Steppe Gold Ltd (TSE:STGO), the Mongolia-focused miner, announced Tuesday it has commenced exploration drilling and trenching programs at the ATO gold mine and Uudam Khundii gold project.
At ATO, the company said three diamond core drilling rigs have started operations, with a focus on high-grade depth extensions under the ATO1 Deposit currently being mined. The three rigs are now drilling at the Mungu Discovery with the aim of delivering an initial resource calculation.
The Uudam Khundii Gold Project is comprised of one exploration license covering 14,400 hectares in Bayankhongor province of Mongolia. The land package represents one of the largest exploration licenses in the Bayankhongor gold belt and the license is in a highly prospective location between and adjoining the Bayan Khundii gold deposit and Altan Nar gold deposit owned by Erdene Resource Development Corporation.
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Steppe Gold said it has already commenced initial exploration activity on four previously identified gold discoveries, including geological mapping, geochemical sampling, geophysical surveys, rock chip geochemical sampling, and trenching.
Initial trenching results should be available in the coming months, followed by an active drilling program through to the end of the year, the company added.
"We are very excited to commence our 2020 exploration program at the ATO Gold Mine and the exciting Uudam Khundii Gold Project,” said CEO Bataa Tumur-Ochir in a statement.
“With the ATO Gold Mine now successfully in production, we are looking to further define and update the fresh rock resource and in-house feasibility study to expand operations to approximately 150,000oz of gold per annum.”
Steppe Gold’s stock recently traded up 0.8% to $2.64 a share.
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