Aneel Waraich, the Executive Vice President of Steppe Gold, shared important news with Steve Darling from Proactive regarding the company's latest developments. Steppe Gold has drawn down $9.6 million from its $150 million financing package, which was secured in October. This capital injection is intended to accelerate the construction and development of Phase 2 Expansion at the ATO Gold Mine in Mongolia.
The company is currently in the final stages of partnering with international engineering firms and construction teams in Mongolia to facilitate the expansion. The Phase 2 expansion is expected to be completed by the end of 2025, with commercial production commencing in 2026. This expansion is projected to increase production threefold, reaching over 100,000 ounces per annum for 12 years. Over the course of this period, Steppe Gold aims to produce over 1.2 million ounces of gold equivalent on a recovered basis. Steppe Gold is also actively engaged in exploration and drilling programs in the ATO license area, which covers 5,500 hectares. The company's drilling programs are ongoing, with a particular focus on additional oxide zones. Notably, Steppe Gold has explored less than 10% of the total license area, indicating significant untapped potential for future resource discovery.