Like I have said in earlier posts, APM is very early stage exploration and future results will dictate much but it never hurts to look ahead. However, contingent on further positive results at Limao, and looking at 12-24 months out, these guys may be a source of future finance without share dilution. Just sayin.......


Coringa Mine & Cuiú Cuiú Projects

Magellan Minerals Ltd.


The Coringa gold project is owned by Magellan Minerals Ltd. (TSXV:MNM) and is located in Para State, Brazil, 20 kilometres east of the BR-163 highway. Coringa is a narrow, high grade vein system extending over an eighteen kilometre strike with significant exploration upside. Magellan released a positive preliminary economic assessment on Coringa in May 2010, which is in the process of being updated, and will commence a feasibility study in the third quarter of 2012.

Cuiú Cuiú is located 180 kilometres southwest of Itaituba in northern Brazil. Exploration work has identified a series of major gold soil anomalies and Magellan anticipates conducting a drilling program during the second half of 2012 with plans to release a revised resource estimate in the first quarter of 2013.

Coringa and Cuiú Cuiú Royalties

Sandstorm has a 2.5% net smelter returns royalty ("NSR") on the Coringa gold project and a 1.0% NSR on the Cuiú Cuiú gold project.Sandstorm made an upfront payment of US$7.5 million and subscribed for one million shares of Magellan at a price of $0.50 per share to acquire the royalties in May 2012. 

As part of the agreement, Magellan has provided Sandstorm with a right of first refusal on any future royalty or gold stream financing at Coringa and Cuiú Cuiú.