Steppe Gold Limited (TSX:STGO, OTCQX:STPGF) announced that gold production has continued to increase in May, with another two gold pours leading to roughly 3,800 ounces (oz) of production for the month.
This compares to the output of 3,370 oz in April and 1,532 oz in March, the company said.
"We are very pleased to report another strong month of production in May at the ATO Gold Mine,” Steppe Gold CEO Bataa Tumur-Ochir said in a statement.
“All activities at site are operating well. Our design work for the Phase 2 Expansion is ongoing and the process of selection of contractors is underway. We are also very excited to commence exploration drilling at the highly prospective UK (Uudam Khundii) project," he added.
READ: Steppe Gold reports 1Q revenue boost as company ramps up production at its ATO mine in Mongolia
The company also confirmed that it has received three reagent shipments in May, where the plan is to build up its reagent inventories to allow for additional areas under leach. Unleached sections of Cell 4 are coming online now, which will support a continued increase in production rate.
Additionally, mining and stacking activities are on schedule for the month, with Cell 4 stacking now complete. Meanwhile, a new crushing unit is on schedule to be operational in August, setting the stage for higher stacking rates for the second half of 2022.
Mining activities continued at above-planned rates with the hauling of high-grade blast material at ATO 1 and ATO 4. Topsoil removal has been completed at ATO 2 while mining of free-dig material has commenced, the company noted.
Steppe Gold has also set up an exploration camp at the Uudam Khundii (UK) project located in the highly prospective Bayankhongor gold belt in Western Mongolia with the first drilling programs underway.
Elsewhere, Steppe Gold will be attending the Prospectors & Developers Association of Canada (PDAC) convention in Toronto. The Steppe team, along with Mongolian government officials and other mining leaders will be present from 1.30pm to 6.00pm ET on June 13, followed by a networking reception. Steppe will also be on the tradeshow floor at booth #2725.
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