Name of the Project
Altan Tsagaan Ovoo (ATO) gold project.

Location
Mongolia.

Project Owner/s
Precious metals company Steppe Gold.

Project Description
The 2021 feasibility study on the Phase 2 expansion of the ATO mine has proved positive and has demonstrated a robust, long-life operation.

The project includes a further two years at the producing oxide phase and a 10.5-year expansion (Phase 2), for a 12.5-year aggregate mine life.

About 106 000 oz/y of gold equivalent ounces are expected to be produced in years 1 to 5 of the Phase 2 expansion, following depletion of the oxide zone.

The Phase 2 expansion is expected to process 2.2-million tonnes a year, incorporating crushing, grinding and flotation of concentrates.

Gold recovery is forecast to be 79%, with further recoveries of up to 10% through a carbon-in-pulp/carbon-in-leach plant in later years.

Steppe has numerous plans under way to further optimise the Phase 2 expansion to include planned connection to grid power, optimisation of construction and engineering costs, and further exploration and remodelling to support higher conversion of resources to reserves.

The tailings storage facility (TSF) will comprise an initial starter cell of 3.6-million tonnes, with a final capacity of 14.8-million tonnes a year at an average throughput rate of 2.38-million tonnes a year.

Subsequent to Stage 1, the TSF will be constructed in annual raises to suit storage requirements; however, this may be adjusted to biennial raises to suit mine scheduling during the operation.

Potential Job Creation
The Phase 2 Expansion will generate an additional 300 jobs.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $319.97-million and an internal rate of return of 108.8%, with a payback of 2.5 years from initial capital outlay.

Capital Expenditure
The project will require initial capital expenditure of $128-million.

Planned Start/End Date
First concentrate production is expected in the fourth quarter of 2023.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
GeoRes (mineral resources); DRA Global (mining, mineral reserves, geochemistry, processing plant and infrastructure); Ulzii Environmental (environmental and social studies); Knight Piésold (tailings facilities, hydrology and tailings facility geotechnical); and DRA Global and CRU Consulting (economic evaluation/financial modelling).

Contact Details for Project Information
Steppe Gold, tel +976 7732 1914.