Steppe Gold Limited (TSX: STGO) – Development & Financing Update 1 rbc TSX Symbol: STGO Total Basic Shares O/S (M): 41.5 MATTHEW WOOD Chairman, President and CEO BATAA TUMUR-OCHIR Director and Executive Vice President Mongolia
Steppe Gold Limited (TSX: STGO) – Development & Financing Update
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rbc
TSX Symbol: STGO
Total Basic Shares O/S (M): 41.5
MATTHEW WOOD
Chairman, President and CEO
BATAA TUMUR-OCHIR
Director and Executive Vice President Mongolia
ANEEL WARAICH
Director and Executive Vice President
PATRICK MICHAELS
Director
DR. ZAMBA BATJARGAL
Director
LEWIS MARKS
Director
SHELDON VANDERKOOY
Director
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: [email protected]
1 US to Canada Exchange rate from XE.com as at April 24, 2019 (US$1 = C$1.34965)
Toronto, ON – Steppe Gold Limited (TSX: STGO) (the “Company” or “Steppe
Gold”) is pleased to provide an update on its progress in Mongolia.
The Company has been mining since November 2018 and has completed Phase I
mining with 230,000 tonnes mined. It is now moving rapidly to completion of the
ADR plant, ahead of first gold in H2 2019.
The majority of the capital expenditure has been incurred and the project remains
under budget. At April 1, 2019, the Company had approximately US$2.7m
(C$3.641) cash on hand. To ensure the Company is properly capitalized through to
production, the Company believes it to be prudent to strengthen the balance
sheet.
Accordingly, the Company announces t oday that it is conducting a non -brokered
private placement of a minimum of US$5.0m (C$6.75m) aggregate principal
amount of unsecured convertible debentures. This financing also allows Steppe
Gold to proceed with a summer exploration program on the ATO -4-Mungu trend
as well as the trenching and drilling program on the four discoveries made on our
highly prospective Uudam Khundii Project in Bayankhongor Province, in the south
west of the country.
The convertible debentures will bear interest from the date of closing at 10% per
annum, calculated and payable semi -annually in arrears and will mature on the
date that is three years from the date of issue. The convertible debentures will be
convertible at the option of the holder into common shares of the Company (the
“Common Shares”) at any time prior to maturity at a conversion price of C$0.90
per Common Share. The offering is subject to TSX approval and is expected to close
on or about May 24, 2019.
The Company can confirm that it has firm commitments for the private placement
from European investors for approximately US$5.0m (C$6.75m). This financing
keeps the Company fully funded into production.
Development Update
Mining and Crushing
The Company has now completed Phase I mining with a total of 230,000 tonnes
of ore and no waste being mined resulting in a zero strip ratio. The lack of waste
has been a considerable bonus to the Company as we have significantly higher
modelled gold grades on the Phase I mining program. Total mined gold grade for
the Phase I mining program was 2.3 g/t gold equating to approximately 17,000oz
of gold stacked on the pad for leaching. The Company is modelling a leach recovery
for gold of 70% which wo uld equate to approximately 12,000 oz of recoverable
gold on the pad and available for leaching.
CAPITALIZATION
BOARD OF DIRECTORS
TSX: STGO
April 29, 2019
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Leach Pad and Ponds
Cells 1 and 2 lining has now been completed. Initial ore stacking on cell 1 will continue for a further 10 days when Phase I ore
mined will all be crushed and stacked for leaching. Both barren and pregnant ponds have been lined and pumps will be
installed in the coming week. The storm water pond has also been completed and lined. The 800mm solution return pipe
and the 500mm irrigation pipes have been installed. The 300mm water bore pipe to the ponds will be completed in early-
mid May.
ADR Plant
The construction of the ADR facility building continues, with all steel installed and foundation concrete poured. Sandwich
panels and roofing panels are currently being installed. All ADR facility equipment is on site and is being installed with the
assistance of the manufacturer. Carbon columns, chemical mixing tanks and elution circuit platforms are now in place and
connection of facilities is now underway. The Company has now successfully completed and tested two water bores MTB03
and MTB04. MTB04 being 100 meters from the plant with a flow rate of 6.8 l/sec (facility requires 5.5 l/sec). MTB03
will be utilised as a backup bore and has a flow rate of 5.0l/sec.
“We are pleased with the progress the team continue s to make and are highly encouraged by the results of the Phase I
mining program,” said Matthew Wood, President and CEO of the Company . “The updates above as well as the upcoming
milestones bring us significantly closer to first gold production. The funds being raised in the current convertible debenture
are a vote of confidence in the team at Steppe Gold and the quality of our assets.”
A selection of photos has been included demonstrating activities on site:
ADR Plant in foreground, Cell 1 & 2 in background (right), ponds in background (left) – March 18, 2019
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ADR Plant, storm water, barren and impregnated ponds (back center), cell 1 & 2 (right) – April 25, 2019
… more overleaf …
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Storm water pond (left), barren and impregnated ponds (center), Cell 1 & 2 (right) – April 25, 2019
… more overleaf …
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Cell 1 & 2 – April 25, 2019
… more overleaf …
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ADR plant showing erected and installed carbon columns (background) – April 25, 2019
Qualified Person
Technical information in this press release not contained in the Technical Report has been reviewed and approved by
Enkhtuvshin Khishigsuren, Certified Professional Geologist from AIPG, certification number CPG -11964, Vice President of
Exploration, and a “qualified person” under NI 43-101.
ABOUT STEPPE GOLD LTD.
Steppe Gold is a precious metals development company with an aggressive growth strategy to build Steppe Gold
into the premier precious metals company in Mongolia. The Company owns 100% of the advanced staged Altan
Tsaagan Ovoo Gold Project where a heap leach development is currently being completed. The second
development phase of the ATO Project is the construction of an approximate 150,000oz per annum CIL operation
and this is currently subject to the completion of a feasibility study. The Company is also working on the completion
of a new resource for the ATO project which will include the new high grade Mungu Discovery.
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Cautionary Note Regarding Forward-Looking Statements:
The above contains forward -looking statements that are subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ materially from those anticipated in our
forward-looking statements. Factors that could cause such differences include: changes in world commodity
markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and
changes to regulations affecting the mining industry. Forward -looking statements in this release include, among
other things, statements regarding the trading of the Common Shares and business, economic, and political
conditions in Mongolia. Although we believe the expectations reflected in our forward -looking statements are
reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or
achievements. We disclaim any intention or obligati on to update or revise any forward -looking statements
whether as a result of new information, future events or otherwise, except as required by applicable law.