorm had three gold streams in the portfolio, an outlook for modest 187 cash flow and the drive to aggressively grow 174 and diversify our asset base. With over 185 streams and royalties and 23 cash flowing
assets at the time of this writing, I am proud 135 of what we have been able to accomplish thus far.
Stream and Royalty Growth Per Year 75
T A 45
33 12 5 7 3 3
In 2017 we acquired a 30% interest in the “ gold-copper Hod Maden project located in northeast Turkey. Hod Maden is an anchor Hod Maden will asset for Sandstorm and is a multi-million more than double ounce discovery that is shaping up to be a Sandstorm’s high-grade, low-cost project with significant exploration upside. The project is being attributable developed by a local Turkish miner called Lidya production Madencilik who completed a Pre-Feasibility Study in mid-2018 and is working through the ” permitting process for construction of the asset. Once in production, Hod Maden will more than double Sandstorm’s attributable production and propel our cash flow to more than $100 million per year. The acquisition is truly transformative.
6 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook SANDSTORM GOLD ROYALTIES ASSET HANDBOOK INTRODUCTION
The purpose of this Asset Handbook is to Total Metres Drilled on Sandstorm provide you with a detailed look at the many Properties Per Year projects that will drive the future value of our 3,314 m company. With as many assets as we have, it can be difficult to keep up with all of the 20,000 m project developments. For example, you may 25,151 m not be aware that when you drill down into 29,083 m our 22 development-stage assets, there are 10 projects that represent approximately 1.2 30,036 m million gold equivalent ounces attributable 20,930 m to Sandstorm1. These 10 projects are not 205,218 m currently represented in our attributable production outlook or cash flow projections. 510,799 m
1 Calculated by taking the gold equivalent reserves and resources 535,579 m represented by the 10 development-stage properties and multiplying the ounces by Sandstorm’s stream and royalty percentage. 715,000 m
is not required to contribute any capital to “ these efforts. Overall there is a great deal of optionality in our exploration portfolio, what There is a great deal we like to call exploration acorns as they of optionality in our symbolize small seeds individually but have exploration portfolio the potential to turn into sources of lasting growth and value for our company. ” It is also worth highlighting the right of first We also own more than 100 royalties on refusal and buyback rights on future streams exploration stage properties, approximately and royalties that we have been acquiring 20% of which we would classify as advanced- during the last few years. We have accumulated stage exploration. More than 35 of these more than 60 of these contracts (not included exploration-stage properties undertook in our stream and royalty count) that in many material drill programs during 2017 (535,579 cases give Sandstorm the perpetual right metres of drilling in total) to test exploration to acquire new royalties on fixed terms, at targets, prove out an initial resource or our option. Put it all together and there is a increase their existing reserves and Sandstorm
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 7 ASSET HANDBOOK INTRODUCTION
significant amount of unrecognized value, and we hope this handbook helps to illustrate that. “ When we identify a As we continue to redeploy our cash flow into new royalty transactions, there are a valuable opportunity few competitive advantages that come to we have an effective, mind. Firstly, I think of the quality of our streamlined process internal technical team. Our senior technical staff has diverse international experience in ” exploration, building and operating mines, mills, smelters etc.; they've really seen it all. made up of individuals that have billions of In the last few years our technical group has dollars of collective transaction experience. formalized and improved the thoroughness Another one of our competitive advantages of our due diligence process, allowing us is our ability to transact quickly. When we to acquire streams and royalties on high- identify a valuable opportunity we have quality projects with exploration upside, while an effective, streamlined process and our avoiding troubled assets. Working alongside management team and board of directors do our technical group is our senior deal team not let needless bureaucracy stand in the way.
8 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook SANDSTORM GOLD ROYALTIES ASSET HANDBOOK INTRODUCTION
Lastly, we intend to continue being leaders and innovators in creating tailored financial solutions for our mining partners, an element of our business that has helped set us apart from our competitors.
This Asset Handbook is a living document that will continue to grow and evolve as we add new streams and royalties and as projects work their way through the cycle of exploration, development and operations. A few years from now I expect that we will have a much larger base of cash flowing assets, a stronger growth pipeline of development-stage projects and an even greater amount of optionality in the form of exploration acorns. We are excited to continue executing our business model and building value for shareholders.
Thank you for your interest in our story.
Nolan Watson President, CEO and Director
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 9 2018 / 2019 Asset Handbook Producing Assets North America 12
BLACK FOX 12
BRACEMAC-MCLEOD 13
DIAVIK 14
EMIGRANT 15
GOLD BAR 16
HM CLAIM 17
MING 18
SAN ANDRES 19
SANTA ELENA 20
SHEERNESS 21
THUNDER CREEK AND 144 ZONE 22
TRIANGLE ZONE 23
South America 24
AURIZONA 24
CERRO MORO 25
CHAPADA 26
DON NICOLAS 27
FRUTA DEL NORTE 28
GUALCAMAYO 29
Africa 30
HOUNDÉ 30
KARMA 31
MWS 32
Asia 33
ALTINTEPE 33
Australia 34
FORRESTANIA 34
11 North America PRODUCING
COMMODITY LOCATION Ontario, Canada PRODUCING Black Fox Hudson Bay SK MB QC
OPERATOR United States McEwen Mining Inc.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2010 / 11 / 09 Stream 8% of Au $551/oz
The Black Fox Mine is located outside of fed into a 2,400 tpd grinding circuit which Matheson, Ontario in the Timmins Gold includes a two-stage closed circuit ball mill. District. Black Fox began operating as an open Soluble gold is recovered by adsorption on pit mine and transitioned to underground activated carbon using carbon-in-column, operations in 2011. Underground ore is carbon-in-leach, and carbon-in-pulp processes extracted using a combination of long yielding recoveries of 90% to 95% on average. hole stoping, cut and fill, and narrow vein mining methods. Ore is accessed from a As of December 2018, the Probable Mineral series of declines branching off from the Reserve at Black Fox underground was 89 main ramp to surface. The underground kozs of gold contained in 0.4 Mt at a grade mine at Black Fox begins at the bottom of of 6.3 g/t (3.55 g/t cut-off). The Indicated the open pit approximately 200 metres Resource at Black Fox underground was For more information refer to www.mcewenmining.com below surface and is expected to extend 472 kozs contained in 1.9 Mt at 7.7 g/t gold to more than 800 metres in depth. (3.0 g/t cut-off inclusive of Reserves).
Ore mined at Black Fox is transported to the
Black Fox Black Fox mill, located 28 km away, and is
8.0% Gold Stream N 6.3% Gold Stream Mineralization Targets
Beatty 101 101 Hislop
Portal RECENT ACTIVITY Froome Tamarak Zone October 2019
McEwen announced a 2019 exploration budget Pike River of $18 million for the Black Fox Complex which includes surface and underground drilling.
September 2018 McEwen released an updated mineral resource Royalty Map estimate for the Froome Deposit as well as results 1,009 ha from their $15 million exploration program at the Black Fox Complex. As of August 31, 2018, the Grey Fox Indicated Mineral Resource at Froome was 181 kozs 1 km contained in 1.1 Mt at 5.1 g/t gold (3.2 g/t cut-off).
12 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America PRODUCING
COMMODITY LOCATION Québec, Canada Bracemac- PRODUCING NWT NU
McLeod Hudson Bay AB SK MB
NL ON
OPERATOR NB PE United States Glencore plc NS
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2011 / 07 / 13 Royalty 3.0% NSR n/a A merica N orth
The Bracemac-McLeod mine is a high-grade flotation process to produce concentrates of volcanogenic massive sulphide (VMS) deposit zinc and copper. The Matagami mill has been located in the prolific mining district of in operation since 1963 and underwent an Matagami, Québec. The Matagami district upgrade that was completed in 2007. Average has seen mining activity for over fifty years recoveries at the mill are approximately 96% and Bracemac-McLeod is the region’s for zinc, 94% for copper, 60% for gold and twelfth operating mine. Bracemac-McLeod 40% for silver. Copper concentrate from is a zinc-rich VMS deposit and also contains Bracemac-McLeod is sent to the Horne economic values of copper, silver and gold. Smelter in Rouyn-Noranda, Québec and zinc concentrate to the Canadian Electrolytic Underground longhole mining operations Zinc Refinery in Valleyfield, Québec. began in May 2013 with transverse and For more information refer to www.glencore.com longitudinal stoping methods used to access As of December 31, 2017, the Proven and the orebodies. The mine operates at an average Probable Reserves at Bracemac-McLeod rate of 3,000 tpd and ore is transported to were 3.4 Mt at 6.7% zinc, 1.1% copper, the Matagami Mill where it undergoes a 28.0 g/t silver and 0.6 g/t gold. Bracemac-McLeod
N
Royalty Map
3,104 ha
500m
Bracemac KT BRACEMAC
Upper Bracemac
R a i l r o West McLeod a d
MCLEOD
1.5% NSR 3% NSR
2 km RECENT ACTIVITY Glencore does not disclose activity updates from Bracemac-McLeod.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 13 North America PRODUCING
COMMODITY LOCATION NWT, Canada PRODUCING Diavik Diamonds Beaufort Sea
NU U.S.A. YT OPERATOR Hudson Bay Rio Tinto plc BC AB SK MB
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2015 / 03 / 23 Royalty 1.0% GPR n/a
The Diavik mine is Canada’s largest diamond from the A154 South, A154 North and A418 mine, located on a 20 km2 island in Lac de pipes. Open pit mining from the three Gras, Northwest Territories, approximately pipes has concluded and the ore bodies are 300 km from Yellowknife. Access to the currently being mined from underground. mine is by air year-round and by a 425 km Rio Tinto announced the opening of a fourth ice road in winter that operates for eight pipe (A21) in the third quarter of 2018 to ten weeks between January and March. and the current mine plan has production Four diamond bearing kimberlite pipes are continuing until 2025. The Proven and located just off the eastern shore of the island Probable Mineral Reserve at Diavik consists and although the pipes are relatively small, of 15.1 Mt at 2.8 cpt for a total of 42.5 million each having surface expressions less than carats as of Dec. 31, 2017 (1 mm cut-off). 200 metres in diameter, they are high grade For more information refer to In 2018, Rio Tinto revealed three of the www.riotinto.com making Diavik one of the most profitable diamond mines in the world. The majority finest rough diamonds from Diavik. The of Diavik’s products are gem-quality white diamonds are collectively known as The Diavik Stars of the Arctic and include a
Diavik stones, which are sold to select diamantaires. 177.7 carat diamond, one of the largest Diavik began extracting diamonds in January and most valuable gem quality rough 2003 and has since produced more than 120 diamonds ever produced in Canada. million carats of high quality rough diamonds
Royalty Map N Airstrip 104,582 ha RECENT ACTIVITY Sandstorm Royalty A154N January 2019 Mine Site Location Full year production for 2018 totaled 7.26 million Kimberlites carats. Waste Rock Pile A154S Processed Kimberlite December 2018 Containment A418 Area nunavut The largest known diamond ever found in North America was recovered at Diavik, weighing 552 Plant Site carats. northwest Winter Road territories
August 2018 Rio Tinto announced that the development of the A21 pipe has been completed. The new open pit mine will provide an important source of incremental A21 supply over the next four years to sustain production levels at the Diavik mine. 1 km 20 km
14 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America PRODUCING
COMMODITY LOCATION Nevada, USA Emigrant PRODUCING SD OR ID WY NE
UT CO KS
CA OK AZ NM OPERATOR Pacific Ocean TX Newmont Mining Corp. Mexico
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 10 / 04 Royalty 1.5% NSR n/a A merica N orth
The Emigrant mine is located at the south to initiating production, Newmont reported end of the Carlin Trend, a major regional gold Emigrant reserves of 1.6 million ounces of belt in Nevada, U.S.A. Emigrant is an open pit, gold (tonnage and grade were not reported). heap leach operation that reached commercial production during the third quarter of 2012. During the last quarter of 2017, Sandstorm The mine is expected to produce 90,000 received an update to the life of mine to 100,000 ounces of gold per year for production plan from Newmont. The approximately 10 years with additional years updated production plan reduced the ounces of heap leach processing beyond that. Prior expected to be produced from the areas of the mine subject to Sandstorm’s royalty.
For more information refer to www.newmont.com
Royalty Map N Emigrant 518 ha
Emigrant Royalty Other Sandstorm Royalties 1 Faults
Sections Township Boundary
2 km
Emigrant Deposit
Rain
RECENT ACTIVITY Newmont does not disclose mining or development activity related to Emigrant.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 15 North America PRODUCING
COMMODITY LOCATION Nevada, USA PRODUCING Gold Bar SD OR ID Cabin Creek WY NE
UT CO KS
CA OK AZ NM OPERATOR Pacific Ocean TX McEwen Mining Inc. Mexico
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2016 / 01 / 19 Royalty 10% NPI n/a
The Gold Bar property is located at the phases with first planned ore production southeastern end of the Battle Mountain- coming from Cabin Creek. Gold Bar is Eureka-Cortez gold trend in Eureka County, designed as a 7,300 tpd operation with Nevada. Within the property there are three mined ore passing through a single stage defined gold deposits; Gold Pick, Gold Ridge, of crushing and onto a heap-leach pad and Cabin Creek. The mineralization is similar followed by an ADR recovery process. Gold for all three deposits and lies within 150 recovery is estimated at 82% and average metres of surface, hosted in carbonate-rich annual gold production is approximately sedimentary rocks of the Devonian McColley 60,000 ounces over a 7.4-year mine life. Canyon Formation. Gold Ridge and Cabin Creek are ancillary deposits and together Current Proven and Probable Mineral comprise approximately 22% of the mineral Reserves at Gold Bar total 16.5 Mt at For more information refer to www.mcewenmining.com resource. Sandstorm’s royalty covers the bulk 1.0 g/t gold containing 524,000 ounces of the mineral resource at Cabin Creek. (0.20 – 0.23 g/t cut-off grade).
An updated Feasibility Study released in
Gold Bar 2018 supports four open-pits mined in
Royalty Map N 84 ha Gold Bar (Cabin Creek) Gold Bar (Cabin Sandstorm Royalty RECENT ACTIVITY
0 Gold Ridge Deposit November 2019 Gold PiPickck Cabin CCreekreek McEwen closed a public offering for gross pro- ceeds of approximately US$50 million. Part of the proceeds will be used to advance current mining projects and exploration prospects.
October 2019 With a 2019 exploration budget of $5 million, work has focused on near surface oxide and deep sulfide targets testing the potential of the property for Carlin-type gold deposits. 1 km Since achieving commercial production during the second quarter, Gold Bar has reached several operational benchmarks. Gold Bar produced 11,029
gold ounces during the third quarter 2019. GOLD ROYALTIES SANDSTORM 2019 March
16 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America PRODUCING
COMMODITY LOCATION Ontario, Canada HM Claim PRODUCING Hudson Bay SK MB QC
OPERATOR United States Kirkland Lake Gold Inc.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 10 / 04 Royalty 2% NSR n/a A merica N orth
The HM claim is part of the Macassa mine support higher levels of production and enable complex located in Kirkland Lake, Ontario. more effective underground exploration The Kirkland Lake mining camp has been east of the SMC. A mid-shaft loading station a prolific gold producer since mining at approximately 1,650 metres in depth began there in 1915. Gold mineralization at is expected to be completed by 2022. Macassa is found along breaks or faults, in veins as quartz filled fractures, as sulphide Mining at Macassa is conducted primarily rich pyrite zones and as breccias. with overhand and underhand cut-and-fill methods. The Macassa mill was constructed The HM claim is an area that hosts the easterly in 1986, originally designed for throughput of extension of the South Mine Complex (SMC) 725 tpd but has been upgraded to handle 2,000 Macassa Mine and is located southeast of the #2 shaft at tpd. Ore processing at Macassa starts with the Macassa mine. The exploration results crushing and grinding before it enters leach For more information refer to from the SMC and HM Claim have identified tanks for cyanidation and then flows through a www.klgold.com a significant new find as some of the veins carbon-in-pulp circuit, followed by a Merrill- have larger widths and higher grades than Crow recovery system. The concentrate is
the Macassa main zones. Kirkland Lake Gold melted in a furnace where doré is poured HM Claim is developing a new 4,000 tpd shaft that will that typically contains 85% to 88% gold.
RECENT ACTIVITY
April 2019 An updated NI 43-101 Technical Report was filed Royalty Map for Macassa. The report estimates that phase one N of the #4 Shaft project will be completed during 10.2 ha the second quarter of 2022 and phase two at the end of 2023. The shaft will support higher levels of Sandstorm Royalty production and enable more effective underground exploration to the east of the South Mine Complex 1 km where the HM Claim is located.
South Mine Complex July 2018 Macassa Mine Kirkland Lake announced high-grade intersections from the continuation of their 2018 infill drilling East Claim program at the Macassa mine. The results have HM Claim identified a high-potential area within the HM Claim, located approximately 560 metres south- southeast of the new #4 Shaft. Highlighted underground drill results include:
South Claims ↳ Hole 53-3453: 3.7 metres of 34.6 g/t gold from 222.2 metres;
↳ Hole 53-3455: 3.9 metres of 38.4 g/t gold 112 from 220.4 metres; and
66 ↳ Hole 53-3466: 3.6 metres of 65.5 g/t gold from 218.7 metres.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 17 North America PRODUCING
COMMODITY LOCATION Newfoundland, Canada PRODUCING Ming
Atlantic QC Ocean
OPERATOR NB PE Rambler Metals & Mining plc NS
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2010 / 02 / 04 Gold Stream 25% – 32% $0/oz
Ming is a copper-gold massive sulfide deposit Pond Mill approximately 40 km from the located in northwestern Newfoundland in a Ming mine. The processing facility includes region that has a strong history of gold, base a conventional crushing, grinding and metal and industrial minerals mining. The flotation process that has been in commercial two dominant types of mineralization at Ming production since the second quarter of are stratiform volcanogenic massive sulphide 2013. Recoveries range between 94% and (Ming Massive Sulphide) and disseminated 96% for copper and 65% to 70% for gold. sulphide stringers (Lower Footwall Zone). Rambler expanded the mill throughput Production began in late 2011 and Rambler capacity to 1,250 tpd in 2017 and the current produced approximately 15 kozs of gold in five mine plan from the June 2015 Pre-Feasibility months from a high-grade gold area, known Study has production continuing through For more information refer to www.ramblermines.com as the 1806 Zone. This early production from 2036. The Proven and Probable Reserves the gold zone allowed Rambler to generate (diluted and recovered) as of January 2018 revenue while the company constructed are 8.7 Mt of ore containing 1.71% copper
Ming a copper flotation circuit at the Nugget and 0.4 g/t gold (1.0% CuEq cut-off).
Royalty Map 41B 955 ha N
Gold Stream
RECENT ACTIVITY Portal North Zone August 2019 1807 Zone 1 km Phase two of the mining process improvement program is complete and production during the 1806 Zone second quarter averaged 1,309 tpd including a new one-day record throughput of 1,493 tpd. Rambler South Zone will evaluate the potential to further increase production to 2,000 tpd. 414 Underground exploration and diamond drilling will continue, aiming to increase available resources and reserves through continued exploration within the Ming mine mineralized trend.
18 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America PRODUCING
COMMODITY LOCATION Copán, Honduras San Andres PRODUCING Belize Caribbean Sea
Guatemala
OPERATOR Nicaragua Aura Minerals Inc. El Salvador
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 10 / 04 Royalty 1.5% NSR n/a A merica N orth
San Andres is located in La Únion, Honduras warehouses, maintenance facilities, an and is an open pit, heap leach operation with assay laboratory and an on-site camp. a two-stage crushing circuit consisting of a primary jaw crusher and secondary cone Aura Minerals acquired the mine in 2009 and crusher. The epithermal deposit contains gold completed an expansion project consisting of occurring in colloform banded quartz veins. new crusher-conveyor and stacking systems. This reduced ore haulage distances and The mine has a long history going back to increased throughput. The mine produced the 1500’s during the Colonial period when 82.3 kozs of gold in 2017 with recoveries it was the principal source of Honduran averaging 97%. The Proven and Probable gold for the Spanish Crown. San Andres Reserves as of Dec. 2017 contained 1.1 Mozs has been in modern production since 1983 of gold contained in 67.77 Mt of oxide and For more information refer to www.auraminerals.com and has well-developed infrastructure mixed material with an average grade of which includes a power and water supply, 0.50 g/t gold. The cut-off grades were 0.28 g/t gold for oxides and 0.37 g/t for mixed. San Andres
N Royalty Map
4,167 ha
1.5% NSR Waste Pile
Water Tank East Edge Hill Pit Pit
Primary Mine Crusher O ces Twin Hills Pit
RECENT ACTIVITY
August 2018 Aura announced that San Andres has produced 38,743 ounces of gold during the first half of 2018 at 500m 2 km a cash operating cost of $903/oz. Aura has updated their 2018 guidance to 65,000-75,000 ounces at cash operating costs of $750-$925/oz at the San Andres mine.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 19 North America PRODUCING
COMMODITY LOCATION Sonora, Mexico PRODUCING Santa Elena United States
Gulf of Mexico
OPERATOR
First Majestic Silver Corp.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2009 / 05 / 14 Stream 20% of Au $455/oz
The Santa Elena Mine is located in northern at the mill is being used to reprocess ore Mexico approximately 150 km northeast from the heap leach pads. Production of Hermosillo in Sonora State. The during 2018 totaled 2,223,246 ounces mineralization at Santa Elena is classified as of silver and 46,856 ounces of gold. a low sulphidation epithermal system and mining and exploration has been focused on The Proven and Probable Mineral Reserves as a single wide vein. The mine began operating of December 2018 were 4.0 Mt at 85.0 g/t silver in 2011 as an open pit, heap leach operation and 1.3 g/t gold for contained ounces of 24.1 and transitioned to an underground mine Mozs of silver equivalent (115-175 g/t AgEq and mill in early 2014. First Majestic is cut-off for underground ore and 85 g/t AgEq currently mining from three stopes, targeting for leach pad ore). Santa Elena has Measured underground production of 1,750 tpd. and Indicated Mineral Resources (excluding For more information refer to www.firstmajestic.com Ermitano) of 4.6 Mt at 106.6 g/t silver and Ore is processed into gold-silver doré 1.6 g/t gold for 34.6 Mozs of silver equivalent bars through a Merrill-Crowe processing (110-120 g/t AgEq cut-off for underground facility with capacity of 3,000 tpd and ore and 75 g/t AgEq cut-off for leach pad recoveries have averaged 88% for silver and ore). Resources are inclusive of reserves. Santa Elena 95% for gold during 2018. Excess capacity
Royalty Map N
2,726 ha
Gold Stream
RECENT ACTIVITY Pit
Santa Elena Main Ramp May 2019 Drilling at Santa Elena totaled 36,661 metres in El Ermitano 2018 and focused on exploring extensions of the Tortuga and America veins, and the Santa Elena Leachpad Main Vein looking for extensions to the west and Cumobabi at depth. Plant
April 2019 During 2018, Santa Elena produced 46,856 ounces of gold and 2,223,246 ounces of silver. The opera- tion’s all-in-sustaining cost for the full-year 2018 Cumobabi 10 km 1 km was $4.54 per silver equivalent ounce.
20 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America PRODUCING
COMMODITY LOCATION Alberta, Canada Sheerness PRODUCING Coal YT NWT NU
BC SK MB
ON OPERATOR
Westmoreland Coal Company United States
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 5.0% GRR n/a A merica N orth
The Sheerness mine is located in South coal to this station since 1984 and the Central Alberta about 160 km northeast current supply contract expires in 2026. of Calgary. Average annual production is 3.3 million tonnes of coal, mined using two The sub-bituminous coal is located within draglines and then hauled directly from the lowermost strata of the Upper Cretaceous the mine to the Sheerness Generating Paskapoo Formation and exploration on Station, owned by TransAlta Utilities and adjacent properties is underway to extend ATCO Power. Sheerness has supplied the life of the mine. The current mine life is expected to extend production through 2040.
The Sheerness NSR was acquired as part of a package of 52 royalties purchased For more information refer to from Teck Resources in January 2016. www.westmoreland.com Sheerness
N
36
Royalty Map
1,312 ha
Sandstorm Royalty Mined Out Area
2 km
Generating Station
36
RECENT ACTIVITY
April 2016 The Sheerness Mine celebrated 21 years with no lost time incidents.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 21 North America PRODUCING
COMMODITY LOCATION Ontario, Canada PRODUCING Thunder Creek Hudson Bay and 144 Zone SK MB QC
OPERATOR United States Pan American Silver Corp.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2013 / 10 / 04 Royalty 1.0% NSR n/a
The Thunder Creek and 144 properties are processed with single-stage crushing and part of the Timmins West mine complex in grinding with a portion of the gold recovered Ontario. The deposits all occur along the by gravity methods, followed by pre-oxidation 144 Trend, a broad structural corridor that and cyanidation with carbon-in-leach and is host to extensive gold mineralization. carbon-in-pulp recovery. The Probable The gold occurs in steep north-northwest Reserves at Thunder Creek as of Jan. 2018 plunging zones within and proximal to totaled 0.47 Mt at 2.9 g/t gold (2.0 g/t cut-off). the 144 Trend and related structures. Drilling activity at the 144 project led to Thunder Creek is an underground mine the discovery of two significant zones of that has been in production since 2010 and gold mineralization about 750 metres to has produced more than 500 kozs of gold. the southwest of Thunder Creek, the 144 For more information refer to www.tahoeresources.com Primary mining methods include longitudinal Gap Zone and the 144 Gap SW Zone. The and transverse longhole stoping and ore is Proven and Probable Reserves as of Jan. hoisted to surface via a shaft and trucked 2018 at 144 Gap are 5.01 Mt grading 3.15 to the Bell Creek mill for processing. Ore is g/t for 496 kozs of gold (2.0 g/t cut-off). Thunder Creek and 144 Zone Creek Thunder
Timmins Deposit
101 N RECENT ACTIVITY Royalty Map Thunder August 2018 862 ha Creek Progress continued to be made on the infrastructure at 144 Gap which included ramp, raise and lateral Sandstorm Royalty 144 Gap Deposit development to access the resource. Underground 144 Gap SW Zone Discovery infill and definition drilling has totaled 20,487 1 km metres during the first half of 2018. 144 North
Gold River Deposit May 2018 Pan American is focused on optimizing operations 144 South at Timmins West in 2018. Efforts to rework the mine plan are underway in order to enhance flexibility in the stoping sequence and to maximize the develop- ment of stopes in ore. 144
22 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America PRODUCING
COMMODITY LOCATION Québec, Canada Triangle Zone PRODUCING NWT NU
Hudson Bay AB SK MB
NL ON
OPERATOR NB PE United States Eldorado Gold Corporation NS
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2015 / 10 / 21 Royalty 2.0% NSR n/a A merica N orth
The Triangle Zone is located within the vertically. To date, seven structures have Lamaque project in the prolific Val d’Or been identified by drilling from surface mining district of Québec. The property is to around 1,000 metres vertical depth. located 2.5 km south of the past producing Lamaque and Sigma Mines, which together As of Dec. 31, 2017, the Proven and Probable produced more than 10 Mozs of gold. Mineral Reserve at the Triangle deposit was 893 kozs of gold contained in 3.8 Mt Triangle is an Archean greenstone-hosted at a grade of 7.3 g/t (3.5 g/t cut-off) and orogenic lode gold deposit. Gold is found the Measured and Indicated Resource Lamaque Mine within quartz-tourmaline-carbonate veins, was 1.1 Mozs contained in 3.7 Mt at 8.9 which are hosted within a series of sub- g/t gold. The Inferred Resource totals For more information refer to www.eldoradogold.com parallel sub-vertical shear zones centered 1.1 Moz in 4.7 Mt at a grade of 7.42 g/t around a steeply plunging cylinder-shaped (2.5 g/t cut-off inclusive of Reserves). porphyritic diorite. Individual gold bearing vein zones and associated alteration are Eldorado achieved commercial production in 4 to 5 metres thick on average and extend March 2019. The Sandstorm royalty covers a 500 to 700 metres horizontally and portion of the Triangle reserves and resources. Triangle Zone Triangle
Royalty Map
7 ha N
Sandstorm Royalty Resource Area Lamaque South
RECENT ACTIVITY 1 km Sigma September 2019 Mine Sigma Mill Exploration activities at Lamaque including 22,650 metres of diamond drilling targeting the Lamaque lower Triangle Deposit have focused on expand- Mine ing mineral resources and converting resources to reserves. Results to date have successfully expanded Fortune Zone Parallel Zone high-grade mineralization beyond the 2018 resource model.
