Sandstorm Metals & Energy Announces Updated Resource Estimates at the Rex No. 1 Mine
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2012) - Sandstorm Metals & Energy Ltd. ("Sandstorm") (TSX VENTURE:SND) is pleased to announce updated resource and reserve estimates at the Rex No. 1 Mine, owned and operated by Novadx Ventures Corp. ("Novadx") (TSX VENTURE:NDX).
- Total Measured and Indicated Resources of 38.1M tons
- Total Proven and Probable Recoverable Reserves of 11.3M tons
- Expected mine life over 20 years
An evaluation was conducted to verify previously reported resources and assist Novadx in developing its long term mine plans at the Rex No. 1 Mine. The evaluation confirmed the existing grade and quality of the Rex seam and showed an 18% increase in Measured and Indicated resources. The estimated resources and potential reserves as of January 31, 2012 are provided below:
Estimated Resources:
|
In Situ Tons |
| Resource Category |
(Thousands) |
| Measured |
10,100 |
| Indicated |
28,000 |
| Total Measured and Indicated |
38,100 |
| Inferred |
9,600 |
Estimated Reserves:
(subject to completion of a NI 43-101 compliant technical report)
|
Recoverable Tons |
| Reserve Category |
(Thousands) |
| Proven |
3,400 |
| Probable |
7,900 |
| Total Proven and Probable |
11,300 |
Marshall Miller & Associates completed the comprehensive verification of the Rex No. 1 Mine's coal resources and reserves, geology and mine plans and Novadx will provide an updated technical report in compliance with NI 43-101 requirements.
Sandstorm has a coal streaming agreement with Novadx to purchase 25% of the first 3,800,000 tons of metallurgical equivalent coal produced and 16% of the life of mine metallurgical equivalent coal produced thereafter from the Rex No. 1 Mine and the Rosa Mine at an ongoing per ton cost of $75.
Mr. John Feddock, P.E., Senior Vice President of Marshall Miller & Associates, a "Qualified Person" pursuant to the provisions of National Instrument 43-101, has reviewed and approved the scientific and technical information within this news release.
ABOUT SANDSTORM METALS & ENERGY
Sandstorm Metals & Energy Ltd. is a growth focused resource based company that seeks to complete commodity purchase agreements with companies that have advanced stage development or operating projects. A commodity purchase agreement involves Sandstorm making an upfront cash payment to its partners and in exchange, Sandstorm receives the right to purchase a percentage of the commodity produced for the life of the asset, at a fixed price per unit. Sandstorm helps other companies in the resource industry grow their business, while acquiring attractive assets in the process.
Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed commodity purchase agreements with Novadx Ventures Corp., Terrex Energy Inc., Donner Metals Ltd. and Thunderbird Energy Corp.
For more information visit: https://www.sandstormltd.com.
Cautionary Note Regarding Forward-Looking Information
Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by the forward-looking information, 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 and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; problems inherent to the marketability of minerals; industry conditions, including fluctuations in the price of metals, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm's annual report for the financial year ended December 31, 2010. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Silver Wheaton Corp., Royal Gold, Inc., and Franco-Nevada Corporation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.