C$73.6 M C$8.3 M - Sandspring · PDF fileToroparu Gold Project, Upper Puruni River Area,...

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Sandspring Resources is focused on bringing into producon its 100%-owned 6.9 million ounce Toroparu Gold Project, while connuing to explore its 62,603-hectare concession with the aim of realizing the geologic potenal of this highly prospecve, mining-friendly jurisdicon. TOROPARU GOLD PROJECT DEVELOPING THE WESTERN GUYANA GOLD DISTRICT The Toroparu Deposit is one of the world’s largest undeveloped gold resources owned 100% by a junior mining company. The project has its Environmental Authorizaon, Mineral Agreement and Fiscal Stability Agreement in place. A definive feasibility study for the project is underway and will provide the engineering and economic informaon that Sandspring needs to make a construcon decision. PROJECT ECONOMICS A pre-feasibility study completed for the Toroparu Project in 2013 at US$1400/oz gold outlined the design of an open-pit mine producing 228,000 ounces of gold per year over an inial 16-year mine life. The esmated US$464 million pre-producon capex is paid back in 2.6 years, with an aſter-tax IRR of 23.1% and an NPV5% of US$691 million. Sandspring has signed a Memorandum of Understanding with the Guyana Government giving Sandspring exclusive rights to develop the Kurupung Hydro Project, approximately 50 km south of the Toroparu Project. Opmizing the project’s power supply by building the proposed run-of-river hydroelectric facility could reduce the esmated US$700/oz operang cash cost to ~US$584/oz. The hydro project would also bring significant cost benefits to other mining projects in the region, and benefit local communies by eventually providing power to the Guyana power and light grid. SILVER WHEATON GOLD & SILVER PURCHASE AGREEMENT Project economics are further improved through an agreement with Silver Wheaton, whereby Silver Wheaton contributes a total of US$153.5 million in return for 10% of life-of-mine gold producon (at US$400/oz) and 50% of life-of-mine silver producon (at US$3.90/oz). Silver Wheaton has contributed US$15.5 million to date, with the remaining US$138 million to be paid in installments during project construcon. Reserves, resources and project economics were outlined in the pre-feasibility study prepared by SRK Consulng (U.S.) Inc. with an effecve date of May 8, 2013, entled “NI 43-101 Technical Report Pre-Feasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana” available on the Company’s website and on SEDAR. GUYANA SOUTH AMERICA SEPTEMBER 2016 TSX-V: SSP US OTC: SSPXF 4.1 M ozs 2P RESERVES US$153.5 M 6.9 M ozs M&I RESOURCES 3.1 M ozs INF RESOURCES significant copper and silver by-product credits LEVERAGE TO RISING GOLD PRICE SILVER WHEATON AGREEMENT C$73.6 M AT SEPTEMBER 23, 2016, BASED ON 108.2 MILLION SHARES ISSUED AND OUTSTANDING MARKET CAPITAL C$8.3 M CASH POSITION AT JUNE 30, 2016, FULLY FINANCED FOR 2016 EXPLORATION AND COMPLETION OF DEFINITIVE FEASIBILITY STUDY (127 MT @ 1.0 G/T GOLD) FOR 10% OF GOLD PRODUCTION AND 50% OF SILVER PRODUCTION, REDUCES CAPEX BY ~30% AND VALIDATES THE PROJECT (240 MT @ 0.9 G/T GOLD) (INCLUSIVE OF RESERVES) (129 MT @ 0.7 G/T GOLD)

Transcript of C$73.6 M C$8.3 M - Sandspring · PDF fileToroparu Gold Project, Upper Puruni River Area,...

Page 1: C$73.6 M C$8.3 M - Sandspring · PDF fileToroparu Gold Project, Upper Puruni River Area, Guyana” available on the Company’s website and on SEDAR. GUYANA SOUTH ... diamonds, bauxite

Sandspring Resources is focused on bringing into production its 100%-owned 6.9 million ounce Toroparu Gold Project, while continuing to explore its 62,603-hectare concession with the aim of realizing the geologic potential of this highly prospective, mining-friendly jurisdiction.

TOROPARU GOLD PROJECTDEVELOPING THE WESTERN GUYANA GOLD DISTRICT

The Toroparu Deposit is one of the world’s largest undeveloped gold resources owned 100% by a junior mining company. The project has its Environmental Authorization, Mineral Agreement and Fiscal Stability Agreement in place. A definitive feasibility study for the project is underway and will provide the engineering and economic information that Sandspring needs to make a construction decision.

PROJECT ECONOMICSA pre-feasibility study completed for the Toroparu Project in 2013 at US$1400/oz gold outlined the design of an open-pit mine producing 228,000 ounces of gold per year over an initial 16-year mine life. The estimated US$464 million pre-production capex is paid back in 2.6 years, with an after-tax IRR of 23.1% and an NPV5% of US$691 million.

Sandspring has signed a Memorandum of Understanding with the Guyana Government giving Sandspring exclusive rights to develop the Kurupung Hydro Project, approximately 50 km south of the Toroparu Project. Optimizing the project’s power supply by building the proposed run-of-river hydroelectric facility could reduce the estimated US$700/oz operating cash cost to ~US$584/oz. The hydro project would also bring significant cost benefits to other mining projects in the region, and benefit local communities by eventually providing power to the Guyana power and light grid.

