Email
Password
Remember meForgot password?
    Log in with Twitter
| Press Release

Steppe Gold Development And Drilling Update

TORONTO, Sept. 12, 2018 (GLOBE NEWSWIRE) -- Steppe Gold Limited (TSX: STGO) (the “Company” or “Steppe Gold”) is extremely pleased to announce the progress that has been made over summer at its Altan Tsagaan Ovoo and Uudam Khundii Gold Projects in Mongolia.

Visible Gold in drill core from ATO299
Visible Gold in drill core from ATO299


Pre-Stripping of ATO1 Deposit
Pre-Stripping of ATO1 Deposit


Crusher Construction Site
Crusher Construction Site


Crusher Construction Site
Crusher Construction Site


Crusher Footings Being Installed
Crusher Footings Being Installed


Diamond core drilling at the ATO 4 – Mungu Trend
Diamond core drilling at the ATO 4 – Mungu Trend


Panoramic view of camp and firebreak
Panoramic view of camp and firebreak


ATO4 - Mungu Trend at completion of the Stage 2 drilling program - Gold & Silver mineralization.
ATO4 - Mungu Trend at completion of the Stage 2 drilling program - Gold & Silver mineralization.


HIGHLIGHTS

  • The ATO development is progressing well with some delays experienced over the summer period. The project CAPEX remains under budget.
  • The ATO crushing circuit is now on site and is under construction with commissioning planned for the coming month.
  • Pre-strip of the ATO1 deposit is nearing completion with material being stockpiled for later crushing.
  • Heap leach pad construction materials delivered to site and ready to commence construction.
  • ADR Plant fabrication completed with delivery to the ATO site scheduled for late September.
  • Consultant appointed and bankable feasibility study commenced on 150,000oz gold per annum operation on fresh rock ores.
  • The Stage 2 drilling program was completed with three diamond core drilling rigs completing a total of 36 drill holes for 9,006 meters.
  • The Stage 2 drilling program was highly successful and focused on the ATO4 end of the ATO4-Mungu mineralized trend.
  • First visible gold seen at ATO with super high grades being returned;

               ATO299   1m at 212g/t gold from 104m
               ATO317   1m at 183g/t gold from 166m
                               1m at 382g/t gold from 182m

  • Better drilling results from the Stage 2 program include;

               ATO297   63m at 6.28g/t gold & 5.91g/t silver from 54m
               ATO299   54m at 6.17g/t gold & 4.48g/t silver from 70m (incl. 1m at 212g/t gold)
               ATO300   68.5m at 4.38g/t gold & 6g/t silver from 33.5m
               ATO301   13m at 6.07g/t gold & 5.96g/t silver from 89m
               ATO304   144m at 1.55g/t gold & 5.08g/t silver from 36m
               ATO310   101.7m at 1.53g/t gold & 30.43g/t silver from 0m
               ATO314   54m at 2.96g/t gold & 5.32g/t silver from 45.5m
               ATO315   88.4m at 1.55g/t gold & 93.46g/t silver from 9m
               ATO313   43.35m at 1.75g/t gold & 3.43g/t silver from 83.65m
               ATO318   54.8m at 1.77g/t gold & 5.64g/t silver from 29.5m
               ATO322   78m at 2.56g/t gold & 13.7g/t silver from 42m
               ATO317   22m at 30.15g/t gold & 7g/t silver from 164m (incl. 1m at 183g/t and 1m at 382g/t gold)
               ATO326   61.25m at 2.48g/t gold & 5.93g/t silver from 100m.

  • The company has commissioned SRK Consulting to complete a structural review of the ATO - Mungu epithermal system. This is nearing completion and is expected to deliver significant gains to future drilling efforts.
  • The Stage 3 drilling program targeted at the ATO4-Mungu trend will commence towards the end of September.
  • Soil sampling, rock chip sampling and geophysics has highlighted four new discoveries at the Uudam Khundii Project in Bayankhongor gold province
  • The largest of the new discoveries is the Altan Sum Discovery which is a gold anomaly measuring approximately 3km x 0.5km with soil samples up to 289 ppb gold and rock chips up to 1.38g/t gold.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/5d99a732-af86-4155-9bfa-9e797e8991a3

 
ALTAI TSAGAAN OVOO GOLD PROJECT (ATO)

DEVELOPMENT

The Company is now targeting completion of site construction by the end of 2018 and will be pushing hard to deliver first gold as soon as possible. The Project has experienced some recent delays due to circumstances outside of the Companies control. These issues have now largely been resolved and construction is now full speed ahead.

