ATO development progressing well, Steppe Gold says

Steppe Gold said progress at its Altan Tsagaan Ovoo (ATO) gold project is progressing well with capital expenditure under budget. Construction of the heap leach pad is well underway with significant advances made over the last month while the crushing circuit construction is nearing completion will be moving into commissioning in the coming weeks.

The company reported that it is pushing hard for a completion of site construction by the end of 2018 with first gold in the first half of 2019. All materials for the crusher and leach pad have been delivered to site and construction is now reportedly underway. In addition, mining camp accommodation and restaurant is fully operational with 106 people on site. Steppe said that the majority of the ADR plant equipment has been delivered to Mongolia and site works have commenced in preparation for construction next week.

Since acquiring the ATO project in late 2017, the company said it has completed a total of 99 drill holes for 16,157 meters.

“Exploration results have been excellent and they demonstrate the high-grade potential of the ATO Gold Project,” said the company.

“The Stage 3 drill program has commenced with three diamond core drilling rigs initially completing the oxide zone drill out at the ATO2 deposit. A total of 752.3 meters in 14 drill holes have been completed by the company at ATO with results pending. The company has now moved all three drilling rigs onto the exciting ATO4 – Mungu trend and to date a total of 3,270.3 meters have been completed in 22 drill holes. This drill program continues to deliver success with visible gold being identified already in ATO-348. This is incredibly encouraging so early in the program with all results pending,” the company added in a statement.

Steppe has appointed DRA Global to manage and undertake a bankable feasibility study for the construction and development expansion of the ATO Gold Project to 150,000 oz gold per annum for gold and silver production.

The company underlined that the study will be based on existing fresh rock ores at ATO1, ATO2 and ATO4, in addition to the potential being seen at the ATO4–Mungu trend. This study is reportedly ongoing.

“Over the summer months the company has experienced some delays to its development schedule from elements outside of the company’s control. These elements are now largely resolved and the company is proceeding full speed ahead with the ATO mine development. Steppe Gold continues to receive very strong support for the development of the ATO Gold Project from federal, state and local stakeholders in Mongolia with the ATO mine is already adding significantly to the local soum and Dornod economy,” said Matthew Wood, executive chairman of Steppe Gold.