Steppe Gold Limited (TSX: STGO) has provided a positive operations update on its activities in Mongolia.
With one more pour to come on June 30, gold production for the month is expected to be around 3,200 oz, bringing total production for the second quarter to approximately 10,400 oz. The Mongolian government is currently paying a 5% premium for gold and this will ensure an above-market achieved gold price in the quarter and strong operating cash flow for the quarter.
The company also confirmed new supplies of key reagents and consumables allowing us to build stockpiles at site. It added that this in turn will allow it to be more aggressive on leaching strategy, with more cells under active leach, allowing for acceleration of monthly production rates through the balance of 2022. Steppe Gold expects a significant uptick in the production rate in the third quarter with internal guidance around 15,000 oz for the quarter.
At an estimated 70% recovery, total inventory at May 31 on the leach pad, ROM pad and pit floor was approximately 80,000 ounces of recoverable gold.
Mining and stacking activities were on plan for June with stacking on Cell 5 continuing and mining well above planned rates. Blasting at ATO 2 has commenced.
Steppe Gold has set up an exploration camp at the Uudam Khundii (UK) project located in the highly prospective Bayankhongor gold belt in Western Mongolia with first drilling programmes underway.
“We are very pleased to report a strong quarter of production at the ATO Gold Mine as we restarted full operations,” President and CEO of Steppe Gold, Bataa Tumur-Ochir, said.
“All activities at site are operating well and reagent and consumable stockpiles are building. Together with a strong inventory of ore we are optimistic of accelerating our production rate in the second half of 2022. Exploration drilling at the Uudam Khundii project is underway shortly and we are excited to see the results from this highly prospective deposit.”
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