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Steppe Gold: Completion of the Feasibility Study for the ATO Gold Project Successfully Demonstrates a Robust, Long Life Operation
ULAANBAATAR, Mongolia, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Steppe Gold Ltd (TSX: STGO) (OTCQX:STPGF) (FSE:2J9) (“Steppe Gold” or the “Company”) is pleased to anno
About this update from Steppe Gold Ltd.
[{"type":"text","content":" ULAANBAATAR, Mongolia, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Steppe Gold Ltd (TSX: STGO) (OTCQX:STPGF) (FSE:2J9) (“Steppe Gold” or the “Company”) is pleased to announce the positive results of the Feasibility Study on the 100% owned ATO Gold Project in Mongolia (the “Feasibility Study”), comprising a further two years at the producing oxide phase and a 10.5 year expansion (“Phase 2 Expansion”), for a 12.5 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. All amounts are in US dollars unless otherwise indicated. HIGHLIGHTS Pre-Tax NPV(5%) of $320 million with an IRR of 109% and a Post-Tax NPV(5%) of $232 million with an IRR of 67%, driven by rapid payback of three years from initial capital outlay Total gross revenue of $1.72 billion and EBITDA of $584 million over 12.5 years, with first concentrate production anticipated in Q4 2023. 106k oz of annual gold equivalent ounce production in years 1-5 of the Phase 2 Expansion, following depletion of the oxide zone Average site AISC of $853/gold equivalent ounces, with solid plans to optimize, notably with grid power Initial capital expenditure, prior to optimisations, is expected to be $128 million (including a $12 million contingency) Phase 2 Expansion assumes processing 2.2 million tonnes per annum incorporating crushing, grinding and flotation of concentrates Gold recovery is forecast to be 79% with further recoveries of up to estimated 10% through CIP/CIL plant in later years Mr. Bataa Tumur-Ochir, President and CEO commented, “Following our highly encouraging resource update earlier this year, we are very pleased to share the Feasibility Study results. These results reinforce Steppe Gold’s commitment to creating shareholder value from our exciting and growing portfolio of precious metal assets. We are confident that our flagship asset, the ATO Gold Project, will deliver significant upside for all stakeholders with the robust economics from this project and infrastructure already in place. The 2021 Feasibility Study highlights a positive economic project for the Phase 2 Expansion at the ATO Gold Mine. This has confirmed an expanded life of mine to 12.5 years producing gross revenues of $1.72 billion, EBITDA of $584 million with an initial cape...