The Aurizona Gold Project is located in Maranhão State in northern Brazil. Aurizona is an orogenic gold deposit hosted in a greenstone belt of the São Luis Craton. There are a number of mineralized bodies on the property, but work to date has focused on the Piaba and Tatajuba deposits on which the current resource is based.
The Aurizona mine was an active open-pit operation from 2010 to 2015, producing approximately 329 kozs of gold at an average grade of 1.28 g/t. Ore was processed through a gravity and carbon-in-leach plant with gold recoveries averaging 88%.
Trek released a Feasibility Study with a mine restart plan involving an upgrade to the mill that provides for an 8,000 tonne per day crushing and grinding circuit that can treat all ore types. The average annual production is expected to be 136,000 ounces of gold over an initial 6.5 year mine life and Trek has targeted the first gold pour for the end of 2018.
Aurizona reported 971,000 ounces of Proven and Probable Reserves as of May 29, 2017 contained in 19.8 Mt of 1.52 g/t material (0.6 g/t cut-off at Piaba, 0.41 g/t at Boa Esperança). Exploration programs are ongoing at a number of drill-ready targets including Piaba West, which has the potential to extend the existing Piaba deposit 900 metres to the southwest, and Tatajuba which is situated on the same Piaba structure and represents a potential four-kilometre extension along strike from Piaba West.
Sandstorm has a 3% to 5% sliding scale NSR royalty on the Aurizona project. At gold prices less than or equal to $1,500 per ounce, the royalty is a 3% NSR. In addition, Sandstorm holds a 2% NSR royalty on Aurizona Greenfields, the 190,073 hectares of exploration ground adjacent to the Aurizona project.
Sandstorm previously held a gold stream agreement which was restructured into the NSR royalties. See the Sandstorm press release dated March 20, 2015 for details.