Steppe Gold Limited (TSX:STGO, OTCQX:STPGF), a Mongolian focused precious metals company has provided investors with its third-quarter activities update featuring strong gold and silver inventory build-up through the year.
During the third quarter, mining and stacking on the heap leach phase at its flagship Altan Tsaagan Ovoo (ATO) mine in eastern Mongolia has continued with 1.7 million tonnes stacked on the leach pad and a further 0.6 million tonnes stacked on the ROM pad.
“Based on sampling grades on mined and stacked ore, together with estimated unrecovered ore on the leach pad or in the solution or circuit, we estimate that we now have a total of over 40,000 ounces of gold in inventory, on a 70% recovery basis, on the leach pad, ROM pad and in circuit,” the company said.
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Additionally, solid progress has been made on the construction and installation of the new fixed crushing unit and is expected to be operational by the end of 2021.
The crushing unit is the first major equipment installation for the fresh rock phase, and is expected to allow Steppe to drive higher crushing rates in the remaining oxide phase with ample excess capacity in the plant.
Ahead of the season change, the boiler house for winter leaching and production has been completed and is now in the testing phase.
As the company advances its ATO mine it is also dealing with the continued supply chain disruption brought on by the coronavirus (COVID-19) pandemic. This has been exacerbated by continuing high rates of COVID 19 in Mongolia resulting in robust restrictions at the Mongolia-China border for certain goods.
While the company considers the logistic woes to be temporary in nature, it has deferred production from 2021 to 2022.
Now with the pending onset of winter conditions we are focusing on maximizing our inventory position to set up for a very strong production year in 2022, the company stated.
The now complete definitive feasibility study for the fresh rock expansion is expected to be released by October 26, 2021.
"While the pandemic continues to cause severe disruptions in our supply chain, we are optimistic that the China border issues will be resolved soon,” Bataa Tumur-Ochir, president and CEO of Steppe Gold, said in the statement.
He continued: “Mining and stacking at ATO has continued at planned rates, with over 40,000 ounces of gold currently in inventory. We expect that this will put us back on track for a strong year of production in 2022, towards 60,000 gold ounces.”
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