All materials for the crusher and leach pad have been delivered to site and construction is now underway. Mining camp accommodation and restaurant has also been completed and commissioned.

Initial mining and prestrip was completed on the ATO1 deposit with ores being stockpiled for crushing. Mining will now recommence on completion of the ADR plant and final licensing.

The ADR plant fabrication has been completed and has been inspected by company representatives. The plant will now be mobilized to site for immediate construction and commissioning.

The Company will be pushing hard to achieve all objectives by late 2018, but warns that weather events and the onset of winter could possibly hamper the production of initial gold.

DRA Global has been appointed to manage and undertake a bankable feasibility study on the expansion of the ATO Gold Project to a 150,000oz gold per annum CIL gold silver operation. The study will be based on existing fresh rock ores at ATO1,2,4, in addition to the potential being seen at ATO4 - Mungu.

A selection of photos has been included below demonstrating activities on site

http://www.globenewswire.com/NewsRoom/AttachmentNg/a914f008-5723-41cb-ab19-98fa52e60c70

http://www.globenewswire.com/NewsRoom/AttachmentNg/e265e7bf-4c72-4b3d-ad0a-b88d0cfc58df

http://www.globenewswire.com/NewsRoom/AttachmentNg/c35c7572-4340-4cb0-9ee9-7a9573b6e664

http://www.globenewswire.com/NewsRoom/AttachmentNg/5d5b4f11-ceb5-4bed-83ef-01e6077a7797

                                                                                                               

ATO DRILLING

The Company has now completed a total of 126 drill holes for 17,892 meters since acquiring the project in late 2017. Exploration results have been excellent and the exploration team led by Enkhtuvshin Khisigsuren is congratulated.

The Stage 2 drilling program was recently completed with three diamond core drilling rigs completing a total of 9,006 meters. Results have now been received and are reported in this release. The program was highly successful and focused on the ATO4 end of the ATO4-Mungu mineralized trend. The Stage 3 drilling program will commence towards the end of the month and will again focus on the ATO4 – Mungu trend. Some additional oxide infill drilling will also be completed at the ATO2 to improve the current resource and mine model on that deposit.

The completion of the Stage 2 drilling program saw the identification of the first ever visible gold seen at ATO project, with super high gold grades being returned in ATO299 and ATO317. This is highly encouraging as the company further develops its understanding of the ATO Mungu epithermal system as more high grade zones are being identified.

The company has commissioned SRK consulting to complete a structural review of the ATO - Mungu epithermal system with a particular view on developing a better understanding of high grade mineralization. This is nearing completion and is expected to deliver significant gains to future drilling efforts.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/3fa8251c-a42f-4b78-8bab-c5f0c029dbe7

    

UUDAM KHUNDII GOLD PROJECT

The Company has had a very busy summer at the exciting Uudam Khundii Gold Project in the Bayankhongor gold province with some outstanding early results being returned. Soil sampling, rock chip sampling and geophysics has highlighted four new discoveries all of which will be further tested in the coming months with trenching and mapping prior to the commencement of initial drilling.

The largest of the new discoveries is the Altan Sum discovery which is a gold anomaly measuring approximately 3km x 0.5km with soil samples up to 289ppb gold and rock chips up to 1.38g/t gold.

Additional discoveries have been made at Golden Steppe discovery with a peak soil anomaly of 34ppb gold and rock chips up to 5.39g/t gold, the Blue Hills discovery with a peak soil anomaly of 38ppb gold and rock chips up to 1.37g/t gold and the Milky Way discovery with a peak soil anomaly of 82ppb gold and rock chips up to 2.04g/t gold

In total the Company has now completed 2,400km of ground magnetic surveys, 90.8km of IP Dipole-Dipole surveys, 8,427 soil samples and 346 rock chip samples.

