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Steppe Gold (TSX:STGO) pushing ahead with Phase 2 expansion after strong first year production results

Mining
TSX:STGO
30 March 2021 15:15 (EDT)

Steppe Gold has announced the fourth-quarter and year-end financial results for its first year of production.

“We are very pleased to report a strong start to production at the ATO Gold Mine with operating cash flow from mine operations in 2020 of $32.6m, on revenue of $52.1m, in an approximate 9 months of production,” announced Steppe Gold President and CEO Bataa Tumur-Ochir.

“Most importantly we are proud to report a zero accident safety record at the project, and our exemplary environmental record has been recognized with a 93% result on the latest environment audit,” Mr. Tumur-Ochir continued.

The project now supports a planned production profile of approximately 150,000 gold equivalent ounces per year and an estimated ten-year plus mine life.

In addition, work is well advanced on the Bankable Feasibility Study (BFS) for the Phase 2 expansion of the ATO Gold mine.

The BFS, which is due for release in summer 2021, incorporates the recent resource update and a detailed series of new metallurgical work.

Steppe Gold is targeting an annual production in 2021 and 2022 of between 50,000 to 60,000 oz, followed by a transition to the fresh rock ores in 2023. Production forecasts for 2021 are dependent on a restart of leaching in April 2021 and no further delays on procurement due to COVID 19.

Steppe Gold is a precious metals exploration and development company focused on opportunities in Mongolia. The company’s projects include the Altan Tsagaan Ovoo Project (ATO Project) and Uudam Khundii property in Mongolia.

Steppe Gold (STGO) is down 4.78 per cent and is trading at C$2.19 per share as of 1:56 pm ET.

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