Malibu, CA, Sep 8, 2022 AEST (ABN Newswire) - Join Ellis Martin now for a conversation with Aneel Waraich the Executive Vice President and Director of Steppe Gold Ltd (STPGF:OTCMKTS)(TSE:STGO). We take a look at a demonstrated explorer, developer and gold producer in Mongolia employing approximately 250 individuals locally. Production costs all in are about $750-800 per ounce. Today Mr. Waraich reviews the company's Phase 2 expansion of the ATO Gold Mine and how that will also bring down production costs per ounce of gold. Listen to the interview.
Power Update - Approval has been received from government agencies to provide grid power to the ATO Phase 2 Expansion. This landmark agreement will drive significant energy savings and will be a key infrastructure benefit for the ATO Gold Mine and its local communities. Will reduce expected cash costs by well in excess of $100/oz for Phase 2.
The new fixed crusher is near completion, providing greatly accelerated crushing rates and represents a key component of the Phase 2 Expansion.
Steppe Gold retains an inventory of 80,000 ounces of gold on a 70% recovered basis, allowing for strong near term production rates.
Steppe Gold's ATO Gold Mine has received relevant approvals from the Ministry of Energy and National Dispatching Center to build and connect a high voltage power line system of 110/35/10 kV and use 10MW from the Dornod Province State Power Plant. This is a major milestone in the Phase 2 Expansion, and a special purpose company Steppe Power LLC has been established to manage the development and connection to the state grid system.
The Company retained a leading global engineering firm to advise on available energy options for the Phase 2 Expansion, including renewable alternatives. Renewable options are generally too expensive at this scale, with traditional energy sources more economic.
With the recent significant rise in fuel prices, connecting to the state grid power system will dramatically reduce projected energy costs by 75%, or from approximately $32M to $8M annually at the Phase 2 Expansion and will reduce expected cash costs by well in excess of $100/oz.
The Company plans to commence the construction of a high voltage power line system in 2023-2024, and the flotation plant should be complete by Q3 2024.
New Crusher Update
Steppe Gold reports that the Phase 2 Expansion continues to ramp up with the new fixed crusher nearing completion in October.
All equipment for the new crushing unit has arrived via 15 open-top railway wagons and 62 trucks.
Currently, 160 tonnes of equipment have been installed out of a total of 220 tonnes, and installation work is 72% complete.
8,168 M3 earthwork - 100% complete
2,912 M3 concrete work - 100% complete
450 tons of steel structure - 97% complete
The new 1,000 tonnes per hour crushing unit consists of 2 jaw crushers, 4 hydraulic cone crushers, 5 vibration screens and 5 vibration feeders, 17 conveyor systems, 3 sets of buffer bins with steel structure, 3 underground buffer bins with steel structure and central control system.
Once operational, the new crushing unit will increase Steppe Gold's current capacity by 4 times, up to 4Mt per annum/ at 50% of its power.Steppe Gold is Mongolia's premier precious metals company and is projected to produce over 100,000 ounces of gold from the current operational oxide zone of the ATO Gold Mine this year in 2022 and in 2023. The Company also completed a feasibility study into expansion of the ATO Gold Mine to approximately 100,000 ounces of gold per annum from the development of underlying fresh rock ores.
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About Steppe Gold Ltd
Steppe Gold Ltd (TSE:STGO) (OTCMKTS:STPGF) (FRA:2J9) is Mongolia's premier precious metals company and is projected to produce over 100,000 ounces of gold from the current operational oxide zone of the ATO Gold Mine this year in 2022 and in 2023. The Company also completed a feasibility study into expansion of the ATO Gold Mine to approximately 100,000 ounces of gold per annum from the development of underlying fresh rock ores.