Steppe Gold Limited (TSX:STGO, OTCQX:STPGF) said it has discovered multiple high-grade zinc zones below gold deposits at its 100%-owned Altan Tsagaan Ovoo (ATO) project in Mongolia.
Following exploration drilling at ATO, the Mongolia-focused gold miner said it concentrated on extensional and step-out targets as it maintained activity in late 2021. At the time, it said it continues to ramp up production of gold and silver from the oxide ores at the mine.
The results underscore the long-held view that the ATO project has strong long-term potential and remains open to support further drilling targets, the company added.
"We are very pleased to announce these exciting drill results with high grade intercepts of zinc and lead supporting our view that the Phase 2 Expansion at ATO has much further to go,” the company’s president and CEO Bataa Tumur-Ochir said. “Our 2021 feasibility study demonstrated robust economics focused on strong gold and silver content in the sulphide zones."
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Steppe Gold said the recent drilling completed at the ATO gold deposits has continued to target depth extensions of the existing ATO deposits. This has resulted in a new discovery of multiple high grade zinc sulphide intercepts beneath the existing gold deposits.
Drill results include:
- 20.95 metres (m) at 10.56% zinc and 3.13% lead from 347.65m (ATO-364)
- 15m at 8% zinc and 5.87% lead from 371m (ATO-379)
- 55.4m at 4.23% zinc and 1.83% lead from 98.5m (ATO-391)
- 10.62m at 9.2% zinc and 4.3% lead from 201.15m (ATO-396)
- 23.5m at 6.28% zinc and 1.63% lead from 396m (ATO-423)
The company said it intends to follow this up with an extensive drilling program in the coming months, utilizing up to three drilling rigs.
“These drilling results provide further encouragement that there is high grade zinc and lead in situ,” Tumur-Ochir added. “With well-established logistics from the site to the nearby Chinese border, this adds to our confidence in the long-term viability of ATO with multiple revenue streams.”
Contact the author at stephen.gunnion@proactiveinvestors.com