The Hugo North Extension is a rich copper-gold porphyry deposit in southern Mongolia and forms the northern-most extension of the Oyu Tolgoi mining complex. The property is managed by Oyu Tolgoi LLC (OTLLC), a subsidiary of Turquoise Hill Resources and the Government of Mongolia. Sandstorm acquired gold, silver and copper streams over the Hugo North Extension from Entrée Resources Ltd. Entrée has a 20% joint venture interest with OTLLC on the Hugo North Extension property.
Four deposits have been identified in the mineral resources at Oyu Tolgoi: Oyut, Hugo North, Hugo South, and Heruga. In the initial years of production the main source of ore has been from the Oyut open pit and while the pit is being mined, underground infrastructure and block cave mine development is ongoing at Hugo North. Conventional crushing, grinding, and flotation circuits process the ore and the concentrates produced are sent to smelters in China.
The Hugo North Extension has a December 2020 Probable Mineral Reserve of 38 Mt at grades of 1.6% copper, 0.5 g/t gold and 3.7 g/t silver and an Exclusive Indicated Mineral Resource of 87 Mt grading 1.6% copper, 0.5 g/t gold and 4.1 g/t silver (0.41% CuEq cut-off). For more information visit www.turquoisehill.com.
Turquoise Hill reported that during the second quarter, underground and lateral development progressed by 3.2 km and 2.4 km respectively.
The results of a Feasibility Study based on the Mineral Reserves attributable to the Entrée/Oyu Tolgoi JV from Lift 1 of the Hugo North Ext. underground block cave were released.