Sandstorm Gold Announces Resource Update at Luna Gold's Aurizona Mine

Sandstorm Gold Announces Resource Update at Luna Gold's Aurizona Mine 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/14/13 -- Sandstorm
Gold Ltd. ("Sandstorm") (TSX:SSL)(NYSE MKT:SAND) is pleased to
announce that Luna Gold Corp. ("Luna") (TSX:LGC) has completed an
independent mineral resource update at its Aurizona Gold Mine in
Brazil ("Aurizona"). Aurizona's measured and indicated mineral
resources now total 3.63 million ounces and inferred mineral
resources are now 1.04 million ounces, a 15% and 44% increase
respectively, from the December 2011 resource update.  
The updated resource incorporates an additional 6,933 metres drilled
at the Piaba deposit and 7,478 metres drilled at the Boa Esperanca,
Ferradura and Conceicao deposits throughout 2012. A pit optimization
exercise was also conducted for the Tatajuba deposit. Measured and
indicated gold resources now total 82 million tonnes at 1.38 grams
per tonne gold, or 3.63 million ounces gold. Inferred gold resources
now total 18.5 million tonnes at 1.74 grams per tonne gold, or 1.04
million ounces gold. 
"The Aurizona gold stream is our flagship stream and today's
announced resource update represents additional value for Sandstorm
shareholders," said President and CEO Nolan Watson. "I want to
commend Luna for thei
r success to date and we look forward to seeing
how the resource grows as exploration continues."  
Table 1. Aurizona project consolidated mineral resource table.  
Inclusive of reserves effective as at January 29, 2013  


 
----------------------------------------------------------------------------
Deposit    Type              Class              Tonnes   Au g/t    Au Ounces
----------------------------------------------------------------------------
Piaba      Pit constrained   Measured       19,510,000     1.36      850,000
                             Indicated      59,010,000     1.40    2,652,000
                             -----------------------------------------------
                             Measured and                                   
                              Indicated     78,520,000     1.39    3,502,000
                             -----------------------------------------------
                             Inferred        6,990,000     1.61      362,000
           -----------------------------------------------------------------
           Outside Pit Shell Inferred        9,450,000     1.95      592,000
----------------------------------------------------------------------------
Tatajuba   Pit constrained   Indicated       1,380,000     1.40       62,000
                             Inferred          810,000     1.39       36,000
----------------------------------------------------------------------------
Boa        Pit constrained   Indicated                                      
Esperanca                                    1,430,000     0.79       36,000
                                                                            
                             Inferred          970,000     1.00       31,000
----------------------------------------------------------------------------
Conceicao  Pit constrained   Indicated         160,000     0.75        4,000
                             Inferred           60,000     0.82        2,000
----------------------------------------------------------------------------
Ferradura  Pit constrained   Indicated         500,000     1.65       27,000
                             Inferred          260,000     1.65       14,000
----------------------------------------------------------------------------
Total      Pit Constrained   Measured       19,510,000     1.36      850,000
           and Outside Pit   Indicated      62,480,000     1.38    2,781,000
                             -----------------------------------------------
                             Measured and                                   
                              Indicated     81,990,000     1.38    3,631,000
                             -----------------------------------------------
                             Inferred       18,540,000     1.74    1,036,000
----------------------------------------------------------------------------

 
Table 2. 2011 and 2012 mineral resource statements, Piaba deposit,
Aurizona. 


 
----------------------------------------------------------------------------
Year   Type               Class               Tonnes    Au g/t     Au Ounces
----------------------------------------------------------------------------
2011   Pit constrained    Measured        10,782,000      1.13       391,000
                          Indicated       62,939,000      1.28     2,596,000
                          --------------------------------------------------
                          Measured and                                      
                           Indicated      73,721,000      1.26     2,987,000
                          --------------------------------------------------
                          Inferred         2,469,000      1.47       117,000
       ---------------------------------------------------------------------
  
     Outside Pit Shell  Indicated        2,738,000      1.29       113,000
                          --------------------------------------------------
                          Inferred        10,901,000      1.56       547,000
----------------------------------------------------------------------------
2012   Pit constrained    Measured        19,510,000      1.36       850,000
                          Indicated       59,010,000      1.40     2,652,000
                          --------------------------------------------------
                          Measured and                                      
                           Indicated      78,520,000      1.39     3,502,000
                          --------------------------------------------------
                          Inferred         6,990,000      1.61       362,000
       ---------------------------------------------------------------------
       Outside Pit Shell  Inferred         9,450,000      1.95       592,000
----------------------------------------------------------------------------

