Steppe Gold Ltd revealed it has now restarted heap leach processing to recover gold and silver at its ATO mine in Mongolia after it has received a shipment of key reagents.
Last year, the miner had significant supply issues related to coronavirus (COVID 19) lockdowns and border closures, notably with China, but has now secured new supplies.
As of March 1 this year, the firm has 2.45 million (m) tonnes of ore stacked on the leach and run-of-mine (ROM) pads, with 795,461 tonnes at 1.90 grams per ton (g/t) gold on the leach pad, while a further 451,580 tonnes at 1.15 g/t of the yellow metal is on the run-of-mine (ROM) pad.
It also has 569,604t at 2.09 g/t gold of blasted and unmined ore on the pit floors of the ATO1 and ATO4 open cuts which will now be carted to both pads. At 70% estimated recovery this derives a total of 81,842 ounces of recoverable gold, or around US$147 million at US$1,800 per ounce from the ROM and unleached areas.
READ: Steppe Gold strikes agreement for $65M in project finance and debt facility to fast track phase two construction at ATO Gold Mine in Mongolia
"Despite the unprecedented and unexpected challenges with reagent supply in 2021, the company continued its mining, crushing and stacking operations throughout 2021," said CEO of Steppe Gold Bataa Tumur-Ochir in a statement.
"We are very pleased to be back in production and to be able to use our significant inventory with over 81,842 ounces of estimated recoverable gold available to be leached, and a strong inventory of high-grade oxide ores in the active pits.
"We want to thank our partners and shareholders for their support during the challenging year. We believe 2022 will be the year of rapid growth and expansion with full production and further financing updates and development progress on the Phase 2 Expansion project."
To date, Steppe has produced 45,655 ounces from the ATO mine resulting in a recovery rate of 58%.
It continues crushing and stacking operations and will soon recommence mining with operations in all active pits, it added.
This year and in 2023 it aims to produce more than 100,000 ounces of gold from the oxide zones.
In Toronto, Steppe shares added over 20% on the day to C$1.53 each.
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Contact the author at giles@proactiveinvestors.com