No. 4 Plug March 2019 Eldorado declared commercial production at Lam- aque and is expected to meet production guidance Triangle Deposit of 100,000-110,000 ounces in 2019.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 23 South America PRODUCING
COMMODITY LOCATION Maranhão, Brazil PRODUCING Aurizona Guyana Atlantic Ocean Columbia
Ecuador
Peru
Pacific Ocean OPERATOR Bolivia Equinox Gold Corp. Chile
ACQUISITION DATE AGREEMENT TYPE TERMS
S outh A merica 2009 / 05 / 15 Royalty Au ≤ $1,500 = 3% NSR Au $1,501–$2,000 = 4% NSR Au > $2,000 = 5% NSR
The Aurizona Gold Project is located involving an upgrade to the mill that provides in Maranhão State in northern Brazil. for an 8,000 tpd crushing and grinding circuit Aurizona is an orogenic gold deposit hosted that can treat all ore types. The average annual in a greenstone belt of the São Luis Craton. production is expected to be 136,000 ounces There are many mineralized bodies on of gold over an initial 6.5 year mine life and the property, but work to date has focused commercial production is expected in 2019. on the Piaba and Tatajuba deposits on which the current resource is based. Aurizona reported 971,000 ounces of Proven and Probable Reserves as of December 2018 The Aurizona mine was an active open-pit contained in 19.8 Mt of 1.5 g/t gold material operation from 2010 to 2015, producing (0.6 g/t cut-off). Exploration programs are approximately 329 kozs of gold at an ongoing at a number of drill-ready targets For more information refer to average grade of 1.3 g/t. Ore was processed including Piaba West which has the potential www.equinoxgold.com through a gravity and carbon-in-leach plant to extend the existing Piaba deposit 900 with gold recoveries averaging 88%. metres to the southwest, and Tatajuba which
Aurizona is situated on the same Piaba structure A Feasibility Study was released in August and represents a potential four-kilometre 2017 and outlined a mine restart plan extension along strike from Piaba West.
Royalty Map N 20,627 ha
Sandstorm Royalty
Processing Plant
RECENT ACTIVITY
May 2019 Equinox announced its first gold pour at the Waste Dump Aurizona Gold Mine. Piaba Pit Tailings Piaba Dam Boa March 2019 West Ferradura Tatajuba The total Measured & Indicated Resources (ex- Conceiçāo clusive of reserves) increased to 692,000 ounces contained in 12.8 Mt at 1.68 g/t gold, including a new underground Indicated Resource of 460,000 ounces at 1.96 g/t gold. The updated mineral resource estimate incorporated 13,635 metres of shallow infill and step-out drilling focused on the western end of the Piaba deposit. 3 km
24 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook PRODUCING
COMMODITY LOCATION Santa Cruz, Argentina Cerro Moro PRODUCING
Pacific Brazil Ocean Paraguay
Uruguay
Atlantic Ocean OPERATOR Chile Yamana Gold Inc.
ACQUISITION DATE AGREEMENT TYPE TERMS
2015 / 10 / 27 Silver Stream 20% of Ag S outh A merica ↳ up to a maximum of 1.2Mozs of silver annually, until 7.0Mozs are delivered; then
ONGOING PAYMENT 9% of Ag ↳ for the life of the mine 30% of spot
The Cerro Moro low sulfidation, silver-gold g/t gold (5.7 g/t gold underground cut-off). deposit is located within the Deseado Massif Yamana is targeting the addition of 1.0 approximately 70 km southwest of the million gold equivalent ounces to the coastal port city of Puerto Deseado in the mineral inventory over the coming years. Santa Cruz province of Argentina. Cerro Moro contains a number of high grade On June 26, 2018, Yamana declared epithermal gold and silver deposits, some of commercial production and in January 2019, which will be mined via open pit and some Sandstorm began purchasing silver ounces via underground mining methods. The plant from Cerro Moro. Yamana expects production has the capacity to process 1,000 tpd and in 2019 to be 6,000,000 ounces of silver consists of a crushing, grinding and flotation and 130,000 ounces of gold. The mine plan For more information refer to involves a transition to a greater proportion of circuit with a counter current decantation Moro Cerro www.yamana.com and a Merrill Crowe circuit included. underground mining over the next three years Metallurgical recoveries are expected to and production from Zoe underground mine is average 95% for gold and 93% for silver. scheduled to commence mid-2019.
The Proven and Probable Reserve estimate as of December 2018 is 1.81 Mt with an average grade of 652.6 g/t silver and 11.6
Royalty Map RECENT ACTIVITY
214,645 ha April 2019 Gabriela Yamana announced a US$15 million exploration Silver Stream budget in 2019 to be used for a drill program designed to test major structures that have the 5km Area of Interest Nini potential to host new mineralized zones, and to Mineralization generate new targets through multi-disciplinary fieldwork.
Escondida Far West Escondida East Carlita July 2018 Escondida Approximately 13,800 metres of drilling was Veronica completed at Cerro Moro during the second quarter Plant of 2018. The goals of the 2018 exploration program are to expand Measured and Indicated Mineral Resources, add Inferred Mineral Resources and develop new drill targets that can be part of the 2019 exploration drill program. The majority of the infill drilling was completed on the Veronica 2 km vein, the Escondida Far East vein and Escondida Far West vein. 20 km
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 25 South America PRODUCING
COMMODITY LOCATION Goiás, Brazil PRODUCING Chapada
Ecuador
Peru Pacific Ocean Bolivia
Paraguay
OPERATOR Chile Atlantic Argentina Ocean Lundin Mining Corp.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
S outh A merica 2015 /10 / 27 Copper Stream 4.2% of Cu 30% of spot Silver Stream 52% of Ag 30% of spot up to a maximum of 100,000 ounces annually for 2017 and 2018 only
Chapada is an open pit copper-gold mine October, an updated technical report was filed located 270 km northwest of Brasília in Goiás which outlines production through 2050. state, Brazil. The mine reached commercial production in 2007 and is an open pit truck Yamana, the previous owners, completed and shovel operation, with ore being treated studies to evaluate several development through a flotation plant with capacity of 23.4 opportunities at Chapada. These Mt per annum. The Chapada mine plan has opportunities range in scope from plant three open pit mining areas including Corpo optimization initiatives to enhance copper and Corpo Sul, which are currently being and gold recoveries, to a plant expansion mined, and the Suruca deposit that Yamana to bring forward cash flows and pit wall plans to develop in the future. Exploration pushbacks to expose higher grade ore is ongoing to develop near mine targets at zones. Lundin is currently evaluating Chapada For more information refer to Suruca SW, Suruca NE, Baru and Interpits. these and other scenarios for expansion www.yamana.com that would increase the processing rate The Proven and Probable Reserves at Chapada up to 32 million tonnes per annum. total 738.8 Mt at a grade of 0.24% copper and 0.15 g/t gold containing approximately 1.8 Mt *Reserves are calculated using an NSR cut-off grade of copper and 3.5 million ounces of gold. * In value of US$4.08 per tonne based on US$3.00/ lb copper and $1,500/oz gold and an exchange rate of USD/BRL of 3.5. The cut off value for gold only reserves is 0.19–0.30 in the Suruca open pit.
N RECENT ACTIVITY Royalty Map October 2019 Formiga 63,428 ha (18km) Suruca A Technical Report on the Chapada Mine was filed to support the current Mineral Reserve and Sandstorm Stream Resource estimate. Plant 3km Area of Interest Suruca SW Mine Site Location July 2019 Baru Targets Sucupira Yamana completed the sale of its wholly owned Interpits Buriti Chapada Mine to Lundin Mining Corporation for total consideration of over $1.0 billion. Chapada Pit Corpo Sul Pit January 2019 During 2018, Yamana completed 40,759 metres of drilling focused on resource expansion and discov- ery of new near surface targets. Yamana reported 2 km that results from the drilling campaign support the potential for mineral resource expansion at Suruca, Sucupira, and Baru by year end. 10 km
26 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook South America PRODUCING
COMMODITY LOCATION Santa Cruz, Argentina Don Nicolas PRODUCING
Pacific Brazil Ocean Paraguay
Uruguay
Atlantic Ocean OPERATOR Chile Compania Inversora en Minas SA (CIMINAS)
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 10 / 04 Royalty $3/oz on Au n/a S outh A merica capped at $2M
The Don Nicolás project is located in Santa district wat Don Nicolás in September Cruz, Argentina within the Deseado Massif 2017 and CIMINAS is expecting to produce geological setting. The gold and silver at approximately 35,000 ounces per year over 8 Don Nicolás occurs as low sulphidation, years with ore sourced from the Martinetas epithermal mineralization within sub- and La Paloma deposits. Metallurgical vertically oriented quartz-breccia veins. recoveries are expected to average 90%.
A Feasibility Study was completed in 2012 Upside opportunities for the project by Mineral IRL Limited evaluating an open include underground development of the pit mine with ore production from two deeper high-grade shoots at Sulfuro on districts, Martinetas and La Paloma, located the La Paloma property, and heap leach approximately 50 kilometres apart. A private recovery of lower-grade material around Argentinian company Compañía Inversora en the Martinetas area where a portion Minas (CIMINAS) acquired the project from of the mineral resource is based. Mineral IRL in 2014 and began developing the mine. CIMINAS has constructed a processing Sandstorm’s royalty is capped at $2 million
facility with a two-stage crushing circuit and covers a portion of the Don Nicolás Don Nicolas and carbon-in leach treatment plant with property claims. Sandstorm acquired capacity to process 1,000 tpd. The first gold the royalty as part of its acquisition doré bar was poured from the Martinetas of Premier Royalty Inc. in 2013.
Royalty Map
~19,800 ha
Sandstorm Royalty La Paloma N Processing Plant Deposit
10 km
RECENT ACTIVITY 3
October 2017 The mill is reportedly operating at 900 tpd from production at Martinetas. Material from La Paloma will begin being mined in Q1 2018 and will increase production to 1,000 tpd.
Martinetas Deposit July 2014 The Don Nicolás asset was sold by Mineral IRL Lim- ited to private Argentinian company, CIMINAS.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 27 South America PRODUCING
COMMODITY LOCATION Morona-Santiago, Ecuador PRODUCING Fruta del Norte Columbia
Pacific Ocean OPERATOR Peru Brazil Lundin Gold Inc.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
S outh A merica 2019 / 01 / 18 Royalty 0.9% NSR n/a
The Fruta del Norte gold project, located project cost estimate released in 2018 in southeast Ecuador about 139 km east- evaluated a large-scale underground mine northeast of the City of Loja, is one of the processing up to 3,500 tpd and producing highest-grade gold projects currently under 330,000 ounces of gold per year at an AISC construction in the world today. The majority of US$583 per ounce. Current Probable of the project area lies in the highlands Mineral Reserves of 5.0 million ounces of south of the Zamora River and east of the gold in 17.8 Mt at a grade of 8.7 g/t support Nangaritza River in the Condor mountain a 15-year initial mine life. The process plant region. The Fruta del Norte (“FDN”) deposit will use gravity, flotation and carbon-in-leach is an intermediate-sulphidation epithermal circuits to recover gold to concentrate gold-silver deposit measuring approximately and as doré with combined metallurgical 1,670 metres along strike, 700 metres recoveries estimated at 91.7% for gold. The For more information refer to www.lundingold.com down dip and between 150 metres and 300 first gold pour is expected in the fourth metres wide. The structure that hosts the quarter of 2019 with commercial production FDN deposit is a Jurassic aged structural anticipated during the first half of 2020. zone termed the Suárez pull-apart basin. Lundin Gold has completed several drill
Fruta del Norte Historical work carried out by prior owners programs since 2015. Mapping, geochemical including Aurelian Resources Inc., and sampling and permitting required for future Kinross Gold Corporation, enabled Lundin drilling continues at multiple epithermal Gold to move quickly towards a feasibility gold-silver targets to be explored inside study and ultimately a production decision and outside of the Suárez basin structure. after acquiring FDN in late 2014. A 2016 Feasibility Study along with an updated
Royalty Map N 64,406 ha
Sandstorm Royalty FRUTA DEL NORTE FRUTA Fruta del Norte Area of Interest Deposit
Suarez Pull-Apart Basin Bonza (Las Peñas)
Exploration Targets Alejandro RECENT ACTIVITY
November 2019 Puente Princesa Lundin announced production of first gold and Barbasco continues to focus on completing commissioning and moving towards commercial production in the second quarter of 2020. Gata Salvaje
March 2019 Emperador Robles Lundin closed a bought deal equity offering for gross proceeds of C$46.6 million. Part of the proceeds 5 km will be used for exploration with a focus on targets around the Suarez pull-apart basin. 20 km
SANDSTORM GOLD ROYALTIES SANDSTORM 600% ZOOM January 2019
28 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook South America PRODUCING
COMMODITY LOCATION San Juan, Argentina Gualcamayo PRODUCING
Pacific Brazil Ocean Paraguay
Uruguay
Atlantic Ocean OPERATOR Chile Mineros S.A.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 10 / 04 Royalty 1.0% NSR n/a S outh A merica
The Gualcamayo mine is an open pit and mineralization. Porphyry style molybdenum underground heap leach operation that mineralization also occurs at the project. reached commercial production in 2009. Gualcamayo consists of three substantial The process facility at Gualcamayo is designed zones of gold mineralization called Quebrada to treat 24,000 tpd and includes a primary, del Diablo (QDD), Amelia Ines-Magdalena secondary and tertiary crushing circuit. Gold (AIM) and QDD Lower West. QDD is recovery of approximately 60% is achieved a sediment-hosted disseminated gold with heap leaching and activated carbon in deposit while AIM is a sulphide-bearing an ADR plant where gold doré is produced skarn deposit containing copper, zinc and sent to a refinery. The December 2017 and molybdenum with gold-arsenic Proven and Probable Reserves at Gualcamayo contain 491 kozs of gold in 10.25 Mt at a For more information refer to www.yamana.com grade of 1.5 g/t (variable cut-off grades). Gualcamayo
GUALCAMAYO 1 GUALCAMAYO 2 Royalty Map N 7,128 ha
Las Vacas Sandstorm Royalty Project Camp
2 km RECENT ACTIVITY
Potenciales Cerro Condor October 2018 Project Gualcamayo Project Pit Yamana announced the sale of the Gualcamayo mine to Mineros S.A. for approximately $85.0 million. Mineros S.A. is a Columbia based gold producer with operations in Columbia and Nicara- gua. Gualcamayo produced close to 70,000 ounces of gold during the first three quarters of 2018.
July 2018 RIO PIOJOS CATEO In the first half of 2018, production at Gualcamayo totaled 47,940 ounces of gold.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 29 Africa PRODUCING
COMMODITY LOCATION Tuy, Burkina Faso PRODUCING Houndé
Mali Niger
Benin OPERATOR Togo
Ghana Nigeria Endeavour Mining Corporation Cote d'Ivoire A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2017 / 12 / 18 Royalty 2.0% NSR n/a
The Houndé project is located 250 km gravity circuit and carbon-in-leach plant. southwest of Ouagadougou, the capital city Gold recoveries are expected to average 93%. of Burkina Faso. Infrastructure in the area includes a paved highway approximately The mineralization at Houndé is within the 2.7 km from the mine site, a 225 kV power highly prospective Birimian Greenstone belt line as close as 200 metres in some areas and is mainly quartz stockwork-style and and a rail line that extends to the port is moderately pyritic. The Vindaloo trend, of Abidjan, Côte d’Ivoire approximately where the bulk of the Mineral Reserves 25 km west of the deposit area. have been identified, has been drill tested for a distance of approximately 7.7 km along The mine reached commercial production strike and up to 350 metres in depth. The in November 2017 and Houndé is now mineralization remains open both along For more information refer to www.endeavourmining.com Endeavour’s flagship asset, ranking amongst strike and to depth and Endeavour has West Africa’s top tier cash generating mines. set an exploration budget of $40 million The average annual production during the to be spent over the next four years. first four years of operations is expected
Houndé to be 235,000 ounces of gold at an all-in- Proven and Probable Reserves as of sustaining-cost of US$610 per ounce. Houndé December 2018 totaled 27.5 Mt at a is an open-pit mine with a 3.0 Mt per year gold grade of 2.0 g/t for 1.7 million contained ounces (0.5 g/t cut-off).
N
Royalty Map Sia/Sianikoui HIGHWAY 48,035 ha RECENT ACTIVITY POWER LINES Sandstorm Royalty Grand Espoir August 2019 Targets Bombi The processing of high-grade ore from the Bouéré BouereBoueré Deposit began early in the third quarter and produc- 10 km tion is expected to benefit in the second half of 2019. Plant
Kari Pump July 2019 Vindaloo Deposit Bombi Kari A drilling campaign comprised of 195,000 metres began in January 2019 with the aim of delineating a maiden resource for the Kari West and Kari Center
discoveries. To date 1,027 holes have been drilled Kari Fault totaling 104,179 metres.
30 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Africa PRODUCING
COMMODITY LOCATION Yatenga, Burkina Faso Karma PRODUCING
Mali Niger
Benin OPERATOR Togo
Ghana Nigeria Endeavour Mining Corporation Cote d'Ivoire A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2014 / 08 / 11 Gold Stream 25kozs 20% of spot over 5yrs, 1.6% thereafter
Karma is a mesothermal, shear-hosted contiguous exploration permits (Goulagou, gold deposit. The soft nature of the open Rambo, Kao, Rounga, Youba, and Tougou) pit material allows the majority of the totaling more than 900 km2 and includes ore and waste to be excavated without more than 45 high-priority targets with blasting, making it a low cost operation. high-grade rock values associated with Production began in early 2016 from five gold-in-soil anomalies and historical open pits and ore is processed with heap workings that remain untested. leaching. Recoveries are averaging between 85% and 90% and gold production from The Proven and Probable Reserves as of Karma totaled 109 kozs during 2018. Dec. 2018 totaled 27.5 Mt of 0.9 g/t material for 764 kozs of contained gold (cut-off Karma hosts a target-rich landscape with grades are 0.2 – 0.5 g/t depending on oxide, For more information refer to www.endeavourmining.com the essential hallmarks of a multi-deposit transition and sulphide material). environment. The property consists of six Karma
Royalty Map N
91,061 ha
Gold Stream 5km Area of Interest ROUNGA
Pit Locations
1 Goulagou I YOUNBA 2 Goulagou II RECENT ACTIVITY 3 Nami 4 Rambo TOUGOU 5 North Kao May 2019 6 Kao Main 3 GOULAGOU 1 Gold production in 2019 is forecasted to be 105-115 2 RAMBO kozs of gold at an AISC of $860-$910 per ounce. 4 10 km Mining activities in the second half of 2019 are expected to benefit from oxide ore from the North 5 Kao deposit. This is expected to have higher grades, City of KAO 6 Ouahigouya higher recovery rates and lower unit costs.
In 2018, more than 23,000 metres were drilled mainly focused on the eastern extension of the North Kao deposit, Yabonsgo, and Rambo West. An exploration program totaling approximately 27,000 metres has been planned for 2019.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 31 Africa PRODUCING
COMMODITY LOCATION North West, South Africa PRODUCING MWS
Mozambique A Botswana
t
l
a
n Namibia Swaziland
t
i c
O
c Lesotho e a n OPERATOR Indian Ocean AngloGold Ashanti Limited A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 10 / 04 Royalty 1.0% NSR n/a
The Mine Waste Solutions (MWS) project Mt per annum and the uranium plant has is located near Stilfontein, South Africa a design capacity of 1.2 Mt per year. within the Witwatersrand Basin. MWS is a gold and uranium tailings reprocessing The gold and uranium in the tailings at operation that processes slurry material, MWS occurred within conglomerate reclaimed hydraulically from various reefs that were mined at the now closed tailings storage facilities through three Stilfontein and Buffelsfontein gold mines. processing plants. The gold plants have The facilities also include a modern tailings the capacity to treat approximately 26 storage facility approximately 15 km from the gold plant modules where residues from the treatment plants are deposited.
For more information refer to www.anglogoldashanti.com MWS
Royalty Map N
Sandstorm Royalty (815 ha) MWS4 Tailings Storage Facility MWS5 N12 Plant Sites MWS2
Town of Stilfontein
Harties 5,6
HARTEBEESTFONTEIN SECTION
Harties 5,61,2 Kareerand BUFFELSFONTEIN South Sulphur SECTION RECENT ACTIVITY East Paydam
East March 2018 Bu els 1,2,3,4 Production at MWS was 109 kozs of gold in 2017, Bu els 5 18% higher than in 2016. The increase was due to West Exit the improvement in feed grades from the Sulphur West Complex Paydam and East tailing storage facilities, coupled 5 km with improved recoveries.
32 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Asia PRODUCING
COMMODITY LOCATION Ordu, Turkey Altintepe PRODUCING Bulgaria Black Sea Georgia
Greece
OPERATOR Cyprus Syria Iraq Bahar Madencilik Sanayi ve Ticaret Mediterranean Sea sia A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 /01 / 19 Royalty 1.5% NSR n/a
Altintepe is located in the Ordu province late 2015. Production from the first stage of Turkey and is a high-sulphidation of operations is expected to average 30,000 epithermal gold deposit. Mineralization ounces of gold per year over a 40 month occurs in a series of linear, fault-controlled period. Other mineralized zones that may veins and related stockworks. increase the mine life include Kayatepe, Camlik East, Extension Ridge, and Karakışla. The open-pit heap leach operation at Altintepe poured gold for the first time in
For more information refer to www.stratexinternational.com Altintepe
N
Heap Leach Royalty Map
1,651 ha
Open Pit 1.5 km Processing Plant
RECENT ACTIVITY Bahar Madencilik is a private company and does not disclose mining or development activity related to Altintepe.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 33 Australia PRODUCING
COMMODITY LOCATION WA, Australia PRODUCING Forrestania Indian Coral Sea Ocean NT QLD
SA NSW Great Australian ACT OPERATOR Bight VIC Tasman Sea Western Areas Ltd. TAS ustralia A ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 09 / 16 Royalty 1.0% GRR n/a
The Forrestania project is Western Areas’ Production at Flying Fox commenced in flagship asset and contains two of the highest 2006 and is an underground, long-hole grade operating nickel mines in the world, stoping operation with low cash costs Flying Fox and Spotted Quoll. The high at under $3.00 per pound of nickel. The grade nickel ore is processed through the Flying Fox mineralization extends from Cosmic Boy Concentrator which consists 250 metres to 1.2 km below the surface and of a three stage crushing circuit followed includes discrete independent orebodies by a single closed circuit ball mill and a with high grade massive sulphide as well as system of flotation tanks and thickening/ a large volume of low grade disseminated filtration system. Nickel recovery rates mineralization. Resource grades range from at Cosmic Boy average between 85% and 3.9% to 6.2% nickel and increase at depth. 90%. Forrestania also includes a significant regional tenement package, considered highly The December 2018 Probable Reserves at prospective for further nickel discoveries. Flying Fox totaled 0.72 Mt at a grade of 3.3% for 23,650 tonnes of nickel. The Indicated Sandstorm’s royalty covers approximately Mineral Resource was 1.7 Mt at a grade of 42 km2 of the Forrestania property 4.6% nickel for 80,007 tonnes of nickel. Forrestania including a portion of the Flying Fox mine.
Source: Western Areas corporate presentation For more information refer to dated September 2019 www.westernareas.com
beautiful sunday deposit N
cross roads Royalty Map north ironcap deposit deposit 4,167 ha south tetleys deposit Flying Fox 5 km Mine
Cosmic Boy Spotted Quoll Concentrator Sandstorm Royalty Mine
RECENT ACTIVITY
August 2019 Production from Flying Fox totaled 231,607 tonnes of ore at 4.2% nickel during the 2019 fiscal year (ended June 30). Sandstorm’s royalty covers a por- tion of the Flying Fox property called the Lounge Lizard deposit.
