SSP: More Drill Results from Toroparu

WENDELL ZERB, Canaccord Genuity (04/13/2010)
“Last week, Sandspring released additional drill results from its 100%-owned Toroparu project in Guyana. Hole 54, drilled at the western edge of the current NI 43-101 resource, intersected 111 meters grading 2.1 g/t Au at 400.5 meters along hole (below the current resource estimate). From 232.5 to 349.5 meters, this hole also intersected 117 meters grading 1.1 g/t Au (total of 279 meters grading an average of 1.3 g/t Au from 232.5 to 511.5 meters along hole). The 2010 drill program at Toroparu is underway with two diamond drill rigs and a third rig to be added. The 2010 program is budgeted at $7 million, with another 30,000 meters still planned to be drilled. An updated NI 43-101 resource estimate is expected in Q2/10, based on approximately 20,000 meters of additional drilling since the 2008 resource (for a total of approximately 30,000 meters included in the resource).

Sandspring is presently a permitted medium-scale placer miner (<3,000 tpd) in Guyana, mining saprolite material. Based on preliminary estimates, the company feels potential exists to ramp-up production to over 20,000 tpd of sulphide material, producing an average of approximately 210,000 oz Au and 24 million lbs Cu per year (11.8-year mine life). In terms of existing infrastructure, the project currently has a 3,000 tpd saprolite mill, 60-man camp, and airstrip and is road accessible.”

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