Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) announced its construction partner Hexagon Build Engineering has contracted professional services firm WSP Canada to advise on the engineering and design of the Phase 2 Expansion at the ATO Gold Mine in Mongolia.
The precious metals company said WSP was selected due to their rich experience in metal processing and environmentally friendly solutions.
For the ATO Phase 2 Expansion, WSP will provide a range of services, specifically overall project design, plant layout optimization, detailed engineering, and procurement support.
The parties have agreed to complete a detailed engineering design for the new flotation plant in 15 months, according to a statement from Steppe Gold.
It is expected that procurement and construction will proceed concurrently with ongoing design development.
Following the receipt of the latest milestone payment from Steppe Gold, Hexagon will place orders for long lead items within the third quarter.
The company said that early works are already underway, including a feasibility study, geotechnical studies and trade-off studies to optimize the grinding circuit and use of Jameson cells versus conventional flotation, which are expected to be completed by the end of September 2024.
Hexagon will then mobilize to the ATO site to begin civil works, Steppe Gold added.
Commissioning of the Phase 2 Expansion remains on schedule for the first half of 2026.