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Altan Tsagaan Ovoo “ATO” Gold Mine

The Altan Tsagaan Ovoo gold and silver project (the “ATO Project”) is located in the territory of Tsagaan Ovoo soum, Dornod province of Eastern Mongolia.  The ATO Project is comprised of one mining licence (MV-017111) over an area of 5,492.63 hectares.

The Technical Report dated October 4, 2017 proposed a development plan for an open-pit heap leach operation at the ATO Project estimated to produce 146,699 ounces of Au and 672,518 ounces Ag over the project period at an attractive total capital cost of US$19.6 million and total operating cost of US$48.8 million over the project period.

NI 43-101 compliant 1.22 Moz Au Eq resources (M&I)


Phase I – Open pit, heap leach mine fully completed and commissioned.
Successfully tested and operated the ADR plant.


Low-opex, high-margin oxide heap leach gold and silver production.
Cash cost per ounce: US$550


Mined, crushed and stacked ~ 400,000t of ore at 2.13g/t gold on the leach pad.
Leaching starts in Q1 and ~60koz projected to produce in 2020.


Heap leach economics

Leveraging HL cash flow to scale operations

  • 2020 cash flow – 60k oz of gold on HL should generate $40m + of EBITDA
  • Similar free cash flow before capex in 2021 and 2022
  • 2020 cash flow to be reinvested in exploration at ATO, and to start the planning for Phase 2
  • Expected to start construction for Phase 2 – 2021/2022
  • CIL plant and associated capex – around $100m in capex, project finance structure
  • Project finance partners being identified and EPC groups being interviewed in 2020
  • Limited equity component required – supported by cash flow and profitability at Phase 1

ATO – Phase 2 Expansion case economics


  • Phase 1 oxides 2020-2023
  • Phase 2 first full year of production is 2024
  • Capex is $100m, financed at 70% with project debt
  • Conservative estimates on capex, opex and grade
  • AISC Life of mine – $650

Strong cash flow and exploration upside

  • Strong cash flow from HL will support rapid expansion and construction of Phase 2
  • 2020 – EBITDA of $40m+
  • 2021/2022 – construction of Phase 2 – CIL, power plant, HL continues
  • 2023/24 – 100-150k oz production and incremental operating cash flow
  • Expect significant catalysts in 2020 resource and value:
    • Oxide and sulphide zones as exploration drilling continues
    • Bankable FS completed
    • The ATO District is further interpreted