Mongolian specialist Steppe Gold Limited (TSX: STGO) has provided a positive operations update for the final quarter of 2022.
- Gold production was 5,600oz in the fourth quarter for a total of 33,500oz for 2022
- Mined 958,288t and 922,051t crushed and stacked in the year ended 2022
- Strong reagent supplies at the year end and new supply routes functioning well
- At December 31, 2022, total estimated recoverable gold from oxide ores is 80,000oz
- Construction start for Phase 2 Expansion is planned for Q2 2023
The company welcomed a strong finish to 2022 with uninterrupted gold production since the resumption of irrigation in the Spring.
Gold production was approximately 5,600oz in the fourth quarter for a total of 33,500oz for 2022, and sales for the year was 33,700oz. We expect 2023 production to come in at a similar level to 2022 with some potential for upside. First quarter production is expected to be approximately 6,000oz.
The new boiler house has been working effectively through the winter to keep the solution above freezing and this has allowed for cold weather production to continue through the quarter.
The company has secured a strong inventory of reagent supplies and the new supply routes are functioning well.
Mining activities decreased in the fourth quarter as the planned winter slowdown commenced, with 93,380t mined across ATO2, ATO1 and ATO4, and 230,399t crushed and stacked in the third quarter. The company mined 958,288t and 922,051t crushed and stacked in the year ended 2022. We are now stacking Cell 1 of the second lift of the leach pad.
A reserve update has been prepared and the company expects to release the details shortly.
As at December 31, 2022 the company had mined 3.4Mt, crushed and stacked 2.8Mt @1.92 g/t for approximately 173,958oz of gold on the leach pad and 498,000t of ore at an average grade of 0.79g/t on the ROM pad. At an estimated 70% recovery, the total inventory from oxide ores is approximately 80,000oz of recoverable gold inclusive of 16,000oz in situ based on internal reserve estimates.
“We are pleased to report that the company produced 33,500oz of gold in 2022, a 180% increase over 2021,” President and CEO of Steppe Gold, Bataa Tumur-Ochir, said.
“The company has completed the construction of a new crushing unit and has a substantial inventory of mined ore to continue active production in 2023. Our primary focus for 2023 is to complete the financing for the Phase 2 Expansion and start construction of the new flotation plant to increase annual production to over 100,000 oz Au Eq by the end of 2024.”
For further information please visit: https://steppegold.com/
