Steppe Gold (TSX: STGO) is on track to produce 60,000 oz. gold this year at cash costs of US$500 per oz. from its heap leach mine in Mongolia, after starting ore processing on March 25.
The junior has mined, crushed and stacked 533,000 tonnes of mineralized material at a grade of 2 grams gold per tonne on its leach pad at the mine, 660 km east of Ulaanbaatar.
Steppe Gold is completing a feasibility study on expanding the open-pit mine to 150,000 oz. gold per year.
Earlier this year, the company reported that it was the first company to receive funding from the Mongolian National Investment Fund, which subscribed for a 12% two-year secured convertible debenture in the principal amount of US$3 million.
The fund is managed by DBM Asset Management, a wholly owned subsidiary of the state-owned Development Bank of Mongolia.
The junior acquired the ATO project in January 2017 from Centerra Gold (TSX: CG).
Centerra had spent over US$25 million on exploration and studies on the epithermal gold and polymetallic deposit, including 67,000 metres of drilling and 28,000 metres of trenching. In addition, it had obtained all the major permitting for a 30-year mining licence.
Over the last year, Steppe Gold has traded within a range of 59 ? and $1.14 per share and at press time was at 76 ?.
The company has 46 million common shares outstanding for a $35-million market capitalization.