Hugo North Extension

Rio Tinto Group / Entrée Resources Ltd.




2013 / 02 / 14




5.62% Au @ $220/oz; 5.62% Ag @ $5/oz; 0.42% Cu @ $0.50/lb

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 Rio Tinto Group 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 and

Recent Activity

    February 2024

    Entrée has released partial drill results from the 2022 drill program at the Hugo North Extension (HNE). The drill results demonstrate continuity of the significant copper and gold grades at the HNE deposit.
    Highlighted results include:

    • DDH UGD583A: 274 m grading 2.36% Cu and 0.73 g/t Au; and
    • DDH UGD586: 178 m grading 2.90% Cu and 0.96 g/t Au including 144 m grading 3.50% Cu and 1.07 g/t Au.

    In addition, Entrée reported that development work on Lift 1 Panel 1 underground infrastructure at the JV property is scheduled to commence in the second half of 2024. Panel 1 production is anticipated to commence in approximately 2027.

    November 2023

    Underground development at Oyu Tolgoi continued with a total of 72 Lift 1 drawbells opened from Panel Zero while the construction of the conveyor to surface approached 75% completion. In addition, in Q3 2023 the Entrée/Oyu Tolgoi JV approved a budget of ~$2.245 million for exploration on the JV property.

Use the link below to browse a list of available technical reports for the projects within Sandstorm’s portfolio. For the most up-to-date information on each project, please refer to the project operator or developer.

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