Korelin Economics Report

Steppe Gold – Introduction To A Junior Gold Producer With Exploration Upside And Plans To Substantially Increase Production Growth

Aneel Waraich, Executive Vice President and Director of Steppe Gold Ltd (TSX: STGO) (OTCQX: STPGF), joins us for an expansive introduction to the companies 2 projects in Mongolia, the producing (AT0) Altan Tsagaan Ovoo Mine and (UK) Uudam Khundii Project, along with the newly acquired Tres Cruces gold development project located in Peru.

 

Aneel outlines how the company came together in Mongolia and acquired the ATO Gold Mine from Centerra Gold, and that they have worked the last 3 years getting the Phase 1 near-surface oxide heap-leach operations into production of around 35,000-40,000 ounces per annum.  The next big initiative for growth is the Phase 2 sulfide production expansion, where the Company recently updated it’s projection of ~103,000 ounces of gold production per annum, for a total of 14 years to 2036 at AISC of US ~$850.  There is still the potential to keep expanding the Phase 2 mine life, because some recent drill holes have already reported mineralization outside of the current mine plan.  Additionally, the exploration team is also targeting drilling for more nearby potential oxide mineralization which could also extend the Phase 1 mine life.

 

Next we shifted over to the companies other 2 projects, starting off with the earlier-stage UK Project, which is in a Joint Venture with the local provincial government, and adjacent to 2 other projects seeing great success in the area.   Then we pivoted over to the recent acquisition of Anacortes Mining and their Tres Cruces’ Gold Project in Peru; which already has defined about 2.5 million ounces of gold and robust PEA economics.   Both of these projects will get organically funded exploration work in the years to come, and have the potential if developed to eventually push the production profile up to over 200,000 ounces per annum. 

 

Aneel highlights the financial strength of the company, the alignment of management with shareholders as key shareholders themselves, along with the roster of key stakeholders in the company. The next key catalysts for the company will be the completion of the acquisition of Anacortes Mining, the debt financing deal to fund the balance of Phase 2 expansion at the ATO Mine, and ongoing exploration work at all 3 Projects.

 

If you have any questions for Aneel about Steppe Gold, then please email me @  Shad@kereport.com.

 

 

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https://steppegold.com/

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