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.
In November 2021, Kinross announced results from the Lobo-Marte Feasibility Study, which reaffirmed the project has the potential to be a long-life asset with a large production profile and low costs. The project is planned as an open pit, heap leach and SART (Sulphidization, Acidification, Recycling and Thickening) plant operation that will mine the Marte and Lobo deposits in succession, as previously contemplated in the 2020 Pre-feasibility Study.
As of October 2021, the Probable reserves are 6.7 Moz gold contained in 160.7 Mt grading 1.3 g/t gold, (using appropriate cut-off grades based on $1,200/oz gold price) and Indicated resources are 2.4 Moz of gold contained in 99.4 Mt grading 0.7 g/t gold. Inferred resources include 445 koz gold contained in 18.4 Mt grading 0.75 g/t gold (Indicated and Inferred resources are exclusive and are based on appropriate cut-off grades calculated using $1,600/oz gold price).
The Feasibility Study estimates construction beginning in 2025 at the earliest, with first production expected in 2027, subject to a positive development decision. Lobo-Marte’s mine life is expected to be 16 years, comprised of 14 years of mining and two years of residual processing. For more information, visit www.kinross.com.
Sandstorm holds a 1.75% NSR royalty on 60% of future production (equivalent to 1.05%) and is capped at $40 million. The royalty was acquired as part of a package of royalties from Teck Resources.
