Lobo-Marte is located in the Maricunga Gold District of Chile and contains two epithermal gold deposits that are seven kilometres apart. The project is 100 km east of the city of Copiapó and 60 km south of Kinross’ La Coipa mine.
Kinross completed a Pre-Feasibility Study at Lobo-Marte in 2009 that contemplated a 47 ktpd open pit heap-leach operation with estimated annual production of 350k – 400k AuEq ozs for the first five years. Kinross withdrew its permit application and stopped the permitting process in 2014 due to changes in the plan of operations, project economics, and stringent requirements associated with the permit application. As a result of the permit withdrawal, approximately 6 million estimated gold ounces were reclassified from Mineral Reserves to Measured and Indicated Resources. Future development and operations at Lobo-Marte will require the re-initiation of the permitting process.
Kinross has three established easements and one in-process easement for the construction of roads, stockpiles, process facilities, camp, support facilities, water extraction and associated pipelines. Additional rights will be required to support project development.
Sandstorm has a 1.05% net smelter return royalty on 60% of future production at Lobo-Marte, up to a maximum of US$40 million. Sandstorm acquired the royalty as part of a transaction with Teck Resources Ltd. in January 2016.