DENVER and VANCOUVER, British Columbia, Sept. 26, 2018 (GLOBE NEWSWIRE) -- Sandspring Resources Ltd. (TSX-V: SSP, OTCQX: SSPXF) (the “Company”) is pleased to announce that it has completed an updated Mineral Resource Estimate (the “2018 MRE”) for the Toroparu Project located in Guyana, South America.
Highlights to the 2018 MRE include an increase of 459,000 ounces of Measured and Indicated and 60,000 ounces of Inferred Gold Resources compared to the previous Mineral Resource Estimate provided in the 2013 Toroparu Prefeasibility Study (the “Prefeasibility Study”).
| Upper Puruni Concession - Total Resources 1 | ||||||||
| SRK- 9/20/2018 In-Pit Resources @ .30 Au(g/t) Cutoff ($1,350/oz Au Resource Pit) | ||||||||
| Gold Resources | Copper & Silver Resources | |||||||
| Measured & Indicated | Tonnes | Gold | Tonnes | Silver | Copper | |||
| Resource Pit | ('000 t) | (g/t) | ('000 oz) | ('000 t) | (g/t) | ('000 oz) | % | Mlbs |
| Toroparu | 227,416 | 0.90 | 6,556 | 227,416 | 0.84 | 6,130 | 0.086 | 433 |
| SE Zone | 13,383 | 0.94 | 403 | 13,383 | 0.35 | 152 | 0.036 | 11 |
| Sona Hill | 11,772 | 1.04 | 394 | 0 | n/a | n/a | n/a | n/a |
| Concession | 252,571 | 0.91 | 7,353 | 240,799 | 0.81 | 6,282 | 0.084 | 444 |
| Inferred | Tonnes | Gold | Tonnes | Copper | ||||
| Resource Pit | ('000 t) | (g/t) | ('000 oz) | ('000 t) | (g/t) | ('000 oz) | % | Mlbs |
| Toroparu | 116,629 | 0.74 | 2,776 | 116,629 | 0.07 | 266 | 0.040 | 103 |
| SE Zone | 686 | 0.83 | 18 | 686 | 0.45 | 10 | 0.049 | 1 |
| Sona Hill | 11,630 | 0.95 | 356 | 0 | n/a | n/a | n/a | n/a |
| Concession | 128,945 | 0.76 | 3,150 | 117,315 | 0.07 | 276 | 0.040 | 104 |
Sensitivity Analysis
A sensitivity analysis of gold ounces, grades and mineralized tons contained in the resource estimate at various cutoff grades (within the resource pit volumes) above and below the 0.30 g/t gold cutoff grade used to calculate the 2018 MRE, corresponding to a range of gold prices, illustrates the consistent nature of the grade-tonnage relationship over various gold price assumptions.
| Upper Puruni Concession - Gold Resource Sensitivity | ||||
| SRK- 9/20/2018 Measured & Indicated in-Pit Resources @ .30 Au(g/t) | ||||
| Gold Price | CoG | Ore | Gold | |
| ($/oz) | (g/t) | ('000 t) | (g/t) | ('000 oz) |
| 1,507 | 0.25 | 272,430 | 0.86 | 7,529 |
| 1,450 | 0.26 | 268,745 | 0.87 | 7,499 |
| 1,397 | 0.27 | 264,866 | 0.88 | 7,466 |
| 1,347 | 0.28 | 260,843 | 0.89 | 7,431 |
| 1,300 | 0.29 | 256,698 | 0.90 | 7,393 |
| 1,258 | 0.30 | 252,571 | 0.91 | 7,353 |
| 1,218 | 0.31 | 248,572 | 0.91 | 7,314 |
| 1,180 | 0.32 | 244,502 | 0.92 | 7,273 |
| 1,145 | 0.33 | 240,379 | 0.93 | 7,230 |
| 1,112 | 0.34 | 236,296 | 0.95 | 7,186 |
| 1,080 | 0.35 | 232,181 | 0.96 | 7,140 |
| Upper Puruni Concession - Total Resource Comparison 2 | ||||||||
| SRK- 9/20/2018 & 3/31/2013 In-Pit Resources @ .30 Au (g/t) Cutoff (in $1350/oz Au Resource Pit) | ||||||||
| Gold Resources | Copper & Silver Resources | |||||||
| Measured & Indicated | Tonnes | Gold | Tonnes | Silver | Copper | |||
| Effective Date | ('000 t) | (g/t) | ('000 oz) | ('000 t) | (g/t) | ('000 oz) | % | Mlbs |
| March 31 2013 | 240,240 | 0.89 | 6,894 | 240,240 | - | - | 0.084 | 444 |
| Sep 20 2018 | 252,571 | 0.91 | 7,353 | 240,799 | 0.81 | 6,282 | 0.084 | 444 |
| Concession | 12,331 | 0.02 | 459 | 559 | 0.81 | 6,282 | - | - |
| Inferred | Tonnes | Gold | Tonnes | Silver | Copper | |||
| Effective Date | ('000 t) | (g/t) | ('000 oz) | ('000 t) | (g/t) | ('000 oz) | % | Mlbs |
| March 31 2013 | 129,525 | 0.74 | 3,090 | 129,525 | - | - | 0.042 | 120 |
| Sep 20 2018 | 128,945 | 0.76 | 3,150 | 117,315 | 0.07 | 276 | 0.040 | 104 |
| Concession | -580 | 0.02 | 60.0 | -12,210 | 0.07 | 276.0 | (0.002) | (16) |
Rich Munson, CEO stated: “The 2018 MRE for the Toroparu Project incorporates all the drilling results since the Resource Estimate in the Prefeasbility Study, including, most notably the work at Sona Hill. Sona Hill has added significantly to the project, both in terms of the additional 394,000 Measured and Indicated Gold resources, but also in terms of additional production flexibility from the shallow depth and low strip ratio of the deposit as well as the increase in the higher-grade portion of the project amenable to leach process recovery. As noted in our September 11, 2018 press release, these attributes of the Sona Hill Deposit improve the potential for startup of the project with a smaller production profile offering reasonably attractive economics in the current gold market environment while preserving the opportunity to expand the Toroparu Project in the future to the large-scale development potential outlined in the Prefeasibility.”