ABOUT STEPPE GOLD

Steppe Gold is a precious metals exploration and development company with an aggressive growth strategy to build Steppe into the premier precious metals company in Mongolia. The Company owns 100% of the advanced staged Altan Tsaagan Ovoo Gold Project where resource expansion drilling and a heap leach development is currently underway. The Company also owns 80% of the exciting Uudam Khundii Gold Project where an active exploration program is underway and making new discoveries.

Matthew Wood, Executive Chairman said “Over the summer months the Company has experienced some delays too its development schedule from elements outside of the company’s control. These elements are now largely resolved and the Company is full speed ahead with the ATO mine development. Steppe Gold continues to receive very strong support for the development of the ATO Gold Project from federal, state and local stakeholders in Mongolia with the ATO mine already adding significantly to the local Soum and Dornod economy.

Steppe Gold is based in Mongolia with our head office in Ulaanbaatar. We are almost entirely staffed by Mongolians and are purely focused on developing precious metals in Mongolia. Mongolia is our home. We are extremely proud of the efforts our employees, contractors and consultants are making for shareholders and stakeholders in their efforts to sustainably develop and expand the gold sector in Mongolia. This is already creating increased employment and business opportunities as Steppe grows into the premier precious metals company in the country. Mongolia is open for business, pro mining development and one of the last great frontiers where giant mineral deposits can be found and developed.”

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/fe240b99-8bd3-4cdd-94ec-aa35a81ac62e

  
/s/ Oyungerel Bayanjargal

Oyungerel Bayanjargal
Independent Qualified Person
MAusIMM (CP)

Ms. Oyungerel (Gerlee) Bayanjargal has 25 years of experience in the Mongolian geology and mining environment and has also worked as a resource consultant at Snowden in Australia. Gerlee has specialized on gold and polymetallic deposits both hard rock and placer and estimated several gold deposits resources and reserves in Mongolia. Most recently she was the Chief Mine Geologist at Boroo Gold Mine where she had worked since 2004 for Centerra Gold Inc, a Canadian company. Gerlee has been involved with project reviews, exploration and mining for hard rock and alluvial gold deposits in Mongolia, Kirgizstan and Kazakhstan. 

The exploration activities and their related results included in this announcement were reviewed by Gerlee. According to Gerlee, all exploration and drilling work carried out to date on the Company’s projects mentioned in this release follow clear mining industry standards. 

Gerlee is a Principal Consultant for GSTATS Consulting LL. She is Deputy Chair of the MRC for the Mongolian Professional Institute of Geosciences and Mining. Gerlee is a Member of the Australian Institute Mining and Metallurgy and accredited as a Chartered Professional under the Discipline of Geology. She is also a Professional Engineer of Mongolia in discipline of Geology. Gerlee holds a Master of Science degree in Mineral Resource Exploration from The Netherlands and the Bachelor of Science degrees in Geology and Mathematics both from Mongolia.

RESOURCE DEFINITION DRILLING

LocationDrill HoleDepth, m From (m)To (m)Core
Length (m)
Au (g/t)Ag (g/t)
Pipe-4ATO-297254 4.8013.909.100.733.14
 21.0025.004.000.781.98
 30.5050.0019.501.585.82
 54.00117.0063.006.285.91
including71.0086.0015.0017.4810.94
including78.0079.001.00161.552.8
including94.30107.0012.707.676.52
Pipe-4ATO-298167 20.0039.7519.750.716.57
Pipe-4ATO-299392 35.2065.0029.801.2845.87
 70.00124.0054.006.174.48
 130.00167.7037.701.255.48
 233.00249.0016.001.519.42
including102.00106.004.0057.4814.85
including104.00105.001.0021249.3
Pipe-4ATO-300199 10.5030.0019.501.246.08
 33.50102.0068.504.386
including46.6550.003.3511.9111.73
including67.0071.004.0052.9224.4
including70.0071.001.0014052.6
Pipe-4ATO-301302 59.4080.0020.601.284.16
 89.00102.0013.006.075.96
 108.00150.0042.001.683.77
 216.55230.0013.452.618.62
including95.0097.002.0035.1520
including115.00125.0010.003.362.39
Pipe-4ATO-302161 8.2533.8025.551.334.48
including8.259.501.259.175.5
Pipe-4ATO-303169 3.7548.0044.251.37.16
including40.0041.001.0016.610.7
Pipe-4ATO-304271 6.0010.004.000.662.8
 20.0029.009.001.3611.05
 36.00180.00144.001.555.08
including61.0067.006.006.1812.65
including89.0096.007.009.5617.1
Pipe-4ATO-305158 6.6025.1518.550.7916.43
Pipe-4ATO-306443 48.8559.0010.150.674.26
 89.00127.0038.000.453.28
 141.00146.005.000.811.18
 253.00254.001.006.4917


