Mongolia-focused Steppe Gold doubles resource at ATO gold mine

TSX-listed Steppe Gold has doubled the mineral resource at its ATO gold mine, located in Eastern Mongolia, from 1.22 million gold equivalent ounces to 2.45 million ounces, after a successful round of drilling at the project.

The updated ATO resource includes 41.6 million tonnes (Mt) of measured and indicated resources with an average grade of 1.67 g/t gold equivalent, and will form the basis of the upcoming bankable feasibility study (BFS).

The ATO 4 deposit, where mining has recently commenced, shows measured and indicated resources of 15.68 Mt at 1.62 g/t for a total of 819,000 gold equivalent ounces. Meanwhile, Steppe has also incorporated a maiden resource at the Mungu discovery, which has measured and indicated resources of 7.57 Mt at 1.74 g/t for 424,000 ounces of gold equivalent.

In a news release, Steppe’s president and CEO Bataa Tumur-Ochir said: “The new resource supports our Phase 2 expansion project and shows ample resources for a circa 2.5 Mt per annum fresh ore development.”

“The bankable feasibility study remains on schedule to be released Q2 2021, and we are optimistic that this study will bear out a robust economic result and a further 10 plus years of production at 150,000 gold equivalent ounces with a focus on the fresh rock ores.”

The ATO project is an open pit heap leach operation estimated to produce 146,699 ounces of gold and 672,518 ounces of silver over the project period. Production began in April last year.