Steppe Gold Limited (TSX: STGO) –Development and Financing Update 1 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 and Financing Update
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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
BATKHUU BUDNYAM
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]
TORONTO, ON July 22, 2019 – Steppe Gold Limited (TSX: STGO) (the “Company”
or “Steppe Gold”) is extremely pleased to provide the following Development
Update and a f urther update on its previously announced private placement of
10% two-year unsecured convertible debentures.
DEVELOPMENT UPDATE
The Company is pleased to announce that it has completed the heap leach
development at its 100%-owned Altan Tsaagan Ovoo Gold Project.
Internal commissioning of the ADR plant has been satisfactorily completed and the
Company is now awaiting final cyanide permits before commencement of
irrigation and gold production.
Key recent milestones are set out below:
• The ADR plant has been fully installed and internal commissioning has
concluded satisfactorily.
• The ADR building has been substantially completed
with only minor cosmetic items to be installed.
• Barren and pregnant pond pumps have run continuously at required rates for
48 hours.
• All carbon columns have been tested for leakage under maximum flow of
300m3 for 48 hours.
• The regeneration kiln was run at a cycle time of 12hours at 800 degrees.
• The elution column was run at 150 degrees and 0.5 mpa with water for the
average 16 hour elution time.
• The electro winning cells were run at 3 volts, at amps of 600 for 14 continuous
hours.
• All agitators, sump pumps, general pumps, electrical boxes, start/stop
devices were tested for 12 hours successfully.
• All plant to ponds to heap leach piping has been tested to 300m3 per hour
• The chemical storage facility is substantially complete and ready for reagents.
• Crushing circuit is fully operational.
• Leach Cells 1 & 2 are completed and ready for additional crushed ore delivery.
The Company has been trial mining at ATO since November 2018 and completed
Phase I mining in the Spring with 230,000 tonnes mined at a grade of 2.3g/t gold
for approximately 17,000oz of gold. This has been crush ed and stacked on Cell 1
of the leach pad with leaching ready to commence. Mining is set to recommence
prior to the commencement of leaching. The Company expects to produce
approximately 40,000oz of gold per annum in the initial years of production from
the heap leach operation before the expected transition to an expanded circa
150,000oz per annum fresh rock crush and grind CIL operation, which is currently
subject to a new feasibility study.
CAPITALIZATION
BOARD OF DIRECTORS
TSX: STGO
July 22, 2019
Steppe Gold Limited (TSX: STGO) –Development and Financing Update
TSX: STGO
DEVELOPMENT AND F INANCING UPDATE
July 22, 2019
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The Company has three diamond core exploration drilling rigs on site at the ATO project and drilling will focus on resource
extensions at ATO1 and ATO4 as well as the high-grade gold discoveries at Mungu.
FINANCING UPDATE
With respect to the previously announced private placement (the “Offering”) of 10% two -year unse cured convertible
debentures (“Debentures”), as a result of higher investor interest, the Company now intends to accommodate additional
orders in an upsized further tranche of US$3.0 million, to close following receipt of shareholder and regulatory approvals.
The Offering is now projected to raise aggregate gross proceeds of US$8.4m in Debentures.
A Special Meeting of Shareholders has been set for August 23, 2019 to approve this second tranche.
“We are very pleased to complete our internal commissioning at the ADR plant, and now await the final cyanide
permits after which we will commence irrigation and gold production” said Matthew Wood, Chairman of the Company.
“We have built a high-quality heap leach development in around 12 months, and we are excited to see gold production
shortly. We are particularly grateful to our team and our strategic and government partners. Our oversubscribed
debenture offering is further evidence of the support for the team at Steppe Gold and the quality of our assets.”
A selection of photos has been included demonstrating activities on site:
Regeneration kiln.
Steppe Gold Limited (TSX: STGO) –Development and Financing Update
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Carbon columns and reagent mixing.
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Plant overview.
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Crusher.
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View of plant from barren pond.
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Irrigation emitters.
Steppe Gold Limited (TSX: STGO) –Development and Financing Update
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Main irrigation trunkline with the ADR plant in the background.