Steppe Gold resumes full production in Mongolia after resolving reagent supply issues
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(Kitco News) – Steppe Gold (TSX:STGO) today announced that it has received a new shipment of key reagents and has now resumed full production at its ATO gold and silver mine in Mongolia.
The company said throughout 2021 it faced significant reagent supply issues related to COVID lockdowns and border closures, including with China.
“After exploring numerous supply alternatives, the company has now secured new supplies and has resumed heap leach processing of the ore,” Steppe noted in a statement.
The company added that it has continued large-scale mining, crushing and stockpiling operations at the ATO gold mine throughout 2021 and is very pleased to report strong inventory build-up on the leaching platform, the ROM platform and the mine ores on the pit floor.
The company is continuing its crushing and stacking operations and will soon resume mining with operations in all active pits. The company also expects to produce over 100,000 ounces of gold from the oxide zones in 2022 and 2023.
President and CEO Bataa Tumur-Ochir said, “Despite unprecedented and unexpected reagent supply challenges in 2021, the company continued mining, crushing and stacking operations. throughout 2021. We believe 2022 will be the year of rapid growth and expansion with full production. and further funding updates and development progress on the Phase 2 expansion project.”
Steppe Gold is Mongolia’s premier precious metals company. The Company’s flagship operation is the Altan Tsagaan Ovoo (“ATO”) gold and silver mine. The company said the ATO gold mine is expected to generate $1.72 billion in revenue and more than $584 million in pre-tax profit with CAPEX of $128 million, rapid capital repayment in 3 years after taxes.
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