34 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Australia PRODUCING PRODUCING ustralia A Forrestania
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 35 2018 / 2019 Asset Handbook Development Projects North America 38
AJAX 38
BARRY 39
COPPER MOUNTAIN 40
GLADIATOR 41
HACKETT RIVER 42
MOROY / BACHELOR 43
MT. HAMILTON 44
NORTH TIMMINS 45
PRAIRIE CREEK 46
RELIEF CANYON 47
South America 48
CORINGA 48
LOBO-MARTE 49
LUCERO 50
MONTAGNE D'OR 51
Africa 52
BUFFELSFONTEIN 52
Asia 53
AĞI DAĞI 53
HOD MADEN 54
HUGO NORTH EXTENSION 55
IVRINDI 56
KIRAZLI 57
Australia 58
GUM CREEK 58
WILUNA 59 North America DEVELOPMENT
Ajax COMMODITY LOCATION British Columbia, Canada DEVELOPMENT YT NWT NU
AB SK MB
OPERATOR Pacific Ocean KGHM Polska Miedz S.A. United States
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2016 / 01 / 19 Royalty 1.5% NSR n/a
The Ajax property is located in the southern and a gravity circuit to recover copper and boundaries of the city of Kamloops in British gold. A Feasibility Study released in Feb. 2016 Columbia, Canada. The project is owned by a estimated recoveries at about 85% for both joint venture between KGHM Polska Miedz metals and average annual production of S.A. (80% interest) and Abacus Mining & 127.4 Mlbs of copper and 123 kozs of gold. Life Exploration Corp. (20% interest). The Ajax of mine production is estimated at 19 years property is an alkalic copper-gold porphyry based on a Dec. 2014 Proven and Probable deposit hosted within the Iron Mask Batholith. Mineral Reserve estimate of 426 Mt of ore containing 0.29% copper, 0.2 g/t gold and The proposed mine plan is an open pit with 0.4 g/t silver (NSR cut-off of $7.10/tonne). a processing plant that will treat 65,000 tonnes of ore per day. The plant will include The Ajax royalty was acquired as part of a For more information refer to www.kghm.com/en crushing and grinding followed by flotation package of 52 royalties from Teck Resources. Ajax
N
1
RECENT ACTIVITY
December 2017 The British Columbia Minister of Environment and Climate Change Strategy and Minister of Energy,
Mines and Petroleum Resources declined to issue Open Pit 5A an Environmental Assessment Certificate for the Ajax project. KGHM is considering its next steps
in light of the ruling. y
w
H Royalty Map
a
l
l
a h Processing
1,771 ha i
December 2016 u
q Tailings Plant o
An updated feasibility study was filed reflecting C Storage changes to the project. The mine’s infrastructure Sandstorm Royalty was moved farther from the nearest buildings in the town of Kamloops, technology improvements 3 km were incorporated and the processing facility’s 5 throughput capacity was increased from 60,000 to 65,000 tonnes of ore per day.
38 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America DEVELOPMENT
Barry COMMODITY LOCATION Québec, Canada DEVELOPMENT NWT NU
Hudson Bay AB SK MB
NL ON
OPERATOR NB PE United States Bonterra Resources Inc. NS
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2017 / 09 / 29 Royalty 3.9% NSR n/a A merica N orth 2015 / 04 / 28 Royalty 0.5 – 1.0% NSR
The Barry project is located in the Urban- 2,400 tpd and Barry is expected to contribute Barry mining camp 110 km east of the city of 900 tpd of mill feed at an average grade of Lebel-sur-Quévillon in Québec. The region 7.0 g/t gold for annual production of about has been the focus of significant exploration 72,000 ounces of gold. Initial production is activity including the ongoing 800,000 metre expected during the second half of 2019. drill program at Osisko Mining’s Windfall project, adjacent to the Barry property. In May 2019, Bonterra reported a Mineral Resource Estimate of 2.1 Mt at a grade of 5.8 The Barry deposit is structurally controlled g/t gold containing 385 kozs of gold in the with gold mineralization contained in a Indicated category and an Inferred Resource system of veins associated with sheared of 2.7 Mt at a grade of 5.1 g/t gold containing zones included in a wide deformation 453 kozs of gold (cut-off grade of 3.5 g/t gold). For more information refer to corridor. Mineralization has been www.bonterraresources.com identified 1,300 metres along strike and
to 600 metres at depth and coincides with Barry
strong IP anomalies occurring in volcanic RECENT ACTIVITY units throughout the property. The deposit remains open in all directions. October 2019 Bonterra announced a company-wide mineral Bonterra is developing an underground resource estimate in May 2019 for all Urban Barry ramp and plans to mine ore from Barry and exploration assets including the Gladiator, Moroy the nearby Moroy and Gladiator deposits and Barry deposits. The combined mineral resource to feed the Urban-Barry mill. The mill’s estimate is part of Bonterra’s strategy to fast track processing capacity is being expanded to development of the three deposits simultaneously and to optimize feed to the Urban Barry Mill over the life of the three mines.
August 2019 Bonterra announced a C$32 million private placement to finance on-going exploration and Windfall Lake development work on its properties.
Panache Sud March 2019 N Definition drilling consisting of 7,548 metres has Royalty Map Moss confirmed location and grade of the gold-bearing zones at Barry and results will be used for the 8,831 ha planning of a proposed bulk sample.
3.9% NSR Highlights include: 1% NSR ↳ BR18-03: 13.4 g/t gold over 3.2 metres from 0.5% NSR 307.4 metres;
Bart Zone Barry ↳ BR18-05: 8.2 g/t gold over 5.3 metres from Deposit 278.2 metres; and
↳ BR19-25: 15.5 g/t gold over 4.5 metres from 194.8 metres
3 km
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 39 North America DEVELOPMENT
Copper COMMODITY LOCATION British Columbia, Canada DEVELOPMENT Mountain YT NWT NU
AB SK MB
OPERATOR Pacific Ocean Copper Mountain Mining Corporation United States
ACQUISITION DATE AGREEMENT TYPE TERMS
A merica N orth 2016 / 01 / 19 Royalty 5% NSR of Cu, 2.5% other metals
Copper Mountain is a porphyry copper-gold of a secondary crusher is now targeting up to system located in British Columbia, 180 40,000 tpd. Metallurgical recoveries in the km east of Vancouver. The mine initiated mill range between 79% and 92% depending production in August 2011 and uses truck on the mining location, with an average and shovel open pit mining methods. annual recovery of approximately 84%.
A majority of the copper-gold mineralization Sandstorm’s royalty covers a portion of at Copper Mountain occurs in veins, the Copper Mountain claims, including fracture fillings and disseminations the Alabama and Virginia deposits. within volcanic rocks of the Nicola Group. Ore is not currently being mined from Mineralization remains open to expansion Sandstorm’s royalty ground. in many areas, particularly at depth. For more information refer to www.cumtn.com The mineral processing facility was designed to process 35,000 tpd and with the addition Copper Mountain Copper
N
Tailings Pond
Alabama Pit Virgina Pit
RECENT ACTIVITY Ingerbelle Deposit September 2018 Pit 2 Copper Mountain announced the results from the Pit 1 Super Pit Preliminary Economic Assessment for the New
Ingerbelle deposit, located one kilometer from the Royalty Map Pit 3 Copper Mountain mine. Sandstorm’s royalty does not cover the Ingerbelle deposit. 524 ha
Sandstorm Royalty January 2017 Processing Plant Mining activities were focused on the Pit#2 and Virginia pit areas during 2016. Copper Mountain is 2 km no longer producing from the Virginia pit.
40 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America DEVELOPMENT
Gladiator COMMODITY LOCATION Québec, Canada DEVELOPMENT NWT NU West Arena Hudson Bay AB SK MB
NL ON
OPERATOR NB PE United States Bonterra Resources Inc. NS
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2015 / 04 / 28 Royalty 1.0% NSR n/a A merica N orth
The West Arena property lies near the the Inferred category. A 60,000 metre drill middle of the Urban-Barry Greenstone Belt, campaign completed during 2017 and a 70,000 approximately 170 km northeast of Val-d’Or, metre program in 2018 has expanded the strike Québec. The property contains the Gladiator length and depth of the Gladiator deposit to gold deposit where Bonterra’s exploration 1,300 metres and 1,100 metres respectively, programs have been focused. Gladiator is with a number of subparallel zones or described as a highly silicified and altered mineralized horizons being identified. The sheared mafic volcanic, locally exhibiting deposit remains open in all directions. intrusions of syenite and quartz porphyry. Gold is found primarily in smokey quartz- Bonterra has initiated the permitting carbonate and tourmaline veins ranging process for the development of a decline from 20 centimetres to 4 metres in width. to complete a bulk sample at Gladiator. For more information refer to The project is expected to contribute 1,000 bonterraresources.com A Mineral Resource Estimate for the Gladiator tpd of gold ore to the Urban-Barry mill, deposit was published in May 2019 and a nearby processing plant that is being contains 743 kt grading 8.5 g/t for 202,000 expanded to handle throughput of 2,400
ounces of gold in the Indicated category (3.5 tpd. Mining is expected to commence at Gladiator g/t cut-off). Another 3.1 Mt grading 9.1 g/t Gladiator during the second half of 2020. gold for 897,000 ounces of gold is listed in
Windfall Lake Deposit Royalty Map RECENT ACTIVITY October 2019 364 ha N Bonterra announced a company-wide mineral Sandstorm Royalty resource estimate in May 2019 for all Urban Barry Gladiator exploration assets including the Barry, Moroy and Gold Deposit Gladiator deposits. The combined mineral resource estimate is part of Bonterra’s strategy to fast track East West development of the three deposits simultaneously Arena Arena Coliseum and to optimize feed to the Urban Barry Mill over Barry Deposit the life of the three mines.
May 2019 The results of the NI 43-101 Mineral Resource Estimate for the Gladiator deposit include Indicated Resources of 743 kt at an average grade of 8.46 g/t gold totaling 202,000 ounces and Inferred Resources of 3.1 Mt at an average grade of 9.1 g/t gold totaling 897,000 ounces. 5 km
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 41 North America DEVELOPMENT
Hackett River COMMODITY LOCATION Nunavut, Canada DEVELOPMENT Beaufort Sea
U.S.A. YT NWT OPERATOR Hudson Bay Glencore plc BC AB SK MB
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2016 / 01 / 19 Royalty 2.0% NSR n/a
The Hackett River property is located in large-scale open pit and underground mining Nunavut, Canada, approximately 480 km operation, processing up to 17,000 tpd. The northeast of Yellowknife and 105 km south of proposed process plant was a crushing and the community of Bathurst Inlet, located on grinding flotation circuit that would produce the Arctic Ocean. Hackett River is a silver-rich a saleable concentrate for zinc, lead and volcanogenic massive sulphide deposit within copper with an emphasis on optimizing an Archean greenstone belt and the property silver recovery. The projected average metal contains four massive sulphide deposits recoveries were 75% for copper, 55% for gold, (East Cleaver, Boot Lake, Main Zone and Jo 77% for silver, 85% for lead and 92% for zinc. Zone) that occur over a 6.6 km strike length.
A Preliminary Economic Assessment was For more information refer to www.glencore.com completed in 2010 and evaluated a possible Hackett River Hackett
Royalty Map N 7,139 ha
Sandstorm Royalty Deposits Boot Deposit Main Deposit 8 km
East Jo Cleaver Deposit Deposit
RECENT ACTIVITY
December 2018 Effective Dec. 31, 2018 Glencore reported an Indi- cated Mineral Resource of 27.0 Mt containing 4.5% zinc, 130 g/t silver as well as 0.6% lead, 0.5% copper and 0.3 g/t gold. The Inferred Mineral Resource at Hackett River contains 60.0 Mt of 4.0% zinc, 1.0% lead, 0.4% copper, 150 g/t silver and 0.2 g/t gold. The cut-off grade was not reported.
42 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America DEVELOPMENT
Moroy / COMMODITY LOCATION Québec, Canada DEVELOPMENT NWT NU
Bachelor Hudson Bay AB SK MB
NL ON
OPERATOR NB PE United States Bonterra Resources Inc. NS
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2015 / 02 / 15 Royalty 0.5% NSR n/a A merica N orth 2012 / 12 / 07 Royalty 0.5% NSR n/a 2011 / 01 / 14 Gold Stream 20% of Au $500/oz (amended Sep. 18, 2017) until 12 kozs are delivered, then 3.9% NSR
Moroy and Bachelor are greenstone hosted, Urban-Barry mill to increase its processing structurally controlled alkalic-magmatic gold capacity to 2,400 tpd in order to accommodate deposits located outside of Val d’Or, Québec. ore from Moroy, Bachelor and Bonterra’s The property was host to a producing mine nearby Barry and Gladiator deposits. during the 1980’s and in 2004 underwent major upgrades to the existing mine and The Moroy deposit is sub-parallel and south of mill infrastructure including the installation the Bachelor deposit, dipping north towards of a carbon-in-pulp process plant. the Bachelor trend. Development and drill programs are underway with more than The Bachelor mine reached commercial 65,000 metres of surface and underground production in 2013 as a long-hole underground drilling completed to date. A Mineral Resource operation and the mined ore is processed at Estimate for Moroy was published in May For more information refer to
the Urban-Barry mill. The mill has a capacity 2019 and contains 667 kt grading 5.17 g/t for Bachelor Moroy / www.bonterraresources.com of 800 tpd and has produced more than 111,000 ounces of gold in the Measured and 210,000 ozs of gold since its commissioning. Indicated category and 396 kt grading 4.32 Gold recoveries have averaged between g/t for 55,000 ounces of gold in the Inferred 96% and 98%. Bonterra plans to expand the category (3.0 g/t gold cut-off grade).
N RECENT ACTIVITY
October 2019 Bonterra announced a company-wide mineral Royalty Map resource estimate in May 2019 for all Urban Barry Mine Site & Mill exploration assets including the Gladiator, Barry 11,055 ha and Moroy deposits. The combined mineral resource estimate is part of Bonterra’s strategy to fast track Gold Stream/3.9% NSR Camp development of the three deposits simultaneously Moroy 1% NSR Deposit and to optimize feed to the Urban Barry Mill over the life of the three mines.
June 2019 Exploration continues at the Moroy deposit and drilling has extended the known mineralization by 150 metres in the down-plunge direction. Drill-hole MY-19-155 intersected 12.8 g/t gold over 5.6 metres 2 km from 256.3 metres and drill-hole MY-19-158 inter- sected 12.2 g/t gold over 5.4 metres from 70.5 metre. The deposit remains open at depth and along strike.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 43 North America DEVELOPMENT
Mt. Hamilton COMMODITY LOCATION Nevada, USA DEVELOPMENT SD OR ID WY NE
UT CO KS
CA OK AZ NM OPERATOR Pacific Ocean TX Waterton Global Resource Management LP Mexico
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2012 / 06 / 11 Royalty 2.4% NSR n/a
The Mt. Hamilton property is located in processing. Gold recoveries are estimated the historic Mt. Hamilton mining district of to be 76% and silver recoveries 39%. central Nevada, near the southern end of the Battle Mountain gold trend. Two main zones Once in operation, the mine will produce of mineralization have been identified at the approximately 68,000 ounces of gold and project, the Centennial and Seligman zones, 280,000 ounces of silver per year over a seven which are epithermal gold and silver deposits. year mine life. Mt. Hamilton has an Aug. 2014 Proven and Probable Reserve of 22.5 Mt at 0.8 A Feasibility Study was completed on the g/t gold and 6.8 g/t silver for 545,400 ounces property in 2014 proposing a 10,000 tpd of contained gold and 4,459,600 contained truck and shovel operation with ore being ounces of silver (0.2 g/t gold cut-off). hauled from the pits to a primary crusher and For more information refer to Under the royalty agreement, www.watertonglobal.com gold and silver recovered by heap leaching and conventional ADR carbon-in-column Sandstorm is guaranteed $10 million in cash flow by Dec. 31, 2022. Mt. Hamilton
N Seligman
Royalty Map Centennial 1,209 ha Shell Gold
Sandstorm Royalty
RECENT ACTIVITY 1 km June 2015 Waterton acquired Mt. Hamilton for US$30 million from Solitario Exploration & Royalty Corp. and Ely Gold & Minerals Inc. Waterton is a private equity firm and has acquired a number of Nevada projects with plans to create a Nevada focused mining company.
44 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America DEVELOPMENT
North Timmins COMMODITY LOCATION Ontario, Canada DEVELOPMENT Hudson Bay SK MB QC
OPERATOR United States Gowest Gold Ltd.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2015 / 02 / 17 Royalty 1.0% GSR n/a A merica N orth
The North Timmins project consists of more ore from Bradshaw at the Aurbel Mill in than 100 km2 within the Abitibi Greenstone Val d’Or, Québec. The mill will produce belt in Ontario. A Pre-Feasibility Study a gold concentrate that will be shipped was completed in 2015 on the Bradshaw to the Humon Smelter in China. gold deposit, the most advanced gold project within the extensive property. The The Probable Reserve at Bradshaw is effective study evaluated an underground mine as of June 2015 and contains 277 kozs of gold accessible by decline from surface with the in 1.8 Mt at a grade of 4.8 g/t (3.0 g/t cut-off). primary mining method being longitudinal The Indicated Mineral Resource consists of longhole stoping with unconsolidated 1.2 Mt at 6.2 g/t gold for 422 kozs of contained and cemented crushed backfill. gold (3.0 g/t cut-off). Gowest is exploring near-mine targets within one km of Bradshaw For more information refer to www.gowestgold.com Gowest has stockpiled more than 28,000 in order to grow the reserves and resources. tonnes of development material on surface as part of a bulk sample program and has In the greater North Timmins project entered into a toll-milling agreement with area, a regional program is exploring QMX Gold Corporation to process gold for additional gold targets in the many prospective areas on the property. North Timmins
RECENT ACTIVITY
June 2019 Pursuant to the completion of its previously an- nounced private placement, Gowest received gross proceeds of C$8.0 million from Fortune Future 1 km Holdings Limited to be used towards the completion of the bulk sample at Bradshaw Gold deposit. Royalty Map N 10,474 ha June 2019 Gowest announced results from a drill program 1.0% GSR consisting of 6 holes and 1,024 meters designed to Sheridan Gold Zone provide infill detail at the Bradshaw deposit. Two holes were drilled beyond the known deposit into the North Bradshaw gold target area and success- Bradshaw Gold Deposit fully intersected multiple gold-bearing structures. Highlights include 1.9 meters of 11.5 g/t gold from 268.0 meters including 1.5 meters of 13.6 g/t gold (hole BGM19-045-033).
Dowe Gold Zone
Kidd Creek October 2018 Mine A toll milling agreement was reached with QMX Gold Corporation allowing Gowest to process mate- 5 km SGX Timmins North Deposit rial from Bradshaw at their Aurbel Mill in Val d’Or, Québec. Gowest has agreed to fund the work needed to upgrade the mill and its permits and is expecting processing to begin during the 2019 year.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 45 North America DEVELOPMENT
Prairie Creek COMMODITY LOCATION NWT, Canada DEVELOPMENT Beaufort Sea
NU
U.S.A. YT OPERATOR Hudson Bay NorZinc Ltd. BC AB SK MB
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2013 / 05 / 31 Royalty 1.2% NSR n/a
The Prairie Creek project is a zinc, silver, as an underground operation, mining an and lead deposit located in the Northwest average of 1,600 tpd over a 15 year mine life. Territories. There are four types of zinc- Average annual production is projected lead-copper-silver resources on the property to be approximately 65,000 tonnes of zinc including quartz veins, stratabound sulphides, concentrate and 72,000 tonnes of lead stockwork, and Mississippi Valley type. The concentrate containing approximately 95 most significant type of mineralization is the Mlbs of zinc, 105 Mlbs of lead and 2.1 Mozs quartz vein-type, which contains the majority of silver. Recoveries are estimated to be 83% of the currently defined Mineral Resources. for zinc, 88% for lead and 87% for silver.
In the early 1980’s, the mine was developed The August 2017 Proven and Probable and fully permitted but a decline in metal Mineral Reserve at Prairie Creek consists For more information refer to www.norzinc.com prices resulted in suspension of activity prior of 8.1 Mt at 124.2 g/t silver, 8.1% lead and to commencement of production. Much of 8.6% zinc (6%-12% ZnEq cut-off). the previous infrastructure is still on site and will be utilized and upgraded where possible.
Prairie Creek Prairie Based on a Feasibility Study released in 2017, the Prairie Creek mine is proposed
N
Royalty Map
7,487 ha
Sandstorm Royalty Access Ro ad RECENT ACTIVITY 5 km
August 2019 NorZinc is in the final stages of the permitting process for the All-Season Road and the timeline indicates receipt of the permit by year end.
Prairie Creek Mine May 2019 Repairs to onsite mobile equipment and the admin- istration building are progressing and construction optimization studies are underway in preparation for activities in 2020 such as Phase 1 road construc- tion and site refurbishment.
46 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America DEVELOPMENT
Relief Canyon COMMODITY LOCATION Nevada, USA SD DEVELOPMENT OR ID WY NE
UT CO KS
CA OK AZ NM OPERATOR Pacific Ocean TX Americas Gold and Silver Corporation Mexico
ACQUISITION DATE AGREEMENT TYPE TERMS
2019 / 04 / 03 Stream 32 koz Au over 5.5 yrs A merica N orth ↳ 4% Au/Ag @ 30%-65% of spot thereafter Royalty 1.4% – 2.8%
The Relief Canyon project is located at the gold material for 635,000 contained gold southern end of the Pershing Gold and Silver ounces (based on 0.17 g/t cut-off grade). Trend along the Humboldt Range, one of Nevada’s highly prospective historic mining Significant exploration potential exists at jurisdictions. Once a producing open pit Relief Canyon as approximately 20% of mine, infrastructure on site at Relief Canyon the 11,700-hectare land package has been includes easy access to power and water as explored to date. A 2018 drilling program well as a fully permitted heap-leach processing comprised of 9,000 metres focused on facility with a capacity of 21,500 tons per day. four target areas referred to as the West Step-Out area, the North East Pit, the Main A Feasibility Study released in May 2018 Zone, and the South East Lightbulb Pit. outlined average annual production of 91,000 The bulk of the drilling was performed at For more information refer to www.americassilvercorp.com ounces of gold over a 5.6-year mine life at an the West Step-Out area and focused on average all-in-sustaining-cost of US$801 per extending mineralization to the west and ounce of gold. Proven and Probable Reserves southwest of the current economic pit. Relief Canyon Relief as of May 2018 totaled 27.5 Mt of 0.72 g/t Americas Gold and Silver has received permits to begin construction and resume mining. Relief Canyon is expected to begin producing by the end of 2019.
N Royalty Map
RELIEF CANYON ~11,700 ha Relief Canyon Deposit Stream Processing 4km Area of Interest Plant
2.8% NSR 2.0% NSR 1.4% NSR
4 km SANDSTORM GOLD ROYALTIES SANDSTORM 3, 2019 March
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 47 South America DEVELOPMENT
Coringa COMMODITY LOCATION Pará, Brazil DEVELOPMENT Guyana Atlantic Ocean Columbia
Ecuador
Peru
Pacific Ocean OPERATOR Bolivia Serabi Gold plc Chile
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
S outh A merica 2012 / 05 / 11 Royalty 2.5% NSR n/a
The Coringa project is located in the using gravity concentration followed by Tapajós Gold Province in Para State, Brazil carbon-in-leach cyanidation of gravity tails. approximately 200 km from Serabi’s Palito The estimated gold and silver recovery mine, an operation that has been producing during the life of the mine is 95% for gold gold since 2014. Like Palito, Coringa contains and 61% for silver. Gold production is high grade gold in quartz veins with base expected to average 38 kozs per year over metal sulphides. The veins are hosted by an initial 9-year mine life. Serabi is working granite, rhyolites and volcanic breccias. to complete the permitting and licensing processes necessary for development. The technical report supporting the Preliminary Economic Assessment filed The current Indicated Mineral Resource in September 2019 anticipates a 465 tpd estimate consists of 735 kt grading 8.2 g/t gold For more information refer to www.serabigold.com underground operation using open stoping containing 195 kozs of gold (2.0 g/t cut-off). mining methods. Ore will be processed Another 1.6 Mt were listed in the Inferred through the Andorinhas plant (acquired Mineral Resource category (2.0 g/t cut-off). from Troy Resources Limited in 2016) Coringa CORINGA N MataoMato Velho Velho
Royalty Map RECENT ACTIVITY Valdette 8,064 ha Galena October 2019 Serra Serabi released results of the Preliminary Economic Sandstorm Royalty Assessment at Coringa and continues to work on Coringa Demetrio outstanding permitting requirements. Deposits
Meio March 2019 3 km Exploration drilling totaled 5,333 metres from 2018-2019 and returned multiple high-grade gold intersections on the Serra, Meio, and Galena targets of the Coringa deposit. Results from the drill program were included in an updated Mineral
Resource Estimate released in Q1 GOLD ROYALTIES SANDSTORM 2019. 11, 2019 September
48 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook South America DEVELOPMENT
Lobo-Marte COMMODITY LOCATION Atacama, Chile DEVELOPMENT
Pacific Brazil Ocean Paraguay
Uruguay
Argentina
Atlantic OPERATOR Ocean
Kinross Gold Corporation
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 1.05% NSR n/a S outh A merica
Lobo-Marte is located in the Maricunga estimated gold ounces were reclassified Gold District of Chile and contains two from Mineral Reserves to Measured and epithermal gold deposits that are seven Indicated Resources. Future development kilometres apart. The project is 100 km and operations at Lobo-Marte will require east of the city of Copiapó and 60 km the re-initiation of the permitting process. south of Kinross’ La Coipa mine. Kinross has three established easements and Kinross completed a Pre-Feasibility Study one in-process easement for the construction at Lobo-Marte in 2009 that contemplated a of roads, stockpiles, process facilities, camp, 47,000 tpd open pit heap-leach operation with support facilities, water extraction and estimated annual production of 350 kozs – 400 associated pipelines. Additional rights will be kozs AuEq for the first five years. Kinross required to support project development. For more information refer to www.kinross.com withdrew its permit application and stopped the permitting process in 2014 due to changes Sandstorm’s royalty is a 1.75% NSR on in the plan of operations, project economics, 60% of future production (equivalent to and stringent requirements associated with 1.05%) and is capped at $40 million. The the permit application. As a result of the royalty was acquired as part of a package permit withdrawal, approximately 6 million of royalties from Teck Resources. Lobo-Marte
N
Marte Deposit
Lobo Deposit
RECENT ACTIVITY Royalty Map August 2019 ~30,000 ha Kinross is following up the Scoping Study at Lobo- Marte with a Pre-Feasibility Study expected to Sandstorm Royalty be completed in mid-2020. The La Coipa project Feasibility Study is on schedule to be completed in the third quarter of 2019. The studies will assess the 5 km potential to share resources and leverage synergies between the projects.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 49 South America DEVELOPMENT
Lucero COMMODITY LOCATION Castilla, Peru DEVELOPMENT Ecuador
Brazil
Pacific Ocean OPERATOR Bolivia Compañia Minera Casapalca S.A. Condor Resources Inc.
