Sandstorm Gold Ltd. [SSL-TSX; SDDXF-OTC; SAND-NYSE American] provided a summary of the results from the Hod Maden project, Turkey, feasibility study (FS). All figures are in U.S. dollars and are on a 100% project basis unless otherwise stated. Sandstorm has a 30% interest in the Hod Maden project.
Feasibility Study Highlights
Pre-tax net present value (NPV) (5% discount rate) of $1.3 billion and an internal rate of return (IRR) of 41%. Post-tax NPV (5% discount rate) of $1.05 billion and an IRR of 36%. Estimated all-in sustaining costs of $334/oz on a by-product basis1 and $595/oz on a co-product basis. Upfront capital cost of $309 million. Proven and Probable Mineral Reserves of 2.45 million ounces of gold and 287 million pounds of copper. 13-year mine life with annual mill design capacity of 800,000 tonnes. Annual average production of approximately 195,000 gold equivalent (AuEq) ounces. Average head grade of 11.1 g/t AuEq.
“The release of the Hod Maden Feasibility Study is a major turning point for not only the project, but for Sandstorm as well,”” commented Nolan Watson, President and CEO. “When we purchased the stake in Hod Maden back in 2017, we knew that it would be a major growth catalyst for Sandstorm, and the positive results of this study spell out just how transformational it will be once in production. Along with the granting of the Environmental Impact Assessment that was previously announced, the Feasibility Study launches Hod Maden into the next stage of development. As a management team we’re excited to see this incredibly robust project make a big leap towards production.”
The majority of the proposed project infrastructure, including the process plant, paste plant, water treatment facility, transformer station and mining offices, will be located in the Maden Valley near the deposit. The tailings facility, mining waste dump, and quarry will be located to the north in the Salicor Valley. A tunnel will be constructed to connect the Maden Valley to the Salicor Valley. Grid power is available on site and some workforce can be based out of nearby Artvin city.The FS contemplates Hod Maden as an underground mine divided into two distinct mining zones with a modified drift and fill technique applied to the upper mine area and a long hole stoping technique applied to the lower mine area. Concentrates will be transported to a port located on the Black Sea in Turkey for shipment to smelting facilities.
With the release of the FS, the Hod Maden project moves into the next stage of development. The operator, Lidya Madencilik Sanayi ve Ticaret A.S., commenced the application process for the forestry permit after receiving the final approval of the Environmental Impact Assessment from the Ministry of Environment, Urbanization and Climate Change of Turkey in November 2021. Production from Hod Maden is currently expected in the second half of 2024.