Sandstorm Gold Gains 3% after Gold-Purchase Partner Boosts Resource Estimates
Sandstorm Gold Ltd. (SSL.V) is up about 2% at $1.37 a share after Luna Gold Corp. (LGC.V) released a new mineral resource estimate for its Aurizona Mine, boosting measured and indicated gold resouces by 250% over prior estimates to 78 million tons at 1.26 grams per ton of ore.
Sandstorm is entitled to purchase 17% of the life-of-mine gold produced from the Aurizona Mine at a maximum price of $400 a share. The expanded resource estimate by Luna translates into an 80% increase in Sandstorm's company-wide measured and indicated resources, company officials said.
In addition to Luna, Sandstorm has gold-purchase agreements with SilverCrest Mines Inc. (SVL.V), Santa Fe Gold Corp., Rambler Metals and Mining plc (RAB.V), Brigus Gold Corp. (BRD.TO,BRD), Metanor Resources Inc. (MTO.V) and Donner Metals Ltd. (DON.V)
Luna shares shares are about 3% higher this morning at 70 cents each, gaining 2 cents.
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