ACQUISITION DATE AGREEMENT TYPE TERMS S outh A merica 2017 / 01 / 27 Royalty Au < $1,000 = 0.75% NSR Au $1,000 to $2,000 = 1.5% NSR Au > $2,000 = 2.25% NSR
The Lucero property is located in the Chila averaged approximately 20,000 ounces of gold Range of southern Peru, approximately 130 and 470,000 ounces of silver per year at grades km northeast of the city of Arequipa and 22 of 15.0 g/t gold and 450.0 g/t silver. Recoveries km southeast of Buenaventura’s Orcopampa averaged 94% for gold and 85% for silver. mine. A private Peruvian company, Compañia Historical mining exploited low sulphidation Minera Casapalca S.A., leased the property vein deposits and the property also contains from Condor Resources Inc. in late 2015 large epithermal alteration zones and gossans. and are working towards the completion of a long term exploration and exploitation Prospecting by Condor identified a high- agreement with the local community. sulphidation epithermal alteration zone with structures that returned peak sample values The Lucero property covers the Shila Mining of 33.4 g/t gold and 3,500 g/t silver. This
Lucero For more information refer to Camp which contains several historic high alteration zone, measuring approximately www.condorresources.com grade gold-silver mines that were operated by 1,300 metres by 1,400 metres, exhibits Buenaventura from the late 1980s to 2005. The no evidence of prior sampling or drilling extracted ore was processed at a small plant and is believed to host potential for a bulk east of the concessions and during the last tonnage disseminated gold-silver deposit. five years of operations, reported production
Royalty Map N 2,106 ha
Past Producing Mine
RECENT ACTIVITY 2 km Apacheta
May 2017 Condor reported results from a sampling program conducted in 2016. The sampling locations were Pillune dispersed over the concessions and tested six differ- ent target areas. From the sixty samples, reported gold values ranged up to 144 g/t gold with 21 of the samples reporting gold values greater than 1.0 g/t Shila gold. Silver values ranged from 0.1 g/t to greater than 10,000 g/t with 23 of the samples reporting silver values greater than 50 g/t. Sando Alcalde
50 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook South America DEVELOPMENT
Montagne d'Or COMMODITY LOCATION French Guiana DEVELOPMENT
Atlantic Guyana Ocean
Suriname
OPERATOR
Brazil Columbus Gold Corp. / Nord Gold N.V.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 05 / 17 Royalty 1.0% NSR n/a S outh A merica
The Montagne d’Or project is located in costs to be $535 million for a project with northwest French Guiana 180 km west of the life of mine gold production of 2.57 Mozs capital, Cayenne. The project occurs within over 12 years. The mine life is supported the Guiana Gold Belt, which stretches from by September 2016 Proven and Probable western Venezuela eastward through Guyana, Reserves of 54.1 Mt grading 1.6 g/t gold Suriname, French Guiana and into Brazil. (0.4 g/t cut-off). The mine is expected to recover 94% of the gold on average. Montagne d’Or is a volcanogenic gold deposit that is expected to be mined Columbus and Nordgold will proceed to by open pit with a gravity and carbon- construction once the required permits in-leach plant to extract the gold. and authorizations are received. The next steps involve a public consultation and the For more information refer to A Feasibility Study was completed in submittal of a mine permit application. www.columbusgoldcorp.com March of 2017 and estimated initial capital Montagne d'Or
N Royalty Map
18,949 ha
Sandstorm Royalty 5km Area of Interest Road (unpaved)
RECENT ACTIVITY
Montagne d’Or April 2019 Deposit The Montagne d’Or joint-venture achieved a major permitting milestone by providing its official deci- sion to French authorities to move forward with permitting and development of the Montagne d’Or gold mine. Development in 2019 will consist of project improvements and modifications in line 5 km with recommendations from the French National Commission of Public Debate.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 51 Africa DEVELOPMENT
Buffelsfontein COMMODITY LOCATION NW, South Africa DEVELOPMENT
Mozambique A Botswana
t
l
a
n Namibia Swaziland
t
i c
O
c Lesotho e a n OPERATOR Indian Ocean Heaven-Sent Capital Management Group Co., Ltd. A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 10 / 04 Royalty 1.0% NSR n/a
The Buffelsfontein project is located in the a carbon-in-pulp mill with capacity to Klerksdorp goldfields of the Witwatersrand process 180,000 tonnes of ore per month. Basin in the North West Province of South Africa, approximately 160 km southwest Buffelsfontein produced more than 2,300 of Johannesburg. The project is part of the tonnes of gold starting in 1954 and had Witwatersrand Basin where gold and uranium reported mineral resources of more than 20 occur in laterally extensive quartz pebble Mozs at the time of its closure. Buffelsfontein conglomerate horizons or reefs. Before its was last operated by Village Main Reef Limited closure in 2013, material from Buffelsfontein and was acquired by Heaven-Sent Capital was processed in the South Gold Plant, Management Group Co., Ltd. in June 2015.
For more information refer to www.ggttvc.com/en Buffelsfontein
N N12
Town of Stilfontein
Royalty Map
12,861 ha
Sandstorm Royalty
South Plant RECENT ACTIVITY 10 km Shafts
June 2015 Heaven-Sent Capital Management Group Co., Ltd. acquired Village Main Reef Limited for R637 million. Village Main Reef was the owner of the Buffelsfontein project which they shut down in May 2013.
52 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Asia DEVELOPMENT
AgiAği DagiDaği COMMODITY LOCATION Canakkale, Turkey DEVELOPMENT Bulgaria Black Sea Georgia
Greece
OPERATOR Cyprus Syria Alamos Gold Inc. Mediterranean Sea sia A
ACQUISITION DATE AGREEMENT TYPE TERMS
2016 / 01 / 19 Production Bonus $6,000,000 Within 60 days of the commencement of commercial production
RECENT ACTIVITY
February 2017 A Feasibility Study was completed in 2017 and dem- onstrated positive economics. Highlights include:
↳ After-tax NPV of $298 million at an 8% discount rate and an after tax IRR of 39% using gold and silver price assumptions of $1,250 and $16 per ounce respectively.
↳ Life of mine all-in sustaining costs of $411 per ounce. The Ağı Dağı project is located in the Dağı and requires a land use permit, GSM ↳ Initial capital estimate of $250 million Canakkale Province of western Turkey permit and operation permit before mine Aği Daği Aği and is an epithermal, high-sulphidation, construction can begin. Alamos expects disseminated gold system. Ağı Dağı has been a 36 month development timeline for For more information refer to designed as a 30,000 tpd open pit heap leach the project but their current focus is on www.alamosgold.com operation with a primary and secondary completing the permitting and development crushing circuit. Heap leaching will be at the nearby Kirazli project. The objective applied to the crushed ore and then processed is to utilize cash flows from Kirazli to through an ADR plant where gold and silver help fund the development of Ağı Dağı. doré will be produced. Annual production is expected to average 177,600 ounces of gold Within 60 days of the commencement and 444,200 ounces of silver over five years, of commercial production at Ağı Dağı, supported by a Proven and Probable Mineral Sandstorm will receive a production bonus of Reserve of 54.4 million tonnes at 0.7 g/t $6 million. The bonus is payable by Newmont gold and 5.4 g/t silver (as of Dec. 31, 2016). Mining who assumed the obligation when they acquired Fronteer Gold in 2011. Alamos received a positive decision on the Environmental Impact Assessment for Ağı
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 53 Asia DEVELOPMENT
Hotod MadenMaden COMMODITY LOCATION Artvin, Turkey DEVELOPMENT Russia Black Sea Bulgaria Georgia
IraqIran OPERATOR
Cyprus Syria Iraq Lidya Madencilik Sanayi ve Ticaret A.S. sia A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 30% NPI n/a 2.0% NSR
The Hod Maden project is located in breccias. Pyrite is the dominant sulphide northeastern Turkey within the Eastern phase with relatively minor chalcopyrite. Pontides metallogenic belt. Gold-copper mineralization in the Main Zone at Hod A Pre-Feasibility Study was released in Maden is multi-stage and includes massive 2018 and considered an underground sulphide mineralization and breccia hosted mine with a processing rate of 900,000 mineralization. The project has a Mineral tonnes per annum. The base case has a Reserve from May 2018 of 9.1 million mine life of 11 years with average annual tonnes at an average grade of 8.9 g/t gold production of 266,000 ounces of AuEq per and 1.4% copper for 2.6 million ounces gold year at an average head grade of 11.9 g/t and 129,000 tonnes copper in the Proven AuEq. The average recovery is expected and Probable (2.6 g/t AuEq cut-off). to be 77% for gold and 94% for copper. For more information refer to www.lidyamadencilik.com The Southern Zone was discovered in 2016 Upfront capital expenditure is estimated and is located approximately 300 metres at $272 million and once the mine is up south of the Main Zone. The Southern and running the all-in sustaining costs Hod Maden Zone gold-copper mineralization is hosted are estimated to be $374 per ounce on dominantly in dacitic volcanic rocks and a co-product basis. The post-tax NPV, using a 5% discount rate, is $1.1 billion with an internal rate of return of 50%.
RECENT ACTIVITY
June 2019 A gap analysis and trade-off studies were completed and will contribute to the Feasibility Study work. In conjunction, an Environmental Impact Assess- Royalty Map ment has been submitted and a public participation 7,394 ha meeting was successfully conducted as part of the permitting process. Sandstorm Royalty N
Northern Extension July 2018 2 km Hwy Fault Zone Recent exploration and infill drill results have been reported by Lidya Madencilik San. ve Tic. A.S. (“Lidya”), Sandstorm’s 70% partner at Hod Main Maden. As of mid-July 2018, a total of 7,069 metres Resource Zone in 19 drill holes had been completed in 2018 at the project. Highlights include: Southern Zone ↳ HTD-182: 72.5 metres of 20.4 g/t gold and Pre-1923 Russian 4.9% copper from 66.5 metres, including Mining Area 9.0 metres of 69.9 g/t gold and 7.0% copper
from 109.0 metres; and S
E N
↳ HTD-185: 18.5 metres of 17.6 g/t gold from I
L
486.5 metres, including 3.2 metres of 59.7 R E
g/t gold from 487.8 metres. W O P
54 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Asia DEVELOPMENT
Hugo North COMMODITY LOCATION Ömnögovi, Mongolia DEVELOPMENT Extension Russia
OPERATOR China Turquoise Hill Resources Ltd. sia A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 02 / 14 Stream 5.62% of Au $220/oz Au 5.62% of Ag $5/oz Ag 0.42% of Cu $0.50/lb Cu
The Hugo North Extension is a rich copper- mine development is ongoing at Hugo North. gold porphyry deposit in southern Mongolia Conventional crushing, grinding, and flotation and forms the northern-most extension circuits process the ore and the concentrates of the Oyu Tolgoi mining complex. The produced are sent to smelters in China. property is managed by Oyu Tolgoi LLC (OTLLC), a subsidiary of Turquoise Hill Entrée Resources published the results of Resources and the Government of Mongolia. a Feasibility Study based on the mineral Sandstorm acquired gold, silver and copper reserves attributable to the Lift 1 underground streams over the Hugo North Extension block cave at the Hugo North Extension. It is from Entrée Resources Ltd. Entrée has a estimated that 223 Mlbs of copper, 102 kozs 20% joint venture interest with OTLLC of gold and 730 kozs of silver will be mined on the Hugo North Extension property. as part of Lift 1 operations. Initial block cave For more information refer to www.turquoisehill.com production is expected to start in 2026. Four deposits have been identified in the mineral resources at Oyu Tolgoi: Oyut, The Hugo North Extension has a January Hugo North, Hugo South, and Heruga. In 2018 Probable Mineral Reserve of 35 Mt the initial years of production the main at grades of 1.59% copper, 0.6 g/t gold and Hugo North Extension source of ore has been from the Oyut 3.7 g/t silver and an Indicated Mineral open pit and while the pit is being mined, Resource (inclusive of Reserves) of 122 underground infrastructure and block cave Mt grading 1.68% copper, 0.6 g/t gold and 4.2 g/t silver (0.37% CuEq cut-off).
N
Royalty Map RECENT ACTIVITY
42,593 ha Hugo North Ext. August 2019
d Deposit n e r Turquoise Hill reported that during the second T Hugo South Deposit Hugo North Extension i o quarter, underground and lateral development g l 1 o Other Sandstorm Royalties T progressed by 3.2 km and 2.4 km respectively. u y Oyut O
Heruga January 2018 Heruga Deposit The results of a Feasibility Study based on the Mineral Reserves attributable to the Entrée/ Oyu Tolgoi JV from Lift 1 of the Hugo North Ext. underground block cave were released.
5 km
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 55 Asia DEVELOPMENT
Ivrindi COMMODITY LOCATION Marmara , Turkey DEVELOPMENT Bulgaria Black Sea Georgia
Greece
OPERATOR Cyprus Syria Tümad Madencilik A.Ş. Mediterranean Sea sia A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 2.0% NSR n/a
The Ivrindi project is located in Western average 70% for gold and 46% for silver and Turkey and contains several gold and the mine is expected to produce approximately silver bearing quartz veins and breccia 159 koz of gold and 348 koz of silver per year zones hosted by Upper Miocene andesitic over an initial 6 year life. Construction began volcanic and volcano-clastic rocks. A typical in 2018 and the project is expected to begin vein zone consists of several discrete producing gold and silver during the 2019 year. low sulphidation style epithermal veins separated by short intervals of quartz The historic Proven and Probable Reserves stockwork and silicified or fresh andesite. (2017) are estimated at 45.0 Mt at 0.7 g/t gold and 1.6 g/t silver for 964 kozs of contained A Feasibility Study was completed in 2017 gold and 2.35 Mozs of contained silver. which outlined a 21,260 tpd operation, The reserves estimate was based on 86,100 For more information refer to www.tumad.com extracting material from four open-pits at metres of diamond drilling at the project.* Ballıktepe, Karteldere, Kabaktepe and Güney- Boyun. The mined ore will go through a three- * This is a historic reserve estimate and a stage crushing circuit and onto a heap-leach Qualified Person has not done sufficient work Ivrindi pad followed by an adsorption-desorption- to classify this estimate as a current mineral recovery process. Recoveries are estimated to reserve estimate. Sandstorm Gold is not treating this as a current mineral resource estimate.
N
Royalty Map
3,851 ha
Sandstorm Royalty 1 km Area of Interest Karteldere 2.0% NSR Kabak T. 2.0% NSR RECENT ACTIVITY after 300 kozs produced Ballik T.
September 2017 Boyun Zone Guney Zone Tümad Madencilik received a $40 million project finance loan from the European Bank for Recon- struction and Development. The funds will be used to develop the Lapeseki and Ivrindi projects.
August 2016 The Ivrindi project received a positive decision on its Environmental Impact Assessment from the Ministry of Environment and Urban Planning in 2 km Turkey.
56 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Asia DEVELOPMENT
Kirazli COMMODITY LOCATION Canakkale, Turkey DEVELOPMENT Bulgaria Black Sea Georgia
Greece
OPERATOR Cyprus Syria Alamos Gold Inc. Mediterranean Sea sia A
ACQUISITION DATE AGREEMENT TYPE TERMS
2016 / 01 / 19 Production Bonus $2,500,000 Within 60 days of the commencement of commercial production
The Kirazlı development project is located Assessment and Forestry Permits and in the Çanakkale Province of northwestern Alamos also received the GSM permit Turkey and is an epithermal, high- required for the development of Kirazli. The sulphidation, disseminated gold system. GSM (Business Opening and Operation) permit is the final material permit required A Feasibility Study was completed in early prior to starting construction. Alamos 2017 and evaluated an open-pit operation that expects a 24 month development timeline would process 15,000 tpd through primary for Kirazlı, including approximately three crushing and open circuit secondary crushing months of pre-commercial production. followed by heap leaching methods to extract the gold and silver. Average annual production Within 60 days of the commencement of is estimated to be 104,000 ounces of gold and commercial production at Kirazlı, Sandstorm For more information refer to 617,300 ounces of silver over a five year mine will receive a production bonus of $2.5 million. www.alamosgold.com life, underpinned by a Proven and Probable The bonus is payable by Newmont Mining Mineral Reserve of 26.1 Mt of 0.8 g/t gold who assumed the obligation when they Kirazli and 12.0 g/t silver (as at Dec. 31, 2016). acquired Fronteer Gold in 2011. Sandstorm acquired the bonus payment as part of the Federal government approval has been Teck royalty package in January 2016. received for the Environmental Impact
RECENT ACTIVITY
May 2019 Alamos received the Operating Permit from the Turkish Department of Energy and Natural Re- sources and now has all major permits required for the start of construction at Kirazli. Alamos expects to ramp up major construction and earthworks activities, putting initial production on track by the end of 2020.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 57 Australia DEVELOPMENT
Gum Creek COMMODITY LOCATION West Australia, Australia DEVELOPMENT Indian Coral Sea Howards and Orion Ocean NT QLD
SA NSW Great Australian ACT OPERATOR Bight VIC Tasman Sea Horizon Gold Limited TAS ustralia A ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 09 / 16 Royalty A$10/oz n/a
The Gum Creek Gold Project covers three-stage crush, ball mill, gravity circuit, approximately 800 km2 of the Gum Creek cyanide leach and elution circuit. Greenstone Belt located in the East Murchison Province of Western Australia. Four types of The Howards deposit was included in the gold mineralization are present in the belt Scoping Study and is covered by Sandstorm’s including both free milling and refractory royalty. The gold mineralization at Howards mineralization types. A Scoping Study is typically associated with sulphide poor completed in early 2016 evaluated open-pit quartz veins of 1–3 metre thickness, within a production from the free milling resources shear zone up to 50 metres wide in mafic host only, to reduce the initial construction capital rocks. Coarse free gold is often present in the while retaining optionality of production veins. The Indicated and Inferred Resources from the refractory resources at a later date. estimated at Howards are 5.3 Mt at 1.1 g/t gold For more information refer to www.horizongold.com.au and 0.7 Mt at 1.0 g/t gold respectively as of Historic gold production from free July 2013 (0.4 g/t cut-off). Metallurgical test milling sources at Gum Creek was work undertaken on Howards mineralization more than one million ounces at high resulted in average recoveries of 91%. toadter metallurgical recoveries. The process Gum Creek Sandstorm’s royalty also covers the Orion N specimen well deposit plant is designed to handle throughput of 800,000 tonnes per annum with a deposit which was not considered as an ore source in the Scoping Study.
ORION
shiraz wilsons
Royalty Map
butcherbird schear 1,992 ha premium lode
swift Sandstorm Royalty RECENT ACTIVITY kingfisher swan bitter April 2018 As part of a reverse circulation (“RC”) drill program completed during the first quarter at Gum Creek heron south howards deposit to test regional exploration targets, a single RC hole was drilled at Howards. This hole targeted an IP anomaly similar to that associated with the
HOWARDS Howards deposit. Patchy disseminated pyrite similar to the Howards’ style of mineralization was intersected throughout the hole, but without significant associated gold mineralization. 10 km 200%
58 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Australia DEVELOPMENT
Wiluna COMMODITY LOCATION West Australia, Australia DEVELOPMENT Indian Coral Sea Nova 1 and Nova 2 Ocean NT QLD
SA NSW Great Australian ACT OPERATOR Bight VIC Tasman Sea Toro Energy Limited TAS ustralia ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT A
2016 / 09 / 16 Royalty 2.0% NSR n/a
The Wiluna uranium project is located Wiluna mine for more than 20 years. An in Western Australia, 30 km south of the alkaline agitated leach technique has been town of Wiluna. The deposit is near-surface proposed to process the ore and Toro has and calcrete-hosted allowing for a shallow successfully completed a comprehensive strip excavation process with no blasting metallurgical test work program or drilling required. The maximum mining including a trial mine and pilot plant. depth is expected to be 15 metres. Sandstorm’s royalty covers a portion of Toro Energy was the first company to obtain the Centipede and Millipede deposits, State and Federal environmental approvals subject to production minimums prior for a Western Australian uranium project. to payability. A Measured and Indicated For more information refer to www.toroenergy.com The approvals received in 2013 included the JORC Resource from 2012 estimates that Centipede and Lake Way deposits and the Centipede and Millipede contain 21.7 associated processing facility. Extensions million pounds of uranium oxide in 17 Mt to the State and Federal approvals to of ore at a grade of 0.06% (0.02% cut-off). incorporate mining from the Millipede and Lake Maitland deposits have been approved. Wiluna
Toro’s regional resource at Wiluna contains sufficient material to run the planned
Wiluna Township N 49
airport RECENT ACTIVITY Royalty Map Lake Way September 2018 1,178 ha Toro is working to ensure that the Wiluna project is capable of being financed and brought into Sandstorm Royalty production when economic conditions justify its Processing Plant development. During the third quarter the Federal Millipede Government’s Minister for the Environment and Centipede Energy granted Wiluna environmental approval, 10 km subject to implementation conditions.
July 2018 Toro announced during the second quarter that they have advanced Wiluna to the next stage of its Beneficiation and Process Design studies (“BPD Studies”). The results of the BPD Studies further ~35 km to confirm opportunities to reduce the capital and Haul Road Lake Maitland Deposit operating costs of the Wiluna processing facility that was used in the Scoping Study.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 59 2018 / 2019 Asset Handbook Advanced Exploration Projects North America 62
ANGILAK 62
ANN MASON 63
BLENDE 64
CADILLAC BREAK 65
MEL 66
RUDDOCK CREEK 67
SPECTRUM 68
WHISTLER 69
South America 70
AGUA RICA 70
ALTO PARANÁ 71
CUIÚ CUIÚ 72
LAS CALANDRIAS 73
SÃO FRANCISCO 74
Africa 75
ABU MARAWAT 75
GCWIHABA 76
Europe 77
VITTANGI 77
Asia 78
ALTAN NAR 78
BAYAN KHUNDII 79
HERUGA 80
RED RABBIT 81
YUSUFELI 82
Australia 83
NORTH TELFER 83 North America ADVANCED EXPLORATION
Angilak COMMODITY LOCATION Nunavut, Canada Beaufort Sea ADVANCED EXPLORATION ADVANCED U.S.A. YT NWT OPERATOR Hudson Bay ValOre Metals Corp. BC AB SK MB
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2017 / 01 / 10 Royalty 1.0% NSR n/a
The Angilak property is located in released in January 2013 reported 2.8 million Nunavut, Canada and hosts a number of tonnes of 0.69% U3O8 containing 43.3 million uranium mineralized zones including the pounds U3O8 (0.2% U3O8 cut-off). The high-grade Lac 50 Trend deposit and the resource also contains significant quantities of Dipole-RIB discovery. Since acquiring silver, molybdenum and copper. Metallurgical the Angilak property in 2008, ValOre and beneficiation testing was completed in has invested more than $55 million in 2013 and demonstrated a 96.7% cumulative exploration activities including ground and uranium recovery in a mass recovery of 49.2%. airborne geophysics, geological mapping, prospecting, and 90,500 metres of diamond The Dipole-RIB Trend is located drilling and reverse circulation drilling. approximately 25 km southwest of the Lac 50 deposit. Drilling has returned multiple For more information refer to The Lac 50 Trend is a basement hosted, intervals of significant near surface uranium www.valoremetals.com hydrothermal-vein type, unconformity- mineralization and the results from soil associated uranium deposit. The uranium samples collected in 2016 have further and sulphides occur in widths up to 12.75 outlined multiple anomalous uranium-in-
Angilak metres with the average mineralization being soil trends at the Dipole and Yat targets. 1.5 to 2.0 metres wide. An Inferred Resource
RECENT ACTIVITY
July 2017 Royalty Map
Given the low uranium price environment, ValOre 56,562 ha has acquired the Baffin Gold project in Nunavut. Recent exploration efforts have been focused at Sandstorm Royalty N Baffin. 5km Area of Interest
November 2016 10 km ValOre’s exploration activities during 2016 included trenching, soil sampling and a soil geochemistry Lac 50 Trend program at Yat and Dipole. A trenching program at Yat collected rock samples from both bedrock and frost heaved boulders with results confirming Lac Cinquante that high grade polymetallic uranium, copper, silver Camp and gold mineralization identified in boulders J4/RayJ4/Ray are derived from localized bedrock sources. The Yat highlight channel sample assay results included: Dipole RIB ↳ 2.5% U3O8, 16.2% Cu, 417 g/t Ag & 1.3 g/t Au across 0.5 metres in Trench Kiv-16-T03.
↳ 0.32% U3O8, 373 g/t Ag, 2.9 g/t Au & 6.4 g/t Pd across 0.65 metres in Trench Kiv- PO-T05.
62 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America ADVANCED EXPLORATION
Ann Mason COMMODITY LOCATION Nevada, USA SD OR ID WY NE
UT CO KS
CA OK EXPLORATION ADVANCED AZ NM OPERATOR Pacific Ocean TX Hudbay Minerals Inc. Mexico
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 02 / 14 Royalty 0.4% NSR n/a A merica N orth
The Ann Mason project is located in initial capital costs to be $1.35 billion with west-central Nevada, approximately 75 total life of mine production of 5.1 billion km southeast of Reno within the historical pounds of copper, 46 million pounds of Yerington Mining District. Ann Mason molybdenum, 0.4 million ounces of gold, and is a copper-molybdenum porphyry 9.1 million ounces of silver over 21 years. deposit hosted by granodiorite and quartz monzonite. Projected to the surface, the The March 2017 Measured and Indicated mineralization greater than 0.15% copper Mineral Resources at Ann Mason consist covers an area approximately 2.3 km by 1.3 of 1,400 Mt at 0.32% copper and 0.01% km. At depth, it extends more than a km molybdenum (0.20% Cu cut-off). The and remains open in most directions. Inferred Resource consists of 623 Mt of ore at 0.29% copper and 0.01% molybdenum For more information refer to An updated Preliminary Economic (0.20% Cu cut-off). Ongoing exploration www.masonresources.com Assessment was released in 2017 and efforts are focused on identifying new targets envisions an open pit mine and a conventional of near-surface oxide and sulphide copper sulphide flotation mill with a throughput mineralization to the west of the Ann Mason rate of 120,000 tpd. The study estimated deposit and northwest of the Blue Hill deposit. Ann Mason
N
RECENT ACTIVITY
October 2018 Royalty Map Hudbay Minerals Inc. entered into an arrangement 1,867 ha agreement to acquire Mason Resources and the Ann Mason project.
