Sandstorm Metals & Energy Acquires NSR Royalty From High Grade Lead-Zinc-Silver Prairie Creek Project


VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2013) - Sandstorm Metals & Energy Ltd. ("Sandstorm Metals") (TSX VENTURE:SND) is pleased to announce that it has acquired a 1.2% net smelter returns royalty ("NSR") on base metals from the Prairie Creek project ("Prairie Creek") in the Northwest Territories, Canada from Canadian Zinc Corporation ("Canadian Zinc") (CZN.TO). Prairie Creek is a zinc, silver and lead project that is 100%-owned by Canadian Zinc and contains a Mineral Reserve of 5.2 million tonnes grading 9.4% zinc, 9.5% lead and 151 grams per tonne silver. As consideration, Sandstorm Metals has made a cash payment to Canadian Zinc of US$6.8 million.

Canadian Zinc will have the option, for a period of 30 months, to repurchase up to 100% of the NSR at face value if Canadian Zinc enters into a commodity stream agreement with Sandstorm Metals that has an upfront deposit of no less than US$90 million. In addition, Canadian Zinc has provided Sandstorm Metals with a right of first refusal on any future royalty or commodity stream financing for the Prairie Creek project.

"Prairie Creek is a high-grade project that has significant exploration potential," said Sandstorm President & CEO Nolan Watson. "Canadian Zinc's management team has done an excellent job developing the project while working towards securing their final permits."

In addition, Sandstorm Gold Ltd. ("Sandstorm Gold") has acquired a 1.2% NSR on precious metals from Prairie Creek via a back-to-back agreement with Sandstorm Metals for US$3.2 million.

About Prairie Creek

The Prairie Creek Mine is an advanced-staged zinc-lead-silver property located in the Northwest Territories in Canada. Prairie Creek is an underground operation that will utilize multiple mining methods to access readily available ore. Canadian Zinc has the majority of the required infrastructure in place including a 1,000 tonne per day mill, 5 kilometres of underground workings and related equipment, a heavy duty and light duty surface fleet, 3 exploration diamond drills and a 1,000 metre airstrip. Canadian Zinc holds permits for the exploration and development of Prairie Creek and is moving through the final stages of the Type "A" Water Licence which is the required to operate the mine. Lead sulphide, zinc sulphide and lead oxide concentrates will be produced at site and then transported to a smelter. Exploration drilling around the mine site and north of the existing resources is ongoing.

A National Instrument ("NI") 43-101 Technical Report entitled Prairie Creek Property Northwest Territories, Canada Technical Report for Canadian Zinc Corporation, Qualified Persons J. M. Shannon, P. Geo., AMC Mining Consultants Ltd.; D. Nussipakynova, P. Geo., AMC Mining Consultants Ltd.; JB Hancock, P. Eng., Barrie Hancock & Associates Inc.; and B MacLean, P. Eng., SNC-Lavalin Inc. and dated June 15, 2012 filed on SEDAR estimates the following Reserve and Resources at Prairie Creek.

Mineral Reserve Estimate
Zone   Class Tonnes
Main Quartz Vein   Proven 1.278 10.8 9.4 172
    Probable 3.140 8.7 10.5 165
    Proven and Probable 4.418 9.3 10.2 167
Stratabound   Probable 0.803 9.5 5.7 62
Total Mineral Reserves     5.222 9.4 9.5 151
  1. Mineral Reserves are stated as of May 31, 2012
  2. Mining cut-off grade of 10% Zn-Eq based upon total variable operating cost of $162/t including mining, processing and transportation.
  3. Metal prices assumed are Zn = $1.10/lb, Pb = $1.10/lb and Ag = $28/oz.
  4. Average processing recovery factors of 75% for Zn, 88% for Pb and 92% for Ag.
  5. Average payables of 85% for Zn, 95% for Pb and 81% for Ag.
  6. $ Exchange rate = 1 CD/USD
Mineral Resource Estimate
Zone   Class Tonnes
Main Quartz Vein   Measured 1.055 13.2 11.5 209 0.45
    Indicated 2.680 10.5 12.7 200 0.43
    Measured + Indicated 3.736 11.3 12.4 202 0.43
    Inferred 6.236 14.5 11.5 229 0.57
Stockwork   Indicated 0.410 7.7 3.7 69 0.15
Stratabound   Measured 0.640 10.5 6.8 67 0.00
    Indicated 0.641 10.6 5.4 63 0.00
    Measured + Indicated 1.281 10.5 6.1 65 0.00
    Inferred 0.003 12.4 5.1 46 0.00
Totals   Measured 1.700 12.1 9.7 155 0.28
    Indicated 3.731 10.2 10.5 162 0.32
    Measured + Indicated 5.431 10.8 10.2 160 0.31
    Inferred 6.239 14.5 11.5 229 0.57
  1. Mineral Resources are stated as of May 31, 2012
  2. Mineral Resources include Mineral Reserves
  3. Stated at a cut-off grade of 8% Zn-Eq based prices of $1.30/lb for both zinc and lead, and $35/oz for silver.
  4. Average processing recovery factors of 78% for Zn, 89% for Pb and 93% for Ag.
  5. Average payables of 85% for Zn, 95% for Pb and 81% for Ag.
  6. $ Exchange rate = 1 CD/USD

Alan Taylor, P.Geo., Chief Operating Officer, Vice President Exploration and a Director of Canadian Zinc Corporation, is the Non-Independent Qualified Person under NI 43-101 responsible for reviewing and approving the Canadian Zinc Corporation technical information contained in this news release.

For more information on Canadian Zinc and the Prairie Creek project, visit


Sandstorm Metals & Energy Ltd. is the world's first diversified streaming company. Sandstorm provides upfront financing to resource companies that are looking for capital and in return, receives a commodity streaming agreement. This agreement gives Sandstorm the right to purchase a percentage of the commodity produced, for the life of the asset, at a fixed price. Sandstorm has acquired a portfolio of four commodity streams in copper, palladium and natural gas. Sandstorm plans to grow its production base through the acquisition of additional commodity streams.

Sandstorm Metals & Energy is focused on low cost operations with excellent exploration potential and strong management teams. Sandstorm has completed royalty and commodity purchase agreements with Canadian Zinc Corp., Colossus Minerals Inc., Donner Metals Ltd., Entrée Gold Inc. and Thunderbird Energy Corp.

For more information visit:


Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans", or similar terminology. Forward-looking information is based on reasonable assumptions that have been made by Sandstorm as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sandstorm to be materially different from those expressed or implied by the forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over operations from which Sandstorm will purchase commodities and risks related to those operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; problems inherent to the marketability of commodities; industry conditions, including fluctuations in the price of commodities, fluctuations in foreign exchange rates and fluctuations in interest rates; stock market volatility; competition; as well as those factors discussed in the section entitled "Risks to Sandstorm" in Sandstorm's annual report for the financial year ended December 31, 2012. Although Sandstorm has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Sandstorm does not undertake to update any forward-looking information that is contained or incorporated by reference herein, except in accordance with applicable securities laws. Sandstorm does not provide any representation as to its comparability with other companies in its industry including, but not limited to, Franco-Nevada Corporation, BHP Billiton and Rio Tinto.

Sandstorm Metals & Energy Ltd.
Nolan Watson
President & Chief Executive Officer
(604) 689-0234

Sandstorm Metals & Energy Ltd
Denver Harris
Investor Relations Contact
(604) 628-1178

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