The Karma Project in Burkina Faso, West Africa, is owned and operated by Endeavour Mining Corporation. The project has characteristics of mesothermal, shear-hosted gold deposits associated with orogenic activity but is best described as a structurally controlled, orogenic, hydrothermal deposit. Production began in early 2016 and the mine is expected to produce an average of 97,000 ounces of gold per year over 8.5 years. A heap leach pad is processing leachable material from five open pits and the mining operation employs conventional truck and shovel methods. The soft nature of the open pit ore and waste material will allow the majority of the ore to be excavated without blasting, making it a low cost operation.
Karma hosts a target‐rich landscape with the essential hallmarks of a multi‐deposit environment. The property consists of six contiguous exploration permits (Goulagou, Rambo, Kao, Rounga, Youba, and Tougou) totaling more than 856 square km and includes more than 45 high‐priority targets with high‐grade rock values associated with gold‐in‐soil anomalies and historical workings that remain untested to date. Recent drilling has reported positive results at priority targets, with seven targets drilled resulting in a 100% success rate demonstrating continuity of gold mineralization and highlighting the potential to add open-pittable oxide gold mineralization.
Sandstorm has a gold stream agreement to purchase 25,000 ounces of gold over five years and 1.625% of the gold produced thereafter from the Karma Project. Sandstorm will make ongoing payments of 20% of the spot price of gold for each ounce purchased from Endeavour Mining. The stream was acquired in exchange for an upfront payment of US$25 million to True Gold Mining Inc. in August 2014. True Gold was acquired by Endeavour Mining in April 2016.