Sandstorm Gold has received encouraging assay results from the recent six holes at the Aurizona mine, which is owned and controlled by Luna Gold.
The company has intersected 282.00 g/t gold, 20.60 g/t gold over 0.5 m and 15.48 g/t gold over 11.00 m in BRAZD294. It has also cut 9.84 g/t gold over 1.00 m including 7.93 g/t gold over 12.00 m in BRAZD299 and 6.81 g/t gold over 3.00 m and 3.22 g/t gold over 15.00 m in BRAZD296.
Nolan Watson, CEO and President of Sandstorm, has stated that the persistence of encouraging drilling results from Aurizona is another move towards extending its resources and reserves contiguous to the Piaba pit. Less than half of the proposed drilling has been finished by Luna.
Luna has received the assays from 8,432 m, totaling 31 holes from the present 20,000 m drilling campaign, which began in August 2010. Now, the assay lab tests the samples from the 18 additional drill holes. The company is focusing on infill drilling over a strike length of 3 km at the Piaba deposit to enhance the indicated and measured resources.
Under the gold acquisition agreement between Sandstorm and Luna, Sandstorm is allowed to acquire 17% of the life of the mine gold of Aurizona at lesser than or equal to US$400 per ounce or the current market price.