Sandstorm Royalty Blue Hill DepositResource September 2018 A seven-year option agreement to acquire ground- 1 km Ann Mason DepositResource water rights and property located 6 km from the Ann Mason deposit was completed. The groundwater Open Pit will provide a significant portion of the water required for copper mining activities.
May 2017 An updated Preliminary Economic Assessment was filed for the Ann Mason property.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 63 North America ADVANCED EXPLORATION
Blende COMMODITY LOCATION Yukon, Canada Beaufort Sea ADVANCED EXPLORATION ADVANCED U.S.A. NWT NU OPERATOR Hudson Bay Blind Creek Resources Ltd. BC AB SK MB
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2015 / 04 / 28 Royalty 2.0% NSR n/a
The Blende deposit is a strata-bound extensions. More than 25,000 metres carbonate-hosted polymetallic deposit located of diamond drilling has been completed on the Mackenzie Platform in the Yukon on the property and the mineralization Territory. The mineralization is described as a remains open along strike and at depth. structurally controlled, breccia-hosted system and has been traced over an eight km strike Metallurgical testing and sampling is length and to a vertical range exceeding 700 underway as part of a Preliminary Economic metres. Zinc and lead mineralization occur Assessment to evaluate the project economics. in five main areas on the property including In June 2018, a Mineral Resource Far West, West, Central, East and Far East. estimate was released containing 3.7 Mt of Blind Creek is evaluating the Blende project Indicated Resource material grading 2.0% For more information refer to as a potential bulk tonnage, open-pit mine zinc, 2.0% lead, and 35.7 g/t silver (2.0% www.blindcreekresources.com and the company is planning to conduct a ZnEq cut-off). The Inferred Resource drill program to extend the mineralization reported 33.0 Mt at 2.0% zinc, 1.9% lead along strike and down dip to test open-pit and 32.0 g/t silver (2.0% ZnEq cut-off). Blende
N
Fa r W e st W e st RECENT ACTIVITY C en tr Far West al June 2018 Ea Blende st A NI 43-101 Resource Estimate Technical Report was filed for Blende. Blind Creek is evaluating UPF1 Fa the potential for a bulk tonnage, open-pit mine r E as at Blende and intends to continue exploration t Camp and metallurgical test work and work towards a Preliminary Economic Assessment. Royalty Map Shanghai 1,502 ha April 2018 Results from a four-month metallurgical Sandstorm Royalty test program were released demonstrating that Blende mineralogy responds well 2 km to standard process techniques.
64 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America ADVANCED EXPLORATION
Cadillac Break COMMODITY LOCATION Québec, Canada NWT NU
Hudson Bay AB SK MB
NL ON EXPLORATION ADVANCED
OPERATOR NB PE United States O3 Mining Inc. NS
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2015 / 10 / 21 Royalty 1.0% NSR n/a A merica N orth
The Cadillac Break property group stretches km southeast of Val d’Or. Orenada hosts two for 35 km along the Cadillac Break, a regional near surface vein-type gold deposits, Zone 2 fault zone separating a mostly volcanic terrain and Zone 4, and in 2017 a 45,000 metre drill and related intrusive rocks on the north, from program intersected the gold vein system a sedimentary terrain on the south. Several for more than 2.5 km along strike, centered past producers and recent discoveries are around the Zone 4 open pit. The drilling has spatially associated with the Cadillac Break increased the strike length of the deposits by and the region has produced one hundred more than 300% over the previously known million ounces of gold since the early 1900’s. dimensions and the gold mineralization remains open along strike and at depth. O3 Mining’s large property package hosts a variety of geological environments In June 2018, a resource estimate at Orenada For more information refer to favourable to gold mineralization including Zone 2 and Zone 4 was released with Indicated www.o3mining.ca shear-zone, gold-rich massive sulphide, Resources of 3.8 Mt at a gold grade of 1.6 g/t porphyry gold-copper and skarn, and and an Inferred Resource of 2.1 Mt at a grade disseminated gold. The property group of 1.9 g/t (0.4 g/t gold cut-off grade for open hosts four historic gold deposits: Orenada, pit and a 2.0 g/t cut-off for underground).
Mid-Canada, Akasaba, and Sleepy. Cadillac Break
Recent exploration work has focused on the Orenada property, located approximately 4
Royalty Map RECENT ACTIVITY
12,625 ha June 2018 Updated resource contains approximately 194,500 Orenada Akasaba Sleepy ounces Indicated at 1.6 g/t gold and 126,300 ounces Zone 4 Deposit Deposit N Inferred at 1.89 g/t gold from Orenada Zones 2 and 4 (0.4 g/t to 2.0 g/t cut-off).
April 2018 New gold zones west of Orenada return assay results of up to 1.8 metres of 36.6 g/t gold from 337.1 metres. Orenada West Zone Zone 2 (Agnico)
March 2018 Sandstorm 1.0% NSR (2,846 ha) 4 km Assay results from 14 holes completed at Orenada Right to buy 1.0% NSR for $1 million (6,236 ha) Zone 2 include 5.1 g/t gold over 8.5 metres from
Other royalty purchase rights (3,543 ha) 24.5 metres.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 65 North America ADVANCED EXPLORATION
Mel COMMODITY LOCATION Yukon, Canada Beaufort Sea ADVANCED EXPLORATION ADVANCED U.S.A. NWT NU OPERATOR Hudson Bay Silver Range Resources Ltd. BC AB SK MB
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2014 / 09 / 09 Royalty 1.0% NSR n/a
The Mel project is located in the Watson crystalline barite. A barite marketing study Lake Mining District in the Yukon regarding potential production of barite Territory. Cambrian to Ordovician marine from the property was completed by World sediments and similar age volcanics host Industrial Minerals Inc. in 2014. The study zinc-lead-barite mineralization on the concluded that barite from the Mel project property. Four sediment-hosted, zinc-rich could likely be sold into the drilling products zones have been identified: the Mel Main, market in Western Canada and Alaska. Jeri, Jeri North, and Mel East zones. Silver Range has outlined a 14,000 metre The Mel Main zone has an Inferred drill program to test surface targets related Mineral Resource of 5.3 Mt grading to unexplored base-metal soil anomalies 6.51% zinc, 1.86% lead, and 45.05% barite and trench results as well as to drill For more information refer to (5.00% ZnEq cut-off). This zone consists strike extensions of the Mel resource and www.silverrangeresources.com of course-grained sphalerite and galena upgrade the resource from the Inferred to disseminated throughout a mixture of the Measured and Indicated category.
Mel mudstone, silica-carbonate and coarsely
N
Jeri North
Mel East
Jeri
RECENT ACTIVITY
December 2017 Seven high-grade barite intersections were reported Mel Main Royalty Map from the Mel main zone. 5,380 ha
November 2017 Sandstorm Royalty Assay results from a nine hole exploration drill program were released including 27.8% zinc over 2 km 2.4 metres from 226.3 metres as well as 16.5% zinc and 4.3% lead over 0.9 metres from 295.5 metres.
66 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America ADVANCED EXPLORATION
Ruddock COMMODITY LOCATION British Columbia, Canada YT NWT NU Creek
AB SK MB ADVANCED EXPLORATION ADVANCED
OPERATOR Pacific Ocean Imperial Metals Corporation United States
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 1.0% NSR n/a A merica N orth
Ruddock Creek is a high grade zinc-lead submission of the Project Description to project located 155 km northeast of Kamloops the BC Environmental Assessment Office in British Columbia. The project is held in a (BCEAO). In 2016, the BCEAO accepted a joint venture between Imperial Metals (50%), report from Imperial Metals identifying Mitsui Mining and Smelting Co. Ltd. (30%) components of the project requiring special and Itochu Corporation (20%). The zinc-lead focus in future studies. Baseline field mineralization is hosted by a sequence studies in support of the environmental of high grade metasedimentary rocks of assessment permitting are ongoing. Paleo-Proterozoic age and is associated with a calc-silicate sequence. The main deposit Ruddock Creek has Indicated Mineral is known as the E Zone, which is continuous Resources of 6.3 Mt at 6.50% zinc and 1.33% for more than 1.1 km in strike and up to 400 lead. The Inferred Resource is 6.7 Mt at For more information refer to 6.33% zinc and 1.20% lead. The Resources www.imperialmetals.com metres in width. Other zones of mineralization include Creek, U, V, and Q Zones. are effective as of February 2013 and used a 4.00% zinc and lead cut-off grade. The first steps of project permitting for the underground mine began in 2014 with the Ruddock Creek
Forest Service Road N
Creek Zone V Zone E Zone
Q Zone RECENT ACTIVITY
U Zone Royalty Map September 2018 2,100 ha Imperial Metals announced results from the first
Mine Access Road surface diamond drill hole of a planned three-hole Sandstorm Royalty drill program targeting the deep extension of the 5 km V-Zone. Highlights include 21.7 metres at 16.99% Mine Site Area zinc, 3.44% lead and 2.41 g/t silver from 751.5 metres and 10.4 metres at 25.70% zinc, 5.41% lead and 3.44 g/t silver from 756.9 metres.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 67 North America ADVANCED EXPLORATION
Spectrum COMMODITY LOCATION British Columbia, Canada YT NWT NU
AB SK MB ADVANCED EXPLORATION ADVANCED
OPERATOR Pacific Ocean Skeena Resources Ltd. United States
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2015 / 06 / 17 Royalty 1.65% NSR n/a
The Spectrum-GJ copper-gold property is C$216 million. Skeena is actively seeking a situated approximately 30 km west of Imperial partner to advance the Spectrum-GJ project. Metals’ Red Chris Mine in the Golden Triangle of northwest British Columbia. Infrastructure Sandstorm’s royalty interest covers the and access to the property are excellent as Spectrum property, where two main styles the property is crossed by Highway 37, the of gold and copper mineralization are 287 kV Northwest Transmission Line, as well present: structurally-hosted, high-grade, as several forestry roads and winter trails. sulphide-gold (>4.0 g/t gold) and bulk tonnage, disseminated, porphyry-style gold-copper In April 2017, Skeena Resources released the mineralization. The Central Zone mineral results of a Preliminary Economic Assessment resource at Spectrum consists of a broad (PEA) for the project. The PEA focuses on zone of low-grade porphyry gold-copper For more information refer to two resources that are approximately 14 km mineralization cut by at least four sub-parallel www.skeenaresources.com apart, the porphyry copper-gold Donnelly steeply dipping higher-grade gold mineralized resource at GJ and the porphyry gold-copper structures. The deposit remains partially open Central Zone at Spectrum. The technical along strike and down dip. A January 2017
Spectrum study is based on a proposed open-pit mine resource estimate for the Spectrum Central with a staged approach to production, starting Zone consists of 31.2 Mt of ore at grades of with 10,000 tpd at Donnelly and eventually 0.9 g/t gold, 2.6 g/t silver and 0.10% copper in ramping up to 30,000 tpd with additional the Indicated category and another 29.8 Mt of ore coming from Spectrum. The project has Inferred Resources at grades of 0.5 g/t gold, 1.4 estimated initial capital expenditures of g/t silver and 0.12% copper. The resource was calculated using a 0.4 g/t AuEq cut-off grade.
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Central Zone Deposit Donnelly Deposit
Winter Trail
RECENT ACTIVITY 37
March 2018 Logging Road Skeena is seeking a partner to assist in the develop- ment and financing of the Spectrum-GJ property. Royalty Map
3,153 ha May 2017 POWER LINES A Preliminary Economic Assessment was filed GJ for the Spectrum-GJ project. The after-tax NPV Spectrum (8%) is estimated to be C$314.1 million with an Sandstorm Royalty IRR of 20.6%. 10 km
68 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America ADVANCED EXPLORATION
Whistler COMMODITY LOCATION Alaska, USA Beaufort Sea
Canada EXPLORATION ADVANCED
OPERATOR
GoldMining Inc.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 2.0% NPI n/a A merica N orth
The Whistler project is located in the Yentna deposits, other targets have been identified Mining District, approximately 150 km on the property for future exploration. northwest of Anchorage, Alaska. The geology of the Whistler project is characterized by A technical report was completed in 2016 and a thick succession of Cretaceous to early included maiden resources on the Raintree Tertiary volcano-sedimentary rocks intruded West and the Island Mountain deposits. The by plutonic rocks. More than 70,000 metres of May 2016 Indicated Mineral Resources at diamond drilling has been completed on the the Whistler and Island Mountain deposits 170 km2 property and porphyry-style gold- totaled 110.3 Mt grading 0.5 g/t gold, 1.7 g/t copper mineralization has been identified at silver, and 0.14% copper (0.3 g/t AuEq cut-off) three main deposits: Whistler, Raintree West and the Inferred Resource at the Whistler, and Island Mountain. In addition to these Island Mountain and Raintree West deposits For more information refer to totaled 311.3 Mt grading 0.5 g/t gold, 2.3 g/t www.goldmining.com silver, and 0.11% copper (0.3 g/t AuEq cut-off). Whistler
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Whistler Deposit
Royalty Map
2,331 ha
Sandstorm Royalty
RECENT ACTIVITY 5 km
September 2018 Goldmining does not intend to conduct any explora- Island Mountain tion programs at the Whistler project during the Deposit 2018 year.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 69 South America ADVANCED EXPLORATION
Agua Rica COMMODITY LOCATION Catamarca, Argentina
Pacific Brazil Ocean Paraguay
Uruguay ADVANCED EXPLORATION ADVANCED Atlantic Ocean OPERATOR Chile Yamana Gold Inc.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
S outh A merica 2015 / 10 / 27 Royalty 0.25% NSR n/a
Agua Rica is a porphyry copper, molybdenum, The large scale open pit scenario outlined in gold and silver deposit located in the province the 2019 Pre-Feasibility Study projects a mine of Catamarca, Argentina. The property life of 28 years at average annual production is east of the prominent Farallón Negro levels over the first ten years of approximately Volcanic Complex which hosts Goldcorp’s 553 Mlbs of copper equivalent, including 107 producing Alumbrera mine. The project kozs of gold, as well as silver and molybdenum. has Proven and Probable Mineral Reserves of 11.8 billion pounds of copper and 7.4 Sandstorm entered into an early deposit million ounces of gold contained in 1,105 gold stream on Agua Rica that allows for an Mt at copper and gold grades of 0.48% and additional advance payment of between $135 0.2 g/t respectively (0.2% Cu cut-off). million and $225 million to convert the 0.25% NSR royalty into a gold stream. The amount of For more information refer to Yamana has studied two development the payment is based on the following formula: www.yamana.com scenarios for Agua Rica, one being a large-scale $150,000 multiplied by the price of gold plus open pit operation that would be integrated $7.5 million. If this advance payment is made, with the neighboring Alumbrera mine and the Sandstorm will have the right to purchase
Agua Rica Agua other a smaller scale standalone operation that 20% of the gold produced at Agua Rica for would minimize upfront capital expenditures the life of the mine, with ongoing payments while maintaining longer term optionality to equal to 30% of the spot price of gold. increase the scale of the mining operation.
47 N
RECENT ACTIVITY
July 2019 Yamana announced the results of the Pre-Feasibility Study for the integrated Agua Rica project and a full Feasibility Study with updated mineral reserves, production, and project cost estimates will be Royalty Map completed by mid-2020. Agua Rica Deposit 1,250 ha
March 2019 Sandstorm Royalty Yamana Gold Inc., Glencore International AG, 5km Area of Interest and Goldcorp Inc. announced the signing of an Access Road integration agreement pursuant to which the Agua Rica project would be developed and operated using the existing infrastructure associated with 10 km the Alumbrera mine in the Catamarca Province of Argentina.
70 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook South America ADVANCED EXPLORATION
Alto Paraná COMMODITY LOCATION Canindeyú, Paraguay
Ecuador
Peru Brazil Pacific Ocean Bolivia ADVANCED EXPLORATION ADVANCED
OPERATOR Chile Atlantic Argentina Ocean Uranium Energy Corp.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 03 / 04 Royalty 1.5% NSR n/a S outh A merica
The Alto Paraná project is located in eastern quality iron units for the production of steel Paraguay approximately 100 km north of or to the foundry industry for the production Ciudad del Este. Infrastructure and access of high quality ductile iron castings. to the property are excellent as a paved national highway bisects a major portion of Over 90% of titanium dioxide feedstocks the property and it is within close proximity to are used for pigment manufacturing and a hydroelectric power source. Mineralization smaller quantities in the production of consists of laterite containing ilmenite, titanium metal. Titanium dioxide pigment titanomagnetite and magnetite derived is favoured for its whiteness, ultra violet from Early Cretaceous tholeiitic basalts protection, non-toxicity, inertness and it of the Paraná Basin and associated gabbro imparts brightness and opacity to products intrusions. The basalts and gabbros have including paints, coatings, paper, ink, For more information refer to plastics with many other applications as www.uraniumenergy.com weathered to laterite to an average depth of approximately 7 metres over an extensive area. additives to cosmetics, foods and textiles.
Mining at Alto Paraná is expected to produce The December 2016 Inferred Mineral an ilmenite concentrate, which after smelting Resource at Alto Paraná consists of will result in titanium slag and pig iron 4.9 billion tonnes at 7.41% titanium Paraná Alto products. The titanium slag would be sold as dioxide and 23.58% iron oxide FeO (6.0% a feedstock for the production of titanium titanium dioxide cut-off). The resource is dioxide pigment. The pig iron would be sold to atypically high in titanium values when the iron and steel industry as a source of high- compared to most beach sand deposits.
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70,498 ha
Sandstorm Royalty 30km Area of Interest
RECENT ACTIVITY
September 2018 The price of titanium oxide has reached three-year highs. As a result, Uranium Energy is considering Alto Paraná as a potential monetization oppor- tunity.
Plant September 2017 A mineral resource estimate was released for the 30 km 10 km Alto Paraná project.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 71 South America ADVANCED EXPLORATION
CuiuCuiú CuiuCuiú COMMODITY LOCATION Para, Brazil Guyana Atlantic Ocean Columbia
Ecuador
Peru ADVANCED EXPLORATION ADVANCED
Pacific Ocean OPERATOR Bolivia Cabral Gold Ltd. Chile
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
S outh A merica 2012 / 05 / 11 Royalty 1.0% NSR n/a
The Cuiú Cuiú project is located in the zones within granitic rocks. Individual Tapajos Region of northern Brazil, 20 km veinlets are typically 0.2 to 2.0 cm in width northwest of Eldorado Gold’s Tocantinzinho but occasionally are up to 20 cm wide. The project. The Tapajos Region was the site Indicated Resource consists of 5.9 Mt of of a gold rush from the 1970s until the late 0.9 g/t gold material for 171 kozs of gold 1990s with artisanal miners producing an (0.4 g/t cut-off). The Inferred Resource estimated 20 to 30 million ounces of gold. The totals 19.5 Mt at a grade of 1.2 g/t gold for mineralization is hosted within the Brazilian 776 kozs of gold (0.35 to 1.3 g/t cut-off). Shield, which is Archean to Proterozoic in age and extends from Western Bolivia The current program of surface exploration through Brazil to Guyana and Venezuela. is following up on saprolite mining areas as well as alluvial and geochemical anomalies to For more information refer to In June 2018, Cabral Gold published a identify new drill targets for an 8,000 metre www.cabralgold.com resource estimate based on exploration diamond/reverse circulation drill program. drilling at four deposits called Central, Ongoing activities include soil sampling, Central North, Jerimum de Baixo and channel sampling, surface trenching, auger
Cuiú Moreira Gomes. The mineralization can drilling and ground geophysics. Mineralization be described as stockwork/sheeted veinlet remains open at depth and along strike. systems hosted within broad, altered shear
RECENT ACTIVITY N September 2018 Cabral registered a mining license application for Cuiú Cuiú.
Central North Deposit
July 2018 Central Deposit New discovery of high-grade vein mineralization Moreira Gomes returns grades up to 336 g/t gold. Auger drilling Deposit results suggest potential for a mineralized corridor Jerimum de Baixo Deposit of more than 4 km. Royalty Map
31,135 ha June 2018 Two new discoveries were made at Cuiú Cuiú. Sandstorm Royalty Surface sampling results returned values of 5.5 g/t gold to 162.4 g/t gold. 6 km
72 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook South America ADVANCED EXPLORATION
Las Calandrias COMMODITY LOCATION Santa Cruz, Argentina
Pacific Brazil Ocean Paraguay
Uruguay ADVANCED EXPLORATION ADVANCED Atlantic Ocean OPERATOR Chile New Dimension Resources Ltd.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2017 / 07 / 03 Royalty 2% NSR n/a S outh A merica
The Las Calandrias property contains a and totaled 7.4 Mt of Indicated material low-sulfidation epithermal system located in at grades of 1.3 g/t gold and 24.65 g/t the eastern part of the Santa Cruz province silver at Calandria Sur, and 0.6 Mt at 3.1 in southern Argentina. The property is g/t gold and 8.2 g/t silver at Calandria in the Deseado Massif, a 60,000 km2 area Norte (0.8 g/t to 1.5 g/t Au cut-off). which hosts numerous low-sulfidation epithermal vein and vein-breccia deposits. The Morena vein breccia system lies Producing mines in the Deseado Massif immediately to the northwest of Calandria include Goldcorp’s Cerro Negro mine, Norte and has seen only limited drilling. AngloGold Ashanti’s Cerro Vanguardia Outcrops along the vein system have mine and Yamana’s Cerro Moro mine. returned gold grades ranging from below detection to a high of 116 g/t gold. The For more information refer to The principle area of the property that has northern extension of the Morena vein has www.newdimensionresources.com been explored is the Las Calandrias zone chalcedonic silica exposed on surface, similar consisting of Calandria Sur and Calandria to the northern part of the Calandria Norte Norte. Calandria Sur is a bulk tonnage vein, and remains completely untested. rhyolite dome-hosted deposit and Calandria The Refugio target lies approximately 6 Norte is a vein/breccia system that has been Las Calandrias drilled along a 400 metre strike length. km west of Calandria Norte, and consists Testing possible extensions to the known of a 1.5 km-long, sub-cropping vein breccia high-grade gold-silver mineralization system with high anomalous molybdenum is a priority for New Dimension. concentrations. Scout drilling at Refugio will form part of the current drill program. A September 2018 Mineral Resource estimate was published for the Las Calandrias zone
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N P 5km Area of Interest September 2018 Resource Area High-grade gold mineralization was intersected outside of the northern limit of the existing mineral 10 km resource area at Calandria Norte. Assays received include 4.0 metres of 11.0 g/t gold and 49 g/t silver from 58 metres. Drill holes were also completed in the Morena vein breccia system with results indicating the potential for the development of a Refugio significant new gold-silver zone.
Calandria Norte June 2018 Calandria Sur Las A 3,500 metre diamond drill program commenced at Calandrias the Calandria Norte, Morena and Refugio targets.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 73 South America ADVANCED EXPLORATION
São Francisco COMMODITY LOCATION Mato Grosso, Brazil Guyana Atlantic Ocean Columbia
Ecuador
Peru ADVANCED EXPLORATION ADVANCED
Pacific Ocean OPERATOR Bolivia Aura Minerals Inc. Chile
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
S outh A merica 2013 / 10 / 04 Royalty 1.5% NSR n/a
Sao Francisco is located in western Brazil as an open-pit with a processing system close to Bolivia and is an epigenetic shear- consisting of a gravity concentration hosted gold deposit composed of quartz circuit combined with heap leach. veins containing free gold. Yamana Gold brought the Sao Francisco project into Mining at Sao Francisco ceased in October production in 2006 and sold the property to 2016 but Aura Minerals has conducted Aura Minerals in 2010. The mine operated exploration at the project to determine the feasibility of re-starting mining operations.
For more information refer to www.auraminerals.com São Francisco
Royalty Map
28,562 ha N
Sandstorm Royalty Waste Dump
Leach Pad Open Pit
Waste RECENT ACTIVITY Dump
March 2018 Aura Minerals announced the sale of the Serrote de Laje Copper Gold project for a total of $40 million. The consideration was made up of a cash payment of $30 million as well as a subordinated unsecured 5 km note of $10 million. The sale allows Aura to further develop their existing assets and pursue new growth opportunities. 2 km
Rio Novo Gold Inc. and Aura Minerals merged creating a mid-tier gold and copper producer.
74 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Africa ADVANCED EXPLORATION
Abu Marawat COMMODITY LOCATION Red Sea, Egypt Syria Mediterranean Sea Jordan Iraq Israel
Libya Saudi EXPLORATION ADVANCED R Sea d Arabia OPERATOR
Aton Resources Inc. Chad Sudan A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2018 / 05 / 08 Royalty 1.0% NSR n/a
The Abu Marawat concession is located in operation during the early 20th century. Egypt’s Arabian-Nubian Shield, approximately These old workings have been useful guides 200 km north of Centamin’s Sukari gold for exploration and Aton has advanced mine. Aton has identified a 40 km long gold multiple targets to drill readiness. mineralized trend containing numerous gold exploration targets. Several distinct Aton has been actively exploring since 2008 geological trends exist within Abu Marawat and its most advanced targets are Hamama displaying potential for the development of West, where a gold-silver resource has been orogenic gold deposits, VMS precious and defined and an application for a 20-year base metal deposits, and iron oxide copper- exploitation license has been submitted, and gold precious and base metal deposits. the Abu Marawat gold-silver-copper-zinc vein, where a resource has been defined. For more information refer to The Abu Marawat concession contains www.atonresources.com 596.3 km2 of property located in an area with Aton is conducting exploration programs good regional infrastructure. Numerous at several gold targets on the concession historic workings have been identified including Rodruin and Zeno. At Rodruin, including ancient small-scale mining and sampling from surface, underground and
three past-producing British mines (Semna, from channels has confirmed the presence Abu Marawat Sir Bakis and Abu Garida) which were in of high grade zones of gold mineralization.
