Mongolia

ATO Phase 2 Expansion Project

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Overview

Mine TypeOpen Pit
StageConstruction
Commodities
  • Gold
  • Silver
  • Lead
  • Zinc
  • Pyrite
Mining Method
  • Truck & Shovel / Loader
Production Start... Lock
Mine Life12.5 years (as of Jan 1, 2022)
ShapshotFollowing the announcement of $150m ATO Phase 2 Expansion financing in July 2023, Steppe Gold is now pleased to announce that initial drawdowns have commenced, with major work streams now starting across the expansion project. Funds are being drawn from the first tranche of $50m provided by the Trade and Development Bank of Mongolia with an initial drawdown of approximately $10m.

ATO Phase 2 Expansion will increase ATO Mine production three times to over 100,000 ounces per annum for 12 years and produce over 1.2 million ounces of gold equivalent on a recovered basis.
Related AssetAltan Tsagaan Ovoo (ATO)

Owners

SourceSource
CompanyInterestOwnership
Steppe Gold Ltd. 100 % Indirect
Steppe Gold Ltd. are owner ATO gold mine.

Contractors

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Deposit type

  • Epithermal
  • Breccia pipe / Stockwork

Summary:

The geology of the property consists of metamorphosed Devonian sedimentary rock overlain by a volcanic and sedimentary sequence of Permian age and remnant scraps of probable Jurassic volcaniclastic units, intruded by Jurassic plutons ranging from diorite to granite in composition and including rhyolitic phases mainly as dikes. Petrographic study suggests simple, single-pulse injections of the intrusions, with late-stage generation/expulsion of felsic phases and contemporaneous concentration of metal-rich fluids.

Mineralization at ATO is probably related to the Jurassic intrusive magmatic rocks as sources of heat, metals, and fluids. The main ATO system is associated with a stratigraphic unit that appears to be localized in a graben or collapse feature that is possibly but not certainly Jurassic in age; any stratigraphy could potentially be prospective for this style of mineralisation. The ATO mineralisation appears to have occurred as a protracted single-stage process in separately upward-flaring pipe-shaped bodies, with temperatures ranging from ~300-350°C at depth to possibly ambient temperature in surficial sinter.

Metal zonation: In a broad sense, metal zoning shows a clear, classic pattern of intrusion-centred copper (plus or minus molybdenum, tungsten, gold, and other elements) outward to country-rock hosted lead, zinc, and silver (plus or minus gold, arsenic, antimony, mercury, and other elements). It is presumed that this lateral zonation also occurs vertically, as evidenced by increasing copper values at depth in ATO.

It is believed that the ATO deposit is an epithermal gold and polymetallic deposit of transitional sulphides in breccia pipes in a Mesozoic continental rift zone in eastern Mongolia. Formation of breccia pipe: Tectonic-magmatic activities began to take place in the area around ATO deposit in Early Jurassic when hydrothermal and metasomatic alterations and mineralisation were formed in relation to intrusions and dykes. Absolute age of an intrusive massive located outside and east of ATO prospect area was determined to 189 million years.

The pipes that have been identified in the deposit are aligned in a row in a structure with a trend from southeast to northwest and form mineralisation with differing horizontal geochemical zonation with certain metallic concentrations. Noel White (2001) devised a pattern of flow of fluids based on this geochemical zonation similarity with that found adjacent to porphyry copper intrusions. White’s model postulates that the horizontal mineral zonation between the ATO pipes could originate from a large intrusion (such as a porphyry copper) located tens of kilometres away from ATO deposit.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Lead Concentrate kt 184
Zinc Concentrate kt 293
Pyrite Concentrate kt 612
Gold Equivalent Metal in concentrate koz 106

Operational metrics

Metrics
Annual ore mining rate 00
Annual processing capacity 00
Tonnes processed, LOM 0000000
* According to 2021 study.

Production Costs

CommodityUnitsAverage
Assumed price Lead USD 0000
Assumed price Zinc USD 0000
Assumed price Silver USD 00
Assumed price Gold USD 0000
* According to 2021 study / presentation.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
Total OpEx $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 5% $M USD  ......  Subscribe
Pre-tax NPV @ 10% $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

Source Source
Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Oct 18, 2023
....................... Subscription required ....................... Subscription required Subscription required Oct 27, 2021
....................... Subscription required ....................... Subscription required Subscription required Oct 27, 2021
....................... Subscription required ....................... Subscription required Subscription required Oct 18, 2023

EmployeesYear
Subscription required 2021

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