Steppe Gold Ltd (STGO)

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$STPGF $STGO Steppe Gold Files Updated Preliminary Economic Assessment for the Tres Cruces Oxide Gold Project

https://www.globenewswire.com/news-release/2023/08/21/2729084/0/en/Steppe-Gold-Files-Updated-Preliminary-Economic-Assessment-for-the-Tres-Cruces-Oxide-Gold-Project.html

ULAANBAATAR, Mongolia, Aug. 21, 2023 (GLOBE NEWSWIRE) -- Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) (“Steppe Gold” or the “Company”) is pleased to announce the filing of an updated preliminary economic assessment (the “Technical Report”) regarding its 100% owned Tres Cruces Oxide Gold Project located in Peru (“Tres Cruces”).

Chairman and CEO of Steppe Gold, Bataa Tumur-Ochir commented, “We are delighted to announce this updated technical study for the Tres Cruces project. Tres Cruces is strategically located in a highly prospective geological belt that hosts the Lagunas Norte and La Arena mines, both with multi-million ounce gold production. The Tres Cruces deposit contains oxide plus sulphide indicated resources of 2,474,000 ounces with a grade of 1.65 g/t gold, inclusive of 630,000 ounces contained within leachable gold oxide mineralization with a grade of 1.28 g/t gold. Located in the La Libertad, Peru, surrounded by operating mines with the attendant infrastructure and talent pool, this asset shows great potential as a new production zone for Steppe Gold. We are excited with the strong economics confirmed by recent drilling and metallurgical testing, as well as the exploration potential across the license area.”

TECHNICAL REPORT HIGHLIGHTS

Infill drilling completed in 2022 confirmed continuity of mineralization.
Metallurgical test work returned average recoveries of 82% Au, confirming design assumptions.
Construction costs escalated 4.5% based on market data to reflect inflationary pressures.
The initial capital expenditure estimate increased by $6 million to $131 million driven by equipment and labor costs.
Operating costs rose 3.6% due to consumables, reagents, contract mining services.
Life of mine operational expenditure estimate is now $297 million, up 3.6% from the Prelimary Economic Assessment dated effective March 14, 2022.
Operational expenditure per tonne processed is now estimated at $19.93/t.
At $1700/oz gold, the after-tax net present value is $158 million with 30.9% IRR.
Despite the cost increases, the project economics remain robust with significant upside potential.
Mine schedule unchanged with Phase 1 focused on maximizing value from the oxide gold cap.
Experienced team continues to systematically advance the oxide project.
Significant exploration potential remains with mineralization open at depth.