SILVER WHEATON GOLD & SILVER PURCHASE AGREEMENTProject economics are further improved through an agreement with Silver Wheaton, whereby Silver Wheaton contributes a total of US$153.5 million in return for 10% of life-of-mine gold production (at US$400/oz) and 50% of life-of-mine silver production (at US$3.90/oz). Silver Wheaton has contributed US$15.5 million to date, with the remaining US$138 million to be paid in installments during project construction.

Reserves, resources and project economics were outlined in the pre-feasibility study prepared by SRK Consulting (U.S.) Inc. with an effective date of May 8, 2013, entitled “NI 43-101 Technical Report Pre-Feasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana” available on the Company’s website and on SEDAR.

GUYANASOUTH AMERICA

SEPTEMBER 2016

TSX-V: SSPUS OTC: SSPXF

4.1 M ozs 2P RESERVES

US$153.5 M

6.9 M ozs M&I RESOURCES

3.1 M ozs INF RESOURCES

significant copper and silver by-product credits

LEVERAGE TO RISING GOLD PRICE

SILVER WHEATON AGREEMENT

C$73.6 MAT SEPTEMBER 23, 2016, BASED ON 108.2 MILLION SHARES ISSUED AND OUTSTANDING

MARKET CAPITAL

C$8.3 MCASH POSITION

AT JUNE 30, 2016, FULLY FINANCED FOR 2016 EXPLORATION AND COMPLETION OF DEFINITIVE FEASIBILITY STUDY

(127 MT @ 1.0 G/T GOLD)

FOR 10% OF GOLD PRODUCTION AND 50% OF SILVER PRODUCTION, REDUCES CAPEX BY ~30% AND VALIDATES THE PROJECT

(240 MT @ 0.9 G/T GOLD) (INCLUSIVE OF RESERVES)

(129 MT @ 0.7 G/T GOLD)

Page 2: C$73.6 M C$8.3 M - Sandspring · PDF fileToroparu Gold Project, Upper Puruni River Area, Guyana” available on the Company’s website and on SEDAR. GUYANA SOUTH ... diamonds, bauxite

SANDSPRING RESOURCES LTD.9137 East Mineral Circle

Suite 180Centennial, Colorado

USA 80112

[email protected]

Investor Relations: 720-854-0104

PROJECT GEOLOGY & EXPLORATIONThe Toroparu Project and surrounding gold anomalies lie at the edge of a large bending zone in the Puruni Shear Corridor, a regional feature that can be traced more than 100 km into the prolific Venezuelan Gold District.

Sandspring controls a 62,603-hectare mineral concession in the Upper Puruni Region of the Western Guiana Shield, which is also host to two multi-million ounce gold deposits that were recently advanced to production: Guyana Goldfield’s Aurora Mine and Troy Resources’ Karouni Mine. The volcano-sedimentary belts of the Guiana Shield are analogous to the West African Shield, where systematic surface exploration over the last 25 years has identified more than 30 gold deposits, most of which are currently in production.

Through more than 190,000 metres of drilling, Sandspring has delineated the main Toroparu and Satellite deposits that were included in the pre-feasibility study, along with other mineralized areas and promising anomalies that have the potential to expand the resource base with infill drilling. Extensive geochemical surveys have identified a large hydrothermal halo that extends for 20 km x 7 km around the Toroparu Deposit, with a cluster of ten gold anomalies that represent advanced-stage exploration targets.

Sandspring Resources

BOARD OF DIRECTORSJohn Adams Chairman

Richard Munson Director & CEO

Greg Barnes Director & Executive VP

Suresh Beharry Independent Director

David Constable Independent Director

David Laing Independent Director

Harry Pokrandt Independent Director

Frank Giustra Independent DirectorSandspring’s 2015

exploration program confirmed the continuity of higher-grade mineralization at the Sona Hill deposit, 5 km southeast of Toroparu. Sandspring plans to drill an additional 8,000 metres at Sona Hill in 2016 with the objective of establishing a higher-grade resource that could improve project economics.

Geochemical surveys in 2015 identified new gold anomalous features in the Otomung Concession north of Toroparu. The results suggest a geological context similar to that of the Toroparu Deposit, which fits Sandspring’s shear zone bending extensional-compression geological model. Sandspring is continuing with mapping and surface sampling at Otomung in 2016 to delineate drill targets in this previously unexplored area.

DOING BUSINESS IN GUYANAGuyana is part of the British Commonwealth and the only English-speaking country in South America. The country has a stable democratic government and a long history of mining for gold, diamonds, bauxite and manganese. Two new gold mining projects have advanced to production in the last 12 months, testament to the government’s support for mining and the straight-forward permitting regime. Guyana Goldfield’s project finance was led by the International Monetary Fund, underscoring Guyana’s stability and acceptance as a mining-friendly jurisdiction. The country has a fair tax system and a reasonable royalty structure. Sandspring’s leadership team has worked in Guyana for more than 16 years and built strong relationships with government, regulators and local communities.

ToroparuAu-Cu Deposit

OtomungConcession

Sona HillDeposit

Concession Limit