The Aurizona Gold Project is located in Maranhão State in northern Brazil and is 100% owned and operated by Luna Gold Corp. (TSX:LGC). 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 2011 to 2015, producing over 275,000 ounces of gold from a gravity and carbon-in-leach plant. The mine and mill are currently on care and maintenance and Luna is completing engineering studies, updating permits and conducting infill drilling on the property with the goal to re-commence operations in the future.
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 Luna Greenfields, the 190,073 hectares of exploration ground adjacent to the Aurizona project.
Sandstorm previously held a gold stream agreement with Luna which was restructured into the NSR royalties. See the Sandstorm press release dated March 20, 2015 for details.