Sandstorm Gold Ltd. - Bachelor Lake Mine

Bachelor Lake Mine Video

Bachelor Lake is a greenstone hosted gold mine located outside of Val d'Or in Quebec, Canada and is operated by Metanor Resources Inc. (TSXV:MTO). In early 2011, Metanor released the findings from a pre-feasibility study at Bachelor Lake showing underground production of approximately 200,000 ounces over an initial three and a half year mine life. A feasibility study is expected to be released in 2012 which will include the results from the milling of a 5,000 tonne bulk sample and the recent and ongoing drill program.

Production at Bachelor Lake is scheduled to begin in early 2013, ramping up to 60,000 ounces of gold per year at full commercial production. Bachelor Lake will be mined utilizing the low cost, long hole mining method along with an existing, and fully functional, operating mill and surface infrastructure.

Bachelor Lake Gold Stream

Sandstorm has a gold stream agreement to purchase 20% of the life of mine gold produced from Bachelor Lake at a per ounce price of US$500. Sandstorm made an upfront payment of US$20 million to acquire the stream in January 2011. Metanor has provided a guarantee that Sandstorm will receive a minimum of US$20 million in pre-tax cash flow over the next six years.