“We are very pleased to be back in production and to conclude our first gold pour and sale for the year,” president and CEO Bataa Tumur-Ochir commented. “With an estimated 80,000 ounces of gold in inventory, ramp-up of production continues and we look forward to a very active year of production and strong cash flow, as well as expansion and exploration on both of our licenses.”
The ATO gold-silver mine is designed as a two-phased project, containing 26.4 million tonnes of proven and probable reserves grading 1.86 g/t gold-equivalent, for an estimated 1.58 million oz. of gold-equivalent.
The Phase 1 oxide project started in 2020, producing a total of 33,000 oz. over two years. Phase 2 encompasses a 10.5-year expansion that will keep the operation running for a total of 12.5 years, with a scheduled start of January 2022.
This expansion project assumes producing 100,000 oz. of gold-equivalent per year from the fresh rock ore. Gold recovery is forecast to be 79%, with further recoveries of up to 10% through CIP/CIL plant in later years.
An October 2021 feasibility study shows that the ATO mine project is estimated to generate $1.72 billion in revenue and over $584 million in earnings before taxes, with a capex of $128 million and a payback period of three years.
