Sandstorm Resources Ltd. (TSX VENTURE:SSL) has announced drilling results from the Aurizona Mine owned and operated by Luna Gold Corp. (TSX VENTURE:LGC).
In accordance with Sandstorm's gold purchase agreement with Luna, Sandstorm is entitled to purchase 17% of the life of mine gold produced from the Aurizona mine at a per ounce price equal to the lesser of US$400 and the then prevailing market price. Assay results from the first seven drill holes of the exploration program begun in September 2010 have been released with positive results.
- 15.00 m @ 2.66 g/t Au including 4.00 m @ 7.49 g/t Au in BRAZD278
- 30.00 m @ 1.32 g/t Au including 1.00 m @ 7.37 g/t Au and 3.00 m @ 5.06 g/t Au in BRAZD279A
- 32.00 m @ 3.20 g/t Au including 1.00 m @ 60.60 g/t Au and 16.00 m @ 2.13 g/t Au including 4.00 m @ 6.57 g/t Au and 6.00 m @ 2.87 g/t Au in BRAZD282
- 5.00 m @ 4.45 g/t Au and 7.00 m @ 2.01 g/t Au including 1.00 m @ 9.74 g/t Au in BRAZD283
"These drill results demonstrate the continuity and the potential size of the Aurizona Mine," stated Nolan Watson, President and Chief Executive Officer of Sandstorm, "Luna's extensive exploration program started earlier this year is expected to continue producing results on Piaba and a number of other targets within the Aurizona Main area under which the Sandstorm gold stream agreement applies."
The 2010 drill program commenced at the start of September and the Company currently has five rigs in operation. Drilling is currently focused on infilling over the 3 kilometer strike length of the Piaba deposit to increase measured and indicated resources. Holes are being drilled on 100 meter spaced sections to a maximum depth of 300 meters.
Complete assay results have been received for seven drill holes totaling approximately 2,379 metres drilled on three sections, spaced 200 metres apart in the central portion of the Piaba deposit. All drill holes intersected gold mineralization and the deposit remains open at depth on all sections.
Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's VP Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed the technical disclosure in this press release. Non qualified persons currently work on Luna's exploration programs under the guidance of Titus Haggan. Dr Haggan takes responsibility for work, information and advice generated by non-Qualified persons and has taken the steps required to ensure that the work, information and advice is sound.
Source: Sandstorm Resources Ltd.