RE:News out And here it is (the Silver Wheaton feas. extension as predicted..).
Mr. Richard Munson reports
SANDSPRING AND WHEATON PRECIOUS METALS EXTEND FEASIBILITY STUDY DUE DATE; PHASE 1 OF 2017 A 2018 EXPLORATION PROGRAM COMPLETED; SHARES FOR DEBT SETTLEMENT ANNOUNCED
Sandspring Resources Ltd. has amended the precious metal purchase agreement (the PMPA) with Wheaton Precious Metals Corp. extending the due date of a final feasibility study for the company's Toroparu mine in Guyana SA from Dec. 31, 2017, to Dec. 31, 2018.
Under the PMPA, Wheaton has committed a total of $153.5-million (U.S.) to the Toroparu project, and $15.5-million (U.S.) has been advanced to Sandspring for feasibility work in 2014 and 2015. Payment of the balance of $153.5-million (U.S.) is subject to Wheaton's election to proceed after receipt of the final feasibility study for the Toroparu project. The balance will be released in instalments during construction of the Toroparu project after all necessary mining licences and project capital finance have been obtained and other customary conditions are satisfied.
Wheaton and Sandspring entered into the PMPA in 2013 after Sandspring completed its project prefeasibility study (1). The prefeasibility study estimated average annual gold production of about 228,000 ounces from 4.1-million-ounce proven and probable gold reserves over a 16-year mine life; $1.25-billion (U.S.) of free cash flow at a $1,400-(U.S.)-per-ounce gold price; $893-million free cash flow at a $1,260-(U.S.)-per-ounce gold price; and a $501-million (U.S.) prefresh rock production capital expense.
Rich Munson, chief executive officer, stated: "We began discussing an extension of the final feasibility study due date with Wheaton after initial work with SRK Consulting (Denver) indicated incorporation of the maiden resource for the Sona Hill deposit announced in 2017 could lead to positive changes to the prefeasibility study mine plan. Based on this work and the encouraging results from the Wynamu Hill discovery, we asked for the further extension of the due date for the final feasibility study to allow us to complete the 2017-2018 exploration program announced in September, 2017, targeting near-surface saprolite and fresh rock gold mineralization that could further enhance the Toroparu project economics (2)."
Sandspring commenced operations in early November, 2017, on the 2017-2018 exploration program, which consists of a drilling program of 12,000 to 15,000 metres in the Sona Hill and Wynamu Hill areas and a surface geochemistry program in the Otomung area. The drilling program utilizes two drill rigs and is being done in two phases.
Phase 1 of the program (about 6,000 metres of drilling) concluded on Dec. 14, 2017. The drilling consisted of stepout drilling to the west (Sona west) of the Sona Hill resource area and exploration targets to the northwest and southeast (Sona northwest, Sona south-southeast) of the Sona Hill resource area, and infill drilling at Wynamu Hill. Initial assay results are being collected.
Additionally, the surface exploration team conducted additional ground geochemical surveys across the Otomung concession during phase 1 of the program, and the geologic team is awaiting the assay results.
Phase 2 of the program will focus on infill drilling of the phase 1 program areas after the geologic team has evaluated the results of phase 1 and infill drilling within the constrained resource pit at Sona Hill. It is anticipated that phase 2 of the program will commence in early January of 2018 and conclude in March of 2018.
The company further announces that, subject to the approval of the TSX Venture Exchange, it has agreed to settle $432,852 in outstanding indebtedness through the issuance of an aggregate of 1,236,718 units at a price of 35 cents per unit. Each unit will consist of one common share and one share purchase warrant entitling the holder to acquire one additional common share at a price of 50 cents for a period of five years. The company is issuing shares for debt to preserve capital from the recent financing. The shares issued under the debt settlement will be subject to a hold period of four months and one day from the date of issuance.
About Sandspring Resources Ltd.
Sandspring Resources is a Canadian junior mining company currently moving toward a definitive feasibility study for the multimillion-ounce Toroparu project in the Guyana, South America.
(1) See National Instrument 43-101 technical report, prefeasibility study, Toroparu gold project, Upper Puruni River area, Guyana; effective date: May 8, 2013, report date: May 24, 2013, prepared by SRK Consulting (United States).
(2) See Sandspring press releases dated Feb. 13, 2017, Feb. 23, 2017, and Sept. 18, 2017.