Steppe Gold – Introduction To A Junior Gold Producer With Exploration Upside And Plans To Substantially Increase Production Growth

Aneel Waraich, Executive Vice President and Director of Steppe Gold Ltd (TSX: STGO) (OTCQX: STPGF), joins us for an expansive introduction to the companies 2 projects in Mongolia, the producing (AT0) Altan Tsagaan Ovoo Mine and (UK) Uudam Khundii Project, along with the newly acquired Tres Cruces gold development project located in Peru.


Aneel outlines how the company came together in Mongolia and acquired the ATO Gold Mine from Centerra Gold, and that they have worked the last 3 years getting the Phase 1 near-surface oxide heap-leach operations into production of around 35,000-40,000 ounces per annum.  The next big initiative for growth is the Phase 2 sulfide production expansion, where the Company recently updated it’s projection of ~103,000 ounces of gold production per annum, for a total of 14 years to 2036 at AISC of US ~$850.  There is still the potential to keep expanding the Phase 2 mine life, because some recent drill holes have already reported mineralization outside of the current mine plan.  Additionally, the exploration team is also targeting drilling for more nearby potential oxide mineralization which could also extend the Phase 1 mine life.


Next we shifted over to the companies other 2 projects, starting off with the earlier-stage UK Project, which is in a Joint Venture with the local provincial government, and adjacent to 2 other projects seeing great success in the area.   Then we pivoted over to the recent acquisition of Anacortes Mining and their Tres Cruces’ Gold Project in Peru; which already has defined about 2.5 million ounces of gold and robust PEA economics.   Both of these projects will get organically funded exploration work in the years to come, and have the potential if developed to eventually push the production profile up to over 200,000 ounces per annum. 


Aneel highlights the financial strength of the company, the alignment of management with shareholders as key shareholders themselves, along with the roster of key stakeholders in the company. The next key catalysts for the company will be the completion of the acquisition of Anacortes Mining, the debt financing deal to fund the balance of Phase 2 expansion at the ATO Mine, and ongoing exploration work at all 3 Projects.


If you have any questions for Aneel about Steppe Gold, then please email me @


  • In full disclosure, Shad is a shareholder of Steppe Gold.



    Jun 27, 2023 27:06 PM

    Steppe Gold Limited (TSX: STGO / OTCQX: STPGF) – Closing a Highly Accretive M&A

    May 25, 2023 – Fundamental Research Corp

    “Earlier this month, this company closed a C$12M equity financing. Eric Sprott invested $1M; this company’s CEO invested $2M, reflecting management’s positive outlook….”

    Jun 27, 2023 27:54 PM
    Jun 27, 2023 27:53 PM

    Wasn’t aware of this company before but like small producers. Aneel sounds energetic, enthusiastic with good info and ideas. Not crazy about Peru but those guys have a plan.

      Jun 27, 2023 27:11 PM

      Aneel is a plan man! DT

      Jun 27, 2023 27:57 PM

      I’ve been following Steppe gold since they made it into production a few years back, but initially just started with a position trade in it from late 2021 to spring of 2022 for a 40%+. I got more intrigued with it in later 2022 and established a new position in it again in late November during tax loss selling silly season, but the position is now underwater by 21%.

      My personal interest in it is that they fall into the “holy grail” category of a growth-oriented gold producer that can meaningfully increase production over the next few years from 40,000 to 100,000 and then to 200,000 ounces, and they have considerable exploration upside at all 3 projects.

      Other “holy grail” style gold producers with large production growth and big exploration upside that I’ve discussed in the past in my portfolio are Karora Resources, I-80 Gold Corp, Calibre Mining, Minera Alamos, Thor Exploration, Mako Mining, Argonaut Gold, Equinox Gold. We’ll see how it goes, but maybe Lion One will fit into that same category over time, as they have the potential to increase their mill size and production output once they go into production over the next year, and also have plenty of exploration upside like the others, but I want to see them get escape velocity first as they go from trial mining into commercial production by next year.

      Those are some of the holy grail gold producers I hold personally (I also hold other gold producers, that aren’t really in the same bucket like Orezone, Jaguar, and Galiano; but for more of a rerating higher in them and optionality to gold prices). There are other growth-oriented gold producers with big exploration upside that also look compelling that I’ve been considering…. Alamos Gold is a larger cap company, but still fits the description. Cerrado Gold is another with big growth plans organically within their own development pipeline. Golconda Gold is another, with a few projects and larger production growth 2+ years out. Aris Mining is somewhat in that category, but they’ve been mostly growing through acquisition, over organic growth, but they still have some of that in the mix as well.

      Regardless, I realize Mongolia and Peru are more challenging jurisdictions to work in, but so far the team at Steppe Gold seems to have good working relationships in Mongolia with local communities and the government, and I’m curious to see how that translates over to how they will work in South America in a different jurisdiction. While I consider those jurisdictions higher risk, the massive discount in valuation for a company with just under 5 million ounces of gold, a 40,000 ounce production profile moving towards 100,000+ in 2 years, and a market cap of just CAD $70 Million is quite compelling to me and worth taking the additional jurisdiction risk as it is way more than priced in at this point. There are drill plays with no resources proven up yet (much less generating production revenues) that are trading at many multiples of this stock, and single asset producers that don’t have such a compelling growth profile also trading at much higher valuations.

      A rerating higher in this over the next 2-3 years as they execute on Phase 2 sulfide production expansion at the ATO Mine is the primary mover. However, as Aneel mentioned the possibility of finding more ore at surface in other small pits to extend Phase 1 oxide production is another potential value driver. Hitting big and expanding the UK Project would be more bluesky upside. However, now that they are nearly done acquiring Anacortes Mining (any day now) and potentially developing the Tres Cruces’ project with Phase 1 oxide in maybe 2-3 years, would essentially double the production again, and be enough to substantially move the needle, even if gold prices flatlined here the whole time (which is not my expectation… because I expect significantly higher prices in the yellow metal in 2 years).

