The Ağı Dağı and Kirazlı gold development projects are located in the Çanakkale Province of northwestern Turkey. A positive pre-feasibility study (PFS) was completed by Dr. Dennis Ferrigno, CAF & Associates, LLC et al. on Ağı Dağı and Kirazli in 2012 with both projects evaluated for a potential stand-alone open-pit, heap-leach operation. The PFS evaluated production for an average 99,000 ounces of gold per year over a 5 year mine life at Kirazli. The PFS at Ağı Dağı evaluated production for an average of 143,000 ounces of gold per year over a 7 year mine life. Initial production from Ağı Dağı is projected to commence approximately 18 months after first production at Kirazli.
Sandstorm holds a US$10/ounce production royalty payable by Newmont, subject to a maximum of 600,000 ounces from Ağı Dağı and a maximum of 250,000 from Kirazli.