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 Probable Mineral Reserve of 40.0 Mt at grades of 1.5% copper, 0.5 g/t gold and 3.6 g/t silver ($96.97/t NSR cut-off, May 15, 2021 effective date) and an Inclusive Indicated Mineral Resource of 120.0 Mt grading 1.7% copper, 0.6 g/t gold, 4.3 g/t silver or 2.0% CuEq (0.41% CuEq cut-off, March 31, 2021 effective date). For more information visit www.entreeresourcesltd.com and 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.