      Yes, it is a logical and well-reasoned “plan” as you both noted. Sure… not without risk, but few things that could be substantially revalued higher are without associated risk.

      Currently it’s a small bet I’ve made with Steppe Gold, but I’m considering raising my allocation to it to a medium-sized position weighting, which would improve my cost basis, and give me a more meaningful exposure to the potential journey it could go over the next few years.

      This is not investment advice or pumping. I’m simply sharing my investing thesis in STGO as a seemingly unloved and overlooked gold producer with big growth plans and they should have a fair bit of drilling going on over the next few years. If their plan doesn’t work out, then I’ll take appropriate action, but it is going to take 2 years to know how it goes. In the meantime the 5 million ounces of gold should offer some upside optionality as well. I’m willing to sit in this one for more of a long-dated value investing trade and see how it goes by 2025 and 2026, providing something substantial doesn’t change in the interim.

        Jun 28, 2023 28:07 AM

        LIO-Lion One Metals, Tuvatu gold mine construction is now 75% complete, due to open 4th quarter of 2023, all funding is currently in place. DT

          Jun 28, 2023 28:34 AM

          + 0.75 I love it when a plan comes together…

          So if Lion One start mining/processing in Q4 of this year, and have the typical 3-6 months ramping up to commercial production, then by this time next year we should know how the initial phase of mining is going at the 300 tpd initial small mining scenario.

          From that presser linked above:

          “Once complete, Lion One plans to operate the processing plant at an initial production capacity of 300 tonnes per day for the first 18 months of operations before increasing the capacity to 500 tonnes per day in mid-2025.”

          So, again, things can change with a mining company’s strategies and timelines, but it appears that they could go through a reasonable growth spurt between the initial 300 tpd and the eventual 500 tpd in 2 years. Nice!

            Jun 28, 2023 28:24 AM

            Do you know what is really N-I-C-E, I think they are bringing this mine into production the right way, unlike Pure Gold which made a lot of poor choices that saw them go bankrupt and hurt a lot of investors. I know it is hard to start up a mine let alone build one from scratch, but easy does it. Lion one looks like they are committed to reading the instructions first if you know what I mean. DT

            Jun 28, 2023 28:53 PM

            Yep, agreed. A gradual ramp-up, with a slow and steady wins the race approach, is preferred over the typical we need to get ramped up quick to pay back the mountain of debt accruing as fast as possible.

            Many companies trying to go into production are far too optimistic about things working as planned, when there is almost always some unforseen teething issues and hurtles to overcome that were not part of the plan. If they have too aggressive of a plan on ramping up production (like Pure Gold did) and then don’t get the grade, or metals recoveries, or have too much dilution like they subsequently did, then it really becomes an untenable position to be in racing against debt interest, and falling further and further behind.

            We have seen a few companies do things correctly lately though like both Thor Explorations and Silvercrest, that gave themselves enough wiggle room, were properly capitalized to get through any hiccups, and their operations teams executed much better than most. They really stand out amongst a string of messups right out of the gates like Harte Gold, Elevation Gold (initially Northern Vertex), Sage Gold, Red Eagle, Alexco, Pure Gold, etc… Hopefully Lion One emulates the former companies mentioned more than the latter ones…

    Jun 28, 2023 28:12 AM

    Mining Sector has moved from “no comment” to “taking the 5th”.

    Jun 28, 2023 28:58 AM

    (ITR) (ITRG) Integra Announces Maiden Preliminary Economic Assessment for Wildcat & Mountain View Projects: After-Tax NPV of US$310 Million and IRR of 37%

    28 Jun 2023

    Jun 28, 2023 28:57 AM

    Matthew just bought 50k shares IPT…hope you still have confidence in them…glta…it hit a large day ABC down at .175…

      Jun 28, 2023 28:37 PM

      As long as Matthew isn’t buying Florida Real Estate, I wouldn’t be too concerned. DT

      Jun 28, 2023 28:44 PM

      Larry, I couldn’t be more confident about IPT and have been a buyer almost every day lately. It’s in better financial shape now than when it traded at 1.25 a few years ago. In my opinion it’s like January 2016 again in terms of risk-reward.

        Jun 28, 2023 28:20 PM
        Jun 29, 2023 29:44 AM

        ok …nice to hear that Matthew… is my reason for buying…I actually cannot even get ipt.v at think or drown ….the listed ADR must do….I think if I wanted more shares …..The ADR functions by assigning those from Canadian shares to the ADR for purchase…So, I think getting into is easy but getting out probably is torture…lol…
        day ABC down clean…so,, see what the heck happens…glta

          Jun 29, 2023 29:36 PM

          I own Impact through both IPT and ISVLF and have many years of experience with both and prefer IPT but Impact is one of the better TSX-V companies to trade for those who can’t buy it through IPT. It moves as it should and usually has decent volume. When FOMO or fear are peaking it is much easier to get filled on terms you like as long as you’re selling fomo and buying fear. Otherwise the spreads caused by the market makers can be more than annoying.
          In 2016 IPT went up 1,060% while ISVLF gained 1,185%
          Following the crash of early 2020 IPT went 469% while ISVLF hit 532%
          The USDX fell less than 5% during each of those runs while the Canadian dollar gained around 10% in both cases so the differences in performance seems about right. More importantly respective volumes at the top were very similar with both topping 10 million shares during their 2 highest price prints.