TSX:SLW
NYSE:SLW
VANCOUVER, Nov. 11, 2013 /PRNewswire/ - Silver Wheaton Corp. ("Silver Wheaton"
or the "Company") (TSX:SLW) (NYSE:SLW) is pleased to announce that it
has entered into an Early Deposit Gold Stream Agreement (the "Early
Deposit Agreement") with Sandspring Resources Ltd. ("Sandspring") for
the Toroparu project located in the Republic of Guyana, South America.
"Silver Wheaton continues to push the streaming model forward," said
Randy Smallwood, Silver Wheaton's President and Chief Executive
Officer. "The Early Deposit Agreement model allows us to get our foot
in the door on high-quality, earlier stage projects such as Toroparu
for relatively little upfront capital. From Sandspring's perspective,
these funds will allow them to complete the bankable feasibility study
without subjecting their shareholders to excessive dilution that
today's challenging equity markets would deliver. Yet again, Silver
Wheaton has developed another innovative, win-win business model. In
todays market environment we expect this model to be very attractive to
junior exploration and development companies looking for funding."
Under the Early Deposit Agreement, Silver Wheaton, through its wholly
owned subsidiary Silver Wheaton (Caymans) Ltd., has the right to
purchase 10% of the life of mine gold production from the Toroparu
project (the "Gold Stream") for total cash consideration of US$148.5
million plus an ongoing production payment of the lesser of US$400
(subject to a 1% annual inflation adjustment starting in the fourth
year after the completion test is satisfied) and the prevailing market
price. Silver Wheaton will advance US$13.5 million to Sandspring once
customary conditions have been met and at the closing of this
agreement. The Company may then elect to proceed with the purchase of
the Gold Stream following the delivery of a bankable definitive
feasibility study, environmental study and impact assessment, and other
related documents (collectively, the "Feasibility Documentation") or
after December 31, 2015, if the Feasibility Documentation has not been
delivered to Silver Wheaton by such date. If Silver Wheaton elects not
to proceed with the Gold Stream, the Company will be entitled to either
a return of US$11.5 million payable by Sandspring (on the basis that
US$2 million of the advanced US$13.5 million is non-refundable) or a
reduction in the stream percentage from 10% to 0.774%, at Sandspring's
option.
About the Toroparu project
The Toroparu Gold-Copper Deposit was discovered in 2007 in the Republic
of Guyana, South America. As stated in the NI 43-101 Technical Report
titled "Prefeasibility Study Toroparu Gold Project Upper Puruni River
Area, Guyana" dated May 24, 2013, the Toroparu project has Proven and
Probable mineral reserve of 4.1 million ounces of gold contained in 127
million tonnes of ore at a grade of 1.00 g/t Au. Estimated annual
production is 246,000 ounces of gold at a mill head grade of 1.32 g/t
produced at a cash cost of $504 per payable ounce of gold on average
over the first four years and 228,000 ounces at a cash cost of $700 per
ounce on average over the 16 year life of mine.1
About Silver Wheaton
Silver Wheaton is the largest precious metals streaming company in the
world. Based upon its current agreements, forecast 2013 attributable
production is approximately 33.5 million silver equivalent ounces2, including 145,000 ounces of gold. By 2017, annual attributable
production is anticipated to increase significantly to approximately
42.5 million silver equivalent ounces2, including 210,000 ounces of gold. This growth is driven by the
Company's portfolio of low-cost and long-life assets, including
precious metal and gold streams on Hudbay's Constancia project and
Vale's Salobo and Sudbury mines.
_________________________________
1 Based on NI 43-101 Technical Report titled "Prefeasibility Study
Toroparu Gold Project Upper Puruni River Area, Guyana" dated May 24,
2013.
2 Silver equivalent production forecast assumes a gold/silver ratio of
53.3:1. Production guidance was updated in Silver Wheaton's November
5, 2013 news release.
Silver Wheaton's Reserves and Resources for Toroparu Gold Project:
ATTRIBUTABLE RESERVES & RESOURCES TO SILVER WHEATON (1,2,3,4,5,6,8,9,10)
|
|
|
|
|
|
Mine | Category | Tonnage | Grade | Contained | Process Recovery(7) |
Mt | Au g/t | Au Moz | % |
Toroparu (10%) | Proven |
3.0
|
1.10
|
0.105
|
89%
|
Probable |
9.7
|
0.98
|
0.306
|
89%
|
Proven & Probable |
12.7
|
1.00
|
0.411
|
89%
|
Toroparu (10%) | Measured |
0.9
|
0.87
|
0.026
|
|
Indicated |
7.9
|
0.83
|
0.211
|
|
Measured & Indicated |
8.8
|
0.84
|
0.237
|
|
Toroparu (10%) | Inferred |
13.0
|
0.74
|
0.309
|
|
-
All Mineral Reserves and Mineral Resources have been calculated in
accordance with the CIM Standards and NI 43-101, or the AusIMM JORC
equivalent.
-
Mineral Reserves and Mineral Resources are reported above in millions of
metric tonnes ("Mt"), grams per metric tonne ("g/t") and millions of
ounces ("Moz").