LocationDrill HoleDepth, m From (m)To (m)Core
Length (m)
Au (g/t)Ag (g/t)
Pipe-4ATO-307452 75.00112.0037.001.293.44
 120.00158.0038.001.342.73
 171.00174.653.650.890.88
 179.95195.0015.052.786.6
 258.40262.504.102.731.9
including90.0098.008.004.047.15
including149.00154.005.003.333.32
including179.95187.007.055.519.54
including259.50261.502.004.6536.75
Pipe-4ATO-308407 97.00103.006.000.522.78
 166.25179.0012.751.092.41
including177.00179.002.004.581.75
Pipe-4ATO-309278 4.0093.0089.000.558.7
including52.0053.001.0010.711.7
Pipe-4ATO-310209 0.00101.70101.701.5330.43
including37.5052.0014.506.71138
including79.0080.001.0010.65183
 197.00198.001.000.5617.3
Pipe-4ATO-311272 31.50199.40167.900.364.06
including59.0070.0011.001.9411.7
 209.00210.001.000.317.9
Pipe-4ATO-312182 5.00101.0096.001.3235.13
including5.008.003.004.6615.03
including18.5021.503.004.710
including25.3026.301.004.0929.5
including34.0043.009.004.1913.54
including86.5087.551.052.2281.27
Pipe-4ATO-313200 83.65127.0043.351.753.43
including84.6593.008.354.466.81
including105.80107.802.003.822.75
including111.80113.802.003.93.25
including117.00118.001.003.226.1
 138.00157.0019.001.175.6
including139.00141.002.003.642.85
including152.00154.002.004.3610.6
Pipe-4ATO-314269 45.5099.5054.002.965.32
including47.5049.502.005.568.45
including51.5052.501.003.554
including69.5073.504.001714.25
including83.5092.609.105.757.01
 157.00163.006.000.974.96
including159.00160.001.002.0210.9
 186.00194.008.002.767.66


LocationDrill HoleDepth, m From (m)To (m)Core
Length (m)
Au (g/t)Ag (g/t)
   including191.00194.003.006113
 243.00245.002.001.5712
Pipe-4ATO-315137 9.0097.4088.401.5593.46
including14.0025.3011.306.25224.23
including38.0039.001.002.0794.9
including45.0049.004.002.32304
including77.0078.001.002.172.3
including87.0089.002.003.1257.9
Pipe-4ATO-316110 20.4033.0012.600.16123.4
 49.0058.009.000.42137.64
Pipe-4ATO-317506 0.002.202.200.672.08
 76.4582.005.550.354.77
 91.0097.206.201.0611.04
including92.0093.001.003.2611.9
 104.00106.002.000.392.75
 115.00116.001.000.81.6
 122.00124.002.000.391.1
 126.00131.205.200.370.6
 140.00155.0015.000.653.48
 164.00186.0022.0030.157
including166.00167.001.0018333.9
including182.00183.001.0038267.2
 204.00215.0011.001.432.39
including204.00205.001.002.67.7
including212.00213.001.0010.358.5
 307.00310.003.000.9843.23
 312.20313.451.250.778.12
Pipe-4ATO-318188 29.5084.3054.801.775.64
including45.0050.005.003.726.3
including55.0059.004.0012.9512.97
 96.4097.401.000.37.4
 113.40119.656.250.4110.62
Pipe-4ATO-319179 75.0076.001.000.678.3
 88.00108.0020.001.171.79
including89.0090.001.003.063.6
including94.9096.001.102.253.85
including97.0098.951.955.644.04
Pipe-5ATO-320242no significant intercepts     
Pipe-4ATO-321176 45.0046.001.000.72122
 71.6576.504.850.365.11
 82.2084.001.800.622.81
 87.0093.006.000.611.65
 100.00102.002.000.434.75


