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Steppe Gold expects to produce 10.4Koz of gold in Mongolia in second quarter, eyes further production growth

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(Kitco News) - Mongolia-focused gold miner Steppe Gold (TSX: STGO) reported Monday that with one more pour to come on June 30, gold production for the month is expected to be around 3,200 oz, bringing total production for the second quarter to approximately 10,400 oz.

Importantly, the company said that Mongolian government is currently paying a 5% premium for gold and this will ensure an above-market achieved gold price in the quarter and strong operating cash flow for the quarter.

The company also confirmed new supplies of key reagents and consumables allowing it to build stockpiles at site.

“This in turn allows us to be more aggressive on leaching strategy, with more cells under active leach, allowing for acceleration of monthly production rates through the balance of 2022,” the company noted in a statement.

More importantly, Steppe Gold expects a significant uptick in the production rate in the third quarter with internal guidance around 15,000 oz for the quarter.

President and CEO Bataa Tumur-Ochir commented, "We are very pleased to report a strong quarter of production at the ATO gold mine as we restarted full operations. All activities at site are operating well and reagent and consumable stockpiles are building. Together with a strong inventory of ore we are optimistic of accelerating our production rate in the second half of 2022. Exploration drilling at the Uudam Khundii project is underway shortly and we are excited to see the results from this highly prospective deposit."

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