The Bracemac-McLeod Project is a high grade volcanogenic massive sulphide (VMS) deposit located in the historical and prolific mining district of Matagami, Quebec. Glencore Xstrata plc has been operating in the Matagami district for almost fifty years with eleven previously operating mines. Bracemac-McLeod began operating at an average rate of 3,000 tonnes per day in May 2013 and is utilizing the Matagami Mill to produce concentrates of zinc and copper. The Matagami mill has been in operation since 1963 and underwent a recent upgrade that was completed in 2007. Historically, it has processed similar types of ore from other VMS deposits and is operating at a high availability.
Bracemac-McLeod is an underground mine with current reserves taking the mine life to four years, but the high grade inferred resources on the McLeod Deep orebody have the potential to extend the life materially.
Bracemac-McLeod Gold Stream
Sandstorm has a gold stream agreement with Donner Metals Ltd. (TSXV:DON) (via a back-to-back agreement with Sandstorm Metals & Energy Ltd.), to purchase an amount equal to 24.5% of the gold and gold equivalent produced from the Glencore Xstrata operated Bracemac-McLeod mine. Pursuant to the agreement, Sandstorm Gold made an upfront cash payment to Donner of US$8 million and will make ongoing per ounce payments equal to the lesser of US$350 and the then prevailing market price of gold. Donner Metals are the owners of a 35% joint venture interest in Bracemac-McLeod.
