Business
Steppe Gold Announces Updated LOM Plan for ATO Gold Mine to 2036 - Higher Revenues and Profits
Ulaanbaatar, Mongolia--(Newsfile Corp. - February 21, 2023) - Steppe Gold Ltd (TSX: STGO) (OTCQX...
About this update from Steppe Gold Ltd.
[{"type":"text","content":"Steppe Gold Announces Updated LOM Plan for ATO Gold Mine to 2036 - Higher Revenues and ProfitsUlaanbaatar, Mongolia--(Newsfile Corp. - February 21, 2023) - Steppe Gold Ltd (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) (\"Steppe Gold\" or the \"Company\") is pleased to announce an updated life of mine (\"LOM\") for the 100% owned ATO Gold Project in Mongolia, comprising a further 1.5 years at the fresh rock expansion (\"Phase 2 Expansion\"), for a 12 year aggregate mine life. The results reinforce the Company's current Phase 2 Expansion plans with construction already underway, and existing permitting and infrastructure in place. The Phase 2 Expansion is scheduled to start with first concentrates in Q1 2025. The LOM plan includes the ongoing oxide operations which has a further three years to run, for a total of 14 years of mine life, from January 1, 2023. This news release contains forward-looking information regarding Steppe Gold's business and operations, see the Cautionary Note Regarding Forward-Looking Information on page 8 of this news release. All amounts are in US dollars unless otherwise indicated.HIGHLIGHTSIncrease in proven and probable gold mineral reserves from the 2021 mineral reserve and resources summary by 2.7 million tonnes, from 26.4 million to 29.1 million tonnes. The ATO Project deposit contains mineral reserves totaling 29.1 million tonnes at 1.13 g/t gold and 12.43 g/t silver, containing 1.1 million ounces of gold and 11.7 million ounces of silver. This derives a total of 1,320,000 oz Au Eq recovered, over oxide and fresh rock phases and a 14 year mine life.Fresh rock mine life is extended by 1.5 years to 12 years, extending open pit mining and milling operations to December 2036.The new pit model shows the fresh rock phase generating 1,237,000 oz Au Eq recovered over 12 years, at average Au Eq oz of 103,000 oz per annum, before payability adjustments.The update of reserves and resources have also reinterpreted the transition zone with the transitional layer now thinner than previously modelled. Total gross revenue over the next 14 years, including the balance of the oxide phase, of $2.2 billion and operating cash flows after stream obligations, of $781 million, with first concentrate production from Phase 2 anticipated in Q1 2025.It assumes gross revenue in the remaining oxide phase of $158M ($1,900/oz gold price)...