 
Notes: 


 
1.  Open pit resources (Whittle pit(R) optimization) are constrained by a
    0.30 g/t Au grade domain and stated at the following cut-off grades for
    Piaba, Boa Esperanca, Ferradura and Conceicao: Laterite & Saprolite -
    0.322 g/t Au, Transition - 0.364 g/t Au and Fresh Rock - 0.400 g/t Au
    based on a gold price of US$1,500 per ounce, pit slopes of 45o for
    Laterite/Saprolite/Transition and 55o for Fresh Rock, mining cost of
    US$1.80/t material moved, process and G&A cost of US$14.00/t
    (Laterite/Saprolite), US$15.50/t (Transition) and US$17.00/t (Fresh),
    recoveries of 92% (Laterite/Saprolite) and 90% (Transition/Fresh Rock)
    and selling cost (transportation, insurance, royalty) of US$30.00/t. 
2.  Open pit resources (Whittle pit(R) optimization) are constrained by a
    0.30 g/t Au grade domain and stated at the following cut-off grades for
    Tatajuba: Laterite & Saprolite - 0.368 g/t Au, Transition - 0.411 g/t Au
    and Fresh Rock - 0.447 g/t Au based on the same parameters as outlined
    in point 1 above plus an additional cost of U$2.00/t for transportation
    to the Aurizona mill. 
3.  Fresh rock outside pit shell resources are stated at the following cut-
    off grades for Piaba: 1.50 g/t Au based on a gold price of US$1,500 per
    ounce, mining cost of US$45.00/t moved, process and G&A cost of
    US$19.00/t, recovery of 90%, selling cost of US$30.00/t and an
    additional 1% royalty increase. 
4.  Aurizona topography is current as of October 31, 2012. 
5.  Maptek's Vulcan v8.1.4 was used in the resource estimation including
    compositing and grade estimation. Internal waste blocks inside the 0.30
    g/t Au grade shell were estimated separately from mineralized blocks
    using indicator kriging. Mineralized blocks were estimated by the ID3
    algorithm. 
6.  Block dimensions are 10m x 5m in the xy plane x 3m on the z axis. Sub-
    blocking to 1m x 1m in the xy plane and 3m in the z axis was performed
    at the 0.30 g/t Au grade domain margins and at topography. 
7.  The Aurizona resource estimates are supported by the following number of
    individual specific gravity measurements: Piaba - 12,657; Boa Esperanca
    - 1273; Tatajuba - 804; Ferradura - 1000; Conceicao - 473. 
8.  The Piaba database contains 77,574 metres consisting of 351 diamond
    drill holes, 142 reverse circulation holes and 448 auger drill holes. 
9.  The Boa Esperanca database contains 9,015 metres consisting of 15
    diamond drill holes, 48 reverse circulation holes 175 auger drill holes
    and 8 trenches. 
10. The Tatajuba database consists of 4,740 metres in 45 diamond drill holes
    (2008). 
11. The Ferradura database contains 5,398 metres consisting of 17 diamond
    drill holes, 13 reverse circulation holes 118 auger drill holes and 9
    trenches. 
12. The Conceicao database contains 2,834 metres consisting of 7 diamond
    drill holes, 10 reverse circulation holes 79 auger drill holes and 5
    trenches. 
13. The following capping values were used prior to compositing: Piaba
    (Laterite - 11 g/t Au, Saprolite - 18 g/t Au, Transition/Fresh Rock - 25
    g/t Au), Tatajuba - 10 g/t Au, Boa Esperanca - 6 g/t Au, Ferradura - 10
    g/t Au and Conceicao - 3 g/t Au. 
14. Tonnes are rounded to the nearest 10,000. Ounces are rounded to the
    nearest 1,000 and small tonnage and grade differences may be found due
    to rounding. 
15. Mineral resources that are not mineral reserves do not have a
    demonstrated economic viability. 
16. There may be political, environmental, legal and other risks that may
    materially affect the mineral resource estimate disclosed in this press
    release. 
17. The indepen
dent Qualified Person who prepared the preparation of the
    mineral resource estimate is Leah Mach, CPG, of the Denver office of SRK
    Consulting (U.S.), Inc. 

