Steppe Gold Ltd (TSE:STGO), the precious metals miner, updated Tuesday on exploration in Mongolia, where the firm says it continues to uncover high-grade drill results from its flagship ATO gold mine.
Three diamond drill rigs are currently turning 24/7 at ATO and the aim is to post resource upgrades on the existing ATO deposits and to deliver a maiden resource on the firm's Mungu Discovery before the end of the year.
READ: Steppe Gold seeing strong cash flow from ATO mine as it looks to second phase of expansion
Highlight assays include 22 metres (m) at 2.4 grams per ton (g/t) gold from 85 m at the ATO4 deposit and 34.3 m at 7.6 g/t gold, 24.11 g/t silver from 259.7 m at the Mungu discovery. Hole assays from this year at Mungu include 15 m at 7.81 g/t gold, 6.07 g/t silver from 331 m.
"The ATO gold project continues to delivery exciting and high-grade drilling results that demonstrate the robust nature of the ATO Gold Mine fresh rock deposits, which underpin the long-life nature of this exciting project," said Bataa Tumur-Ochir, the chief executive.
"Early showings at the UK (Uudam Khundii) project are also positive and we look forward to updating all our stakeholders and shareholders on our progress."
At the Uudam Khundii gold project, exploration programs have begun, the firm noted.
So far, Steppe has completed 18 trenches for 933 m in 2020 at the Milky Way and the Altan Sum prospects at the property. Work is ongoing with more trenching planned across all four prospects discovered.
At Milky Way, initial trenching results have highlighted a mineralized system of at least 700 m in length and up to 12 m wide with individual meter sampling results up to 1.49 g/t gold, 450 g/t silver, 2.98% copper, 3.98% lead and 0.31% zinc, said Steppe.
Advancing BFS
The firm also said that it was advancing its bankable feasibility study (BFS) into the expansion of the ATO gold mine into fresh rock ores. External project finance advisers have been hired and discussions have already commenced with lending groups.
"Supported by a strong working capital position and regular cash flow from ATO operations, the company is optimistic in concluding project finance for the construction of the CIL facility and remaining infrastructure, to allow for commencement of construction by mid-2021," Steppe said.
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