VANCOUVER, July 15, 2013 /PRNewswire/ - In connection with the press release issued by Colossus Minerals Inc. ("Colossus") on July 15, 2013 related to development at its Serra Pelada mine, Sandstorm Gold Ltd. ("Sandstorm" or the "Company") has provided an update for its shareholders.
Colossus has encountered challenges with dewatering wells and pumps in the Central Mineralized Zone at Serra Pelada which requires additional dewatering capacity and has delayed gold production. Colossus is continuing its decline development to have multiple horizons ready for mining in 2014 and has made progress in the construction of its process plant.
The delay in production does not impact Sandstorm's 2013 production guidance of 33,000 to 40,000 attributable gold equivalent ounces. In addition, the delay at Serra Pelada is not currently anticipated to affect the development timeline for the platinum/palladium flotation circuit, which is expected to be processing material in late 2014. Sandstorm has a precious metals stream agreement with Colossus to purchase 1.5% of the gold and 35% of the platinum produced from Serra Pelada at a per ounce price of US$400 per ounce of gold and US$200 per ounce of platinum.
ABOUT SANDSTORM GOLDSandstorm Gold Ltd. is a gold streaming company. Sandstorm provides upfront financing for gold mining companies that are looking for capital and in return receives a gold streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the life of mine gold produced, at a fixed price. Sandstorm is a non-operating gold mining company with a portfolio of ten gold streams, six of which are producing gold, and three NSR royalties. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams. Sandstorm is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed gold purchase or royalty agreements with Brigus Gold Corp., Colossus Minerals Inc., Donner Metals Ltd., Entrée Gold Inc., Luna Gold Corp., Magellan Minerals Ltd., Metanor Resources Inc., Mutiny Gold Ltd., Santa Fe Gold Corp., SilverCrest Mines Inc., Rambler Metals and Mining plc and Solitario Exploration & Royalty Corp.