Steppe Gold Ltd told investors that it completed its first gold pour and subsequent sale of the metal late last month following the resumption of production at its oxide heap leach operation.
In an operations update, the Mongolia-focused gold miner said the gold pour was 1,532 ounces with gross proceeds of US$2.93 million. It expects to conclude gold pours and sales twice a month as production ramps up, it added.
"We are very pleased to be back in production and to conclude our first gold pour and sale for the year,” president and CEO Bataa Tumur-Ochir said in a statement. “With an estimated 80,000 ounces of gold in inventory, ramp-up of production continues and we look forward to a very active year of production and strong cash flow, as well as expansion and exploration on both of our licenses."
READ: Steppe Gold back in production at ATO gold mine in Mongolia after receiving key reagents
Steppe said inventory build-up for key reagents continues with three additional shipments now received over the last month.
Additionally, it said its executive team is committed to mitigating future supply chain risk potentials by continuing to build a stockpile of key reagents and chemicals. The reagent storage centre was recently expanded to allow up to 220 tonnes of supply, with the goal of retaining 4-6 months of supply on site at all times.
“The company continues to work on the Phase 2 Expansion debt package and expects to share further updates by the summer,” it added. “With tranche 1 of the BOM (Bank of Mongolia) $60m debt package now available, the company is working actively on the new crusher construction, camp expansion and earth-works.”
The company said it also plans to update the market in the coming weeks on drilling results at its ATO gold mine from last year and the expected commencement of drilling and programs associated with its Uudam Khundi licence in Bayanghankor province.
Meanwhile, it said it continues crushing and stacking operations and has recommenced mining with operations in all active pits.
It plans to produce over 100,000 ounces of gold from the oxide zones in 2022 and 2023.
Contact the author at stephen.gunnion@proactiveinvestors.com