like a completely New Gold StreamNolan Watson:
"It will be like a completely new gold stream"
Just because we already have a Stream with s company doesn't mean we can't add a new one. You can note that is the view of Nolan Watson. In case some forgot, I put some info together. I follow SilverCrest more than any other of our Partner Projects. I expect we will see Consolidation in Juniors, especially Producers, and SilverCrest's MarketCap of approx $180MM, leaves them a sitting duck, just like we are.
So, we have the current mine heading for Doubling Production in about 2 yars, and the new Underground Resource, still drilling and Open in all directions, also looking at mid-2014 to begin to slowly ramp-up Production. I hope Sandstorm and SilverCrest continue together, perhaps when LaJoya is ready.
Underground decline work continues with approximately 470 metres of the main ramp driven to date. The total underground development budgeted for 2012 is approximately 1500 metres. This 4.5 x 4.0 metre production decline ramp will provide access to underground resources with an anticipated initial production rate of 1,000 tonnes per day starting in mid-2014.
A shallow 13 hole in pit drill program to better define tonnages and grade of the lower part of the planned open pit was completed in June. Results confirm the high grade nature of mineralization which shows up to
6.2 gpt Au and 102.7 gpt Ag over 16 metres. A new Gemcom block model is being constructed to augment the Santa Elena Life-of-Mine-Plan and refine projected future cash flows.
Surface drilling of the Santa Elena Main Zone is underway to further delineate underground Resources for conversion to Reserves based on completion of the Expansion Plan PFS anticipated by year end. Eighteen proposed holes are currently being drilled.
www.resourceintelligence.net/silvercrest-mines...underground-minin...
Jun 18, 2012 –
[[[ they are going ahead Underground with mid 2014 for first Production ]]]
Sandstorm Gold had a management discussion (Q2-2012 MDA) regarding their Q2 earnings, and SilverCrest was mentioned.
David Awram EVP of Sandstorm Gold says :
"... the Santa Elena project by SilverCrest. They're having a very good Q2. Their cash costs are very solid, right where they wanted to do and they are consistently hitting guidance quarter-over-quarter.
They're also working on the expansion program which would include putting in a mill, seeing increased recoveries on the gold and on the silver side. And then also the expansion of the open pit and also expansion of the underground operations. So they're working on a lot of that over this year. They should be putting out more news on how that develops as we go through Q3 and Q4."
Nolan Watson CEO of Sandstorm Gold says :
"We think that SilverCrest is working towards a potential underground mine and so that’s going to be something that we would have to opt into under our existing contract with them. If they did build an underground mine, that would be another increase in production.It will be like a completely separate new gold stream.
https://sandstormgold.com/projects/santa_elena/
Santa Elena Gold Stream
Sandstorm has a gold stream agreement to purchase 20% of the life of mine gold production from Santa Elena at a per ounce price of US$350. Sandstorm made an upfront payment of US$12 million in cash and 3.5 million common shares to acquire the stream in May 2009.
If SilverCrest decides to develop an underground mine, Sandstorm will have the right (but not the obligation) to purchase 20% of the payable gold from underground for an upfront payment that is equal to 20% of the upfront capital expenditures made by SilverCrest plus ongoing per ounce payments of US$450.
( same with LUNA's Aurizona )
https://sandstormgold.com/projects/aurizona/
Aurizona Gold Stream
Sandstorm has a gold stream agreement to purchase 17% of the life of mine gold produced from Aurizona at a per ounce price of US$400. Sandstorm made an upfront payment of US$17.8 million in cash and 5.5 million common shares of Sandstorm to acquire the stream in May 2009.
If Luna develops an underground mine on Aurizona, Sandstorm has the right (but not the obligation) to purchase 17% of the payable gold from the underground mine, at a per-ounce price of US$500. For consideration, Sandstorm would pay 17% of the capital expenditures incurred to determine the economic viability and to construct the underground mine.