Resource World Magazine

SANDSPRING RESOURCES LTD. [SSP-TSXV; SSPXF-OTC; SRX-MU, BE, FSE] NPV (5% Discount).............. $691 million IRR (Post-Tax)............................. $23.1% Payback Period...……………….2.6 years Cash Costs.................................. $504/oz* Capital Costs..................US $501 million** Shares Outstanding...............132,358,606 * Average first 4 years ** Initial CapEx Pre-Production Note: Economics @ US $1,400/oz gold In the Republic of Guyana, South America, Sandspring Resources Ltd. is currently advancing the multi-million ounce Toroparu deposit toward potential large-scale gold and copper production in 2015. The company has completed a positive Pre-Feasibility Study for 100%-owned Toroparu Project. There is a proven and probable reserve of 4.1 million oz gold contained in 127 million tonnes of ore grading 1.00 g/t gold. The Guyanese government has agreed to grant the project a large-scale mining license authorizing the company to commence production once economic feasibility has been demonstrated. Rich Munsun, CEO, said that "the mine development plan outlined in the PFS is just the starting point" as there are resources of 5 million oz gold just outside the current reserve pit, plus 10 promising gold anomalies that need to be explored. At US $1,200/oz gold and US $3.25/lb copper, the Post-Tax NPV at a 5% Discount would be $384 million with a payback period of 3.66 years. Average annual gold production is 228,000 oz over the 16-year mine life with peak production of 354,000 oz in the eighth year of production. By-product copper will be produced at an average rate of 25.7 million lbs per year grading 0.23% copper over the first three years of production. Sandspring has signed a precious metals purchase agreement whereby Silver Wheaton will pay Sandspring upfront cash payments totaling US $148.5-million for 10% of the payable gold production. NEWSTRIKE CAPITAL INC. [NES-TSXV] NPV (5% Discount).............. $383 million IRR (Post-Tax)................................$26% Payback Period..........................2.5 years* Cash Costs (AuEq)......................$535/oz** Capital Costs......................... $300 million Shares Outstanding...............114,931,458 * At US $1,300/oz gold ** At US $1,200/oz Au/US $23.17 Ag Figures from Scotiabank Equity Research Newstrike Capital Inc. has been exploring the 100%-owned Ana Paula Project in the Guerrero Gold Belt about half way between Mexico City and Acapulco. The Guerrero Gold Belt is also host to Goldcorp's Los Filos Mine and Torex Gold's Morelos gold project. Drill hole AP-13-215 confirmed highgrade mineralization approximately 100 to 150 metres beneath the conceptual open pit in the current resource model. Results from the deep drill program are encouraging and demonstrate a strong potential for high-grade mineralization at depth. Hole AP-13-215 intersected 72.19 metres of 3.92 g/t gold from 675.75 to 747.94 metres down hole, including 39.39 metres of 6.42 g/t gold from 677.10 to 716.49 metres. This includes multiple discrete intervals that returned over 10 g/t gold. At a cutoff grade of 0.45 g/t gold equivalent (AuEq) and with all resource classes included (measured, indicated and inferred), the open pit is estimated to contain 43 million tonnes grading 1.59 g/t gold and 7.0 g/t silver (1.63 g/t AuEq). This translates to 2.20 million oz of contained gold and 9.7 million oz of contained silver. Gold recoveries are estimated to be 85% and silver at 27.3%. Newstrike estimates it will take about 18 months for permitting to be completed. The company's largest shareholder is the Lundin family, heavyweights in the mining sector. As Newstrike Capital is a mineral exploration company, it would like to partner the Ana Paula Project or sell to a mine builder. 24 www.resourceworld.com RW December 2013.indd 24 DECEMBER/JANUARY 2014 12/11/2013 6:11 PM

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