A feasibility study for the ATO gold project in Mongolia has extended mine life by 10.5 years to 12.5 years, Steppe Gold said. 

Production of the first concentrate is anticipated for the fourth quarter of 2023. Production estimates for the first five years of the mine are 106,000 ounces of gold equivalent.

In its Phase 2 expansion currently underway, Steppe Gold has installed a 2.5 million tonne per year fixed crusher, with plans to process 2.2 million tonnes per year.

Gold recovery is anticipated to be at 79%, while Steppe Gold plans to increase this rate through either a carbon-in-pulp (CIP) or carbon-in-leach (CIL) plant in the next few years.

The mine's tailing facilities will include an initial starter cell of 3.6Mt, intended for the first 18 months of production. Steppe Gold will increase the size up to 14.8Mt, with an average annual throughput rate of 2.38Mt per year. The company plans to increase the size on an annual bases, but may amend this to biennial increases.

The tailings tam has been constructed to meet guidelines by both the Australian National Committee on Large Dams and the Global Industry Standard on Tailings Management.

Post-tax Net Present Value at a 5% discount rate is US$232 million with an IRR of 67%, with a payback period of three years.

Initial capital costs for the openpit mine are US$128 million, with estimates for operating costs at US$668 million over the life of the mine.

Steppe Gold will continue exploration work on the Mungu gold-silver deposit.

Proven and probable reserves at ATO amount to 26.4 million tonnes at 1.86 g/t gold equivalent, 1.14 g/t gold, 11.18 g/t silver, 0.46% lead, and 0.78% zinc.