LocationDrill HoleDepth, m From (m)To (m)Core
Length (m)
Au (g/t)Ag (g/t)
    106.00123.0017.000.5921.2
 126.00127.201.200.336.5
 128.55143.0014.450.6834.52
Pipe-4ATO-322170 24.3031.006.700.5411.23
 42.00120.0078.002.5613.7
including56.0071.0015.0010.6728.73
Pipe-5ATO-323206no significant intercepts     
Pipe-4ATO-324173 34.0035.001.000.3424.2
 37.2038.401.200.4878
 64.0065.001.000.39102
 103.00104.001.000.4335.5
 108.00116.008.000.9641.01
Pipe-4ATO-325149 18.0020.152.150.519.93
 49.50113.0063.500.9777.95
including64.0066.002.002.44339.5
including75.0076.001.002.2206
including81.0082.001.002.0520.4
Pipe-4ATO-326341 100.00160.2560.252.55.38
including104.00108.004.004.3313.7
including121.00128.007.003.744.1
including138.00140.002.0012.088.7
including145.00152.007.007.1414.37
 171.50194.0022.500.432.35
 200.00201.001.000.4517.5
Pipe-2ATO-327251 0.007.007.000.863.45
including2.003.001.002.034.4
 12.0014.202.200.696.23
 23.9536.0012.050.614.67
 40.0042.002.002.044.65
including40.0041.001.003.776.8
 44.0048.004.000.99.4
 55.0056.001.000.599.8
 59.8561.801.950.357.05
 68.9072.003.100.7719.84
 75.0076.001.002.413
 79.4084.805.401.7929.75
including80.4081.501.102.2340.5
including83.7084.801.104.8752.7
Pipe-4ATO-328479 0.000.400.400.351.2
 4.505.501.001.376.7
 74.0075.001.000.555.2
 210.00211.001.003.783.8
 219.00220.001.001.795.1


LocationDrill HoleDepth, m From (m)To (m)Core
Length (m)
Au (g/t)Ag (g/t)
    236.95238.001.052.649.2
 429.90431.801.900.9838.64
Pipe-4ATO-329308 143.00144.001.000.321.3
 159.00160.001.000.341.5
Pipe-2ATO-330197 0.005.005.000.442.46
 14.0015.001.000.443.7
 41.0042.001.000.573.2
 65.0066.001.001.331.6
 114.00115.001.000.314.1
Pipe-2ATO-331200 2.154.001.850.732.27
 45.0046.001.000.331.7
 54.0056.002.000.748
 58.0060.002.001.384.4
 84.0086.002.002.8315.95
 120.50121.651.150.441.4
 126.60127.601.000.412.35
Pipe-2ATO-332209 2.0010.008.001.184.24
 14.0016.002.000.4510.5
 27.0028.001.000.556.4
 33.0035.002.000.371.45
 42.0044.002.000.887.15
 45.0046.001.000.637.1
 49.0051.002.000.572.75
 53.0055.002.000.371.25
 102.00103.001.000.472.3

Notes:

  1. Mineralized intervals are greater than 0.30 g/t Au.
  2. Higher grade sub-intervals are greater than 2.00 g/t Au.
  3. From-To intervals are measured from the drill collar.
  4. All intervals are reported as core length.
  5. Information provided is not a true thickness (or width).

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/26e886f7-0588-438a-8819-3544e1558ab4

   

CONTACT INFORMATION

THE COMPANY’S HEAD OFFICE:

Shangri-La office, Suite 1201, Olympic street 19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914
  

TORONTO OFFICE:

90 Adelaide Street. W, Suite 400 Toronto, ON M5H 3V9,
Canada
Tel: +1 647 697 0577
  

TRANSFER AGENT:

Lori Winchester
Senior Relationship Manager, Client Management

Phone: +1 416 607-7898
Cell: +1 416 671-4558
Email: lori.winchester@tmx.com

Steppe Image.png

Latest News
Top News