RECENT ACTIVITY
January 2019 Aton completed its phase 1 drilling program at the Rodruin prospect consisting of 50 drill-holes and 4,125 metres. Assay results include: Royalty Map ↳ 36.0 metres at 12.5 g/t gold from 5.0 metres N ↳ 34.0 metres at 1.4 g/t gold from surface ABU MARAWAT 59,630 ha ↳ 70.0 metres at 1.2 g/t gold from 11.0 metres
Royalty
5km Area of Interest August 2018
Targets Abu Marawat A study was submitted to the Egyptian Mineral Deposit Resources Authority in support of an exploitation license application at the Hamana project. A deci- sion to commence production at Hamama will be based on the results of a Preliminary Economic Assessment.
May 2018 Access roads have been completed at Hamama East in advance of anticipated drilling. Channel Hamama Deposit Rodruin and grab sampling from surface have produced results indicating potential gold-silver-zinc oxide. Mineralized channel sample intersections returned 10 km results including 84.0 metres of 1.1 g/t gold, 49.7 g/t
SANDSTORM GOLD ROYALTIES SANDSTORM 2019 April 9, silver and 7.29% zinc.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 75 ADVANCED EXPLORATION
Gcwihaba COMMODITY LOCATION Ngamiland, Botswana
Zimbabwe
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a Namibia
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O South OPERATOR c e Africa a Lesotho Tsodilo Resources Ltd. n A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2017 / 02 / 25 Royalty 1.0% NSR n/a
The Gcwihaba metal license area covers of the potential mineralization implied by the more than 490,000 hectares of prospective ground magnetics. Tsodilo has reported an property in northwest Botswana. Tsodilo exploration target of 5.0 to 7.0 billion tonnes began exploring the region in 2008 and has with grades ranging between 15% and 40% utilized magnetic surveys, geochemistry iron. A Preliminary Economic Assessment and drilling to identify three separate is expected to be initiated during 2019. mineralized domains. These domains include sulphide mineralization within Southeast of Xaudum, more than $15 Neoproterozoic metasediments, base metal million in exploration expenditures have and precious metal showings associated been incurred exploring for copper-cobalt with intrusions, and a large magnetite mineralization. First Quantum Minerals deposit at the Xaudum iron project, the most Ltd. partnered with Tsodilo during 2014 For more information refer to and 2015 but did not complete their earn-in www.tsodiloresources.com advanced target on the property package. requirements due to low copper prices The Xaudum deposit was discovered by testing at the time. Based on interpretations of a magnetic anomaly that extends over 35 km. the Tsodilo and First Quantum datasets,
Gcwihaba Initial drilling was used to prepare a maiden nine target areas have been identified for Inferred Resource estimate that was published further work. Tsodilo is in discussions with in August 2014 containing 441 Mt grading potential joint venture partners to help 29.4% Fe (12% Fe cut-off). The reported advance a copper exploration program. mineral resource represents a small portion
Namibia
N Botswana
RECENT ACTIVITY Royalty Map
July 2018 492,050 ha A development proposal for the Xaudum Iron project was discussed with the USA Ambassador Sandstorm Royalty in Botswana who will endorse the project for fund- Fe Mineralization ing at the U.S. Trade and Development Agency (USTDA). A formal proposal is being prepared Okavango Delta 25 km for the USTDA.
76 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Europe ADVANCED EXPLORATION
Vittangi COMMODITY LOCATION Lapland, Sweden Graphite
Norwegian Sea
Norway Finland ADVANCED EXPLORATION ADVANCED
OPERATOR Russia Talga Resources Ltd. U.K. E urope
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 1.0% NSR n/a
The Vittangi project is located in northern unit extends over 15 km of strike, of which Sweden approximately 3 km from grid less than 10% has been drill tested to date. power and 23 km to the town and railhead at Svappavaara. The Nunasvaara deposit on A Pre-Feasibility Study completed in the Vittangi property has the highest grade May 2019 proposed an open-pit mining resource of any JORC/NI 43-101 graphite operation with on-site concentrator deposit in the world with a reported April and coastal anode refinery to produce 2017 Indicated Mineral Resource totaling 10.7 approximately 19,000 tonnes per year Mt at 25.7% graphite (17% Cg cut-off grade). of a coated li-ion battery graphite anode material, trademarked as Talnode-C. The The geology of the Vittangi project area refined product will be sold to li-ion battery consists of a Proterozoic greenstone sequence manufacturers and the Pre-Feasibility For more information refer to of sediments, volcanoclastics and intrusive Study estimates an average selling price of www.talgaresources.com rocks. Stratiform to stratabound graphite $11,250 per tonne based on independent mineralization occurs at the Nunasvaara product and market price assessments. deposit as two individual, sub-vertical 15
to 60 metre wide lithologically continuous Talga is expecting to complete a Vittangi units of a very fine grained, dark-grey to black Feasibility Study in 2020 and is working graphite rock. The Nunasvaara graphite towards obtaining all necessary development permits and approvals.
VITTANGI Hwy N
Kiskama RECENT ACTIVITY
October 2019 Royalty Map Following positive assay results from a 3,047 metre 5,857 ha diamond drilling program, Talga completed a maiden JORC Mineral Resource Estimate for the Sandstorm Royalty North and South Niska deposits consisting of 4.6 Mt Other Sandstorm at 25.8% graphite concentrate (10.0% Cg cut-off) Royalties Nunasvaara in the Indicated category. Deposit A definitive feasibility study has commenced and Town of Vittangi the application for stage one development of the
Railroad Vittangi Graphite Project was submitted to Swedish authorities.
Hwy Town of Svappavaara September 2019 5 km Talga filed a Preliminary Feasibility Study sup- porting a two-stage development approach for the Vittangi Graphite Project. The economics are based SANDSTORM GOLD ROYALTIES SANDSTORM 11, 2019 September solely on the Nunasvaara South Probable Reserve of 1.9 Mt at 23.5% total graphite concentrate (12.0% Cg cut-off).
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 77 Asia ADVANCED EXPLORATION
Altan Nar COMMODITY LOCATION Bayanhongor, Mongolia Russia ADVANCED EXPLORATION ADVANCED
OPERATOR China Erdene Resource Development Corp. sia A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 04 / 14 Royalty 1.0% NSR n/a
The Altan Nar (“Golden Sun”) project was 5.6 km long area. Two of the early discoveries, discovered by Erdene in 2011 as part of a Discovery Zone and Union North, are the systematic, large-scale regional exploration most advanced targets and host wide zones program over southwest Mongolia’s Tian Shan of high-grade, near-surface mineralization Copper-Gold Belt. Altan Nar is a carbonate- that remain open at depth and along strike. base metal gold deposit and is characterized by multiple, sub-parallel, moderately to steeply A mineral resource estimate was completed dipping epithermal vein and breccia zones. at Altan Nar in May 2018 and consists of 5.0 Mt of Indicated material at 2.8 g/t AuEq for Exploration programs carried out by Erdene 453 kozs of AuEq and an Inferred Resource have included mapping, geochemical and of 3.4 Mt at 2.5 g/t AuEq for an additional 277 geophysical survey programs, and a multi- kozs of AuEq (0.7 g/t AuEq cut-off grade). For more information refer to stage scout and resource delineation drilling www.erdene.com program. The results have greatly expanded Erdene is working towards the completion of the area of known mineralization at Altan Nar a Preliminary Economic Assessment of the with 18 target areas now documented over a Khundii Gold District which includes Altan Nar and the nearby Bayan Khundii project. Altan Nar
N
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June 2018 Union North Erdene completed a private placement for proceeds of C$4.1 million. Union South Nomin Tal
May 2018 Maggie
An updated resource estimate was announced at Altan Nar Altan Nar. The Indicated AuEq resource increased Discovery Zone by 208% and the Inferred AuEq resource increased Royalty Map by 172%. Oyut Khundii 4,669 ha
October 2017 Sandstorm Royalty Twenty-two holes, totaling 3,968 metres, were completed over a 1.8 km by 1.5 km portion of the 5.6 5km Area of Interest km long Altan Nar trend. The objective of the drill Mineralized Trend Bayan program was to test new targets and to complete Other Sandstorm Royalties 1 Khundii step-out drilling in areas adjacent to the Discovery Zone and Union North deposits. High-grade core 5 km at Discovery Zone returned 5.0 metres of 29.7 g/t gold within a 20.0 metre interval of 10.3 g/t gold Ulaan (11.8 g/t AuEq) at 97.0 metres depth.
78 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Asia ADVANCED EXPLORATION
Bayan Khundii COMMODITY LOCATION Bayanhongor, Mongolia Russia ADVANCED EXPLORATION ADVANCED
OPERATOR China Erdene Resource Development Corp. sia A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 04 / 14 Royalty 1.0% NSR n/a
Bayan Khundii (“Rich Valley”) is located grades (with up to 306.0 g/t gold over 1.0 within the Tian Shan Copper-Gold Belt in metre intervals) within broad mineralized southwest Mongolia and was discovered in zones containing up to 131.0 metres of 3.9 g/t 2015 when a rock-chip sampling program gold (including 80.0 metres of 6.0 g/t gold). revealed multiple quartz veins that returned high-grade gold values. Erdene followed up the A maiden resource estimate was published in initial work with a comprehensive exploration September 2018 which outlined Measured and program that has included geological mapping, Indicated Resources of 17.8 Mt grading 1.0 g/t soil geochemical surveys, surface rock chip gold for 579 kozs of gold (0.2 g/t cut-off). The sampling, a ground magnetic survey, induced Inferred Resource estimate is 12.7 Mt at 0.6 polarization surveys, and the completion of g/t gold for 225 kozs (0.2 g/t cut-off). Initial more than 38,000 metres of diamond drilling. metallurgical test work has been positive For more information refer to with 91% to 99% gold recovery using gravity www.erdene.com The Bayan Khundii gold mineralization is concentration and cyanidation methods. associated with quartz adularia veins and breccias and is disseminated within the The resource and metallurgical altered host rocks. Visible gold has been results were included in a Preliminary Economic Assessment for the Khundii identified in several drill holes as irregular- Khundii Bayan shaped grains, but the gold is generally fine Gold Project comprised of its Bayan grained. Drilling has intersected high gold Khundii and Altan Nar deposits.
Altan Nar N
RECENT ACTIVITY
Royalty Map Bayan July 2019 Khundii 6,294 ha Erdene closed a non-brokered private placement for Ulaan (gold) Altan Arrow North gross proceeds of C$2.0 million. Proceeds will be Altan Arrow used towards the completion of the Pre-Feasibility Sandstorm Royalty Ulaan (copper) Study, mining license applications, and third quar- 5km Area of Interest Khundii North ter exploration. Mineralized Trend
Other Sandstorm Royalties 1 Ulaan Khundii West April 2019 Erdene announced the start of a Pre-Feasibility 5 km Bayan Khundii Study and drilling program, results from which will be incorporated into an updated mineral resource estimate.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 79 Asia ADVANCED EXPLORATION
Heruga COMMODITY LOCATION Ömnögovi, Mongolia Russia ADVANCED EXPLORATION ADVANCED
OPERATOR China Turquoise Hill Resources Ltd. sia A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2013 / 02 / 14 Stream 4.26% of Au $220/oz 4.26% of Ag $5/oz 0.42% of Cu $0.50/lb
Heruga is a copper-gold porphyry deposit molybdenum-rich cap at higher levels that is located at the southern end of the overlying gold-copper mineralization at depth. Oyu Tolgoi mining complex in southern Mongolia. The project is approximately 570 Underground development is underway km south of the capital city of Ulaanbaatar at the Hugo North deposit and although and 80 km north of the border with China, and Heruga is currently outside of the mine plan, lies within the eastern end of the Paleozoic it is included in the Alternative Production Tuva Mongol Arc. It is managed by Oyu Cases in a 2016 Technical Report. It is Tolgoi LLC, a subsidiary of Turquoise Hill expected to be mined in later phases by Resources and the Government of Mongolia. underground panel caving methods.
The Heruga deposit differs from the three The Heruga Deposit has an Inferred Mineral For more information refer to other Oyu Tolgoi deposits (Oyut, Hugo Resource of 1,816 Mt containing 0.39% Cu, www.turquoisehill.com Heruga North, and Hugo South) in that it is slightly 0.4 g/t Au, 1.4 g/t Ag, and 0.01% Mo. The enriched in molybdenum. This forms a resources are effective as at Dec. 31, 2015 and use a 0.37% CuEq cut-off grade.
N airstrip Ulaan Khud
Royalty Map RECENT ACTIVITY 20,337 ha Hugo North Ext.
January 2018 d Deposit n e r T Hugo South Deposit A Preliminary Economic Assessment was released Heruga i o g l evaluating the inclusion of the Heruga deposit into 1 o Other Sandstorm Royalties T
u an overall mine plan with the Hugo North Extension y Oyut O Lift 1.
Mag West October 2017 Heruga Deposit Entrée is currently working on an updated Technical
Report, which will include a PEA on the Heruga Castlerock Southeast IP deposit. Amec Foster Wheeler Americas Limited has completed its initial data review, and has com- Heruga Southwest 5 km menced work on the updated report. It is expected to be completed in January 2018.
80 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Asia ADVANCED EXPLORATION
Red Rabbit COMMODITY LOCATION Kutahya, Turkey Bulgaria Black Sea Tavsan Georgia
Greece ADVANCED EXPLORATION ADVANCED
OPERATORS Cyprus Syria Ariana Resources plc Mediterranean Sea Iraq sia
Proccea Construction Co. A
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2016 / 01 / 19 Royalty 1.0% NSR n/a
Tavşan is located in western Turkey about trucked to the Kiziltepe mill. Preliminary 210 km north-east of Izmir. Tavşan and column-leach testwork has shown recoveries the Kiziltepe mine, located 72 km away, of 80% for gold and 26% for silver. The form the Red Rabbit Gold project owned Environmental Impact Assessment and in a 50/50 joint venture between Ariana associated permitting work is underway. Resources plc and Proccea Construction Co. A JORC Measured and Indicated Mineral Gold mineralization at Tavşan is epithermal Resource estimate from April 2018 in style, with associated silver and antimony, consists of 2.8 Mt at 1.3 g/t gold and 4.6 g/t broadly situated along the thrust contact silver for a total of 120.1 kozs of gold and between Jurassic massively bedded limestone 416.9 kozs of silver. Another 1.1 Mt were and an overlying Cretaceous multi-lithic listed in the Inferred Mineral Resource For more information refer to ophiolite sequence. Gold was discovered in an category (0.7 g/t cut-off grade). www.arianaresources.com area of outcropping mineralized jasperoids covering 4 km by 4 km that has been identified The Tavsan royalty was part of the royalty as deep as 30 metres. The mineralized package acquired from Teck Resources in jasperoid units at Tavşan are extensive and January 2016. The royalty is a 1.0% NSR Rabbit Red represent exploration potential for the project. on the first 100,000 ozs of gold equivalent produced, 1.5% on the next 100,000 ozs and The Tavşan Feasibility Study proposes an then is a 2.0% NSR royalty thereafter. open-pit, heap leach operation with ore being
Royalty Map RECENT ACTIVITY
5,624 ha October 2018 N Cash flow from the Kiziltepe mine is funding the Sandstorm Royalty Feasibility Study and Environmental Impact As- 1km Area of Interest sessment work being completed at Tavşan. Ariana Resources is in discussions with debt financiers for Orebody Model North the Tavşan development capex. JORC Exploration Targets Zone Designed Pits April 2018 Western A resource update was announced for the Tavşan Zone Main project. Approximately 71% of the resource is now Zone in the Measured and Indicated categories. Potential resource extensions are represented by a number South of drill holes including 11.0 metres of 5.1 g/t gold Zone and 6.8 g/t silver, 6.0 metres of 3.4 g/t gold and 3.7 g/t silver and 9.0 metres of 1.3 g/t gold and 4.3 g/t 1 km silver within 20 metres from surface. 4 km
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 81 Asia ADVANCED EXPLORATION
Yusufeli COMMODITY LOCATION Artvin, Turkey Bulgaria Black Sea Georgia
Greece ADVANCED EXPLORATION ADVANCED
OPERATOR Cyprus Syria Akdeniz Resources Madencilik A.S. Mediterranean Sea Iraq sia A
ACQUISITION DATE AGREEMENT TYPE TERMS
2016 / 01 / 19 Royalty 2.0% NSR on Au, 1.75% NSR on other
The Yusufeli project is located in the Artvin quartz veins that carry variable amounts province of northeast Turkey in the Çoruh of gold and base metals typically within valley, approximately 6 km from the town of sphalerite, galena and chalcopyrite. Based Yusufeli. The Taç and Çorak deposits are two on preliminary metallurgical testwork, discoveries on the property that have been material at both Taç and Çorak respond subject to significant exploration programs well to flotation treatment methods. including mapping, sampling, IP and magnetic surveys as well as reverse circulation and The PEA envisioned production from open-pit diamond drilling. The exploration work has mines at Taç and Çorak, producing 5,500 formed the basis for a resource estimate tpd over an eight year operating life. The and a Preliminary Economic Assessment study incorporated an Indicated Resource (PEA) that was released in 2011 by former model that was released in May 2009 and For more information refer to totaled 49.5 Mt at a gold equivalent grade www.akdenizresources.com owner Mediterranean Resources Ltd. of 1.3 g/t ($11 per tonne NSR cut-off). At Taç the mineralization exhibits some common characteristics of a high sulphidation In addition to the NSR royalty, Sandstorm is
Yusufeli Yusufeli epithermal gold-base metal deposit with entitled to a $2 million payment on the six the major metals of interest being gold, month anniversary of the commencement copper and silver. Çorak contains less of commercial production at the mine. copper but has elevated levels of lead and The Yusufeli royalty was acquired as part zinc. The mineralization is comprised of of a package of 52 royalties purchased from Teck Resources in January 2016.
N
CELTIK
TAC RECENT ACTIVITY
January 2015 Mediterranean Resources announced the sale of 80% of Akdeniz Resources Madencilik A.S. to Mr. Royalty Map Cengiz Kaya for $9 million. Akdeniz Resources owns 100% of the Yusufeli project. The 20% owner of CEVRELI 2,341 ha Akdeniz Resources is Turki Çeka Insaat ve Sanayi Ticaret A.S. Mr. Kaya is a director of Çeka Insaat, Sandstorm Royalty a Turkish construction firm.
Since the project has been privately owned there CORAK 3 km have been no development updates released.
82 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Australia ADVANCED EXPLORATION
North Telfer COMMODITY LOCATION West Australia, Australia
Indian Coral Sea Ocean NT QLD
SA
NSW EXPLORATION ADVANCED Great Australian ACT OPERATORS Bight VIC Tasman Sea Antipa Minerals Limited TAS ustralia ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT A
2016 / 01 / 19 Royalty 1.0% NSR n/a
The North Telfer project is located in the Resource and to commence evaluation of the Paterson Province of Western Australia economic potential of the Minyari Dome area. and approximately 20 kilometres north of The total Indicated and Inferred Mineral Newcrest’s large-scale Telfer mine. Within the Resource for both deposits is 11.0 million North Telfer project is a geological structure tonnes grading 2.0 g/t gold, 0.24% copper referred to as Minyari Dome which hosts and 380 ppm cobalt for 723,000 ounces of the Minyari and WACA gold-copper-silver- gold, 26,000 tonnes of copper and 4,000 cobalt deposits, both potentially amenable tonnes of cobalt (0.5 g/t gold open pit cut-off to open pit and underground mining and 1.7 g/t gold underground cut-off). methods, bearing a number of similarities to the mineralization at the Telfer deposit. Exploration programs continue with the goal of rapidly expanding the current Mineral For more information refer to Strong gold results from exploration drilling Resource to support a Scoping Study in 2019. www.antipaminerals.com.au programs completed in 2016 and 2017 enabled Antipa to establish its maiden Minyari deposit and WACA deposit JORC Mineral North Telfer
RECENT ACTIVITY
May 2019 Surface geochemical sampling and geological mapping programs commenced at North Telfer.
October 2018 Initial drilling at Minyari South intersected thick high-grade gold-copper-cobalt mineralization with results including 18.0 metres at 3.1 g/t gold, 0.32% copper and 0.05% cobalt from 47.0 metres.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 83 2018 / 2019 Asset Handbook Exploration Projects North America 86
BALL CREEK 86
HORSETHIEF 87
KENO HILL 88
LITTLE GEM 89
PICKLE CROW 90
RABBIT NORTH 91
SEYMOUR LAKE 92
OTHER 93
South America 95
LOS CISNES 95
OTHER 96
Africa 97
BOBOSSO 97
BONDOUKOU 98
BOUBOULOU 99
OTHER 100
Europe / Asia / Australia 100 North America EXPLORATION
COMMODITY LOCATION British Columbia, Canada
EXPLORATION Ball Creek YT NWT NU
AB SK MB
OPERATOR Pacific Ocean Evrim Resources Corp. United States
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2017 / 01 / 16 Royalty 2.0% NSR n/a
The Ball Creek project is a large copper-gold for new systems outside of areas of porphyry and epithermal gold-silver project known mineralization. At South More, a located within northwest British Columbia’s large 3.2 km by 1.0 km copper, gold and Golden Triangle. The project is eight km west molybdenum-in-soil anomaly was defined of Highway 37 and the 287 kV Northwest that has yet to be drill tested. Mineralization Transmission Line and contains five separate in the South More system is hosted by silica porphyry systems in close proximity to the undersaturated syenite which is a setting Triassic/Jurassic unconformity. The setting similar to that found at the Galore Creek is similar to major deposits including Red porphyry deposit. The regional soil survey Chris, KSM, Spectrum/GJ, and Snip. identified a new 1.2 km by 0.7 km copper, gold, and molybdenum soil anomaly at the Quash 2 The 524 km concession hosts several zone. The Quash zone is associated with For more information refer to copper and gold systems that are www.evrimresources.com potassically-altered andesite float that hosts underexplored and recent work has focused quartz veining, chalcopyrite, and bornite. on the Ball Creek, Rainbow North, South More and Quash porphyry targets. The Golden Ridge Resources entered into an previously-drilled Ball Creek porphyry agreement with Evrim in 2019 whereby they Ball Creek is open to the northeast and southwest can earn 80% ownership in the property and 2017 mapping has identified three by meeting specific payment requirements sub-parallel porphyry alteration systems. and delivering a Feasibility Study. Exploration mapping was also completed at Rainbow North in 2017 and identified In addition to the 2% NSR royalty, high-grade gold and copper sheeted vein Sandstorm is entitled to milestone mineralization that is similar to the porphyry payments of C$1 million if an Indicated and systems of the Maricunga belt of Chile. Inferred Mineral Resource of 1,000,000 ounces of gold equivalent is defined Recent soil sampling work focused in on and C$3 million if a positive Feasibility the South More target and more broadly Study is completed on the claims. to a 500 metre-spaced program searching
Royalty Map N 52,442 ha
Mineralized Zones Porphyry Epithermal Volcanic-hosted Au-Ag
Mess Creek Rainbow
Ball Creek RECENT ACTIVITY South More August 2019 Epithermal Quash Golden Ridge Resources has commenced a work pro- Au-Ag Deposit gram at the Ball Creek project combining regional geochemical sampling, geological mapping, and diamond drilling to test the most advanced targets. Sandstorm Royalty 8 km 1 km Area of Interest
86 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America EXPLORATION
COMMODITY LOCATION Nevada, USA
Horsethief EXPLORATION SD OR ID WY NE
UT CO KS
CA OK AZ NM OPERATOR Pacific Ocean TX Alianza Minerals Ltd. Mexico
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2015 / 01 / 27 Royalty 1.0% NSR n/a A merica N orth
The Horsethief property is located in multiple intervals of gold mineralization Lincoln County, Nevada approximately including 1.2 g/t gold from 13.7 metres 220 km north-east of Las Vegas and 19 km and 0.8 g/t gold from 39.6 metres. north-east of Pioche. Infrastructure and access to the property are favorable given the Recent exploration work has focused on proximity to a hydroelectric power source three primary target areas; Horsethief North, and a highway within 19 km of the property Horsethief South, and Stallion. Fieldwork that is connected by an all-weather road. has included mapping, prospecting and sampling for the purpose of refining drill The property geology at Horsethief is an targets. A total of 56 panel, grab and chip off-trend sediment hosted Carlin-style samples were collected property-wide and gold system. Work by previous operators indicate prospective carbonate stratigraphy. For more information refer to included mapping and sampling hematite-rich In conjunction with their exploration work, www.alianzaminerals.com jasperoid breccia outcrops followed by 4,200 Alianza acquired an additional 33 claims metres of shallow rotary drilling reporting increasing the size of the property to 525 ha. Horsethief
RECENT ACTIVITY N March 2019 Horsethief North Hochschild Mining (US) Inc. has optioned three Nevada properties from Alianza including Hors- ethief and Bellview. Under the terms of the option agreement, Hochschild can earn a 60% interest Stallion in each of the properties by making exploration expenditures totaling US$5.0 million over 5.5 Royalty Map years at Horsethief and US$3.5 million over 4.5 years at Bellview. Exploration programs in 2019 250 ha include drilling and drill target identification and definition. Sandstorm Royalty Horsethief South
January 2018
500 m Alianza received the necessary permit for a drilling program at Horsethief.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 87 North America EXPLORATION
COMMODITY LOCATION Yukon, Canada
EXPLORATION Keno Hill Beaufort Sea
U.S.A. NWT NU OPERATOR Hudson Bay Alexco Resource Corp. BC AB SK MB
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2016 / 01 / 19 Royalty 25.0% NPI n/a
The Keno Hill project is located in the Selwyn eight years with average annual production Basin in the Yukon Territory. The property lies of 3.5 million ounces of silver from within the Keno Hill District of polymetallic approximately 143,000 tonnes of ore. silver-lead-zinc veins, where there are more than thirty-five past producing mines. Alexco’s The Sandstorm royalty covers a portion of land package covers a substantial portion the Keno Hill claims around the Bellekeno of the district with more than 200 km2. and Bermingham deposits but the PEA mine plan does not include ore from the royalty A Preliminary Economic Assessment (“PEA”) ground. Exploration drilling has taken place released in 2017 looked at production from on the royalty claims in recent years. five deposits: Bermingham, Flame & Moth, Bellekeno, Lucky Queen and Onek. The The royalty was acquired as part For more information refer to study estimates a mine life of approximately of a package of royalties purchased www.alexcoresource.com from Teck Resources in 2016. Keno Hill Keno
N Royalty Map
917 ha
Sandstorm Royalty
RECENT ACTIVITY
August 2018 Lucky Queen A drilling program at the Bermingham deposit Elsa returned assay results of 12 metres of 1,019 g/t Onek Tailings silver from 136.3 metres. In addition to its ongoing Bermingham drill program, Alexco is working towards the final
project permits. Flame & Moth Bellekeno
May 2018 5 km An underground exploration decline was completed at Bermingham. A 5,000 metre underground drill program and 15,000 metre surface drill program commenced at the deposit.
