Acquisition:
2022 / 08 / 15
Agreement:
Royalty
Terms:
Cu > $1.25/lb = 0.63% NSR;
Cu < $1.25/lb = varies
The Caserones copper mine is an open pit mining operation in the Atacama region of Chile, owned and operated by Minera Lumina Copper Chile, which is indirectly owned by Lundin Mining Corporation (70%) and JX Nippon Mining & Metals Corporation (30%). Caserones is located in Region III of the Chilean Andes at the southern end of the Maricunga mineral belt. It is about 115 km southeast of the city of Copiapó, the regional capital, and approximately 15 km west of the international border with Argentina.
The Caserones mine has 11 years of operational history. On July 13, 2023, Lundin Mining published a Technical Report in accordance with NI 43-101 which outlined a mine life through 2037 and average annual production of approximately 110,000 tonnes of copper. The mine benefits from a significant historical investment of $4.2 billion, well-established infrastructure, and is expected to produce significant volumes of copper and molybdenum over the long-term. Lundin Mining has identified several priority exploration targets at the property, the majority of which are situated on Sandstorm’s royalty ground.
As of December 31, 2023, the Proven & Probable Mineral Reserves (100% basis) are estimated at 886.4 Mt grading 0.31% Cu and 0.01% Mo containing 2,717 kt Cu and 94 kt Mo (cut-off grades based on NSR values of $11.70/t for ore processed by concentrator and $3.65/t for ore delivered to the heap leach for SX/EW). The Measured & Indicated Resources (100% basis) are 1,501.9 Mt grading 0.28% Cu and 0.01% Mo containing 4,279 kt Cu and 154 kt Mo (open pit cut-off grade 0.13% Cu). Mineral Resources are reported inclusive of Mineral Reserves.
Sandstorm acquired the Caserones royalty as part of its acquisition of Nomad Royalty Company Ltd. in 2022.
