Business
Steppe Gold Provides an Update on Ore Processing at ATO Gold Mine in Mongolia
Ulaanbaatar, Mongolia--(Newsfile Corp. - May 11, 2020) -   Steppe Gold Limited (TSX: STGO...
About this update from Steppe Gold Ltd.
[{"type":"text","content":"Steppe Gold Provides an Update on Ore Processing at ATO Gold Mine in MongoliaUlaanbaatar, Mongolia--(Newsfile Corp. - May 11, 2020) -  Steppe Gold Limited (TSX: STGO) (\"Steppe Gold\" or \"the Company\") is extremely pleased to provide an update on ore processing at its 100% owned ATO Gold Mine in Mongolia.Further to the March 25 announcement of the commencement of ore processing, the Company announces that it has now commenced gold and silver sales. To date the Company has sold a total of 5,233 oz of gold and 1,372 oz of silver in two separate deliveries to the Central Bank of Mongolia. This has generated cash flow before stream obligations of US$8.5 million . To date the Company has mined, crushed and stacked approximately 640,000t of ore at a grade of 2.0g/t gold onto Cell 1 where leaching is currently underway. A further 100,000t of ore has been delivered to the ROM pad and is being crushed and stacked. Daily mining of ore continues from the ATO1 open cut and is currently being scaled up.The Company remains on track to produce approximately 60,000 ounces of gold in 2020 at cash costs of circa $500 per ounce from the ATO Mine. Positive cash flows from the ATO Mine will go towards studies to expand the open pit and processing facilities for the Company to increase gold production to a targeted 150,000 ounces of gold per annum. Exploration drilling results for approximately 11,000 metres of diamond core drilling targeting extensions at depth on the ATO1, ATO4 and Mungu deposits will be available in the coming months.The COVID-19 pandemic has not resulted in any material impact on Steppe Gold's operations and the Company currently does not expect it will impact its 2020 production. Preventative measures are in place to ensure the well-being of employees and contractors and no risks were noted at the end of the quarter. Management continues to monitor the situation at the site and corporate offices to prevent or minimize any effects that the pandemic may have on operational or financial reporting activities.The Ministry of Mining and Heavy Industry of Mongolia noted, “We would like to applaud Steppe Gold for successfully commencing gold production at the ATO Gold Mine, which will positively impact the economy during this difficult period.”The Central Bank of Mongolia stated, “We are happy to welcome Mong...