Steppe Gold Limited (TSX:STGO, OTCQX:STPGF) has said it expects second-quarter gold production from its ATO operation in Mongolia to reach around 10,400 ounces.
“With one more pour to come on June 30, gold production for the month is expected to be around 3,200 ounces,” Steppe told shareholders.
The Mongolian government is currently paying a 5% premium for gold and this will ensure an above-market achieved gold price in the quarter and strong operating cash flow for the quarter, the firm added.
READ: Steppe Gold says gold production in Mongolia continues to increase in May with roughly 3,800 ounces of output
In an operational update, Steppe told investors that it had confirmed new supplies of key reagents and consumables that will allow the company to build stockpiles at the site. The move allows Steppe to be “more aggressive” on leaching strategy, with more cells under active leach, it added.
As a result, Steppe said it expects third-quarter production to reach nearly 15,000 ounces.
"We are very pleased to report a strong quarter of production at the ATO Gold Mine as we restarted full operations,” CEO Bataa Tumur-Ochir said in a statement.
“All activities at site are operating well and reagent and consumable stockpiles are building. Together with a strong inventory of ore we are optimistic of accelerating our production rate in the second half of 2022.”
At an estimated 70% recovery, the total inventory at May 31 on the leach pad, ROM pad and pit floor was approximately 80,000 ounces of recoverable gold.
The CEO added that exploration drilling at the Uudam Khundii project will be underway shortly, terming it a “highly prospective deposit."
Steppe Gold owns 100% of the advanced staged ATO gold project where resource expansion drilling and a heap leach development is currently underway. The company also owns 80% of the Uudam Khundii gold project.
Steppe is one of Mongolia's main precious metals companies.
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