88 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America EXPLORATION
COMMODITY LOCATION British Columbia, Canada
Little Gem EXPLORATION YT NWT NU
AB SK MB
OPERATOR Pacific Ocean Blackstone Minerals Inc. United States
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2018 / 04 / 23 Royalty 1.0% NSR n/a A merica N orth
The Little Gem property is located in British has verified mineralization identified Columbia, Canada less than 15 km along historically at both the Little Gem prospect strike to the north of the Bralorne-Pioneer and the Jewel Gold prospect. They also mining complex which retains the status discovered a new high-grade gold prospect of the foremost gold producer in British named Roxey and a new high-grade Columbia and the sixth largest in Canada. cobalt-gold prospect named Erebor. Little Gem hosts high-grade cobalt and gold mineralization within a well-endowed Sandstorm’s royalty interest covers the Little and high-grade gold mining district. Gem prospect area where a maiden drilling program is underway and initial results have Historical surface channel samples of the been consistent with historic drilling and adit mineralized zone included results up to channel sampling which returned average For more information refer to 5.7% cobalt and 1,574.0 g/t gold over 0.4 grades of 3.0% cobalt and 20.0 g/t gold. www.blackstoneminerals.com.au metres. Since acquiring the Little Gem project in 2017, Blackstone Minerals Little Gem
N
RECENT ACTIVITY
October 2019 Blackstone continued the 2019 field season with Little an extensive stream sediment, soil sampling and Gem mapping program.
Royalty Map September 2018 81 ha An IP survey confirms multiple new targets to the east and west of Little Gem along a 1.8 kilometre Sandstorm Royalty strike zone exhibiting chargeability and resistivity signatures typical of sulfide bearing bodies. These targets will be the focus of a phase two drilling 1 km program.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 89 North America EXPLORATION
COMMODITY LOCATION Ontario, Canada
EXPLORATION Pickle Crow Hudson Bay SK MB QC
OPERATOR United States First Mining Gold Corp.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2013 / 10 / 04 Royalty 0.5% NSR n/a
The Pickle Crow property is located in the g/t gold containing approximately 1.2 million mining friendly jurisdiction of north-western ounces of gold.* Extensive infrastructure in Ontario about 400 km north of Thunder place or proximal to the Pickle Crow property Bay and 11 km east of the town of Pickle includes a 200 tpd gravity mill on site, Lake. The property covers an area of 13,184 generators and fuel storage, gravel road access ha and includes the historic Pickle Crow to the property, and a regional airport at Pickle gold mine site which operated for 31 years Lake approximately 10 km from the property. from 1935 to 1966, producing some 1.4 million ounces from 3.1 million tons with an First Mining Gold Corp. completed diamond average grade of 16.14 g/t gold (0.47 oz/t). drill programs in 2016 and 2017 consisting of Sandstorm’s royalty includes the historic 1,300 metres and 1,100 metres respectively mine and the surrounding 1,583 ha. to test extensions of known vein zones and For more information refer to discover new high-grade gold mineralization. www.firstmininggold.com A technical report in accordance with NI 43-101 was filed in 2018 and supports a high- *Estimated at a cut-off grade of 2.6 g/t grade underground and open pit operation. gold for underground, 2.0 g/t gold for bulk The project hosts an Inferred Mineral underground and 0.5 g/t gold for open-pit. Pickle Crow Resource of approximately 9.5 Mt grading 4.1
Royalty Map N
1,583 ha
Sandstorm Royalty
Mill Site Shafts
RECENT ACTIVITY
August 2018 First Mining conducted a comprehensive assess- ment of historic Pickle Crow tailings through additional auger drilling (85 holes) and metal- lurgical tests.
February 2017 First Mining completed a 9-hole diamond drilling program comprised of 1,300 metres with the aim of testing extensions of known vein zones and discovering new high-grade gold mineralization. Gold mineralization was encountered in seven of the nine holes and visible gold was intercepted in 2 km the lower most vein of the No. 15 vein structure.
90 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America EXPLORATION
COMMODITY LOCATION British Columbia, Canada
Rabbit North EXPLORATION YT NWT NU
AB SK MB
OPERATOR Pacific Ocean Tower Resources Inc. United States
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2017 / 03 / 14 Royalty 2.0% NSR n/a A merica N orth
The Rabbit North property is located in the and the intrusion’s volcanic country rocks Kamloops mining division of south-central assigned to the upper Triassic Nicola Group. British Columbia and covers more than 13,500 ha. The property is road accessible and Early exploration was completed by major neighbour to the New Afton underground companies including Noranda and Cominco copper-gold mine operated by New Gold followed by junior companies like Auterra Inc. and the Highland Valley open pit copper Ventures. Most work concentrated on the mine, Canada’s largest copper producer, well exposed Durand Stock. Collectively, the operated by Teck Resources Limited. historic work outlined numerous porphyry- related targets that Tower Resources Alkalic porphyry-related copper investigated in detail during the 2013 and mineralization and alteration at Rabbit North 2014 field seasons. Results of this work were For more information refer to occurs in two host rock types. These include used to define drill targets that were tested in www.towerresources.ca the late Triassic to early Jurassic Duran 2016 and 2017. In July 2017 Tower Resources Stock, which is a zoned alkaline intrusion intersected the best grades reported from the measuring approximately 2.0 km by 3.0 km, property to date with 247.0 metres of 0.51% copper and 0.34 g/t gold from 208.0 metres. Rabbit North
RECENT ACTIVITY
May 2018 Exploration plans for 2018 include additional map- ping, sampling, geophysical surveys, core re-logging N and up to 2,000 metres of diamond drilling.
October 2017 Further drilling identifies copper and gold mineralization and expands the current resource Royalty Map area more than 1 kilometre south of the Western Magnetite Zone towards the Chrysocolla Zone. 13,550 ha New Afton Results from the largest step-out Tower has drilled to date include: Sandstorm Royalty ↳ 256 metres of 0.11% copper and 0.24 g/t gold 4km Area of Interest Ajax (0.20% copper equivalent) from 42.0 metres
↳ 133 metres of 0.19% copper and 0.31 g/t gold 8 km (0.41% copper equivalent) from 92.0 metres
July 2017 Results from Tower Resources 2017 diamond drill program returned long intervals of porphyry related copper and gold mineralization in several holes at the Western Magnetite Zone. Highlights include the Highland Valley most significant intercept to date including drill- Copper hole RN17-015 with 247 metres of 0.51% copper and 0.34 g/t gold from 208.0 metres.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 91 North America EXPLORATION
COMMODITY LOCATION Ontario, Canada
EXPLORATION Seymour Lake Hudson Bay SK MB QC
OPERATOR United States Ardiden Ltd.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
A merica N orth 2015 / 04 / 28 Royalty 1.5% NSR n/a
The Seymour Lake lithium prospect in a future mining scenario, reducing the is located within the Caribou Lake required pre-strip and resulting in a lower Greenstone Belt approximately 45 km extraction cost and improved project northeast of Armstrong in northwestern economics. Depending on future exploration Ontario. The property covers 16,654 ha and and drilling results, the mineralization at contains lithium mineralization hosted in North Aubry may be amenable to extraction spodumene-bearing pegmatite structures via a series of high-grade, low strip open pits. with widths up to 30.0 metres and grades of Ardiden acquired the Seymour Lake project up to 6.0% Li2O. The high-grade near surface pegmatite structures have been defined over from Stockport Exploration in 2017 and a 5 km strike length and comprise multiple released a new Indicated Mineral Resource prospective targets including North Aubry, Estimate containing 2.13 Mt at 1.29% Li2O For more information refer to at North Aubry, with additional Inferred www.ardiden.com.au Central Aubry, South Aubry and Pye. The main pegmatite at the North Aubry prospect Resources of 1.7 Mt at 1.5% Li2O. South Aubry is 250 metres wide and 300 metres long and contains an upgraded Inferred Mineral remains open along strike and at depth. Resource of 1.0 Mt at 0.8% Li2O. Potential exists to expand the known resource as less
Seymour Lake Seymour The proximity of the pegmatites to surface than 5% of the 5 km strike zone has been at the North Aubry prospect is considered to drilled. Sandstorm’s royalty covers a portion of be a strategic advantage, potentially allowing the Seymour Lake claims including the North easier access to high-quality mineralization Aubry and South Aubry resource deposits.
N
RECENT ACTIVITY
September 2018 Ardiden reported assay results from the first five Royalty Map Central Aubry North Aubry holes of their expansion drilling program. Results 1,300 ha include 10.3 metres at 1.07% Li2O from 78.8 metres and 5.9 metres at 1.58% Li2O from 157.5 metres. South Aubry Sandstorm Royalty
1.6km Area of Interest July 2018 Targets A 3,000 metre expansion drilling program has commenced. The aim of the program is to identify 2 km additional high-grade lithium mineralization and increase the Mineral Resource at the North Aubry deposit.
92 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook North America EXPLORATION EXPLORATION OTHER OPERATOR COUNTRY TERMS
1 Abitibi/Sarah Lake Commander Resources Ltd. Canada 1.0% NSR 2 Argosy Great Panther Silver Limited Canada 0.5% NSR 3 Ashby Alianza Minerals Ltd. USA 1.0% NSR 4 Aurora Carlin Resources LLC USA 2.0% NSR 5 Baffin ValOre Metals Corp. Canada 1.5%–1.75% NSR 6 Bellview Alianza Minerals Ltd. USA 0.5% NSR 7 Bermuda Stillwater Mining Company Canada 0.5% NSR 8 Big Bulk LCT Holdings Inc. Canada 1.5% NSR
9 Big W Barrick Gold US Inc. USA 3.0% NSR A merica N orth 10 Box Fortune Bay Corp. Canada 1.5% NSR 11 Broulan Reef Goldcorp Inc. Canada 2.0% NSR 12 Butterfly Lake Benchmark Metals Inc. Canada 0.71% GOR 13 Cabin Creek McEwen Mining Inc. USA 10% NPI 14 Camporo FPX Nickel Corp. Honduras 0.4%–1.2% NSR 15 Caramelia Huakan International Mining Inc. Canada 2.0% NSR 16 Cerro Prieto Goldgroup Mining Inc. Mexico 2.0% NSR 17 Cherry Creek McEwen Mining Inc. USA 1.5% GOR 18 CT Kreft Resources Ltd. Canada 0.75% NSR 19 East My-Ritt Yamana Gold Inc. Canada 0.5% NSR 20 East Walker Alianza Minerals Ltd. USA 1.0% NSR 21 El Placer Goldplay Exploration Ltd. Mexico 1.0% NSR 22 Eureka Pacific Ridge Exploration Ltd. Canada 1.0% NSR 23 Fly Lake Rubicon Minerals Corporation Canada 1.5% NSR 24 Forrest Kerr Aben Resources Inc. Canada 0.5%–1.0% NSR 25 Fostung Duke Mountain Resources Inc. Canada 1.0% NSR 26 Gold Cap Pacific Ridge Exploration Ltd. Canada 1.0% NSR 27 Gordon Creek Gordon Creek Energy Inc. USA 10% GOR 28 Hart Ji Lin Ji En Nickel Industry Co., Ltd. Canada 1.0% NSR 29 Hit Aben Resources Inc. Canada 2.0% NSR 30 Hudson-Patricia Rubicon Minerals Corporation Canada 1.5% NSR 31 Iron Horse Sokoman Iron Corp. Canada 1.0% NSR 32 Justin Aben Resources Ltd. Canada 3.0% NSR 33 KM61 Stockport Exploration Inc. Canada 0.25% NSR 34 La Cecilia Riverside Resources Inc. Mexico 1.5% NSR Au/Ag, 1.0% other 35 La Union Riverside Resources Inc. Mexico 1.5% NSR Au/Ag, 1.0% other 36 Lac Manitou Canadian International Minerals Inc. Canada 1.0% NSR 37 Lichen Silver Phoenix Resources Inc. USA 2.0% NSR 38 Llano del Nogal Riverside Resources Inc. Mexico 1.5% NSR Au/Ag, 1.0% other 39 Lorrain Canadian Silver Hunter Inc. Canada 2.0% NSR 40 Los Cuarentas Riverside Resources Inc. Mexico 1.5% NSR Au/Ag, 1.0% other 41 Los Verdes (Bacanora) Minera Alamos Inc. Mexico 2.0% NSR 42 Magmont Doe Run Resources Corporation USA 1.25% NSR 43 Mainstreet Beaufield Resources Inc. Canada 1.2% NSR 44 Mann Lake Skyharbour Resources Ltd. Canada 2.5% NSR 45 More Creek Tower Resources Inc. Canada 2.0% NSR 46 Nechako Tower Resources Inc. Canada 2.0% NSR 47 New Afton New Gold Inc. Canada 2.0% NSR
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 93 North America EXPLORATION
48 Newman-Madsen Pure Gold Mining Inc. Canada 0.5% NSR
EXPLORATION 49 Rain Newmont Mining Corporation USA 1.5% NSR 50 RF #1-8 (Railroad) Gold Standard Ventures Corp. USA 3.0% NSR 51 Rossland Rossland Resources Inc. Canada 1%–2% NSR 52 Schaft Creek North Teck Resources Ltd. Canada 2.0% NSR 53 Shotgun TNR Gold Corp. USA 5.0% NPI 54 Skinner Sabina Gold & Silver Corp. Canada 7.5% NPI 55 Slate Lake Rubicon Minerals Corporation Canada 1.5% NSR 56 Summit Lake Rainy Mountain Royalty Corp. Canada 1.9% NSR 57 Tami Colorado Resources Ltd. Canada 2.0% NSR 58 Ten Mile Creek Bernie Kreft Canada 1.5% NSR A merica N orth 59 Tsacha (Tommy Vein) Independence Gold Corp. Canada 2.0% NSR 60 Van Stone Equinox Resources (Wash) Inc. USA 1.5% NSR 61 Villa Union Goldplay Exploration Ltd. Mexico 1.0% NSR 62 Waconichi Northern Superior Resources Inc. Canada 1.0% NSR 63 Wrigley Devonian Metals Inc. Canada 2.0% NSR 64 Yauco Goldplay Exploration Ltd. Mexico 1.0% NSR Other
94 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook South America EXPLORATION
COMMODITY LOCATION Santa Cruz, Argentina
Los Cisnes EXPLORATION
Pacific Brazil Ocean Paraguay
Uruguay
Atlantic Ocean OPERATOR Chile New Dimension Resources Ltd.
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2017 / 07 / 03 Royalty 2.0% NSR n/a S outh A merica
The Los Cisnes property is 23,000 ha located identified two main targets; El Brio, a in the highly prospective Deseado Massif of high-grade silver vein-breccia system and Santa Cruz province in southern Argentina. El Solar, a bulk tonnage gold-silver target. The Deseado Massif is a 60,000 km2 area In 2015 Mariana Resources Ltd. completed which contains numerous low-sulfidation, a drill program focusing on the Brio vein epithermal, precious-metal quartz vein which returned positive results including and vein-breccia deposits and hosts several drill-hole LCsD-09 with an intercept of 2.9 producing mines including Anglogold metres at 755.0 g/t silver from 32.1 metres Ashanti’s Cerro Vanguardia gold-silver including 0.9 metres at 1,400.0 g/t silver. mine, Minera Don Nicolas, commissioned in December 2017, and Yamana Gold’s Cerro New Dimension Resources Inc. acquired Moro mine with its first pour of gold and silver the Los Cisnes property in May of 2018 and For more information refer to promptly began a phase 1 diamond drill www.newdimensionresources.com doré occurring in the second quarter of 2018. program to extend the known mineralization. Previous exploration work at Los Cisnes included sampling and scout drilling which Los Cisnes Los
N
RECENT ACTIVITY
Royalty Map July 2018 23,000 ha Results from a 1,564 metre drilling program completed in Q3 2018 supports both down-dip and Mineralization along-strike extensions to the high-grade silver mineralization reported in 2015. Highlights from the diamond drill program include: 5 km ↳ Drill-hole LCsD-14: 4.4 metres @ 566 g/t silver from 100.3 metres including 0.8 El Solar metres @ 1,653 g/t silver from 103.0 metres.
↳ Drill-hole LCsD-18: 4.4 metres @ 123 g/t El Brio silver from 47.6 metres including 0.8m @ 276 g/t silver from 49.2 metres.
↳ Drill-hole LCsD-20: 2.0 metres @ 381 g/t silver from 39.0 metres including 0.8 metres @ 528 g/t silver from 59.7 metres.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 95 South America EXPLORATION EXPLORATION OTHER OPERATOR COUNTRY TERMS
1 Amapari Mineracao Amapari S.A. Brazil 3.0% NSR 2 Aurizona Greenfields Equinox Gold Corp. Brazil 2.0% NSR 3 Capricho Pucara Resources Corp. Peru 1.0% NSR 4 Celeste Coro Mining Corp. Chile 3.0% NSR 5 Chavin Condor Resources Inc. Peru 0.5% NSR 6 Gatita Compañia Menera Potosi S.A. Peru 1.0% NSR 7 Huiñac Punta Condor Resources Inc. Peru 0.5% NSR 8 Huiniccasa Volcan Compañía Minera S.A.A. Peru 1.25% NSR
S outh A merica 9 Humaya Condor Resources Inc. Peru 0.5% NSR 10 Los Tambos Pucara Resources Corp. Peru 1.0% NSR 11 Lourdes Pucara Resources Corp. Peru 1.0% NSR 12 Mario Fortuna Silver Mines Inc. Peru 2.0% NSR 13 Maripa Columbus Gold Corporation French Guiana 0.5% NSR 14 Nassau Nassau Gold Ltd. Suriname 1.0%–2.0% NSR 15 Pacaska Pucara Resources Corp. Peru 1.0% NSR 16 Paco Orco Pucara Resources Corp. Peru 1.0% NSR 17 Pucamayo Condor Resources Inc. Peru 0.5% NSR 18 Pucapaca Pucara Resources Corp. Peru 1.0% NSR 19 Quilisane Condor Resources Inc. Peru 0.5% NSR 20 Quirurqu Condor Resources Inc. Peru 0.5% NSR 21 Rio Novo North/South Rio Minas Mineracao S.A. Brazil 0.75% NSR 22 San Martin Condor Resources Inc. Peru 0.5% NSR 23 Sao Vicente Aura Minerals Inc. Brazil 1.5% NSR Other 24 Serra Pelada Colossus Minerals Inc. Brazil 2.0% NSR 25 Sierra Blanca New Dimension Resources Ltd. Argentina 2.0% NSR
96 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Africa EXPLORATION
COMMODITY LOCATION Vallée du Bandama, Cote d'Ivoire
Bobosso EXPLORATION Mali Burkina Faso Guinea
Sierra Leone
Liberia Ghana
OPERATOR Atlantic Ocean Avant Minerals Inc. A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2018 / 05 / 30 Royalty 1.0% NSR n/a
The Bobosso project consists of two zones and narrower, higher grade quartz veins. granted exploration permits, Bassawa The target deposit type is orogenic gold. and Wendene and one permit application, Dabakala, in northern Côte d’Ivoire. Avant completed two drill programs in The property is located on the southern 2017 (4,244 metres of reverse circulation extension of the well mineralized Houndé drilling and 1,657 metres of diamond Belt which includes Semafo’s Mana mine, drilling) which were successful in identifying Roxgold’s high-grade Yaramoko gold mine gold mineralization in seven target areas, and Endeavour’s Houndé gold mine. including multiple zones with continuity over 300 metres of strike length. Avant The property hosts a 7 km2 gold-in-soil also conducted initial bulk-leak extractable geochemical anomaly and the geology gold tests on several composites from the For more information refer to consists of mafic volcanics, with lesser drilling. This preliminary metallurgical www.progressminerals.com felsic to intermediate volcanics and minor test work indicated that mineralization metasediments. Gold mineralization is found may be amenable to cyanide-leaching. in both broad, moderate grade alteration Bobosso
N
Dabakala RECENT ACTIVITY
Royalty Map October 2018 Plans for the 2018-2019 season include an IP survey 80,000 ha and reverse circulation drill program comprised of approximately 7,500 metres of drilling. Sandstorm Royalty Wendene
5km Area of Interest August 2018 Avant has raised C$8.7 million through a private 20 km placement. Avant may elect to raise additional funds up to C$10 million. The net proceeds will be used for exploration activities in Burkina Faso
Bassawa and Côte d’Ivoire.
March 2018 Assay results from a reverse circulation drill program were reported and included intercepts of 18.0 metres at 2.1 g/t gold from 9.0 metres and 56.0 metres at 1.6 g/t gold from 47.0 metres.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 97 Africa EXPLORATION
COMMODITY LOCATION Zanzan, Cote d'Ivoire
EXPLORATION Bondoukou Mali Burkina Faso Guinea
Sierra Leone
Liberia Ghana
OPERATOR Atlantic Ocean Awalé Resources Limited A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2017 / 07 / 03 Royalty 2.0% NSR n/a
The Bondoukou project is on the border further testing has focused on the Fako/Fako of Côte d’Ivoire and Ghana in the Zanzan South, Elisabeth, and Casino prospects. region of Côte d’Ivoire and covers an area of 237,440 ha. The project concessions lie A 57-hole reverse circulation drilling program along the south-western extension of the consisting of 4,473 metres produced multiple Birimian-age Bole-Nangodi greenstone mineralized intercepts within a 6 km strike belt in adjacent Ghana, which is host to zone of the 38 km Awari shear. At the Fako multiple orogenic-type gold deposits. prospects, the mineralization is associated with a large alteration system and remains Exploration work performed by Awalé open in all directions. Further to the north between 2015 and 2017 included airborne at the Casino prospect, the focus is on high and ground geophysics, auger drilling, and grade quartz veining where drilling has For more information refer to sampling of artisanal mining occurrences. intercepted mineralization both down dip www.awaleresources.com Multiple anomalous targets were identified and along strike from existing artisanal along 80 kms of mineralized trends and workings, where rock chip sampling has returned results of up to 589.0 g/t gold. Bondoukou
N
RECENT ACTIVITY
March 2019 A trenching program is underway at the Fako pros- pect designed to gain understanding and further interpret mineralization intercepted in previous drill programs. Highlights from the first 3 trenches include 8.0 metres at 1.6 g/t gold from 4.0 metres Casino and 17.0 metres at 2.6 g/t gold from 62.0 metres.
Elizabeth Fako September 2018 Fako South Awalé closed a private placement for proceeds of C$832,500 to be used for ongoing exploration on its Côte d’Ivoire projects. Plans for 2018-2019 include approximately 25,000 metres of auger drilling accompanied by detailed mapping and geophysics. Royalty Map
237,440 ha August 2018 A diamond drilling program consisting of 9 holes Sandstorm Royalty for 1,605 metres was designed to enhance the 4 km Area of Interest understanding of the geometry, geology and down- Awari Shear Strike dip continuity of the Fako and Casino prospects. Assay results include 8.0 metres at 6.2 g/t gold from surface and 1.3 metres at 8.5 g/t gold from 30 km 61.0 metres respectively.
98 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Africa EXPLORATION
COMMODITY LOCATION Passoré, Burkina Faso
Bouboulou EXPLORATION
Mali Niger
Benin OPERATOR Togo
Ghana Nigeria Nexus Gold Corp. Cote d'Ivoire A frica
ACQUISITION DATE AGREEMENT TYPE TERMS ONGOING PAYMENT
2018 / 05 / 18 Royalty 1.0% NSR n/a
The Bouboulou concession in Burkina Faso, km. The concession was then explored by West Africa, covers an area of 39 km2 and is Riverstone Resources and Roxgold Inc. located approximately 100 km north-west of Ouagadougou, the capital city. The Five zones of gold mineralization, Bouboulou concession is in the Boromo- contained within three separate 5 km Goren greenstone belt and is bisected by the gold trends, have been identified on the 2 Sabce shear zone. This regional north-east property. The adjacent 250 km Rakounga trending structure is 120 km in strike length gold concession extends the Bouboulou and hosts numerous artisanal gold workings gold trends and currently contains three as well as the Bissa Hills gold deposit drill tested zones of mineralization. presently being mined by Nord Gold SE. Nexus Gold conducted a 10-hole diamond For more information refer to Gold mineralization was first identified by drill program in 2017 totaling 2,596 metres. www.nexusgoldcorp.com Boliden in 1997 where a regional rotary air Highlights from the Bouboulou 2 and Koala blast drilling program comprised of 24,500 zones included 23.4 metres of 1.0 g/t gold metres outlined a broad north-east trending from 182.4 metres and 3.1 metres of 5.2 gold anomaly measuring 13.0 km by 2.0 g/t gold from 178.3 metres respectively. Bouboulou
N2
N
Pelatanga
Rawema
Bouboulou 2 Koala
Bouboulou 1
RECENT ACTIVITY MINERALIZED TREND Royalty Map June 2018 A summer drill program consisting of approxi- Bouboulou (3,835 ha) mately 1,000 metres of reverse circulation drilling 5km Area of Interest is planned at Bouboulou. Other Sandstorm Royalties 1
Targets April 2018 Rakounga A private placement was closed for gross proceeds 5 km of C$3.0 million.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 99 Africa EXPLORATION EXPLORATION OTHER OPERATOR COUNTRY TERMS
1 Abengourou Awalé Resources Limited Cote d'Ivoire 2.0% NSR 2 Adi Da-iro Sun Peak Metals Corp. Ethiopia 1.0% NSR 3 Akorade Star Goldfields Ltd. Ghana 1.0% NSR 4 Bira Avant Minerals Inc. Burkina Faso 1.0% NSR 5 Bonsiega Avant Minerals Inc. Burkina Faso 1.0% NSR 6 Bosoto PL217 Tsodilo Resources Ltd. Botswana 1.0% NSR 7 Idada Tsodilo Resources Ltd. South Africa 1.0% NSR 8 Nefasit Sun Peak Metals Corp. Ethiopia 1.0% NSR 9 Niangouela Nexus Gold Corp. Burkina Faso 1.0% NSR 10 Odienné Awalé Resources Limited Cote d'Ivoire 2.0% NSR 11 Rakounga Nexus Gold Corp. Burkina Faso 1.0% NSR 12 Tambiri Avant Minerals Inc. Burkina Faso 1.0% NSR
EUROPE / ASIA / AUSTRALIA EXPLORATION
OTHER OPERATOR COUNTRY TERMS
1 Altan Arrow Erdene Resource Development Corp. Mongolia 1.0% NSR 2 Bungalbin Mineral Resources Ltd. Australia 3.5% NSR 3 Ergama AMG Ergama Madencilik A.S. Turkey 2.0% NSR
Other 4 Hasandagi Newmont Altin Madencilik Ltd. Şirketi Turkey 2.0% NSR 5 Karaağaç Anadolu Export Maden Sanayi ve Ticaret Limited Şirketi Turkey 1.5% NSR 6 Kiskama Talga Resources Ltd. Sweden 1.0% NSR 7 Leinster Minotaur Exploration Ltd. Australia 2.5% NSR 8 Masugnsbyn Talga Resources Ltd. Sweden 1.0% NSR 9 Muratdagi Kenz Enerji ve Madencilik San. Ve Tic. A.S. Turkey 2.0% NSR 10 Saints Minotaur Exploration Ltd. Australia 2.5% NSR 11 Scotia Shine Resources Pty Ltd. Australia 2.5% NSR 12 Tombul Elaziğ Baskil Madencilik A.S. Turkey 2.0% NSR 13 Ulaan Erdene Resource Development Corp. Mongolia 1.0% NSR
100 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook Africa EXPLORATION EXPLORATION A frica Other
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 101 ASSET HANDBOOK ADDITIONAL INFORMATION
ROYALTY PURCHASE RIGHTS AND ROFR
Acquiring optionality is part of our business and one of the ways we do that is by accumulating royalty purchase rights and right of first refusal options.