 
This resource update was conducted by SRK Consulting (U.S.) Inc.
performed according to Canadian National Instrument 43-101
guidelines, and based upon 14,411 metres of new diamond and reverse
circulation by Luna. The updated Aurizona mineral resource estimate
will form the basis for the updated reserve estimate for the Piaba
deposit that is underway and due for completion during the first
quarter of 2013. The Technical Report for the resource and reserve
updates will be filed under Luna's profile during April 2013 on SEDAR
at www.sedar.com.  
Except as otherwise indicated herein, Titus Haggan Ph.D., EurGeol
Certified Professional Geologist #746, Luna's Vice President
Exploration is the Qualified Person as defined under National
Instrument 43-101 who reviewed and approved the technical information
in this press release. Mr. Haggan is responsible for the scientific
and technical work on our exploration programs. The independent
Qualified Person under National Instrument 43-101 who prepared the
preparation of the mineral resource estimate is Leah Mach, CPG, of
the Denver office of SRK Consulting (U.S.), Inc. 
ABOUT SANDSTORM GOLD 
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides
upfront financing for gold mining companies that are looking for
capital. In return, Sandstorm receives a gold streaming agreement.
This agreement gives Sandstorm the right to purchase a percentage of
the life of mine gold produced, at a fixed price. Sandstorm is a
non-operating gold mining company with a portfolio of ten gold
streams, six of which are producing gold, and four NSR royalties.
Sandstorm plans to grow and diversify its low cost production profile
through the acquisition of additional gold streams.  
Sandstorm is focused on low cost operations with excellent
exploration potential and strong management teams. Sandstorm has
completed gold purchase or royalty agreements with Brigus Gold Corp.,
Colossus Minerals Inc., Donner Metals Ltd., Entree Gold Inc., Luna
Gold Corp., Magellan Minerals Ltd., Metanor Resources Inc., Mutiny
Gold Ltd., Santa Fe Gold Corp., SilverCrest Mines Inc., Rambler
Metals and Mining plc and Solitario Exploration & Royalty Corp.  
For more information visit: www.sandstormgold.com. 
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION 
This press release contains "forward-looking statements", within the
meaning of the U.S. Securities Act of 1933, the U.S. Securities
Exchange Act of 1934, the Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Sandstorm Gold Ltd. ("Sandstorm"). Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, realization of mineral reserve estimates, the timing and
amount of estimated future production. Forward-looking statements can
generally be identified by the use of forward-looking terminology
such as "may", "will", "expect", "intend", "estimate", "anticipate",
"believe", "continue", "plans", or similar terminology.   
Forward-looking statements are made based upon certain assumptions
and other important factors that, if untrue, could cause the actual
results, performances or achievements of Sandstorm to be materially
different from future results, performances or achievements expressed
or implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Sandstorm will operate in the
future, including the price of gold and anticipated costs. Certain
important factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, amongst others, gold price volatility,
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries, mining
operational and development risks relating to the parties which
produce the gold Sandstorm will purchase, regulatory restrictions,
activities by governmental authorities (including changes in
taxation), currency fluctuations, the global economic climate,
dilution, share price volatility and competition.   
Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results, level of activity, performance or achievements of Sandstorm
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: the impact
of general business and economic conditions, the absence of control
over mining operations from which Sandstorm will purchase gold and
risks related to those mining operations, including risks related to
international operations, government and environmental regulation,
actual results of current exploration activities, conclusions of
economic evaluations and changes in project parameters as plans
continue to be refined, risks in the marketability of minerals,
fluctuations in the price of gold, fluctuation in foreign exchange
rates and interest rates, stock market volatility, as well as those
factors discussed in the section entitled "Risks to Sandstorm" in
Sandstorm's annual report for the financial year ended December 31,
2012 available at www.sedar.com. Although Sandstorm has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue re
liance on
forward-looking statements. Sandstorm does not undertake to update
any forward-looking statements that are contained or incorporated by
reference, except in accordance with applicable securities laws.  
Neither the TSX Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Exchange) accepts
responsibility for the adequacy or accuracy of this release. 
Contacts:
Sandstorm Gold Ltd.
Nolan Watson
President & Chief Executive Officer
(604) 689-0234 
Sandstorm Gold Ltd.
Denver Harris
Investor Relations Contact
(604) 628-1178
www.sandstormgold.com
 
 
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