Sandstorm Gold Announces 55 Metres Of 4.15 G/T At Luna Gold’s Aurizona Mine

Vancouver, British Columbia, April 18, 2011 – Sandstorm Gold Ltd. (“Sandstorm”) (TSX-V: SSL) is pleased to announce that drilling from the Aurizona Mine, owned and operated by Luna Gold Corp. (“Luna”) (TSX-V: LGC) has reported positive assay results from seven new holes. Significant mineralized intercepts are: • 55.00 metres @ 4.15 grams/tonne Au including 1.00 metre @ 20.00 grams/tonne Au and 17.00 metres @ 7.80 grams/tonne Au in BRAZD293A
• 21.00 metres @ 2.50 grams/tonne Au including 8.00 metres @ 5.21 grams/tonne Au in BRAZD297
• 29.00 metres @ 2.53 grams/tonne Au including 0.50 metres @ 57.00 grams/tonne Au in BRAZD301

“The drill results from Luna confirm the strong exploration upside that exists at Aurizona,” said Sandstorm President and CEO Nolan Watson. “These new intercepts are from an area that has few historical holes and potentially represents new material that can be brought into the mine plan.”

In accordance with Sandstorm’s gold purchase agreement with Luna, Sandstorm is entitled to purchase 17% of the life of mine gold produced from the Aurizona Mine at a per ounce price equal to the lesser of US$400 and the then prevailing market price.

Luna approved a major 2011 exploration budget for the Aurizona Mine and expects to continue to aggressively drill the deposits with the goal of expanding the current resource base ahead of an upcoming scoping study. Drilling is currently focused on infilling over the 3 kilometre strike length of the Piaba deposit to increase measured and indicated mineral resources and discover new zones of mineralization.

http://www.sandstormgold.com/s/NewsReleases.asp?ReportID=452189

Good news for Sandstorm. I recently labeled them as a stock that was close to a breakout. Perhaps this news from over the weekend will get them trading above $1.10 this week.

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

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