A royalty purchase right gives Sandstorm the ability to acquire a portion of an existing royalty on pre-determined terms at any point in the future. This provides us with the ability to wait until a project is nearing production before deciding whether or not to deploy capital towards the royalty asset. A right of first refusal is related to future stream and royalty financings and gives Sandstorm the ability to match any competing stream and royalty funding offers on a project.
102 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook SANDSTORM GOLD ROYALTIES ASSET HANDBOOK ADDITIONAL INFORMATION
Royalty Purchase Rights
PROJECT OPERATOR COUNTRY HECTARES STATUS TERMS
Airport O3 Mining Inc. Canada 656 Exploration Ducros O3 Mining Inc. Canada 638 Exploration Lourmet O3 Mining Inc. Canada 144 Exploration Mid Canada O3 Mining Inc. Canada 74 Exploration
Oramaque O3 Mining Inc. Canada 393 Exploration 1% NSR Orcour O3 Mining Inc. Canada 787 Exploration for $1,000,000 Orenada O3 Mining Inc. Canada 487 Exploration Sabourin Creek O3 Mining Inc. Canada 1,457 Exploration Trivio O3 Mining Inc. Canada 1,177 Exploration Vaumon O3 Mining Inc. Canada 423 Exploration Akasaba O3 Mining Inc. Canada 427 Exploration
Bloc Sud Sleepy O3 Mining Inc. Canada 312 Exploration 1% NSR Bloc Sud Trivio O3 Mining Inc. Canada 1,012 Exploration for C$500,000 Bloc Sud West O3 Mining Inc. Canada 480 Exploration Annamaque-Faraday O3 Mining Inc. Canada 646 Exploration 1% NSR for C$800,000 Dekeyser O3 Mining Inc. Canada 176 Exploration 1% NSR for C$1,000,000 El Habal Goldplay Exploration Ltd. Mexico 3,765 Exploration 1% NSR for US$2,000,000 Enchi Pinecrest Resources Ltd. Africa 69,600 Exploration 1% for US$3,500,000 Hatchet Lake Kivalliq Energy Corporation Canada 13,711 Exploration 0.5% NSR for C$750,000 Pacific Ridge Exploration Ltd./Eureka Mariposa Canada 28,000 Exploration 1% NSR for C$1,000,000 Dome Gold Inc. Ocros Condor Resources Inc. Canada 1,967 Exploration 1% NSR for US$2,000,000 Pucamayo 14 Condor Resources Inc. Canada 600 Exploration 1% NSR for US$2,000,000 Rabbit North Tower Resources Ltd. Canada 2,848 Exploration 2% NSR for C$3,500,000 Robert O3 Mining Inc. Canada 295 Exploration 1% NSR for C$200,000 Valdora O3 Mining Inc. Canada 156 Exploration 0.75% for C$400,000
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 103 ASSET HANDBOOK ADDITIONAL INFORMATION
ROFRs
PROJECT OPERATOR COUNTRY HECTARES STATUS
Abengourou Awalé Resources Limited Cote d'Ivoire 80,000 Exploration Agua Rica Yamana Gold Inc. Argentina 1,250 Development Airport Extension O3 Mining Inc. Canada 14 Exploration Akorade Star Goldfields Ltd. Ghana 22,500 Exploration Altan Nar Erdene Resource Development Corp. Mongolia 4,669 Adv. Exploration Angilak Kivalliq Energy Corporation Canada 89,852 Exploration Ashby Alianza Minerals Ltd. USA 62 Exploration Aurizona Equinox Gold Corp. Brazil 20,627 Producing Aurizona Greenfields Equinox Gold Corp. / AngloGold Ashanti Ltd. Brazil 221,300 Exploration Baffin Kivalliq Energy Corporation Canada 405,083 Exploration Bayan Khundii Erdene Resource Development Corp. Mongolia 4,514 Adv. Exploration Bellview Alianza Minerals Ltd. USA 399 Exploration Bloc Sud Trivio Extension O3 Mining Inc. Canada 1,409 Exploration Bomboré Orezone Gold Corporation Burkina Faso 16,750 Development Bondoukou Awalé Resources Limited Cote d'Ivoire 237,440 Exploration Bosoto PL217 Tsodilo Resources Ltd. Botswana 58,000 Exploration Capricho Pucara Resources Corp. Peru 600 Exploration Coringa Serabi Gold plc Brazil 9,054 Development East Walker Alianza Minerals Ltd. USA 269 Exploration Eddy O3 Mining Inc. Canada 958 Exploration El Placer II Goldplay Exploration Ltd. Mexico 11,118 Exploration Gcwihaba Tsodilo Resources Ltd. Botswana 892,690 Adv. Exploration Heruga Turquoise Hill Resources Ltd. Mongolia 20,337 Adv. Exploration Horsethief Alianza Minerals Ltd. USA 250 Exploration Hugo North Extension Turquoise Hill Resources Ltd. Mongolia 42,593 Development Huiñac Punta Condor Resources Inc. Peru 1,000 Exploration Humaya Condor Resources Inc. Peru 700 Exploration Idada Tsodilo Resources Ltd. South Africa 9,030 Exploration Karma Endeavour Mining Corporation Burkina Faso 91,061 Producing Los Tambos Pucara Resources Corp. Peru 4,100 Exploration Lourdes Pucara Resources Corp. Peru 2,535 Exploration Ming Rambler Metals and Mining plc Canada 955 Producing Montagne d'Or Columbus Gold Corporation/Nord Gold N.V. French Guiana 19,663 Development Mt. Hamilton Waterton Global Resource Management LP USA 2,209 Development North Timmins Gold Project Gowest Gold Ltd. Canada 10,474 Development Odienné Awalé Resources Limited Cote d'Ivoire 118,710 Exploration Orenada Extension O3 Mining Inc. Canada 465 Exploration Pacaska Pucara Resources Corp. Peru 4,600 Exploration Paco Orco Pucara Resources Corp. Peru 600 Exploration Prairie Creek Canadian Zinc Corp. Canada 7,487 Development Pucamayo Condor Resources Inc. Peru 10,100 Exploration Pucapaca Pucara Resources Corp. Peru 800 Exploration Quilisane Condor Resources Inc. Peru 1,837 Exploration Quirurqu Condor Resources Inc. Peru 853 Exploration San Martin Condor Resources Inc. Peru 46 Exploration Villa Union Goldplay Exploration Ltd. Mexico 5,555 Exploration Yauco Goldplay Exploration Ltd. Mexico 5,964 Exploration
104 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook SANDSTORM GOLD ROYALTIES ASSET HANDBOOK ADDITIONAL INFORMATION
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CADILLAC BREAK NI-43-101 Technical Report: Orenada Property, A AURIZONA Province of Québec, Canada; August 14, 2009; Beauregard, A. et al., Geologica Groupe-Conseil NI-43-101 Technical Report: Feasibility Study Inc. AGI DAGI on the Aurizona Gold Mine Project, Maranhao, Brazil; July 10, 2017; Lincoln, N. et al., Lycopodium NI-43-101 Technical Report: Feasibility Study on Minerals Canada Ltd. the Agi Dagi Project and Preliminary Economic CERRO MORO Assessment on the Camyurt Project, Canakkale NI-43-101 Technical Report: Preliminary Economic Province, Turkey; February 22, 2017; Cormier, A. et AURIZONA (CONT.) Assessment for the Cerro Moro Gold-Silver Project, al., JDS Energy & Mining Inc. Santa Cruz Province, Argentina; March 30, 2012; NI-43-101 Technical Report: Pre-Feasibility Study Guzman, C. et al., Extorre Gold Mines Limited on Aurizona Mine Project (Amended), Maranhao, Brazil; November 16, 2016; Evans, D. et al., AGUA RICA Yamana Gold Inc. Annual Information Form For the Lycopodium Minerals Canada Ltd. Independent Engineering Review of the Agua Rica fiscal Year Ended December 31, 2017 [AIF]; March Project; December 9, 2014; Kehmeier, R. et al., 27, 2018; Yamana Gold Inc. RungePincockMinarco B CHAPADA AJAX NI-43-101 Technical Report: Chapada Mine, Goiás BARRY NI-43-101 Technical Report: Feasibility Study State, Brazil; March 21, 2018; Miranda, H. et al., Update Ajax Project, British Columbia, Canada; NI-43-101 Technical Report: Resource Estimates RPA Inc. February 19, 2016; Dagel, K. et al., M3 Engineering for the Barry and Gladiator Deposits, Urban Barry & Technology Corporation Property; May 24, 2019, Armitage, A. et al., SGS Yamana Gold Inc. Annual Information Form For the Geological Services. fiscal Year Ended December 31, 2017 [AIF]; March 27, 2018; Yamana Gold Inc. ALTAN NAR BAYAN KHUNDII NI-43-101 Technical Report: Altan Nar Gold Project Mineral Resource Technical Report, NI-43-101 Technical Report: Bayan Khundii COPPER MOUNTAIN Bayankhongor Aimag, Southwest Mongolia; June Gold Project (Khundii Exploration License), NI-43-101 Technical Report: Amended Resources 21, 2018; Clark, J. et al., RPMGlobal Asia Limited. Bayankhongor Aimag, Southwest Mongolia; and Reserves of the Copper Mountain Mine, March 1, 2018; MacDonald, M., Erdene Resource Princeton, British Columbia; August 12, 2016; Development Corporation RPMGlobal Asia Limited. Holbek, P. et al., Copper Mountain Mining Corp. ALTO PARANÁ NI-43-101 Technical Report: Resource Estimate BLACK FOX on Alto Paraná Project, Alto Paraná, Paraguay: CORINGA August 11, 2017; Kuhn, M. et al., Minerals Advisory NI-43-101 Technical Report: Black Fox Complex, NI-43-101 Technical Report: Feasibility Study Group, LLC Canada; April 6, 2018; Mitrofanov, A. et al., SRK Coringa Gold Project, Brazil; September 8, Consulting (Canada) Inc. 2017; Prenn, N. et al., MTD Project Management Professionals, Inc. ANGILAK BLENDE NI-43-101 Technical Report: Technical Report and Resource Update for the Angilak Property, Kivalliq NI-43-101 Technical Report: Blende Project, CUIÚ CUIÚ Region, Nunavut, Canada; March 1, 2013; Dufresne, Beaver River Area, Nash Creek Map Area, Yukon NI-43-101 Technical Report: Cuiú Cuiú Project, M. et al., APEX Geoscience Ltd. Territory; March 7, 2011; Price, B., B.J. Price Mineral Resources Update, Para State, North- Geological Consultants Inc. Central Brazil: December 31, 2017; Stubens, T. et al., Micon International Limited ANN MASON BRACEMAC-MCLEOD NI-43-101 Technical Report: 2017 Updated Preliminary Economic Assessment on the Ann NI-43-101 Technical Report and Feasibility Study Mason Project, Nevada, USA: March 3, 2017; Kulla, for the Bracemac-McLeod Project, Matagami Area, G. et al., AGP Mining Consultants Inc. and Amec Québec. GENIVAR report to Xstrata Zinc Canada; Foster Wheeler Americas Limited September 21, 2010; GENIVAR
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 105 ASSET HANDBOOK ADDITIONAL INFORMATION
D GUM CREEK K Gum Creek Gold Project Free Milling Scoping DIAVIK Study [News Release]; March 18, 2016; Panoramic KARMA Resources NI-43-101 Technical Report: Diavik Diamond Mine, NI-43-101 Technical Report: Updated Feasibility Northwest Territories, Canada; March 27, 2017; Yip, Study (GGI, GGII, Kao, Rambo & Nami Deposits) and C.G. et al., Diavik Diamond Mines Inc. a Preliminary Economic Assessment (North Kao H Deposit) for the Karma Gold Project, Burkina Faso, West Africa; August 10, 2014; Puritch, E. et al., P&E DON NICOLAS Mining Consultants Inc. HACKETT RIVER NI-43-101 Technical Report: Don Nicolas Gold Project, Santa Cruz, Argentina; February 14, 2012; NI-43-101 Technical Report: Hackett River Endeavour Mining Annual Information Form for Grant, C. et al., Tetra Tech Company Property Royalty, Nunavut, Canada; July 31, the financial year ended December 31, 2017 [AIF]; 2013; Clemmer, S. et al., AMC Mining Consultants March 29, 2018; Endeavour Mining (Canada) Ltd.
E KENO HILL HERUGA NI-43-101 Technical Report: Preliminary Economic EMIGRANT NI-43-101 Technical Report: 2016 Oyu Tolgoi Assessment of the Keno Hill Silver District Project, Technical Report; October 14, 2016; Peters, B. et al., NI-43-101 Technical Report: 1.5% Production Yukon Territory, Canada: January 3, 2017; Jensen, OreWin Pty Ltd. Royalty Held on the Emigrant Project, Elko County, T. et al., Roscoe Postle Associates Inc. Nevada, USA; September 10, 2012; Lewis, W. et al., Micon International Limited HM CLAIM KIRAZLI NI-43-101 Technical Report: Review of Resources NI-43-101 Technical Report: Feasibility Study on and Reserves of Macassa Mine, Kirkland Lake, the Kirazli Project, Canakkale Province, Turkey; F Ontario; January 1, 2014; Clark, G. et al., Glenn R. February 15, 2017; Cormier, A. et al., JDS Energy & Clark & Associates Limited Mining Inc. FORRESTANIA Activity Report For the period ending 30 June 2018 HOD MADEN [Quarterly Activities Report]; July 23, 2018; Western NI-43-101 Technical Report: Pre-Feasibility Study, L Areas Ltd. Hot Maden Project, Turkey; June 26, 2018; Webster, R. et al., AMC Consultants Pty Ltd. LAS CALANDRIAS FRUTA DEL NORTE NI-43-101 Technical Report: Gold and Silver NI-43-101 Technical Report: Feasibility Study on HOUNDÉ Resource at Las Calandrias - An Update, Santa Cruz Province, Argentina: March 6, 2011; Ristorcelli, Fruta del Norte project, Ecuador NI-43-101 Technical Report: Hounde Gold Project S. et al., Mine Development Associates Feasibility Study, Burkina Faso, West Africa; October 31, 2013; Zammit, M. et al., Lycopodium G Minerals Ptd Ltd. Consultants Inc. LOBO-MARTE Kinross Gold Reserves Increase to 51 Million Endeavour Mining Annual Information Form for Ounces [News Release]; January 28, 2010; Kinross GCWIHABA the financial year ended December 31, 2017 [AIF]; Gold Corporation NI-43-101 Technical Report: Mineral Resource March 29, 2018; Endeavour Mining Estimate for the Xaudum Iron Project (Block 1), Kinross Gold Corporation Annual Information Form Republic of Botswana; August 29, 2014; Baker, H. et for the year ended December 31, 2017 [AIF]; March al., SRK Consulting (UK) Limited. HUGO NORTH EXTENSION 29, 2018; Kinross Gold Corporation NI-43-101 Technical Report: Entrée/Oyu Tolgoi Joint Venture Project; February 28, 2018; Hanson, GLADIATOR K. et al., Amec Foster Wheeler E&C Services, Inc. NI-43-101 Technical Report: Resource Estimates M for the Barry and Gladiator Deposits, Urban Barry Property; May 24, 2019, Armitage, A. et al., SGS MEL Geological Services. I NI-43-101 Technical Report: Mel Zinc-Lead-Barite IVRINDI Property, Watson Lake Mining District Southeast GOLD BAR (CABIN CREEK) Yukon: March 20, 2017; King, H. et al., H. Leo King & Scoping Study of the Karadere Gold Project, Associates Inc. and Giroux Consultants Ltd. NI-43-101 Technical Report: Feasibility Study Burhaniye, Turkey; July 29, 2015; Defilippi, C. et for the Gold Bar Project, Eureka County, Nevada; al., Kappes, Cassiday & Associates and DAMA November 08, 2017; Roth,D. et al., M3 Engineering Co. MING NI-43-101 Technical Report: Pre-Feasibility Study GUALCAMAYO - Ming Copper-Gold Mine Phase 2A, Newfoundland NI-43-101 Technical Report: Gualcamayo Project, and Labrador, Canada; September 2015; Saul, B. et San Juan, Argentina; March 25, 2011; Valencia, M. al., WSP Canada Inc. et al., Yamana Gold Inc. and Metalica Consultores
Yamana Gold Inc. Annual Information Form For the fiscal Year Ended December 31, 2017 [AIF]; March 27, 2018; Yamana Gold Inc.
106 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook SANDSTORM GOLD ROYALTIES ASSET HANDBOOK ADDITIONAL INFORMATION
MONTAGNE D'OR NI-43-101 Technical Report: 2017 Preliminary T NI-43-101 Technical Report: Bankable Feasibility Economic Assessment Update for the Lamaque Study Montagne d'Or Project, French Guiana; Project, Bourlamaque Township, Province of THUNDER CREEK & 144 ZONE March 6, 2017; Stryhas, B. et al., SRK Consulting Quebec, Canada; February 27, 2017; Girard, F. et. (U.S.), Inc. al., InnovExplo Inc.. NI-43-101 Technical Report: Updated Mineral Reserve Estimate for Timmins West Mine and Initial Resource Estimate for the 144 Gap Deposit, MOROY RUDDOCK CREEK Timmins, Ontario, Canada; December 31, 2015; NI-43-101 Technical Report: Technical Report on Imperial Metals Corporation Annual Information Kallio, E. et al., Lake Shore Gold Corp. the Moroy Project Mineral Resource Estimate; May Form For the fiscal Year Ended December 31, 2012 6, 2019, Armitage, A. et al., SGS Canada Inc. [AIF]; March 27, 2013; Imperial Metals Corporation Tahoe Resources Annual Information Form For the year ended December 31, 2016 [AIF]; March 9, 2017; Tahoe Resources MT. HAMILTON NI-43-101 Technical Report: Feasibility Study S Mt. Hamilton Gold and Silver Project Centennial Deposit and Seligman Deposit, White Pine County, V SAN ANDRES Nevada; August 14, 2014; SRK Consulting (U.S.), Inc. NI-43-101 Technical Report: Mineral Resource VITTANGI and Mineral Reserve Estimates on The San Andres Talga Substantially Increases Flagship Graphite MWS Mine, La Union, Copan, Honduras; December 31, Resource Siz, Grade and Status [News Release]; NI-43-101 Technical Report: Mine Waste Solutions 2013; Butcher, B. et al., Aura Minerals Inc. April 27, 2017; Talga Resources Ltd. Tailings Recovery Project, North West Province, South Africa; January 1, 2010; Muller, C. et al., Aura Minerals Inc. Annual Information Form For Minxcon the year ended December 31, 2017 [AIF]; April 2, 2018; Aura Minerals Inc. W
N SANTA ELENA WEST ARENA NI-43-101 Technical Report: Update to Santa Elena NI-43-101 Technical Report: Eastern Extension NORTH TIMMINS Pre-Feasibility Study, Sonora, Mexico; December Property, Québec, Canada: July 26, 2012; Dzick, W. NI-43-101 Technical Report: Prefeasibility 31, 2014; Fier, E. et al., SilverCrest Metals Inc. et al., Snowden Mining Industry Consultants Study Bradshaw Gold Deposit, Timmins, Ontario; September 15, 2016; Stantec - Mining Silver equivalent grade is estimated as: AgEq = Ag Grade + (Au Grade x Au Recovery x Au Payable x Au WHISTLER Price) / (Ag Recovery x Ag Payable x Ag Price. Metal NI-43-101 Technical Report: Resource Estimate prices considered were $18.00/oz Ag, $1,250/oz Au. for the Whistler Project, Alaska: May 30, 2016; P Giroux, G. et al., Giroux Consultants Ltd. First Majestic Silver Corp. Annual Information Form PRAIRIE CREEK For the Year Ended December 31, 2017 [AIF]; March NI-43-101 Technical Report: Prairie Creek 29, 2018; First Majestic Silver Corp. WILUNA Property Prefeasibility Update, Northwest Studies Confirm Combined Wiluna Uranium Project Territories, Canada; March 31, 2016; Mosher, G. et Improvements [News Release]; January 30, 2014; al., AMC Mining Consultants (Canada) Ltd. SAO FRANCISCO Toro Energy Limited NI-43-101 Technical Report: Resource and Mineral NI-43-101 Technical Report: Feasibility Study, Reserve Estimates on The Sao Francisco Mine, Northwest Territories, Canada; August 2017; Smith, Municipality of Vila Bela Da Santissima Trindade, H.A., et al., AMC Mining Consultants (Canada) Ltd. Mato Grosso, Brazil; September 30, 2011; Reid J. et Y al., Aura Minerals Inc. YUSUFELI R Aura Minerals Inc. Annual Information Form For NI-43-101 Technical Report: Preliminary Economic the year ended December 31, 2017 [AIF]; April 2, Assessment on the Taç and Çorak Deposits, 2018; Aura Minerals Inc. Yusufeli Property, Artvin Province, Turkey: June 14, RED RABBIT 2011; Barnett, W. et al., SRK Consulting (Canada) Excellent Results From Tavsan Scoping Study Inc. [News Release]; November 10, 2016; Ariana SHEERNESS Resources plc NI-43-101 Technical Report: Sheerness Mine, Alberta; May 19, 2006, Norwest Corporation RELIEF CANYON NI-43-101 Technical Report: Feasibility Study for the Relief Canyon Project, Pershing County, SPECTRUM Nevada, USA: May 24, 2018; Tietz, P. et al NI-43-101 Technical Report: 2017 Mineral Resource Updates and Preliminary Economic Assessment Spectrum-GJ Copper-Gold Project, ROC D'OR EAST EXTENSION Liard Mining Division, British Columbia, Canada; NI-43-101 Technical Report: Spring 2017 Mineral April 20, 2017; Godden, S. et al., Independent Mining Resource Estimate Update for the Lamaque Consultant. Project, Bourlamaque Township, Quebec, Canada; March 22, 2017; Girard, F. et al., InnovExplo Inc.
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CAUTIONARY STATEMENTS TO U.S. SECURITY HOLDERS
The financial information included or incorporated by reference in this document or the documents referenced herein has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, which differs from US generally accepted accounting principles (“US GAAP”) in certain material respects, and thus are not directly comparable to financial statements prepared in accordance with US GAAP.
Information contained or referenced in this document or in the documents referenced herein concerning the properties, technical information and operations of Sandstorm has been prepared in accordance with requirements and standards under securities laws, which differ from the requirements of US securities laws. The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” used in this or in the documents incorporated by reference herein are mining terms as defined in accordance with NI 43-101 under guidelines set out in the Definition Standards for Mineral Resources and Mineral Reserves adopted by the Canadian Institute of Mining, Metallurgy and Petroleum Council on 11 December 2005. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by securities laws other than the requirements of US securities laws, they are not recognized by the SEC. Disclosure of contained ounces are or may be permitted disclosure under regulations applicable to Sandstorm; however, the SEC normally only permits issuers to report resources as in place tonnage and grade without reference to unit of production measures. As such, certain information contained in this document or in the documents incorporated by reference herein concerning descriptions of mineralization and mineral resources under these standards may not be comparable to similar information made public by US companies subject to reporting and disclosure requirements of the SEC.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This document contains "forward-looking statements", within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Sandstorm. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and resources, realization of mineral reserve estimates, and the timing and amount of estimated future production. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”, or similar terminology.
108 SANDSTORM GOLD LTD. 2018 / 2019 Asset Handbook SANDSTORM GOLD ROYALTIES ASSET HANDBOOK ADDITIONAL INFORMATION
Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Sandstorm to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Sandstorm will operate in the future, including the price of gold and anticipated costs. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold Sandstorm will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important 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 statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which Sandstorm will purchase gold, other commodities or receive royalties from, 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, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the section entitled “Risks to Sandstorm” in Sandstorm’s annual report for the financial year ended December 31, 2017 and the Company’s annual information form dated March 29, 2018 available at www.sedar. com. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Sandstorm does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
2018 / 2019 Asset Handbook SANDSTORM GOLD LTD. 109 THE GOLD STANDARD IN ROYALTY INVESTMENTS
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