Steppe Gold

Overview

Steppe Gold (TSX:STGO) is a gold producer and precious metals explorer headquartered in Mongolia, with a global resource of 4.5 million ounces (Moz) gold equivalent, a leadership team with a strong track record in resource development, and a capital structure backed by industry leading investors.

The company owns the Altan Tsaagan Ovoo (ATO) and the Uudam Khundii (UK) gold projects, both in Mongolia, and the Tres Cruces gold project in Peru.

Steppe Gold commenced Phase 1 gold production at its 100 percent owned flagship ATO project in April 2020. The asset, which consists of four significant deposits including the high-grade Mungu deposit, has a current resource of more than 1.7 Moz gold equivalent, of which 1.32 Moz will be recovered in 14 years.

In January 2024, Steppe entered into an agreement to acquire Boroo Gold, a leading gold producer in Mongolia, with an average production of 60,000 oz per year with a mine life beyond 2030. Once complete, the acquisition will bring Steppe's Phase 1 annual gold production from 30,000 to 90,000 oz.

ATO's Phase 2 expansion project is fully funded, following a $150-million financing deal with the Trade and Development Bank of Mongolia. Commissioning and production for Phase 2 is expected to begin in the final quarter of 2025. With 1.23 Moz in gold equivalent resource to be recovered over 12 years, this second phase is expected to produce more than 100,000 oz of gold equivalent annually, generating $2.2 billion in revenue.

The UK gold project is a first-of-its-kind joint venture between Steppe Gold and the Bayankhongor Provincial Government, wherein Steppe Gold owns 80 percent of the 14,400-hectare property. Initial results from trenching at the Milky Way and the Altan Soum prospects highlighted a mineralized system of at least 700 meters in length and up to 12 meters wide with individual meter sampling results up to 1.49 grams per ton (g/t) gold, 450 g/t silver, 2.98 percent copper, 3.98 percent lead and 0.31 percent zinc.

Steppe Gold is continuing to assess a number of additional opportunities to acquire exploration licenses and mining projects across Mongolia, led by a management team with a track record of success in the country.

With an eye for opportunities beyond Mongolia, Steppe completed the acquisition of Anacortes Mining in 2023, which positions the company for more growth with the development of the high-grade Tres Cruces oxide project in Peru. The project is located approximately 10 kilometers from the Lagunas Norte mine. Total gold production at Tres Cruces is expected at 481,000 ounces over a 7-year mine life, with a US$158-million after-tax NPV (5 percent) at US$1,700, and after-tax IRR at 30.9 percent.

Company Highlights

• Precious metals producer based in Mongolia with a total resource of 4.5 Moz gold equivalent
• Currently in Phase 1 production at 100 percent owned ATO gold mine, and fully funded for Phase 2 expansion
• Game-changing 2024 acquisition of Boroo Gold, effectively increasing current production from 30,000 to 90,000 oz per year and making Steppe Gold one of the leading gold producers in Mongolia
• A joint venture partnership is in place for the UK project with the Mongolian government
• Management has a proven track record of success in Mongolia
• Following the acquisition of Anacortes Mining on June 28, 2023, Steppe Gold added the Tres Cruces gold project to its growing portfolio. PEA results for this project were announced in August 2023.
• Holds one of the largest exploration land packages in Mongolia and one of the world’s highest-grade deposits in Peru