The Hot Maden gold-copper project is located approximately 20 kilometres (“km”) southeast of Artvin and 130 km northeast of Erzurum in north-eastern Turkey. A highly successful 2015 drill campaign led to the release, by Mr. Stewart Coasts from RungePincockMinarco, of a maiden mineral resource estimate for the high-grade mineralisation at Hot Maden as follows:
- Indicated Resource – 2.0 million gold equivalent ounces; 4.7 million tonnes (“Mt”) at 10.0 grams per tonne (“g/t”) gold and 2.2% copper, for a gold equivalent grade of 13.4 g/t;
- Inferred Resource – 1.0 million gold equivalent ounces; 3.7 Mt at 5.5 g/t gold and 1.8% copper, for a gold equivalent grade of 8.2 g/t.
High grade gold-copper mineralisation was first intersected at Hot Maden in the Phase I diamond drill program, which was completed in January 2015 and included the following key intercepts (not true widths):
- DH HTD-04: 103.0 metres @ 9.0 g/t gold and 2.2% copper from 25.0 metres, including a significantly higher grade massive sulphide zone containing 33.4m @ 18.3 g/t gold and 3.3% copper from 79.8m downhole (February 2, 2015 NR, Mariana Resources Ltd., Eric Roth QP);
- DH HTD-05: 82.0 metres @ 20.4 g/t gold and 1.9% copper from 147.0 metres downhole, including a bonanza 13.0 meters @ 88.0 g/t gold and 2.5% copper from 150.0 metres (February 12, 2015 NR, Mariana Resources Ltd., Eric Roth QP).
The immediate focus for exploration at Hot Maden is to continue with resource delineation drilling within, and around, the main mineralised zone. Future work will include geophysics and new target generation activities along an extended portion of the Hot Maden Fault Zone.
Sandstorm has a 2.0% NSR royalty on the Hot Maden project. Sandstorm acquired the royalty as part of a transaction with Teck Resources Ltd. in January 2016.