- Precious metals company Steppe Gold (STGO) is stepping up its efforts to expand the ATO Gold Mine in eastern Mongolia
- The company is aiming to transition from open cut oxide ores being heap leached to the processing of open cut fresh rock ores
- This comes as part of a proposed production profile of roughly 150,000 ounces of gold equivalent per year with an estimated 10-year mine life
- A Bankable Feasibility Study is currently under way with a scheduled completion date of March, 2021
- Steppe Gold (STGO) is currently down 3.79 per cent to C$2.79 per share at 3:18pm EDT
Precious metals company Steppe Gold (STGO) is stepping up its efforts to expand the ATO Gold Mine in eastern Mongolia.
The Altan Tsagaan Ovoo (ATO) gold and silver project sits in the in the territory of Tsagaan Ovoo soum, and consist of one mining licence over a total area of 5,492.63 hectares.
A Bankable Feasibility Study (BFS) is currently underway for the expansion of the ATO Project. The study builds on a previously completed Internal Feasibility Study conducted by Centerra Gold in 2012, as well as additional internal studies carried out by Steppe Gold since 2017.
The BFS is scheduled for completion in March next year.
As such, Steppe Gold is anticipating a smooth transition from heap leached open cut oxide ores to the processing of open cut fresh rock ores through a new flotation and CIL circuit. Initial production from the expanded ATO Gold Mine is expected in mid to late 2022.
Today’s announcement noted that financing strategies for the expansion are also progressing, and that initial construction work has been targeted for mid-2021.
Steppe Gold is in discussion with a number of project finance and lending groups, and expects to fund its equity contribution from operating cash flows and existing cash on hand.
The company completed a private placement on July 9 this year, under which well known Canadian precious metals investor Eric Sprott acquired a C$15 million stake in Steppe Gold.
This brings the company’s total cash on hand to approximately $29.4 million, which is bolstered by continuing gold sales from the producing segments of the ATO Gold Mine.
Bataa Tumur-Ochir, CEO of Steppe Gold, said he is excited to be accelerating the expansion of the ATO Gold Mine.
“Previous studies by Centerra and our own in-house work provide us with a high level of confidence in the economic potential of the fresh rock expansion.
“This larger second phase will clearly demonstrate that the ATO Gold Mine is a robust, long life, low cost operation with considerable exploration growth through aggressive drilling programs,” he added.
Steppe Gold (STGO) is currently down 3.79 per cent and is trading at C$2.79 per share at 3:18pm EDT.