Sandstorm Resources Announces Commercial Production At
Luna Gold'S Aurizona Gold
Mine
Vancouver, British Columbia, February 9, 2011 - Sandstorm Resources Ltd.
("Sandstorm") (TSX-V: SSL) is pleased to announce the commencement of
commercial production at Luna Gold Corp.'s ("Luna") (TSX-V: LGC) Aurizona Gold Mine ("Aurizona"),
located in Maranh�o State, Brazil. Under the Gold
Purchase Agreement with Luna, Sandstorm is entitled to purchase 17% of the life
of mine gold produced from Aurizona at a per ounce
price equal to the lesser of US$400 and the then prevailing market price.
Aurizona Gold Mine Status Highlights:
- Gold Production for November
2010, December 2010 and January 2011 totaled 10,905 ounces
- Combined 90-day average
throughput rate in excess of 3,615 tonnes per
day, including peak daily throughputs as high as 5,000 tonnes
- Additional plant modifications
to be completed in February and March 2011 will increase productive
capacity and provide more consistency in production
- Full production ramp-up to
consistently produce 4,500 tonne-per-day
capacity is on schedule to April 2011
- On track to meet 2011 gold
production guidance of 55,000 to 60,000 ounces
- Gold is now being routinely
produced and sold to customers globally
"I want
to congratulate Luna on today's production milestone," said Sandstorm
President & CEO Nolan Watson. "The Aurizona
gold stream is one of Sandstorm's flagship assets and it is great news that
Luna is on track to meet its 2011 production targets."
Luna continues to advance a number of initiatives to further enhance the
economics at Aurizona with the aim to increase
production capacity. To provide for this additional capacity Luna is
undertaking major drill programs at Aurizona with the
aim of increasing the resource base. There is potential for significant
supplemental gold production from satellite deposits identified in the near
mine area. As this successful ramp-up continues, Luna will focus on cost
reduction and the acceleration of cash flows.
For more information on the Aurizona Gold Mine,
please visit the Luna website at www.lunagold.com.
ABOUT SANDSTORM RESOURCES
Sandstorm Resources Ltd. is a growth focused resource based company that seeks
to complete gold purchase agreements with companies that have advanced stage
development projects or operating mines. A gold 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 gold produced for
the life of the mine, at a fixed price per ounce. Sandstorm helps other
companies in the resource industry grow their business, while acquiring
attractive assets in the process.
Sandstorm is focused on low cost operations with excellent exploration
potential and strong management teams. Sandstorm has completed gold purchase
agreements with Luna Gold Corp., SilverCrest Mines
Inc., Santa Fe Gold Corporation, Rambler Metals and Mining plc, Brigus Gold Corp. and Metanor
Resources Inc. For more information visit: http://www.sandstormresources.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 "Risk Factors" in
Sandstorm's annual information form for the financial year ended December 31,
2009. 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, Gold Wheaton Gold Corp., Silver
Wheaton Corp., Royal Gold, Inc., and Franco-Nevada Corporation.
Contact Information:
Investor Relations Contact
Denver Harris
(604) 689-0234
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.
Copyright �
2011 SANDSTORM RESOURCES LTD. (SSL) All rights
reserved. For more information visit our website at http://www.sandstormresources.com/ or send email to info@sandstormresources.com.