Sandstorm Gold Ltd. (SSL), a resource based company that focuses on completing gold purchase agreements with advanced stage project companies, recently announced that Brigus Gold Corp. (BRD) has finally completed its construction of the new underground infrastructure of its Black Fox Mine.
Underground ore production has begun and is expected to exceed 250 tons per day (TPD) at the end of March 2011, reaching commercial production by April 2011 and 1,100 tpd by the end of this year. The expected increase in production is partly attributed to the new 1.1-kilometer ramp leading from surface to the 235-meter level underground, which will allow Brigus Gold to use a much larger and more productive haulage fleet.
While the underground infrastructure was under construction, mining from Phase 1 open pit operations were very restricted, but Phase 2 open pit operations started on March 23, 2011 proceeding the commissioning of a brand new ventilation and service raise and the removal of the older facility. The Black Fox Mill is expected to be operating with feed coming from both the open pit and underground at 2,000 tons per day.
Under the terms of the gold purchase agreement, which was announced on November 9, 2010, Sandstorm will be entitled to purchase 12% of the life of mine gold that is produced from Black Fox at a per ounce price that is equal to the lesser of US$500 and the then prevailing gold price on the market. For more information on the Black Fox Mine, visit Brigus Gold’s company website at www.brigusgold.com
Sandstorm Gold also announced that it has remitted US$9 million to Metanor Resources Inc., a company that engages in the exploration of mineral properties in Canada, in accordance to its gold purchase agreement that was announced on January 17,2011. Under the terms present in the agreement, Sandstorm is entitled to make a purchase of 20% of the life of mine gold that is produced from the Bachelor Lake project at a per ounce price that is equal or lesser of US$500 and the then market price of gold.
Metanor has received US$14 million as of now from Sandstorm with the final US$6 million payment to be scheduled for September 1, 2011. For more information on the Bachelor Lake Project and other information, visit Metanor Resources company website www.metanor.ca.
Sandstorm Gold Ltd., a resource based company, strives on completing gold purchases agreements with companies that have advanced stage development projects or operating mines. It engages in mine financing business, as well as providing an alternative to mining companies who are in search of capital. The company, which was formerly known as Sandstorm Resources Ltd., changed its name to Sandstorm Gold Ltd. on February 17, 2011. Sandstorm Gold Ltd, which was incorporated in 2007, is based in Vancouver, Canada.
For more information on Sandstorm Gold Ltd. and its latest projects, visit their company website http://www.sandstormresources.com