-
The individual qualified persons ("QPs"), as defined by the NI 43-101,
for the technical information contained in this document (including the
Mineral Reserve and Mineral Resource estimates) are Neil Burns, M.Sc.,
P.Geo. (Vice President, Technical Services); Samuel Mah, M.A.Sc.,
P.Eng. (Senior Director, Project Evaluations), both employees of the
Company (the "Company's QPs").
-
The Mineral Resources reported in the above tables are exclusiveof Mineral Reserves. The tabulation of exclusive resources was completed
by the Company's QPs.
-
Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
-
Mineral Reserves and Mineral Resources are based on information
available to the Company as of the date of this document, and therefore
will not reflect updates, if any after such date. Resources and
Reserves for Toroparu are reported as of March 31, 2013.
-
Process recoveries are the percentages of gold in a saleable product
(doré or concentrate) recovered from Toroparu ore at the applicable
site process plant.
-
Mineral Reserves are estimated using appropriate process recovery rates
and gold prices of $1,070 per ounce for fresh rock and $970 per ounce
for saprolite.
-
Mineral Resources are estimated using appropriate process recovery rates
and a gold price of $1,350 per ounce.
-
The scientific and technical information in this document regarding
Toroparu has been previously disclosed in Sandspring's press release
filed on SEDAR (www.sedar.com) dated April 9, 2013.
Full Reserve and Resource tables are available on the Company's website,
www.silverwheaton.com. Updated Reserves and Resources incorporating year-end 2013 estimates
will be included in the Company's 2013 AIF.
Mr. Neil Burns, Vice President of Technical Services for Silver Wheaton,
is a "qualified person" as such term is defined under National
Instrument 43-101, and has reviewed and approved the information on
mineral reserves and mineral resources disclosed in this news release.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the meaning
of applicable Canadian securities legislation. Forward-looking
statements, which are all statements other than statements of
historical fact, include, but are not limited to, statements with
respect to the future price of silver or gold, the estimation of
mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination, reserve conversion rates,
statements as to any future dividends, the ability to fund outstanding
commitments and continue to acquire accretive precious metal stream
interests and assessments of the impact and resolution of various legal
and tax matters. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
operations, level of activity, performance or achievements of Silver
Wheaton to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to:
fluctuations in the price of silver or gold; the absence of control
over mining operations from which Silver Wheaton purchases silver and
gold and risks related to these mining operations including risks
related to fluctuations in the price of the primary commodities mined
at such operations, actual results of mining and exploration
activities, environmental, economic and political risks of the
jurisdictions in which the mining operations are located and changes in
project parameters as plans continue to be refined; differences in the
interpretation or application of tax laws and regulations; and the
Company's interpretation of, or compliance with, tax laws, is found to
be incorrect; as well as those factors discussed in the section
entitled "Description of the Business - Risk Factors" in Silver
Wheaton's Annual Information Form available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and
Exchange Commission in Washington, D.C. Forward-looking statements are
based on assumptions management believes to be reasonable, including
but not limited to: the continued operation of the mining operations
from which Silver Wheaton purchases silver and gold, no material
adverse change in the market price of commodities, that the mining
operations will operate and the mining projects will be completed in
accordance with their public statements and achieve their stated
production outcomes, the continuing ability to fund or obtain funding
for outstanding commitments, the ability to source and obtain accretive
precious metal stream interests, expectations regarding the resolution
of legal and tax matters, and such other assumptions and factors as set
out herein. Although Silver Wheaton has attempted to identify
important factors that could cause actual results to differ materially
from those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate. Accordingly, readers should not place undue
reliance on forward-looking statements and are cautioned that actual
outcomes may vary. Silver Wheaton does not undertake to update any
forward-looking statements that are included or incorporated by
reference herein, except in accordance with applicable securities laws.
CAUTIONARY LANGUAGE REGARDING RESERVES AND RESOURCES
For further information on Mineral Reserves and Mineral Resources and on
Silver Wheaton more generally, readers should refer to Silver Wheaton's
Annual Information Form for the year ended December 31, 2012, and other
continuous disclosure documents filed by Silver Wheaton since January
1, 2013, available on SEDAR at www.sedar.com. Silver Wheaton's Mineral Reserves and Mineral Resources are subject to
the qualifications and notes set forth therein. Mineral Resources which
are not Mineral Reserves do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of
Measured, Indicated and Inferred Mineral Resources: The information contained herein uses the terms "Measured", "Indicated"
and "Inferred" Mineral Resources. United States investors are advised
that while such terms are recognized and required by Canadian
regulations, the United States Securities and Exchange Commission does
not recognize them and expressly prohibits U.S. registered companies
from including such terms in their filings with the SEC. "Inferred
Mineral Resources" have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an Inferred Mineral Resource will ever
be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or
other economic studies. United States investors are cautioned not to
assume that all or any part of Measured or Indicated Mineral Resources
will ever be converted into Mineral Reserves or that any exploration
potential will ever be converted to any category of Mineral Reserves or
Mineral Resources. United States investors are also cautioned not to
assume that all or any part of an Inferred Mineral Resource exists, or
is economically or legally mineable. United States investors are urged
to consider closely the disclosure in Silver Wheaton's Form 40-F, a
copy of which may be obtained from Silver Wheaton or from http://www.sec.gov/edgar.shtml.
SOURCE Silver Wheaton Corp.