Sandstorm Gold has received positive assay results from seven new drill holes at the Aurizona mine, which is possessed and run by Luna Gold.
The company has intersected 20.00 g/t gold over 1 metre including 7.80 g/t gold over 17 metres in BRAZD293A. It has also cut 5.21 g/t gold over 8 metres and 2.50 g/t gold over 21 metres in BRAZD297 and 57 g/t gold over 0.5 metres including 2.53 g/t gold over 29 metres in BRAZD301.
Sandstorm has confirmed the presence of mineralization through the drilling results from Luna at Aurizona. These new zones have few potential historical holes.
Under the gold purchase agreement with Luna, Sandstorm is permitted to buy 17% of life of mine gold turned out from Aurizona mine at a per ounce cost equal to the lesser of US$400 and the then prevailing market price.
Luna has agreed for a major 2011 exploration budget at Aurizona mine. It anticipates carrying on aggressive drilling at the deposits with an objective of expanding the existing resource base.
At present, the company is performing in-fill drilling over 3 kilometre strike of the Piaba deposit in order to enhance indicated and measured mineral resources and to identify new mineralized zones.