Notes to Release: Reader is cautioned that Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves
1 All resources in the June 26, 2018 mineral resource statement are in-pit resources reported within an optimized pit shell above an economic cut-off grade of 0.30 g/t Au. The optimized pit shell was determined for Measured, Indicated and Inferred resources using a gold price of US$1,350/oz, a copper price of US$3.00/lb; an average metallurgical recovery of 88.2% for gold, and 81.5% for copper mill feed sent to the copper flotation circuit. The optimized pit shell was determined using an average mining cost of US$1.60/t mined, saprolite processing cost of US$2.50/t, CIL processing cost of US$8.50/t, flotation processing cost of US$10.47/t, and G&A cost of US$1.24/t processed. Other costs included US$125/oz Au for gold refining and royalties, and US$1.036/lb for copper concentrate transportation and smelting with 97% “pay for” terms. Pit slopes used in the pit optimization were 45 degrees. Copper and Silver resources have not been estimated at Sona Hill
2 All resources in the March 31, 2013 mineral resource statement contained in the Toroparu Pre-Feasibility were reported as In‐Pit resources within an optimized pit shell above an economic cut‐off grade of 0.30 g/t Au. The economic cut‐off grade was determined using a gold price of $1,350/oz. Au, an average metallurgical recovery of 95.9% for gold, processing and G&A costs of $11.49/t processed, and includes $112/oz. Au for freight, smelting, refining and royalties. Copper metallurgical recovery used was 91%. Pit slopes used in the pit optimization were 45 degrees, and the mining costs used were $2.06/t mined for fresh rock. The NI 43-101 Technical Report, Prefeasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana prepared by SRK Consulting (USA) (the “Prefeasibility Study”) has an Effective Date of May 8, 2013 and a Report Date of May 24, 2013 and is available on Sandpring’s website and on www.sedar.com.
Mineral Resources are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
The statistical analysis, geologic modelling and resource estimation were prepared by Frank Daviess, RM SME and Allan Moran, AIPG CPG, SRK Associates. Mr. Daviess and Mr. Moran are the Qualified Persons who have reviewed and approve the content of this release under National Instrument 43-101 guidelines.
On behalf of the Board of Directors of Sandspring Resources Ltd.
“Richard A. Munson”
Director and Chief Executive Officer
About Sandspring Resources Ltd.
Sandspring Resources Ltd. is a Canadian junior mining company currently moving toward a feasibility study for the multi-million-ounce Toroparu Project in Guyana, South America. A prefeasibility study completed in May 2013 (NI 43-101 Technical Report, Prefeasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana, dated May 24, 2013 completed by SRK Consulting (U.S.), Inc., available on SEDAR (www.sedar.com) outlined the design of an open-pit mine producing more than 200,000 ounces of gold annually over an initial 16-year mine life. Sandspring and Wheaton Precious Metals (formerly known as Silver Wheaton) entered into a gold and silver purchase agreement for the Toroparu Project in 2013. Sandspring also holds a 100% interest in the Chicharrón Gold Project located near Segovia, Antioquia Department, Colombia. Additional information is available at www.sandspringresources.com or by email at info@sandspringresources.com.
Contact Sandspring Resources Ltd.
Richard A. Munson
Chief Executive Officer
Tel: +1 (303) 991-5683 or via email at sandspringinfo@sandspringresources.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “potential”, “suggesting”, “indicating”, “will”, “plans” and similar expressions are intended to identify forward-looking information and/or statements. Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions that Sandspring has used to develop such statements and/or information, but which may prove to be incorrect. Although Sandspring believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Sandspring can give no assurance that such expectations will prove to be correct. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation: the speculative nature of mineral exploration and development; risks associated with the uncertainty of exploration results and estimates; results from drilling and exploration activities; the ability of Sandspring to complete the Transaction; Sandspring’s future plans; the availability of financing and/or cash flow to fund current and future plans and expenditures; the impact of increasing competition; fluctuating commodity prices; the general stability of applicable economic and political environments; the general continuance of current industry conditions; uncertainty regarding the market price for gold, silver and copper; uncertainty of conducting operations under a foreign regime; uncertainty of obtaining all applicable regulatory approvals and related timing matters; Sandspring’s dependence on management personnel; and/or certain other risks detailed from time-to-time in Sandspring’s public disclosure documents. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.