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 underground operations 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.
Sandstorm has a 3.0% net smelter returns royalty ("NSR") on the production from Bracemac-McLeod. Sandstorm originally acquired a gold stream from Donner Metals Ltd., who previously held a 35% joint venture interest on Bracemac-McLeod. The gold stream was converted to a NSR royalty when Donner announced its inability to meet the cash calls under their operating agreement with Glencore Xstrata.