Sandstorm Gold Announces Increase to Aurizona's Proven and Probable Mineral Reserve to 2.36 Million Ounces

Sandstorm Gold Announces Increase to Aurizona's Proven and Probable Mineral 
Reserve to 2.36 Million Ounces 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/09/13 -- Sandstorm
Gold Ltd. ("Sandstorm") (TSX:SSL)(NYSE MKT:SAND) is pleased to
announce that Luna Gold Corp. ("Luna") (TSX:LGC) has completed an
update to its Proven and Probable Mineral Reserve estimate at its
Aurizona Gold Mine in Brazil ("Aurizona").  
Highlights  


 
--  Piaba deposit Proven and Probable Mineral Reserve of 2.36 million ounces
    of gold ("April 2013 Reserve") including 56 million tonnes of ore with
    life of mine average 1.32 grams of gold per tonne ("g/t") 
--  New reserve represents 222% increase in Proven and Probable Mineral
    Reserves when compared to the Piaba July 2010 Reserve statement 
--  Piaba deposit reserves are contained within Aurizona property which also
    contains Measured and Indicated Mineral Resources of 3.63 million ounces
    of gold with an Inferred Mineral Resource of 1 million ounces of gold
    (as announced on March 14, 2013) 
--  The Piaba deposit remains open along strike and at depth. In addition,
    the brownfields exploration potential at Aurizona is significant as
    demonstrated by the emerging Boa Esperanca, Ferradura, Conceicao and
    Tatajuba deposits 
--  Based on the April 2013 Reserve and the anticipated completion of Phase
    I Expansion nameplate processing capacity of 10,000 tonnes per day,
    Piaba's expected mine life has been extended to 2027 (approximately 15
    years). Completion of the Phase I expansion is expected in the fourth
    quarter of 2013 
--  As a result of an increase of Piaba's Proven and Probable Mineral
    Reserves average gold grade combined with the Phase I expansion, the
    Aurizona average life of mine gold production is now estimated between
    125,000 and 140,000 ounces per annum 

 
Sandstorm President and CEO Nolan Watson remarked, "The management
team at Luna has done a great job of continuing to expand Aurizona.
Today's impressive reserve increase and the continued exploration
success point to potential future growth." 
Table 1. Piaba deposit, Aurizona project Mineral Reserve table, as at
January 29, 2013.  


 
----------------------------------------------------------------------------
Deposit   Classification                Tonnes       Au g/t        Au Ounces
----------------------------------------------------------------------------
Piaba     Proven                    19,810,270         1.26          807,389
          Probable                  35,643,165         1.35        1,547,887
          ------------------------------------------------------------------
          Proven & Probable         55,453,435         1.32        2,355,276
----------------------------------------------------------------------------

 
Notes: 


 
1.  Luna Gold Mineral Resource upgrade effective as at January 29, 2013 
2.  April 2013 Reserve is based on a gold price of US$1,350 per ounce 
3.  The model was depleted to the end of month topography December 2012 
4.  Includes 98% mining recovery 
5.  Includes 10% mine dilution 
6.  Includes foreign exchange conversion rate of 1.9 Brazilian Real to 1 US
    Dollar 
7.  Break even cut off grades of 0.44 g/t, 0.49 g/t and 0.51 g/t were used
    for saprolite and laterite, transition and fresh rock ore types,
    respectively 
8.  Metallurgical recoveries are included in the cut-off grade calculations
    and calculated to be 92% for saprolite and laterite, 91% for transition
    and 91% for fresh rock, respectively 
9.  Au ounces exclude metallurgical recoveries 
10. April 2013 Reserve is presented in accordance with the classification
    standards established by the Canadian Institute of Mining, Metallurgy
    and Petroleum 
11. The estimates of mineral reserves may be materially affected by
    geotechnical, environmental, permitting, legal, title, taxation,
    sociopolitical, marketing, or other relevant issues 
12. The mineral reserve estimate has been prepared and overseen by Qualified
    Persons Alberto Reyes, Chartered Professional with the Australian
    Institute of Mining and Metallurgy (AusIMM) and G. Peter Mah, P Eng
    Ontario, and independently reviewed by Sam Shoemaker, Registered SME
    Member, Micon International Limited 

 
The updated Piaba resource announced on March 14, 2013 serves as the
basis for the April 2013 Reserve which has been estimated assuming a
spot gold price of $1,350 per ounce, mining recovery of 98%, and
dilution of 10%. These assumptions result in a life of mine strip
ratio (waste:ore) of 6.6:1. 
Luna is currently undertaking further optimization studies to assess
additional improvements to the April 2013 Reserve. These studies
include (i) optimizing the life of mine expected operating costs
related to the Phase I expansion production rate of 10,000 tonnes per
day of ore; (ii) evaluating the possible conversion of the near mine
resource deposits Tatajuba, Boa Esperanca, Ferradura and Conceicao
with the view of integrating them under the Aurizona Mineral Proven
and Probable Reserves; and (iii) the Aurizona Phase II expansion
prefeasibility study. The Company is targeting a subsequent reserves
update during 2014.  
Table 2. Aurizona project consolidated Mineral Resource table
inclusive of Mineral Reserves as at January 29 2013. 


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

 
For detailed information on the Aurizona project consolidated mineral
resource, refer to the press release entitled, "Luna Gold increases
measured and indicated resources to 3.63 million ounces and inferred
resources to 1.04 million ounces at Aurizona" dated March 14, 2013.
The technical report for the Resource update and this Reserve update
will be filed under Luna's profile on SEDAR (www.sedar.com) by the
end of April 2013. 
G. Peter Mah, Professional Engineer Ontario, Luna's Vice President
Operations, is the Qualified Person as defined under National
Instrument 43-101 who reviewed and approved the technical information
in this press release.  
ABOUT SANDSTORM GOLD 
Sandstorm Gold Ltd. is a gold streaming company. Sandstorm provides
upfront financing for gold mining companies that are looking for
capita and in return 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 three 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 reliance 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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