TSX Symbol: STGO Total Basic Shares O/S (M): 42.9 MATTHEW WOOD Chairman, President and CEO BATAA TUMUR-OCHIR Director and Vice President Mongolia ANEEL WARAICH Director and Executive Vice President PATRICK MICHAELS Director
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TSX Symbol: STGO
Total Basic Shares O/S (M): 42.9
MATTHEW WOOD
Chairman, President and CEO
BATAA TUMUR-OCHIR
Director and 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]
Toronto, ON – 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.
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.
CAPITALIZATION
BOARD OF DIRECTORS
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September 12, 2018
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➢ 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 0.5 km
with soil samples up to 289 ppb gold and rock chips up to 1.38g/t gold.
Visible Gold in drill core from ATO299
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 experience d 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.
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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
Pre-Stripping of ATO1 Deposit Crusher Construction Site
Crusher Construction Site Crusher Footings Being Installed
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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.
Diamond core drilling at the ATO 4 – Mungu Trend
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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.”
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Panoramic view of camp and firebreak
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.
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RESOURCE DEFINITION DRILLING
Location Drill Hole Depth, m From (m) To (m) Core
Length (m) Au (g/t) Ag (g/t)
Pipe-4 ATO-297 254
4.80 13.90 9.10 0.73 3.14
21.00 25.00 4.00 0.78 1.98
30.50 50.00 19.50 1.58 5.82
54.00 117.00 63.00 6.28 5.91
including 71.00 86.00 15.00 17.48 10.94
including 78.00 79.00 1.00 161.5 52.8
including 94.30 107.00 12.70 7.67 6.52
Pipe-4 ATO-298 167 20.00 39.75 19.75 0.71 6.57
Pipe-4 ATO-299 392
35.20 65.00 29.80 1.28 45.87
70.00 124.00 54.00 6.17 4.48
130.00 167.70 37.70 1.25 5.48
233.00 249.00 16.00 1.51 9.42
including 102.00 106.00 4.00 57.48 14.85
including 104.00 105.00 1.00 212 49.3
Pipe-4 ATO-300 199
10.50 30.00 19.50 1.24 6.08
33.50 102.00 68.50 4.38 6
including 46.65 50.00 3.35 11.91 11.73
including 67.00 71.00 4.00 52.92 24.4
including 70.00 71.00 1.00 140 52.6
Pipe-4 ATO-301 302
59.40 80.00 20.60 1.28 4.16
89.00 102.00 13.00 6.07 5.96
108.00 150.00 42.00 1.68 3.77
216.55 230.00 13.45 2.61 8.62
including 95.00 97.00 2.00 35.15 20
including 115.00 125.00 10.00 3.36 2.39
Pipe-4 ATO-302 161 8.25 33.80 25.55 1.33 4.48
including 8.25 9.50 1.25 9.17 5.5
Pipe-4 ATO-303 169 3.75 48.00 44.25 1.3 7.16
including 40.00 41.00 1.00 16.6 10.7
Pipe-4 ATO-304 271
6.00 10.00 4.00 0.6 62.8
20.00 29.00 9.00 1.36 11.05
36.00 180.00 144.00 1.55 5.08
including 61.00 67.00 6.00 6.18 12.65
including 89.00 96.00 7.00 9.56 17.1
Pipe-4 ATO-305 158 6.60 25.15 18.55 0.79 16.43
Pipe-4 ATO-306 443
48.85 59.00 10.15 0.67 4.26
89.00 127.00 38.00 0.45 3.28
141.00 146.00 5.00 0.81 1.18
253.00 254.00 1.00 6.49 17
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Location Drill Hole Depth, m From (m) To (m) Core
Length (m) Au (g/t) Ag (g/t)
Pipe-4 ATO-307 452
75.00 112.00 37.00 1.29 3.44
120.00 158.00 38.00 1.34 2.73
171.00 174.65 3.65 0.89 0.88
179.95 195.00 15.05 2.78 6.6
258.40 262.50 4.10 2.7 31.9
including 90.00 98.00 8.00 4.04 7.15
including 149.00 154.00 5.00 3.33 3.32
including 179.95 187.00 7.05 5.51 9.54
including 259.50 261.50 2.00 4.65 36.75
Pipe-4 ATO-308 407
97.00 103.00 6.00 0.52 2.78
166.25 179.00 12.75 1.09 2.41
including 177.00 179.00 2.00 4.58 1.75
Pipe-4 ATO-309 278 4.00 93.00 89.00 0.55 8.7
including 52.00 53.00 1.00 10.7 11.7
Pipe-4 ATO-310 209
0.00 101.70 101.70 1.53 30.43
including 37.50 52.00 14.50 6.71 138
including 79.00 80.00 1.00 10.65 183
197.00 198.00 1.00 0.56 17.3
Pipe-4 ATO-311 272
31.50 199.40 167.90 0.36 4.06
including 59.00 70.00 11.00 1.94 11.7
209.00 210.00 1.00 0.31 7.9
Pipe-4 ATO-312 182
5.00 101.00 96.00 1.32 35.13
including 5.00 8.00 3.00 4.66 15.03
including 18.50 21.50 3.00 4.7 10
including 25.30 26.30 1.00 4.09 29.5
including 34.00 43.00 9.00 4.19 13.54
including 86.50 87.55 1.05 2.22 81.27
Pipe-4 ATO-313 200
83.65 127.00 43.35 1.75 3.43
including 84.65 93.00 8.35 4.46 6.81
including 105.80 107.80 2.00 3.82 2.75
including 111.80 113.80 2.00 3.9 3.25
including 117.00 118.00 1.00 3.22 6.1
138.00 157.00 19.00 1.17 5.6
including 139.00 141.00 2.00 3.64 2.85
including 152.00 154.00 2.00 4.36 10.6
Pipe-4 ATO-314 269
45.50 99.50 54.00 2.96 5.32
including 47.50 49.50 2.00 5.56 8.45
including 51.50 52.50 1.00 3.55 4
including 69.50 73.50 4.00 17 14.25
including 83.50 92.60 9.10 5.75 7.01
157.00 163.00 6.00 0.97 4.96
including 159.00 160.00 1.00 2.02 10.9
186.00 194.00 8.00 2.7 67.66