Canadian Mining Journal

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GOLD: Americas Silver gets US$42.5M boost from Sandstorm



The Relief Canyon mine will again produce gold by the end of this year. (Image: Americas Silver Corp.)

NEVADA – Sandstorm Gold Royalties is making an investment of US$42.5 million in Americas Silver Corp., owner of the Relief Canyon gold mine 160 km northeast of Reno.

The investment includes a US$25 million gold stream and royalty on the Relief Canyon mine when it reopens, a US$10 million convertible debenture, and a US$7.5 million equity subscription.

Sandstorm is to receive 32,022 oz. of gold over 5.5 years beginning in April 2020. Beginning five years after the first gold delivery, the company will receive 4.0% of the gold and silver output as long as the mine operates. Sandstorm will also have a 1.4% to 2.8% net smelter returns royalty on any future production from the area surrounding the mine plus a 4-km “area of interest.”

The Relief Canyon mine is a former heap leach gold producer. As of May 2018, proven and probable reserves totaled 27.5 million tonnes of 0.72 g/t gold material for 635,000 contained oz. The feasibility study released at the same time outlined average annual production of 91,000 oz. of gold over a 5.6 year mine life at an average all-in sustaining cost of US$801 per ounce of gold. There is significant exploration potential at Relief Canyon, as only approximately 20% of the 11,700 hectare land package has been explored to date.

Americas Silver has received permits to start construction and resume mining with the first gold pour targeted by the end of 2019.

More information about Relief Canyon is posted at www.AmericasSilverCorp.com.