“We are very pleased to be back in production and to conclude our first gold pour and sale of the year,” CEO Bataa Tumur-Ochir said in a press release. “With approximately 80,000 ounces of gold in inventory, the ramp-up of production continues and we look forward to a year of very active production and strong cash flow, as well as expansion and exploration on our two licenses.

The ATO gold-silver mine is designed as a two-phase project, containing 26.4 million tonnes of proven and probable reserves grading 1.86 g/t gold equivalent, for approximately 1.58 million ounces. gold equivalent.

The Phase 1 oxide project commenced in 2020, producing a total of 33,000 oz. over two years. Phase 2 includes a 10.5-year expansion that will keep the operation running for a total of 12.5 years, with an expected start in January 2022.

This expansion project assumes the production of 100,000 oz. of gold equivalent per year from fresh rock ore. Gold recovery is expected to be 79%, with further recoveries of up to 10% from the CIP/CIL plant in subsequent years.

An October 2021 feasibility study shows that the ATO mining project is expected to generate $1.72 billion in revenue and more than $584 million in pre-tax profits, with a capex of $128 million and a payback period of three years.